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 Office) (Zip Code)
Registrant’s Telephone Number, including Area Code: (800) 228-1872
(Name and Address of Agent for Service)
James T. Gillespie, President
Sterling Capital Funds
434 Fayetteville St., Suite 500
Raleigh, NC 27601
Date of fiscal year end: September 30
Date of reporting period: September 30, 2024
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. | Report to Stockholders. |
0000889284scf:C000156996Member2019-09-300000889284scf:C000009852Memberoef:WithoutSalesLoadMember2019-10-012024-09-30
Sterling Capital Behavioral International Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Behavioral International Equity Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its benchmark, the Bloomberg Developed Markets ex North America Large and Mid-Cap Index. 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 momentum strategy, which targets upward-trending stocks, contributed significantly to absolute returns.
The Fund’s exposure to value, a key pillar of its investment strategy, detracted from relative returns. Value factor investing is designed to capitalize on the tendency of cheap stocks to outperform expensive stocks. During the period under review, cheap stocks and expensive stocks performed similarly. The momentum strategy, however, boosted relative returns. The Fund’s bias toward upward-trending stocks captured more upside from generally rising stock prices than the benchmark did.
How did the Fund perform since its inception on December 1, 2014?
For the period since its inception, the Fund underperformed its benchmark. The Fund’s overweight exposure to both value and momentum stocks detracted from absolute returns since inception.
The Fund’s underweight position in the technology sector, coupled with poor stock selection within the sector, was the largest drag on relative returns, as technology stocks outperformed generally and the Fund’s technology stocks underperformed the sector. Another significant detractor was the Fund’s overweight position in the financial sector, coupled with poor stock selection within the sector, as financial stocks underperformed generally and the Fund’s financial stocks underperformed the sector.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $101 | 0.91% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Behavioral International Equity Fund - A | Bloomberg Developed Markets ex N America Large & Mid Cap Index |
|---|
| Nov-2014 | $9,425 | $10,000 |
| Sep-2015 | $8,712 | $9,144 |
| Sep-2016 | $9,342 | $9,718 |
| Sep-2017 | $11,508 | $11,577 |
| Sep-2018 | $11,339 | $11,893 |
| Sep-2019 | $10,350 | $11,735 |
| Sep-2020 | $9,133 | $11,785 |
| Sep-2021 | $11,275 | $14,840 |
| Sep-2022 | $8,524 | $11,138 |
| Sep-2023 | $11,297 | $14,003 |
| Sep-2024 | $13,774 | $17,488 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (November 28, 2014) |
|---|
| Sterling Capital Behavioral International Equity Fund - A | | | |
| Without Load | 21.92% | 5.88% | 3.93% |
| With Load* | 14.88% | 4.63% | 3.31% |
| Bloomberg Developed Markets ex N America Large & Mid Cap Index | 24.89% | 8.31% | 5.85% |
The Bloomberg Developed Markets ex N. America Large & Mid Cap Index is a float market-cap-weighted equity benchmark that covers 85% market cap of the measured market.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Behavioral International Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$134,051,133
- Number of Portfolio Holdings109
- Advisory Fee (net of waivers)$442,227
- Portfolio Turnover78%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.7% |
| Real Estate | 1.7% |
| Utilities | 3.3% |
| Energy | 4.9% |
| Information Technology | 5.4% |
| Communication Services | 5.7% |
| Materials | 7.4% |
| Consumer Staples | 8.0% |
| Consumer Discretionary | 9.6% |
| Health Care | 12.6% |
| Industrials | 17.4% |
| Financials | 22.4% |
| Other Assets in Excess of Liabilities | 0.9% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.2% |
| Money Market Funds | 0.8% |
On November 20, 2024, the Board of Trustees of Sterling Capital Funds approved the liquidation of the Sterling Capital Behavioral International Equity Fund. The liquidation is expected to occur on or about January 24, 2025.
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Behavioral International Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Behavioral International Equity Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its benchmark, the Bloomberg Developed Markets ex North America Large and Mid-Cap Index. 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 momentum strategy, which targets upward-trending stocks, contributed significantly to absolute returns.
The Fund’s exposure to value, a key pillar of its investment strategy, detracted from relative returns. Value factor investing is designed to capitalize on the tendency of cheap stocks to outperform expensive stocks. During the period under review, cheap stocks and expensive stocks performed similarly. The momentum strategy, however, boosted relative returns. The Fund’s bias toward upward-trending stocks captured more upside from generally rising stock prices than the benchmark did.
How did the Fund perform since its inception on December 1, 2014?
For the period since its inception, the Fund underperformed its benchmark. The Fund’s overweight exposure to both value and momentum stocks detracted from absolute returns since inception.
The Fund’s underweight position in the technology sector, coupled with poor stock selection within the sector, was the largest drag on relative returns, as technology stocks outperformed generally and the Fund’s technology stocks underperformed the sector. Another significant detractor was the Fund’s overweight position in the financial sector, coupled with poor stock selection within the sector, as financial stocks underperformed generally and the Fund’s financial stocks underperformed the sector.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $182 | 1.65% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Behavioral International Equity Fund - C | Bloomberg Developed Markets ex N America Large & Mid Cap Index |
|---|
| Nov-2014 | $10,000 | $10,000 |
| Sep-2015 | $9,197 | $9,144 |
| Sep-2016 | $9,784 | $9,718 |
| Sep-2017 | $11,955 | $11,577 |
| Sep-2018 | $11,695 | $11,893 |
| Sep-2019 | $10,590 | $11,735 |
| Sep-2020 | $9,276 | $11,785 |
| Sep-2021 | $11,358 | $14,840 |
| Sep-2022 | $8,527 | $11,138 |
| Sep-2023 | $11,218 | $14,003 |
| Sep-2024 | $13,581 | $17,488 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (November 28, 2014) |
|---|
| Sterling Capital Behavioral International Equity Fund - C | 21.06% | 5.10% | 3.16% |
| Bloomberg Developed Markets ex N America Large & Mid Cap Index | 24.89% | 8.31% | 5.85% |
The Bloomberg Developed Markets ex N. America Large & Mid Cap Index is a float market-cap-weighted equity benchmark that covers 85% market cap of the measured market.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Behavioral International Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$134,051,133
- Number of Portfolio Holdings109
- Advisory Fee (net of waivers)$442,227
- Portfolio Turnover78%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.7% |
| Real Estate | 1.7% |
| Utilities | 3.3% |
| Energy | 4.9% |
| Information Technology | 5.4% |
| Communication Services | 5.7% |
| Materials | 7.4% |
| Consumer Staples | 8.0% |
| Consumer Discretionary | 9.6% |
| Health Care | 12.6% |
| Industrials | 17.4% |
| Financials | 22.4% |
| Other Assets in Excess of Liabilities | 0.9% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.2% |
| Money Market Funds | 0.8% |
On November 20, 2024, the Board of Trustees of Sterling Capital Funds approved the liquidation of the Sterling Capital Behavioral International Equity Fund. The liquidation is expected to occur on or about January 24, 2025.
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Behavioral International Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Behavioral International Equity Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its benchmark, the Bloomberg Developed Markets ex North America Large and Mid-Cap Index. 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 momentum strategy, which targets upward-trending stocks, contributed significantly to absolute returns.
The Fund’s exposure to value, a key pillar of its investment strategy, detracted from relative returns. Value factor investing is designed to capitalize on the tendency of cheap stocks to outperform expensive stocks. During the period under review, cheap stocks and expensive stocks performed similarly. The momentum strategy, however, boosted relative returns. The Fund’s bias toward upward-trending stocks captured more upside from generally rising stock prices than the benchmark did.
How did the Fund perform since its inception on December 1, 2014?
For the period since its inception, the Fund underperformed its benchmark. The Fund’s overweight exposure to both value and momentum stocks detracted from absolute returns since inception.
The Fund’s underweight position in the technology sector, coupled with poor stock selection within the sector, was the largest drag on relative returns, as technology stocks outperformed generally and the Fund’s technology stocks underperformed the sector. Another significant detractor was the Fund’s overweight position in the financial sector, coupled with poor stock selection within the sector, as financial stocks underperformed generally and the Fund’s financial stocks underperformed the sector.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $67 | 0.60% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Behavioral International Equity Fund - R6 | Bloomberg Developed Markets ex N America Large & Mid Cap Index |
|---|
| Nov-2014 | $10,000 | $10,000 |
| Sep-2015 | $9,264 | $9,144 |
| Sep-2016 | $9,940 | $9,718 |
| Sep-2017 | $12,272 | $11,577 |
| Sep-2018 | $12,130 | $11,893 |
| Sep-2019 | $11,101 | $11,735 |
| Sep-2020 | $9,826 | $11,785 |
| Sep-2021 | $12,155 | $14,840 |
| Sep-2022 | $9,222 | $11,138 |
| Sep-2023 | $12,254 | $14,003 |
| Sep-2024 | $14,995 | $17,488 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (January 31, 2018) |
|---|
| Sterling Capital Behavioral International Equity Fund - R6 | 22.37% | 6.20% | 1.72% |
| Bloomberg Developed Markets ex N America Large & Mid Cap Index | 24.89% | 8.31% | 4.94% |
The Bloomberg Developed Markets ex N. America Large & Mid Cap Index is a float market-cap-weighted equity benchmark that covers 85% market cap of the measured market.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Behavioral International Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$134,051,133
- Number of Portfolio Holdings109
- Advisory Fee (net of waivers)$442,227
- Portfolio Turnover78%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.7% |
| Real Estate | 1.7% |
| Utilities | 3.3% |
| Energy | 4.9% |
| Information Technology | 5.4% |
| Communication Services | 5.7% |
| Materials | 7.4% |
| Consumer Staples | 8.0% |
| Consumer Discretionary | 9.6% |
| Health Care | 12.6% |
| Industrials | 17.4% |
| Financials | 22.4% |
| Other Assets in Excess of Liabilities | 0.9% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.2% |
| Money Market Funds | 0.8% |
On November 20, 2024, the Board of Trustees of Sterling Capital Funds approved the liquidation of the Sterling Capital Behavioral International Equity Fund. The liquidation is expected to occur on or about January 24, 2025.
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Behavioral International Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institiutional (SBIIX)
This annual shareholder report contains important information about Sterling Capital Behavioral International Equity Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its benchmark, the Bloomberg Developed Markets ex North America Large and Mid-Cap Index. 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 momentum strategy, which targets upward-trending stocks, contributed significantly to absolute returns.
The Fund’s exposure to value, a key pillar of its investment strategy, detracted from relative returns. Value factor investing is designed to capitalize on the tendency of cheap stocks to outperform expensive stocks. During the period under review, cheap stocks and expensive stocks performed similarly. The momentum strategy, however, boosted relative returns. The Fund’s bias toward upward-trending stocks captured more upside from generally rising stock prices than the benchmark did.
How did the Fund perform since its inception on December 1, 2014?
For the period since its inception, the Fund underperformed its benchmark. The Fund’s overweight exposure to both value and momentum stocks detracted from absolute returns since inception.
The Fund’s underweight position in the technology sector, coupled with poor stock selection within the sector, was the largest drag on relative returns, as technology stocks outperformed generally and the Fund’s technology stocks underperformed the sector. Another significant detractor was the Fund’s overweight position in the financial sector, coupled with poor stock selection within the sector, as financial stocks underperformed generally and the Fund’s financial stocks underperformed the sector.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $73 | 0.66% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Behavioral International Equity Fund - I | Bloomberg Developed Markets ex N America Large & Mid Cap Index |
|---|
| Nov-2014 | $10,000 | $10,000 |
| Sep-2015 | $9,264 | $9,144 |
| Sep-2016 | $9,940 | $9,718 |
| Sep-2017 | $12,272 | $11,577 |
| Sep-2018 | $12,119 | $11,893 |
| Sep-2019 | $11,096 | $11,735 |
| Sep-2020 | $9,804 | $11,785 |
| Sep-2021 | $12,143 | $14,840 |
| Sep-2022 | $9,196 | $11,138 |
| Sep-2023 | $12,232 | $14,003 |
| Sep-2024 | $14,948 | $17,488 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (November 28, 2014) |
|---|
| Sterling Capital Behavioral International Equity Fund - I | 22.20% | 6.14% | 4.17% |
| Bloomberg Developed Markets ex N America Large & Mid Cap Index | 24.89% | 8.31% | 5.85% |
The Bloomberg Developed Markets ex N. America Large & Mid Cap Index is a float market-cap-weighted equity benchmark that covers 85% market cap of the measured market.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Behavioral International Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institiutional (SBIIX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$134,051,133
- Number of Portfolio Holdings109
- Advisory Fee (net of waivers)$442,227
- Portfolio Turnover78%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.7% |
| Real Estate | 1.7% |
| Utilities | 3.3% |
| Energy | 4.9% |
| Information Technology | 5.4% |
| Communication Services | 5.7% |
| Materials | 7.4% |
| Consumer Staples | 8.0% |
| Consumer Discretionary | 9.6% |
| Health Care | 12.6% |
| Industrials | 17.4% |
| Financials | 22.4% |
| Other Assets in Excess of Liabilities | 0.9% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.2% |
| Money Market Funds | 0.8% |
On November 20, 2024, the Board of Trustees of Sterling Capital Funds approved the liquidation of the Sterling Capital Behavioral International Equity Fund. The liquidation is expected to occur on or about January 24, 2025.
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Behavioral Large Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Behavioral Large Cap Value Equity Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its primary benchmark, the Russell 1000® Value Index, and underperformed its broader benchmark, the Russell 3000® Index. 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 momentum strategy, which targets upward-trending stocks, contributed significantly to absolute returns.
That same momentum strategy also boosted relative returns. The Fund’s bias toward upward-trending stocks captured more upside from generally rising stock prices than the benchmark did.
The Fund’s exposure to value, a key pillar of its investment strategy, detracted from relative returns. Value factor investing is designed to capitalize on the tendency of cheap stocks to outperform expensive stocks. During the period under review, cheap stocks and expensive stocks performed similarly.
The Fund underperformed its broader benchmark in the 12-month period because of the Fund’s below-benchmark exposure to growth stocks, which outperformed during the period.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014 and September 30, 2024, the Fund underperformed both of its benchmarks. The Fund’s overweight exposure to both value and momentum stocks was a key driver of absolute and relative returns during the period. This was a product of the Fund’s investment strategy, which includes a bias toward cheaper stocks and upward-trending stocks, both of which underperformed in the large-cap space.
The Fund’s under performance of its broader benchmark in the 10-year period was driven by its underweight exposure to growth stocks, which outperformed during the period.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $116 | 1.00% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Behavioral Large Cap Value Equity Fund - A | Russell 3000® Total Return Index | Russell 1000® Value Index | Bloomberg US 1000 Value Index |
|---|
| Sep-2014 | $9,426 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $9,161 | $9,951 | $9,558 | $9,584 |
| Sep-2016 | $9,954 | $11,440 | $11,105 | $11,107 |
| Sep-2017 | $11,839 | $13,579 | $12,785 | $13,049 |
| Sep-2018 | $13,126 | $15,967 | $13,993 | $14,410 |
| Sep-2019 | $12,819 | $16,433 | $14,553 | $14,710 |
| Sep-2020 | $11,645 | $18,898 | $13,822 | $13,603 |
| Sep-2021 | $16,023 | $24,921 | $18,661 | $18,993 |
| Sep-2022 | $14,447 | $20,528 | $16,540 | $17,429 |
| Sep-2023 | $16,820 | $24,729 | $18,929 | $20,042 |
| Sep-2024 | $22,114 | $33,432 | $24,183 | $25,373 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Behavioral Large Cap Value Equity Fund - A | | | |
| Without Load | 31.47% | 11.52% | 8.90% |
| With Load | 23.91% | 10.21% | 8.26% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell 1000® Value Index | 27.76% | 10.69% | 9.23% |
| Bloomberg US 1000 Value Index | 26.59% | 11.52% | 9.76% |
The 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.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Behavioral Large Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$36,817,547
- Number of Portfolio Holdings109
- Advisory Fee (net of waivers)$142,255
- Portfolio Turnover99%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.7% |
| Materials | 3.6% |
| Real Estate | 5.3% |
| Communication Services | 5.6% |
| Energy | 5.8% |
| Utilities | 5.9% |
| Consumer Discretionary | 7.9% |
| Information Technology | 8.9% |
| Consumer Staples | 9.1% |
| Industrials | 11.6% |
| Health Care | 13.7% |
| Financials | 21.9% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.3% |
| Money Market Funds | 0.7% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Behavioral Large Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Behavioral Large Cap Value Equity Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its primary benchmark, the Russell 1000® Value Index, and underperformed its broader benchmark, the Russell 3000® Index. 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 momentum strategy, which targets upward-trending stocks, contributed significantly to absolute returns.
That same momentum strategy also boosted relative returns. The Fund’s bias toward upward-trending stocks captured more upside from generally rising stock prices than the benchmark did.
The Fund’s exposure to value, a key pillar of its investment strategy, detracted from relative returns. Value factor investing is designed to capitalize on the tendency of cheap stocks to outperform expensive stocks. During the period under review, cheap stocks and expensive stocks performed similarly.
The Fund underperformed its broader benchmark in the 12-month period because of the Fund’s below-benchmark exposure to growth stocks, which outperformed during the period.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014 and September 30, 2024, the Fund underperformed both of its benchmarks. The Fund’s overweight exposure to both value and momentum stocks was a key driver of absolute and relative returns during the period. This was a product of the Fund’s investment strategy, which includes a bias toward cheaper stocks and upward-trending stocks, both of which underperformed in the large-cap space.
The Fund’s under performance of its broader benchmark in the 10-year period was driven by its underweight exposure to growth stocks, which outperformed during the period.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $202 | 1.75% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Behavioral Large Cap Value Equity Fund - C | Russell 3000® Total Return Index | Russell 1000® Value Index | Bloomberg US 1000 Value Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $9,648 | $9,951 | $9,558 | $9,584 |
| Sep-2016 | $10,407 | $11,440 | $11,105 | $11,107 |
| Sep-2017 | $12,280 | $13,579 | $12,785 | $13,049 |
| Sep-2018 | $13,521 | $15,967 | $13,993 | $14,410 |
| Sep-2019 | $13,105 | $16,433 | $14,553 | $14,710 |
| Sep-2020 | $11,820 | $18,898 | $13,822 | $13,603 |
| Sep-2021 | $16,141 | $24,921 | $18,661 | $18,993 |
| Sep-2022 | $14,446 | $20,528 | $16,540 | $17,429 |
| Sep-2023 | $16,694 | $24,729 | $18,929 | $20,042 |
| Sep-2024 | $21,778 | $33,432 | $24,183 | $25,373 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Behavioral Large Cap Value Equity Fund - C | 30.45% | 10.69% | 8.09% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell 1000® Value Index | 27.76% | 10.69% | 9.23% |
| Bloomberg US 1000 Value Index | 26.59% | 11.52% | 9.76% |
The 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.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Behavioral Large Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$36,817,547
- Number of Portfolio Holdings109
- Advisory Fee (net of waivers)$142,255
- Portfolio Turnover99%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.7% |
| Materials | 3.6% |
| Real Estate | 5.3% |
| Communication Services | 5.6% |
| Energy | 5.8% |
| Utilities | 5.9% |
| Consumer Discretionary | 7.9% |
| Information Technology | 8.9% |
| Consumer Staples | 9.1% |
| Industrials | 11.6% |
| Health Care | 13.7% |
| Financials | 21.9% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.3% |
| Money Market Funds | 0.7% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Behavioral Large Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BBISX)
This annual shareholder report contains important information about Sterling Capital Behavioral Large Cap Value Equity Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its primary benchmark, the Russell 1000® Value Index, and underperformed its broader benchmark, the Russell 3000® Index. 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 momentum strategy, which targets upward-trending stocks, contributed significantly to absolute returns.
That same momentum strategy also boosted relative returns. The Fund’s bias toward upward-trending stocks captured more upside from generally rising stock prices than the benchmark did.
The Fund’s exposure to value, a key pillar of its investment strategy, detracted from relative returns. Value factor investing is designed to capitalize on the tendency of cheap stocks to outperform expensive stocks. During the period under review, cheap stocks and expensive stocks performed similarly.
The Fund underperformed its broader benchmark in the 12-month period because of the Fund’s below-benchmark exposure to growth stocks, which outperformed during the period.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014 and September 30, 2024, the Fund underperformed both of its benchmarks. The Fund’s overweight exposure to both value and momentum stocks was a key driver of absolute and relative returns during the period. This was a product of the Fund’s investment strategy, which includes a bias toward cheaper stocks and upward-trending stocks, both of which underperformed in the large-cap space.
The Fund’s under performance of its broader benchmark in the 10-year period was driven by its underweight exposure to growth stocks, which outperformed during the period.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $87 | 0.75% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Behavioral Large Cap Value Equity Fund - I | Russell 3000® Total Return Index | Russell 1000® Value Index | Bloomberg US 1000 Value Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $9,745 | $9,951 | $9,558 | $9,584 |
| Sep-2016 | $10,616 | $11,440 | $11,105 | $11,107 |
| Sep-2017 | $12,652 | $13,579 | $12,785 | $13,049 |
| Sep-2018 | $14,068 | $15,967 | $13,993 | $14,410 |
| Sep-2019 | $13,776 | $16,433 | $14,553 | $14,710 |
| Sep-2020 | $12,542 | $18,898 | $13,822 | $13,603 |
| Sep-2021 | $17,295 | $24,921 | $18,661 | $18,993 |
| Sep-2022 | $15,631 | $20,528 | $16,540 | $17,429 |
| Sep-2023 | $18,248 | $24,729 | $18,929 | $20,042 |
| Sep-2024 | $24,051 | $33,432 | $24,183 | $25,373 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Behavioral Large Cap Value Equity Fund - I | 31.80% | 11.79% | 9.17% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell 1000® Value Index | 27.76% | 10.69% | 9.23% |
| Bloomberg US 1000 Value Index | 26.59% | 11.52% | 9.76% |
The 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.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Behavioral Large Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BBISX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$36,817,547
- Number of Portfolio Holdings109
- Advisory Fee (net of waivers)$142,255
- Portfolio Turnover99%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.7% |
| Materials | 3.6% |
| Real Estate | 5.3% |
| Communication Services | 5.6% |
| Energy | 5.8% |
| Utilities | 5.9% |
| Consumer Discretionary | 7.9% |
| Information Technology | 8.9% |
| Consumer Staples | 9.1% |
| Industrials | 11.6% |
| Health Care | 13.7% |
| Financials | 21.9% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.3% |
| Money Market Funds | 0.7% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Behavioral Large Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class R6 Class R6 (STRAX)
This annual shareholder report contains important information about Sterling Capital Behavioral Large Cap Value Equity Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its primary benchmark, the Russell 1000® Value Index, and underperformed its broader benchmark, the Russell 3000® Index. 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 momentum strategy, which targets upward-trending stocks, contributed significantly to absolute returns.
That same momentum strategy also boosted relative returns. The Fund’s bias toward upward-trending stocks captured more upside from generally rising stock prices than the benchmark did.
The Fund’s exposure to value, a key pillar of its investment strategy, detracted from relative returns. Value factor investing is designed to capitalize on the tendency of cheap stocks to outperform expensive stocks. During the period under review, cheap stocks and expensive stocks performed similarly.
The Fund underperformed its broader benchmark in the 12-month period because of the Fund’s below-benchmark exposure to growth stocks, which outperformed during the period.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014 and September 30, 2024, the Fund underperformed both of its benchmarks. The Fund’s overweight exposure to both value and momentum stocks was a key driver of absolute and relative returns during the period. This was a product of the Fund’s investment strategy, which includes a bias toward cheaper stocks and upward-trending stocks, both of which underperformed in the large-cap space.
The Fund’s under performance of its broader benchmark in the 10-year period was driven by its underweight exposure to growth stocks, which outperformed during the period.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $78 | 0.67% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Behavioral Large Cap Value Equity Fund - R6 | Russell 3000® Total Return Index | Russell 1000® Value Index | Bloomberg US 1000 Value Index |
|---|
| Sep-2017 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2018 | $11,122 | $11,758 | $10,945 | $11,043 |
| Sep-2019 | $10,897 | $12,101 | $11,383 | $11,273 |
| Sep-2020 | $9,930 | $13,916 | $10,811 | $10,425 |
| Sep-2021 | $13,695 | $18,352 | $14,596 | $14,556 |
| Sep-2022 | $12,397 | $15,117 | $12,937 | $13,357 |
| Sep-2023 | $14,485 | $18,210 | $14,805 | $15,360 |
| Sep-2024 | $19,106 | $24,619 | $18,916 | $19,444 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (January 31, 2018) |
|---|
| Sterling Capital Behavioral Large Cap Value Equity Fund - R6 | 31.90% | 11.89% | 8.35% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.56% |
Russell 1000® Value Index | 27.76% | 10.69% | 8.57% |
| Bloomberg US 1000 Value Index | 26.59% | 11.52% | 8.82% |
The 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.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Behavioral Large Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class R6 Class R6 (STRAX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$36,817,547
- Number of Portfolio Holdings109
- Advisory Fee (net of waivers)$142,255
- Portfolio Turnover99%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.7% |
| Materials | 3.6% |
| Real Estate | 5.3% |
| Communication Services | 5.6% |
| Energy | 5.8% |
| Utilities | 5.9% |
| Consumer Discretionary | 7.9% |
| Information Technology | 8.9% |
| Consumer Staples | 9.1% |
| Industrials | 11.6% |
| Health Care | 13.7% |
| Financials | 21.9% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.3% |
| Money Market Funds | 0.7% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Behavioral Small Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Behavioral Small Cap Value Equity Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its primary benchmark, the Russell 2000® Value Index, and underperformed its broader benchmark, the Russell 3000® Index. 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 momentum strategy, which targets upward-trending stocks, boosted absolute returns in a period in which stock prices generally rose.
That same momentum strategy also boosted relative returns. The Fund’s bias toward upward-trending stocks captured more upside from generally rising stock prices than the benchmark did.
The Fund’s exposure to value, a key pillar of its investment strategy, detracted from relative returns. Value factor investing is designed to capitalize on the tendency of cheap stocks to outperform expensive stocks. During the period under review, however, cheap stocks and expensive stocks performed similarly. The Fund’s under performance relative to the broader benchmark was the result of its below-benchmark exposure to large-cap growth stocks, which outperformed during the period.The Fund’s underperformance relative to the broader benchmark was the result of its below-benchmark exposure to large-cap growth stocks, which outperformed during the period.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014 and September 30, 2024, the Fund underperformed both of its benchmarks. The Fund’s overweight exposure to both value and momentum stocks was a key driver of absolute and relative returns during the period. This was a product of the Fund’s investment strategy, which includes a bias toward cheaper stocks and upward-trending stocks, both of which underperformed in the large-cap space.
Underperformance of the broader benchmark in the past 10 years was driven by the Fund’s underweight exposure to large-cap growth stocks, which outperformed during the period.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $124 | 1.09% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Behavioral Small Cap Value Equity Fund - A | Russell 3000® Total Return Index | Russell 2000® Value Index | Bloomberg US 2000 Value Index |
|---|
| Sep-2014 | $9,428 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $9,636 | $9,951 | $9,840 | $9,773 |
| Sep-2016 | $10,553 | $11,440 | $11,691 | $11,730 |
| Sep-2017 | $12,838 | $13,579 | $14,093 | $13,907 |
| Sep-2018 | $13,568 | $15,967 | $15,407 | $15,196 |
| Sep-2019 | $12,270 | $16,433 | $14,137 | $13,229 |
| Sep-2020 | $10,081 | $18,898 | $12,033 | $11,657 |
| Sep-2021 | $16,606 | $24,921 | $19,726 | $20,079 |
| Sep-2022 | $14,365 | $20,528 | $16,237 | $16,650 |
| Sep-2023 | $16,304 | $24,729 | $17,510 | $18,795 |
| Sep-2024 | $20,901 | $33,432 | $22,042 | $23,827 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Behavioral Small Cap Value Equity Fund - A | | | |
| Without Load | 28.20% | 11.24% | 8.29% |
| With Load | 20.80% | 9.93% | 7.65% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell 2000® Value Index | 25.88% | 9.29% | 8.22% |
| Bloomberg US 2000 Value Index | 26.77% | 12.49% | 9.07% |
The Russell 2000® Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000® Value Index is constructed to provide a comprehensive and unbiased barometer for the small-cap value segment. The index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set and that the represented companies continue to reflect value characteristics.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Behavioral Small Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$109,157,302
- Number of Portfolio Holdings251
- Advisory Fee (net of waivers)$537,014
- Portfolio Turnover74%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.7% |
| Technology | 0.8% |
| Communications | 1.1% |
| Consumer Staples | 2.5% |
| Communication Services | 2.6% |
| Materials | 4.8% |
| Utilities | 4.9% |
| Information Technology | 5.3% |
| Energy | 6.9% |
| Health Care | 9.2% |
| Consumer Discretionary | 9.4% |
| Real Estate | 11.4% |
| Industrials | 12.6% |
| Financials | 27.7% |
| Other Assets in Excess of Liabilities | 0.1% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.3% |
| Money Market Funds | 0.7% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Behavioral Small Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Behavioral Small Cap Value Equity Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its primary benchmark, the Russell 2000® Value Index, and underperformed its broader benchmark, the Russell 3000® Index. 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 momentum strategy, which targets upward-trending stocks, boosted absolute returns in a period in which stock prices generally rose.
That same momentum strategy also boosted relative returns. The Fund’s bias toward upward-trending stocks captured more upside from generally rising stock prices than the benchmark did.
The Fund’s exposure to value, a key pillar of its investment strategy, detracted from relative returns. Value factor investing is designed to capitalize on the tendency of cheap stocks to outperform expensive stocks. During the period under review, however, cheap stocks and expensive stocks performed similarly. The Fund’s under performance relative to the broader benchmark was the result of its below-benchmark exposure to large-cap growth stocks, which outperformed during the period.The Fund’s underperformance relative to the broader benchmark was the result of its below-benchmark exposure to large-cap growth stocks, which outperformed during the period.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014 and September 30, 2024, the Fund underperformed both of its benchmarks. The Fund’s overweight exposure to both value and momentum stocks was a key driver of absolute and relative returns during the period. This was a product of the Fund’s investment strategy, which includes a bias toward cheaper stocks and upward-trending stocks, both of which underperformed in the large-cap space.
Underperformance of the broader benchmark in the past 10 years was driven by the Fund’s underweight exposure to large-cap growth stocks, which outperformed during the period.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $208 | 1.83% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Behavioral Small Cap Value Equity Fund - C | Russell 3000® Total Return Index | Russell 2000® Value Index | Bloomberg US 2000 Value Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,137 | $9,951 | $9,840 | $9,773 |
| Sep-2016 | $11,017 | $11,440 | $11,691 | $11,730 |
| Sep-2017 | $13,301 | $13,579 | $14,093 | $13,907 |
| Sep-2018 | $13,950 | $15,967 | $15,407 | $15,196 |
| Sep-2019 | $12,517 | $16,433 | $14,137 | $13,229 |
| Sep-2020 | $10,204 | $18,898 | $12,033 | $11,657 |
| Sep-2021 | $16,700 | $24,921 | $19,726 | $20,079 |
| Sep-2022 | $14,330 | $20,528 | $16,237 | $16,650 |
| Sep-2023 | $16,151 | $24,729 | $17,510 | $18,795 |
| Sep-2024 | $20,554 | $33,432 | $22,042 | $23,827 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Behavioral Small Cap Value Equity Fund - C | 27.26% | 10.43% | 7.47% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell 2000® Value Index | 25.88% | 9.29% | 8.22% |
| Bloomberg US 2000 Value Index | 26.77% | 12.49% | 9.07% |
The Russell 2000® Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000® Value Index is constructed to provide a comprehensive and unbiased barometer for the small-cap value segment. The index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set and that the represented companies continue to reflect value characteristics.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Behavioral Small Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$109,157,302
- Number of Portfolio Holdings251
- Advisory Fee (net of waivers)$537,014
- Portfolio Turnover74%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.7% |
| Technology | 0.8% |
| Communications | 1.1% |
| Consumer Staples | 2.5% |
| Communication Services | 2.6% |
| Materials | 4.8% |
| Utilities | 4.9% |
| Information Technology | 5.3% |
| Energy | 6.9% |
| Health Care | 9.2% |
| Consumer Discretionary | 9.4% |
| Real Estate | 11.4% |
| Industrials | 12.6% |
| Financials | 27.7% |
| Other Assets in Excess of Liabilities | 0.1% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.3% |
| Money Market Funds | 0.7% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Behavioral Small Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class R6 Class R6 (STRBX)
This annual shareholder report contains important information about Sterling Capital Behavioral Small Cap Value Equity Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its primary benchmark, the Russell 2000® Value Index, and underperformed its broader benchmark, the Russell 3000® Index. 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 momentum strategy, which targets upward-trending stocks, boosted absolute returns in a period in which stock prices generally rose.
That same momentum strategy also boosted relative returns. The Fund’s bias toward upward-trending stocks captured more upside from generally rising stock prices than the benchmark did.
The Fund’s exposure to value, a key pillar of its investment strategy, detracted from relative returns. Value factor investing is designed to capitalize on the tendency of cheap stocks to outperform expensive stocks. During the period under review, however, cheap stocks and expensive stocks performed similarly. The Fund’s under performance relative to the broader benchmark was the result of its below-benchmark exposure to large-cap growth stocks, which outperformed during the period.The Fund’s underperformance relative to the broader benchmark was the result of its below-benchmark exposure to large-cap growth stocks, which outperformed during the period.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014 and September 30, 2024, the Fund underperformed both of its benchmarks. The Fund’s overweight exposure to both value and momentum stocks was a key driver of absolute and relative returns during the period. This was a product of the Fund’s investment strategy, which includes a bias toward cheaper stocks and upward-trending stocks, both of which underperformed in the large-cap space.
Underperformance of the broader benchmark in the past 10 years was driven by the Fund’s underweight exposure to large-cap growth stocks, which outperformed during the period.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $89 | 0.78% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Behavioral Small Cap Value Equity Fund - R6 | Russell 3000® Total Return Index | Russell 2000® Value Index | Bloomberg US 2000 Value Index |
|---|
| Sep-2017 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2018 | $10,607 | $11,758 | $10,933 | $10,927 |
| Sep-2019 | $9,622 | $12,101 | $10,031 | $9,513 |
| Sep-2020 | $7,926 | $13,916 | $8,539 | $8,382 |
| Sep-2021 | $13,106 | $18,352 | $13,997 | $14,438 |
| Sep-2022 | $11,364 | $15,117 | $11,521 | $11,973 |
| Sep-2023 | $12,948 | $18,210 | $12,425 | $13,515 |
| Sep-2024 | $16,653 | $24,619 | $15,640 | $17,133 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (January 31, 2018) |
|---|
| Sterling Capital Behavioral Small Cap Value Equity Fund - R6 | 28.61% | 11.59% | 7.22% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.56% |
Russell 2000® Value Index | 25.88% | 9.29% | 6.42% |
| Bloomberg US 2000 Value Index | 26.77% | 12.49% | 7.73% |
The Russell 2000® Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000® Value Index is constructed to provide a comprehensive and unbiased barometer for the small-cap value segment. The index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set and that the represented companies continue to reflect value characteristics.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Behavioral Small Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class R6 Class R6 (STRBX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$109,157,302
- Number of Portfolio Holdings251
- Advisory Fee (net of waivers)$537,014
- Portfolio Turnover74%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.7% |
| Technology | 0.8% |
| Communications | 1.1% |
| Consumer Staples | 2.5% |
| Communication Services | 2.6% |
| Materials | 4.8% |
| Utilities | 4.9% |
| Information Technology | 5.3% |
| Energy | 6.9% |
| Health Care | 9.2% |
| Consumer Discretionary | 9.4% |
| Real Estate | 11.4% |
| Industrials | 12.6% |
| Financials | 27.7% |
| Other Assets in Excess of Liabilities | 0.1% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.3% |
| Money Market Funds | 0.7% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Behavioral Small Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (SPSCX)
This annual shareholder report contains important information about Sterling Capital Behavioral Small Cap Value Equity Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its primary benchmark, the Russell 2000® Value Index, and underperformed its broader benchmark, the Russell 3000® Index. 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 momentum strategy, which targets upward-trending stocks, boosted absolute returns in a period in which stock prices generally rose.
That same momentum strategy also boosted relative returns. The Fund’s bias toward upward-trending stocks captured more upside from generally rising stock prices than the benchmark did.
The Fund’s exposure to value, a key pillar of its investment strategy, detracted from relative returns. Value factor investing is designed to capitalize on the tendency of cheap stocks to outperform expensive stocks. During the period under review, however, cheap stocks and expensive stocks performed similarly. The Fund’s under performance relative to the broader benchmark was the result of its below-benchmark exposure to large-cap growth stocks, which outperformed during the period.The Fund’s underperformance relative to the broader benchmark was the result of its below-benchmark exposure to large-cap growth stocks, which outperformed during the period.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014 and September 30, 2024, the Fund underperformed both of its benchmarks. The Fund’s overweight exposure to both value and momentum stocks was a key driver of absolute and relative returns during the period. This was a product of the Fund’s investment strategy, which includes a bias toward cheaper stocks and upward-trending stocks, both of which underperformed in the large-cap space.
Underperformance of the broader benchmark in the past 10 years was driven by the Fund’s underweight exposure to large-cap growth stocks, which outperformed during the period.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $96 | 0.84% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Behavioral Small Cap Value Equity Fund - I | Russell 3000® Total Return Index | Russell 2000® Value Index | Bloomberg US 2000 Value Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,241 | $9,951 | $9,840 | $9,773 |
| Sep-2016 | $11,245 | $11,440 | $11,691 | $11,730 |
| Sep-2017 | $13,707 | $13,579 | $14,093 | $13,907 |
| Sep-2018 | $14,524 | $15,967 | $15,407 | $15,196 |
| Sep-2019 | $13,170 | $16,433 | $14,137 | $13,229 |
| Sep-2020 | $10,846 | $18,898 | $12,033 | $11,657 |
| Sep-2021 | $17,920 | $24,921 | $19,726 | $20,079 |
| Sep-2022 | $15,527 | $20,528 | $16,237 | $16,650 |
| Sep-2023 | $17,680 | $24,729 | $17,510 | $18,795 |
| Sep-2024 | $22,716 | $33,432 | $22,042 | $23,827 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Behavioral Small Cap Value Equity Fund - I | 28.48% | 11.52% | 8.55% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell 2000® Value Index | 25.88% | 9.29% | 8.22% |
| Bloomberg US 2000 Value Index | 26.77% | 12.49% | 9.07% |
The Russell 2000® Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000® Value Index is constructed to provide a comprehensive and unbiased barometer for the small-cap value segment. The index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set and that the represented companies continue to reflect value characteristics.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Behavioral Small Cap Value Equity Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (SPSCX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$109,157,302
- Number of Portfolio Holdings251
- Advisory Fee (net of waivers)$537,014
- Portfolio Turnover74%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.7% |
| Technology | 0.8% |
| Communications | 1.1% |
| Consumer Staples | 2.5% |
| Communication Services | 2.6% |
| Materials | 4.8% |
| Utilities | 4.9% |
| Information Technology | 5.3% |
| Energy | 6.9% |
| Health Care | 9.2% |
| Consumer Discretionary | 9.4% |
| Real Estate | 11.4% |
| Industrials | 12.6% |
| Financials | 27.7% |
| Other Assets in Excess of Liabilities | 0.1% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.3% |
| Money Market Funds | 0.7% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Equity Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Equity Income Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its targeted benchmark, the Russell 1000® Value Index, and its broad-based benchmark, the Russell 3000® Index. U.S. equities experienced gains across the period amid signs of cooling inflation and the prospects of future interest rate cuts. The Fund’s absolute performance experienced headwinds due to its investment style, which includes a bias toward companies with less leverage and those with attractive metrics, such as return on equity (ROE), value, earnings growth, and dividend growth. Investments with these characteristics generally posted more modest gains for the period.
The Fund’s underperformance relative to its benchmark was largely due to stock selection, particularly an off-benchmark investment in an international package delivery company which underperformed. The Fund’s exposure to more secular holdings weighed on relative performance as cyclical companies outperformed. The Fund’s stock selection within Consumer Staples also detracted on a relative basis. These holdings underperformed as consumers grew increasingly cost-conscious.
The Fund's below-benchmark exposure to the Energy sector added to relative results, as did its above-benchmark exposure to the Financials sector. Stock selection within the Financials sector also added to performance on a relative basis, particularly holdings of an investment bank and an insurance company, both of which outperformed.
How did the Fund perform in the past 10 years?
For the 10-year period under review, the Fund outperformed its benchmark. The top contributor to the Fund’s absolute performance was its investment strategy targeting value-based metrics, including ROE, earnings growth, and dividend growth. The resulting stock selection across Information Technology, Communication Services, Energy, and Health Care sectors all contributed to the Fund’s absolute returns.
The Fund's outperformance for the 10-year period benefited from stock selection. Holdings within the Information Technology, Financials, and Healthcare sectors contributed the most to the Fund’s relative outperformance.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $121 | 1.08% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Equity Income Fund - A | Russell 3000® Total Return Index | Russell 1000® Value Index | Bloomberg US 1000 Value Index |
|---|
| Sep-2014 | $9,423 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $9,031 | $9,951 | $9,558 | $9,584 |
| Sep-2016 | $10,341 | $11,440 | $11,105 | $11,107 |
| Sep-2017 | $12,015 | $13,579 | $12,785 | $13,049 |
| Sep-2018 | $13,851 | $15,967 | $13,993 | $14,410 |
| Sep-2019 | $15,025 | $16,433 | $14,553 | $14,710 |
| Sep-2020 | $15,010 | $18,898 | $13,822 | $13,603 |
| Sep-2021 | $20,130 | $24,921 | $18,661 | $18,993 |
| Sep-2022 | $18,952 | $20,528 | $16,540 | $17,429 |
| Sep-2023 | $21,330 | $24,729 | $18,929 | $20,042 |
| Sep-2024 | $26,413 | $33,432 | $24,183 | $25,373 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Equity Income Fund - A | | | |
| Without Load | 23.83% | 11.94% | 10.86% |
| With Load | 16.71% | 10.62% | 10.20% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell 1000® Value Index | 27.76% | 10.69% | 9.23% |
| Bloomberg US 1000 Value Index | 26.59% | 11.52% | 9.76% |
The 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.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Equity Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$1,892,266,151
- Number of Portfolio Holdings30
- Advisory Fee (net of waivers)$10,292,583
- Portfolio Turnover42%
SECTOR WEIGHTING (as a % of Net Assets)
| Energy | 2.5% |
| Money Market Funds | 2.8% |
| Real Estate | 3.5% |
| Materials | 3.8% |
| Consumer Discretionary | 4.7% |
| Industrials | 11.1% |
| Consumer Staples | 12.6% |
| Information Technology | 13.3% |
| Health Care | 19.1% |
| Financials | 26.6% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 97.2% |
| Money Market Funds | 2.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Equity Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Equity Income Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its targeted benchmark, the Russell 1000® Value Index, and its broad-based benchmark, the Russell 3000® Index. U.S. equities experienced gains across the period amid signs of cooling inflation and the prospects of future interest rate cuts. The Fund’s absolute performance experienced headwinds due to its investment style, which includes a bias toward companies with less leverage and those with attractive metrics, such as return on equity (ROE), value, earnings growth, and dividend growth. Investments with these characteristics generally posted more modest gains for the period.
The Fund’s underperformance relative to its benchmark was largely due to stock selection, particularly an off-benchmark investment in an international package delivery company which underperformed. The Fund’s exposure to more secular holdings weighed on relative performance as cyclical companies outperformed. The Fund’s stock selection within Consumer Staples also detracted on a relative basis. These holdings underperformed as consumers grew increasingly cost-conscious.
The Fund's below-benchmark exposure to the Energy sector added to relative results, as did its above-benchmark exposure to the Financials sector. Stock selection within the Financials sector also added to performance on a relative basis, particularly holdings of an investment bank and an insurance company, both of which outperformed.
How did the Fund perform in the past 10 years?
For the 10-year period under review, the Fund outperformed its benchmark. The top contributor to the Fund’s absolute performance was its investment strategy targeting value-based metrics, including ROE, earnings growth, and dividend growth. The resulting stock selection across Information Technology, Communication Services, Energy, and Health Care sectors all contributed to the Fund’s absolute returns.
The Fund's outperformance for the 10-year period benefited from stock selection. Holdings within the Information Technology, Financials, and Healthcare sectors contributed the most to the Fund’s relative outperformance.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $204 | 1.83% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Equity Income Fund - C | Russell 3000® Total Return Index | Russell 1000® Value Index | Bloomberg US 1000 Value Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $9,509 | $9,951 | $9,558 | $9,584 |
| Sep-2016 | $10,807 | $11,440 | $11,105 | $11,107 |
| Sep-2017 | $12,466 | $13,579 | $12,785 | $13,049 |
| Sep-2018 | $14,262 | $15,967 | $13,993 | $14,410 |
| Sep-2019 | $15,356 | $16,433 | $14,553 | $14,710 |
| Sep-2020 | $15,224 | $18,898 | $13,822 | $13,603 |
| Sep-2021 | $20,270 | $24,921 | $18,661 | $18,993 |
| Sep-2022 | $18,939 | $20,528 | $16,540 | $17,429 |
| Sep-2023 | $21,156 | $24,729 | $18,929 | $20,042 |
| Sep-2024 | $26,004 | $33,432 | $24,183 | $25,373 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Equity Income Fund - C | 22.92% | 11.11% | 10.03% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell 1000® Value Index | 27.76% | 10.69% | 9.23% |
| Bloomberg US 1000 Value Index | 26.59% | 11.52% | 9.76% |
The 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.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Equity Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$1,892,266,151
- Number of Portfolio Holdings30
- Advisory Fee (net of waivers)$10,292,583
- Portfolio Turnover42%
SECTOR WEIGHTING (as a % of Net Assets)
| Energy | 2.5% |
| Money Market Funds | 2.8% |
| Real Estate | 3.5% |
| Materials | 3.8% |
| Consumer Discretionary | 4.7% |
| Industrials | 11.1% |
| Consumer Staples | 12.6% |
| Information Technology | 13.3% |
| Health Care | 19.1% |
| Financials | 26.6% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 97.2% |
| Money Market Funds | 2.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Equity Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Equity Income Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its targeted benchmark, the Russell 1000® Value Index, and its broad-based benchmark, the Russell 3000® Index. U.S. equities experienced gains across the period amid signs of cooling inflation and the prospects of future interest rate cuts. The Fund’s absolute performance experienced headwinds due to its investment style, which includes a bias toward companies with less leverage and those with attractive metrics, such as return on equity (ROE), value, earnings growth, and dividend growth. Investments with these characteristics generally posted more modest gains for the period.
The Fund’s underperformance relative to its benchmark was largely due to stock selection, particularly an off-benchmark investment in an international package delivery company which underperformed. The Fund’s exposure to more secular holdings weighed on relative performance as cyclical companies outperformed. The Fund’s stock selection within Consumer Staples also detracted on a relative basis. These holdings underperformed as consumers grew increasingly cost-conscious.
The Fund's below-benchmark exposure to the Energy sector added to relative results, as did its above-benchmark exposure to the Financials sector. Stock selection within the Financials sector also added to performance on a relative basis, particularly holdings of an investment bank and an insurance company, both of which outperformed.
How did the Fund perform in the past 10 years?
For the 10-year period under review, the Fund outperformed its benchmark. The top contributor to the Fund’s absolute performance was its investment strategy targeting value-based metrics, including ROE, earnings growth, and dividend growth. The resulting stock selection across Information Technology, Communication Services, Energy, and Health Care sectors all contributed to the Fund’s absolute returns.
The Fund's outperformance for the 10-year period benefited from stock selection. Holdings within the Information Technology, Financials, and Healthcare sectors contributed the most to the Fund’s relative outperformance.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $81 | 0.72% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Equity Income Fund - R6 | Russell 3000® Total Return Index | Russell 1000® Value Index | Bloomberg US 1000 Value Index |
|---|
| Sep-2017 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2018 | $11,564 | $11,758 | $10,945 | $11,043 |
| Sep-2019 | $12,592 | $12,101 | $11,383 | $11,273 |
| Sep-2020 | $12,619 | $13,916 | $10,811 | $10,425 |
| Sep-2021 | $16,988 | $18,352 | $14,596 | $14,556 |
| Sep-2022 | $16,047 | $15,117 | $12,937 | $13,357 |
| Sep-2023 | $18,123 | $18,210 | $14,805 | $15,360 |
| Sep-2024 | $22,525 | $24,619 | $18,916 | $19,444 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (January 31, 2018) |
|---|
| Sterling Capital Equity Income Fund - R6 | 24.29% | 12.33% | 10.86% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.56% |
Russell 1000® Value Index | 27.76% | 10.69% | 8.57% |
| Bloomberg US 1000 Value Index | 26.59% | 11.52% | 8.82% |
The 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.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Equity Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$1,892,266,151
- Number of Portfolio Holdings30
- Advisory Fee (net of waivers)$10,292,583
- Portfolio Turnover42%
SECTOR WEIGHTING (as a % of Net Assets)
| Energy | 2.5% |
| Money Market Funds | 2.8% |
| Real Estate | 3.5% |
| Materials | 3.8% |
| Consumer Discretionary | 4.7% |
| Industrials | 11.1% |
| Consumer Staples | 12.6% |
| Information Technology | 13.3% |
| Health Care | 19.1% |
| Financials | 26.6% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 97.2% |
| Money Market Funds | 2.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Equity Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BEGIX)
This annual shareholder report contains important information about Sterling Capital Equity Income Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its targeted benchmark, the Russell 1000® Value Index, and its broad-based benchmark, the Russell 3000® Index. U.S. equities experienced gains across the period amid signs of cooling inflation and the prospects of future interest rate cuts. The Fund’s absolute performance experienced headwinds due to its investment style, which includes a bias toward companies with less leverage and those with attractive metrics, such as return on equity (ROE), value, earnings growth, and dividend growth. Investments with these characteristics generally posted more modest gains for the period.
The Fund’s underperformance relative to its benchmark was largely due to stock selection, particularly an off-benchmark investment in an international package delivery company which underperformed. The Fund’s exposure to more secular holdings weighed on relative performance as cyclical companies outperformed. The Fund’s stock selection within Consumer Staples also detracted on a relative basis. These holdings underperformed as consumers grew increasingly cost-conscious.
The Fund's below-benchmark exposure to the Energy sector added to relative results, as did its above-benchmark exposure to the Financials sector. Stock selection within the Financials sector also added to performance on a relative basis, particularly holdings of an investment bank and an insurance company, both of which outperformed.
How did the Fund perform in the past 10 years?
For the 10-year period under review, the Fund outperformed its benchmark. The top contributor to the Fund’s absolute performance was its investment strategy targeting value-based metrics, including ROE, earnings growth, and dividend growth. The resulting stock selection across Information Technology, Communication Services, Energy, and Health Care sectors all contributed to the Fund’s absolute returns.
The Fund's outperformance for the 10-year period benefited from stock selection. Holdings within the Information Technology, Financials, and Healthcare sectors contributed the most to the Fund’s relative outperformance.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $93 | 0.83% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Equity Income Fund - I | Russell 3000® Total Return Index | Russell 1000® Value Index | Bloomberg US 1000 Value Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $9,610 | $9,951 | $9,558 | $9,584 |
| Sep-2016 | $11,028 | $11,440 | $11,105 | $11,107 |
| Sep-2017 | $12,849 | $13,579 | $12,785 | $13,049 |
| Sep-2018 | $14,851 | $15,967 | $13,993 | $14,410 |
| Sep-2019 | $16,146 | $16,433 | $14,553 | $14,710 |
| Sep-2020 | $16,171 | $18,898 | $13,822 | $13,603 |
| Sep-2021 | $21,745 | $24,921 | $18,661 | $18,993 |
| Sep-2022 | $20,520 | $20,528 | $16,540 | $17,429 |
| Sep-2023 | $23,153 | $24,729 | $18,929 | $20,042 |
| Sep-2024 | $28,747 | $33,432 | $24,183 | $25,373 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Equity Income Fund - I | 24.16% | 12.23% | 11.14% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell 1000® Value Index | 27.76% | 10.69% | 9.23% |
| Bloomberg US 1000 Value Index | 26.59% | 11.52% | 9.76% |
The 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.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Equity Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BEGIX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$1,892,266,151
- Number of Portfolio Holdings30
- Advisory Fee (net of waivers)$10,292,583
- Portfolio Turnover42%
SECTOR WEIGHTING (as a % of Net Assets)
| Energy | 2.5% |
| Money Market Funds | 2.8% |
| Real Estate | 3.5% |
| Materials | 3.8% |
| Consumer Discretionary | 4.7% |
| Industrials | 11.1% |
| Consumer Staples | 12.6% |
| Information Technology | 13.3% |
| Health Care | 19.1% |
| Financials | 26.6% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 97.2% |
| Money Market Funds | 2.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Intermediate U.S. Government Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Intermediate U.S. Government Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund outperformed its primary benchmark, the Bloomberg Intermediate U.S. Government Bond Index, and its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. The Federal Reserve (the Fed) cut the fed funds rate by 50 basis points in September 2024. As a result, Treasury yields declined during the period, which raised prices, boosting the Fund’s absolute performance.
The Fund’s outperformance relative to the benchmarks over the 12-month period was driven primarily by its longer average duration and secondarily by its overweight position in agency passthroughs. The Fund’s exposures to agency collateralized mortgage obligations (CMO), asset-backed securities (ABS), collateralized mortgage-backed securities (CMBS), government-related securities and corporate bonds also contributed to its outperformance. The largest drag on relative performance came from the Fund’s underweight position in one- to five-year securities.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund outperformed its primary benchmark. While Treasury yields fluctuated over the period, the recent surge in Treasury yields caused by Fed rate hikes reduced bond prices, hurting the Fund’s absolute returns for the period. The Fund’s overweight allocation to securitized products drove its outperformance versus the primary benchmark. The Fund’s overweight position in government-related securities and corporate bonds also contributed, as did an underweight position in the one- to five-year segment of the Treasury yield curve. The largest detractor was the Fund’s longer average duration, as yields ended the period higher.
The Fund outperformed its broad-based benchmark in the period largely due to its shorter average duration. The Fund’s overweight position in ABS, CMBS and government-related securities also boosted relative performance. Sector allocation was the greatest detractor, specifically the Fund’s minimal exposure to corporate bonds and its overweight position in securitized products.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $80 | 0.76% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Intermediate U.S. Government Fund - A | Bloomberg U.S. Aggregate Bond Index | Bloomberg U.S. Government: Intermediate Index |
|---|
| Sep-2014 | $9,798 | $10,000 | $10,000 |
| Sep-2015 | $9,976 | $10,294 | $10,300 |
| Sep-2016 | $10,212 | $10,829 | $10,551 |
| Sep-2017 | $10,090 | $10,836 | $10,481 |
| Sep-2018 | $9,916 | $10,705 | $10,358 |
| Sep-2019 | $10,637 | $11,807 | $11,136 |
| Sep-2020 | $11,132 | $12,632 | $11,802 |
| Sep-2021 | $10,996 | $12,518 | $11,645 |
| Sep-2022 | $9,773 | $10,691 | $10,576 |
| Sep-2023 | $9,815 | $10,760 | $10,717 |
| Sep-2024 | $10,769 | $12,004 | $11,609 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Intermediate U.S. Government Fund - A | | | |
| Without Load | 9.72% | 0.25% | 0.95% |
| With Load | 7.52% | -0.15% | 0.74% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
| Bloomberg U.S. Government: Intermediate Index | 8.33% | 0.84% | 1.50% |
The Bloomberg U.S. Intermediate Government Index is a component of the Bloomberg Government Index with sectors including Treasuries and Agencies. Securities must have a maturity from 1 year up to (but not including) 10 years. Securities must have at least one year to final maturity regardless of call features; must be rated investment grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Moody’s, S&P, Fitch; must have at least $250MM par outstanding; must be USD-denominated, non-convertible and publicly issued.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Intermediate U.S. Government Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$18,182,927
- Number of Portfolio Holdings98
- Advisory Fee (net of waivers)$22,281
- Portfolio Turnover12%
SECTOR WEIGHTING (as a % of Net Assets)
| Municipal Bonds | 0.5% |
| Money Market Funds | 1.3% |
| Asset Backed Securities | 3.4% |
| U.S. Government Agencies | 10.0% |
| U.S. Treasury Bonds & Notes | 10.6% |
| Commercial Mortgage-Backed Securities | 16.8% |
| Collateralized Mortgage Obligations | 21.8% |
| Mortgage-Backed Securities | 35.2% |
| Other Assets in Excess of Liabilities | 0.4% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 3.4% |
| Collateralized Mortgage Obligations | 21.9% |
| Commercial Mortgage-Backed Securities | 16.9% |
| Money Market Funds | 1.3% |
| Mortgage-Backed Securities | 35.3% |
| Municipal Bonds | 0.5% |
| U.S. Government Agencies | 10.0% |
| U.S. Treasury Bonds & Notes | 10.7% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Intermediate U.S. Government Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Intermediate U.S. Government Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund outperformed its primary benchmark, the Bloomberg Intermediate U.S. Government Bond Index, and its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. The Federal Reserve (the Fed) cut the fed funds rate by 50 basis points in September 2024. As a result, Treasury yields declined during the period, which raised prices, boosting the Fund’s absolute performance.
The Fund’s outperformance relative to the benchmarks over the 12-month period was driven primarily by its longer average duration and secondarily by its overweight position in agency passthroughs. The Fund’s exposures to agency collateralized mortgage obligations (CMO), asset-backed securities (ABS), collateralized mortgage-backed securities (CMBS), government-related securities and corporate bonds also contributed to its outperformance. The largest drag on relative performance came from the Fund’s underweight position in one- to five-year securities.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund outperformed its primary benchmark. While Treasury yields fluctuated over the period, the recent surge in Treasury yields caused by Fed rate hikes reduced bond prices, hurting the Fund’s absolute returns for the period. The Fund’s overweight allocation to securitized products drove its outperformance versus the primary benchmark. The Fund’s overweight position in government-related securities and corporate bonds also contributed, as did an underweight position in the one- to five-year segment of the Treasury yield curve. The largest detractor was the Fund’s longer average duration, as yields ended the period higher.
The Fund outperformed its broad-based benchmark in the period largely due to its shorter average duration. The Fund’s overweight position in ABS, CMBS and government-related securities also boosted relative performance. Sector allocation was the greatest detractor, specifically the Fund’s minimal exposure to corporate bonds and its overweight position in securitized products.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $158 | 1.51% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Intermediate U.S. Government Fund - C | Bloomberg U.S. Aggregate Bond Index | Bloomberg U.S. Government: Intermediate Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,106 | $10,294 | $10,300 |
| Sep-2016 | $10,258 | $10,829 | $10,551 |
| Sep-2017 | $10,059 | $10,836 | $10,481 |
| Sep-2018 | $9,821 | $10,705 | $10,358 |
| Sep-2019 | $10,457 | $11,807 | $11,136 |
| Sep-2020 | $10,853 | $12,632 | $11,802 |
| Sep-2021 | $10,638 | $12,518 | $11,645 |
| Sep-2022 | $9,382 | $10,691 | $10,576 |
| Sep-2023 | $9,352 | $10,760 | $10,717 |
| Sep-2024 | $10,186 | $12,004 | $11,609 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Intermediate U.S. Government Fund - C | 8.92% | -0.52% | 0.18% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
| Bloomberg U.S. Government: Intermediate Index | 8.33% | 0.84% | 1.50% |
The Bloomberg U.S. Intermediate Government Index is a component of the Bloomberg Government Index with sectors including Treasuries and Agencies. Securities must have a maturity from 1 year up to (but not including) 10 years. Securities must have at least one year to final maturity regardless of call features; must be rated investment grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Moody’s, S&P, Fitch; must have at least $250MM par outstanding; must be USD-denominated, non-convertible and publicly issued.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Intermediate U.S. Government Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$18,182,927
- Number of Portfolio Holdings98
- Advisory Fee (net of waivers)$22,281
- Portfolio Turnover12%
SECTOR WEIGHTING (as a % of Net Assets)
| Municipal Bonds | 0.5% |
| Money Market Funds | 1.3% |
| Asset Backed Securities | 3.4% |
| U.S. Government Agencies | 10.0% |
| U.S. Treasury Bonds & Notes | 10.6% |
| Commercial Mortgage-Backed Securities | 16.8% |
| Collateralized Mortgage Obligations | 21.8% |
| Mortgage-Backed Securities | 35.2% |
| Other Assets in Excess of Liabilities | 0.4% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 3.4% |
| Collateralized Mortgage Obligations | 21.9% |
| Commercial Mortgage-Backed Securities | 16.9% |
| Money Market Funds | 1.3% |
| Mortgage-Backed Securities | 35.3% |
| Municipal Bonds | 0.5% |
| U.S. Government Agencies | 10.0% |
| U.S. Treasury Bonds & Notes | 10.7% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Intermediate U.S. Government Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BBGVX)
This annual shareholder report contains important information about Sterling Capital Intermediate U.S. Government Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund outperformed its primary benchmark, the Bloomberg Intermediate U.S. Government Bond Index, and its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. The Federal Reserve (the Fed) cut the fed funds rate by 50 basis points in September 2024. As a result, Treasury yields declined during the period, which raised prices, boosting the Fund’s absolute performance.
The Fund’s outperformance relative to the benchmarks over the 12-month period was driven primarily by its longer average duration and secondarily by its overweight position in agency passthroughs. The Fund’s exposures to agency collateralized mortgage obligations (CMO), asset-backed securities (ABS), collateralized mortgage-backed securities (CMBS), government-related securities and corporate bonds also contributed to its outperformance. The largest drag on relative performance came from the Fund’s underweight position in one- to five-year securities.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund outperformed its primary benchmark. While Treasury yields fluctuated over the period, the recent surge in Treasury yields caused by Fed rate hikes reduced bond prices, hurting the Fund’s absolute returns for the period. The Fund’s overweight allocation to securitized products drove its outperformance versus the primary benchmark. The Fund’s overweight position in government-related securities and corporate bonds also contributed, as did an underweight position in the one- to five-year segment of the Treasury yield curve. The largest detractor was the Fund’s longer average duration, as yields ended the period higher.
The Fund outperformed its broad-based benchmark in the period largely due to its shorter average duration. The Fund’s overweight position in ABS, CMBS and government-related securities also boosted relative performance. Sector allocation was the greatest detractor, specifically the Fund’s minimal exposure to corporate bonds and its overweight position in securitized products.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $54 | 0.51% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Intermediate U.S. Government Fund - I | Bloomberg U.S. Aggregate Bond Index | Bloomberg U.S. Government: Intermediate Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,197 | $10,294 | $10,300 |
| Sep-2016 | $10,465 | $10,829 | $10,551 |
| Sep-2017 | $10,366 | $10,836 | $10,481 |
| Sep-2018 | $10,213 | $10,705 | $10,358 |
| Sep-2019 | $10,983 | $11,807 | $11,136 |
| Sep-2020 | $11,523 | $12,632 | $11,802 |
| Sep-2021 | $11,399 | $12,518 | $11,645 |
| Sep-2022 | $10,157 | $10,691 | $10,576 |
| Sep-2023 | $10,238 | $10,760 | $10,717 |
| Sep-2024 | $11,247 | $12,004 | $11,609 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Intermediate U.S. Government Fund - I | 9.86% | 0.48% | 1.18% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
| Bloomberg U.S. Government: Intermediate Index | 8.33% | 0.84% | 1.50% |
The Bloomberg U.S. Intermediate Government Index is a component of the Bloomberg Government Index with sectors including Treasuries and Agencies. Securities must have a maturity from 1 year up to (but not including) 10 years. Securities must have at least one year to final maturity regardless of call features; must be rated investment grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Moody’s, S&P, Fitch; must have at least $250MM par outstanding; must be USD-denominated, non-convertible and publicly issued.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Intermediate U.S. Government Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BBGVX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$18,182,927
- Number of Portfolio Holdings98
- Advisory Fee (net of waivers)$22,281
- Portfolio Turnover12%
SECTOR WEIGHTING (as a % of Net Assets)
| Municipal Bonds | 0.5% |
| Money Market Funds | 1.3% |
| Asset Backed Securities | 3.4% |
| U.S. Government Agencies | 10.0% |
| U.S. Treasury Bonds & Notes | 10.6% |
| Commercial Mortgage-Backed Securities | 16.8% |
| Collateralized Mortgage Obligations | 21.8% |
| Mortgage-Backed Securities | 35.2% |
| Other Assets in Excess of Liabilities | 0.4% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 3.4% |
| Collateralized Mortgage Obligations | 21.9% |
| Commercial Mortgage-Backed Securities | 16.9% |
| Money Market Funds | 1.3% |
| Mortgage-Backed Securities | 35.3% |
| Municipal Bonds | 0.5% |
| U.S. Government Agencies | 10.0% |
| U.S. Treasury Bonds & Notes | 10.7% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Long Duration Corporate Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Long Duration Corporate Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its targeted benchmark, the Bloomberg U.S. Long Corporate Bond Index, and outperformed its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. Late in 2023, the Federal Reserve signaled it had likely reached the end of its rate hike cycle, which caused interest rates to fall and bond prices to rise. Continued strong economic growth and investor preference for higher yielding securities led to elevated demand for non-government bond assets during the period. This trend caused the spread between U.S. Treasuries and riskier asset classes to compress, which helped boost returns on those riskier asset classes.
Due to a preference for liquidity, the Fund held an above-benchmark position to securities in the 10-year and 30-year areas of the yield curve while holding a below-benchmark exposure to securities in the 20-year area. This positioning detracted slightly from returns relative to the Fund’s targeted benchmark, as the long end of the yield curve steepened, driving yields higher and causing bond prices to drop more relative to the short end of the curve.
Meanwhile, the Fund’s outperformance of its broad-based benchmark was driven by its above-benchmark position on bonds maturing beyond 10 years, which benefited from falling interest rates.
How did the Fund perform over the past 10 years?
The Fund outperformed its targeted benchmark over the past 10 years but underperformed its broad-based benchmark. In general, fixed income returns during this period were hurt by higher interest rates.
The Fund’s positive performance relative to its targeted benchmark over the past 10 years was largely due to strategic decisions regarding duration, yield curve positioning, sector allocation and security selection. The Fund’s underperformance relative to its broad-based benchmark during this period can largely be attributed to its shift from a focus on intermediate duration bonds to a focus on bonds maturing beyond 10 years.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $78 | 0.71% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Long Duration Corporate Bond Fund - A | Bloomberg U.S. Aggregate Bond Index | Bloomberg U.S. Long Corporate Index |
|---|
| Sep-2014 | $9,799 | $10,000 | $10,000 |
| Sep-2015 | $9,947 | $10,294 | $10,016 |
| Sep-2016 | $10,499 | $10,829 | $11,588 |
| Sep-2017 | $10,716 | $10,836 | $11,938 |
| Sep-2018 | $10,630 | $10,705 | $11,654 |
| Sep-2019 | $11,588 | $11,807 | $13,992 |
| Sep-2020 | $12,348 | $12,632 | $15,364 |
| Sep-2021 | $12,676 | $12,518 | $15,742 |
| Sep-2022 | $9,155 | $10,691 | $11,271 |
| Sep-2023 | $9,281 | $10,760 | $11,559 |
| Sep-2024 | $10,979 | $12,004 | $13,776 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Long Duration Corporate Bond Fund - A | | | |
| Without Load | 18.30% | -1.07% | 1.14% |
| With Load | 15.96% | -1.47% | 0.94% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
| Bloomberg U.S. Long Corporate Index | 19.18% | -0.31% | 3.26% |
The Bloomberg U.S. Long 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.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Long Duration Corporate Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$42,961,811
- Number of Portfolio Holdings378
- Advisory Fee (net of waivers)$6,280
- Portfolio Turnover47%
SECTOR WEIGHTING (as a % of Net Assets)
| Technology | 0.8% |
| Money Market Funds | 1.9% |
| Materials | 2.0% |
| Real Estate | 2.6% |
| U.S. Treasury Bonds & Notes | 3.2% |
| Communications | 3.7% |
| Consumer Discretionary | 4.1% |
| Communication Services | 6.7% |
| Information Technology | 6.8% |
| Consumer Staples | 7.0% |
| Industrials | 7.3% |
| Health Care | 10.5% |
| Energy | 11.1% |
| Utilities | 14.7% |
| Financials | 16.6% |
| Other Assets in Excess of Liabilities | 1.0% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Corporate Bonds | 94.8% |
| Money Market Funds | 2.0% |
| U.S. Treasury Bonds & Notes | 3.2% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Long Duration Corporate Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Long Duration Corporate Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its targeted benchmark, the Bloomberg U.S. Long Corporate Bond Index, and outperformed its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. Late in 2023, the Federal Reserve signaled it had likely reached the end of its rate hike cycle, which caused interest rates to fall and bond prices to rise. Continued strong economic growth and investor preference for higher yielding securities led to elevated demand for non-government bond assets during the period. This trend caused the spread between U.S. Treasuries and riskier asset classes to compress, which helped boost returns on those riskier asset classes.
Due to a preference for liquidity, the Fund held an above-benchmark position to securities in the 10-year and 30-year areas of the yield curve while holding a below-benchmark exposure to securities in the 20-year area. This positioning detracted slightly from returns relative to the Fund’s targeted benchmark, as the long end of the yield curve steepened, driving yields higher and causing bond prices to drop more relative to the short end of the curve.
Meanwhile, the Fund’s outperformance of its broad-based benchmark was driven by its above-benchmark position on bonds maturing beyond 10 years, which benefited from falling interest rates.
How did the Fund perform over the past 10 years?
The Fund outperformed its targeted benchmark over the past 10 years but underperformed its broad-based benchmark. In general, fixed income returns during this period were hurt by higher interest rates.
The Fund’s positive performance relative to its targeted benchmark over the past 10 years was largely due to strategic decisions regarding duration, yield curve positioning, sector allocation and security selection. The Fund’s underperformance relative to its broad-based benchmark during this period can largely be attributed to its shift from a focus on intermediate duration bonds to a focus on bonds maturing beyond 10 years.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $160 | 1.47% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Long Duration Corporate Bond Fund - C | Bloomberg U.S. Aggregate Bond Index | Bloomberg U.S. Long Corporate Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,075 | $10,294 | $10,016 |
| Sep-2016 | $10,547 | $10,829 | $11,588 |
| Sep-2017 | $10,685 | $10,836 | $11,938 |
| Sep-2018 | $10,531 | $10,705 | $11,654 |
| Sep-2019 | $11,391 | $11,807 | $13,992 |
| Sep-2020 | $12,052 | $12,632 | $15,364 |
| Sep-2021 | $12,291 | $12,518 | $15,742 |
| Sep-2022 | $8,804 | $10,691 | $11,271 |
| Sep-2023 | $8,872 | $10,760 | $11,559 |
| Sep-2024 | $10,403 | $12,004 | $13,776 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Long Duration Corporate Bond Fund - C | 17.26% | -1.80% | 0.40% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
| Bloomberg U.S. Long Corporate Index | 19.18% | -0.31% | 3.26% |
The Bloomberg U.S. Long 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.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Long Duration Corporate Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$42,961,811
- Number of Portfolio Holdings378
- Advisory Fee (net of waivers)$6,280
- Portfolio Turnover47%
SECTOR WEIGHTING (as a % of Net Assets)
| Technology | 0.8% |
| Money Market Funds | 1.9% |
| Materials | 2.0% |
| Real Estate | 2.6% |
| U.S. Treasury Bonds & Notes | 3.2% |
| Communications | 3.7% |
| Consumer Discretionary | 4.1% |
| Communication Services | 6.7% |
| Information Technology | 6.8% |
| Consumer Staples | 7.0% |
| Industrials | 7.3% |
| Health Care | 10.5% |
| Energy | 11.1% |
| Utilities | 14.7% |
| Financials | 16.6% |
| Other Assets in Excess of Liabilities | 1.0% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Corporate Bonds | 94.8% |
| Money Market Funds | 2.0% |
| U.S. Treasury Bonds & Notes | 3.2% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Long Duration Corporate Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Long Duration Corporate Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its targeted benchmark, the Bloomberg U.S. Long Corporate Bond Index, and outperformed its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. Late in 2023, the Federal Reserve signaled it had likely reached the end of its rate hike cycle, which caused interest rates to fall and bond prices to rise. Continued strong economic growth and investor preference for higher yielding securities led to elevated demand for non-government bond assets during the period. This trend caused the spread between U.S. Treasuries and riskier asset classes to compress, which helped boost returns on those riskier asset classes.
Due to a preference for liquidity, the Fund held an above-benchmark position to securities in the 10-year and 30-year areas of the yield curve while holding a below-benchmark exposure to securities in the 20-year area. This positioning detracted slightly from returns relative to the Fund’s targeted benchmark, as the long end of the yield curve steepened, driving yields higher and causing bond prices to drop more relative to the short end of the curve.
Meanwhile, the Fund’s outperformance of its broad-based benchmark was driven by its above-benchmark position on bonds maturing beyond 10 years, which benefited from falling interest rates.
How did the Fund perform over the past 10 years?
The Fund outperformed its targeted benchmark over the past 10 years but underperformed its broad-based benchmark. In general, fixed income returns during this period were hurt by higher interest rates.
The Fund’s positive performance relative to its targeted benchmark over the past 10 years was largely due to strategic decisions regarding duration, yield curve positioning, sector allocation and security selection. The Fund’s underperformance relative to its broad-based benchmark during this period can largely be attributed to its shift from a focus on intermediate duration bonds to a focus on bonds maturing beyond 10 years.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $39 | 0.36% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Long Duration Corporate Bond Fund - R6 | Bloomberg U.S. Aggregate Bond Index | Bloomberg U.S. Long Corporate Index |
|---|
| Sep-2021 | $10,000 | $10,000 | $10,000 |
| Sep-2022 | $7,252 | $8,540 | $7,160 |
| Sep-2023 | $7,377 | $8,595 | $7,343 |
| Sep-2024 | $8,757 | $9,589 | $8,752 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | Since Inception (January 31, 2022) |
|---|
| Sterling Capital Long Duration Corporate Bond Fund - R6 | 18.71% | -4.01% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | -0.76% |
| Bloomberg U.S. Long Corporate Index | 19.18% | -3.33% |
The Bloomberg U.S. Long 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.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Long Duration Corporate Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$42,961,811
- Number of Portfolio Holdings378
- Advisory Fee (net of waivers)$6,280
- Portfolio Turnover47%
SECTOR WEIGHTING (as a % of Net Assets)
| Technology | 0.8% |
| Money Market Funds | 1.9% |
| Materials | 2.0% |
| Real Estate | 2.6% |
| U.S. Treasury Bonds & Notes | 3.2% |
| Communications | 3.7% |
| Consumer Discretionary | 4.1% |
| Communication Services | 6.7% |
| Information Technology | 6.8% |
| Consumer Staples | 7.0% |
| Industrials | 7.3% |
| Health Care | 10.5% |
| Energy | 11.1% |
| Utilities | 14.7% |
| Financials | 16.6% |
| Other Assets in Excess of Liabilities | 1.0% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Corporate Bonds | 94.8% |
| Money Market Funds | 2.0% |
| U.S. Treasury Bonds & Notes | 3.2% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Long Duration Corporate Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (SCCPX)
This annual shareholder report contains important information about Sterling Capital Long Duration Corporate Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its targeted benchmark, the Bloomberg U.S. Long Corporate Bond Index, and outperformed its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. Late in 2023, the Federal Reserve signaled it had likely reached the end of its rate hike cycle, which caused interest rates to fall and bond prices to rise. Continued strong economic growth and investor preference for higher yielding securities led to elevated demand for non-government bond assets during the period. This trend caused the spread between U.S. Treasuries and riskier asset classes to compress, which helped boost returns on those riskier asset classes.
Due to a preference for liquidity, the Fund held an above-benchmark position to securities in the 10-year and 30-year areas of the yield curve while holding a below-benchmark exposure to securities in the 20-year area. This positioning detracted slightly from returns relative to the Fund’s targeted benchmark, as the long end of the yield curve steepened, driving yields higher and causing bond prices to drop more relative to the short end of the curve.
Meanwhile, the Fund’s outperformance of its broad-based benchmark was driven by its above-benchmark position on bonds maturing beyond 10 years, which benefited from falling interest rates.
How did the Fund perform over the past 10 years?
The Fund outperformed its targeted benchmark over the past 10 years but underperformed its broad-based benchmark. In general, fixed income returns during this period were hurt by higher interest rates.
The Fund’s positive performance relative to its targeted benchmark over the past 10 years was largely due to strategic decisions regarding duration, yield curve positioning, sector allocation and security selection. The Fund’s underperformance relative to its broad-based benchmark during this period can largely be attributed to its shift from a focus on intermediate duration bonds to a focus on bonds maturing beyond 10 years.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $50 | 0.46% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Long Duration Corporate Bond Fund - I | Bloomberg U.S. Aggregate Bond Index | Bloomberg U.S. Long Corporate Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,176 | $10,294 | $10,016 |
| Sep-2016 | $10,757 | $10,829 | $11,588 |
| Sep-2017 | $11,006 | $10,836 | $11,938 |
| Sep-2018 | $10,956 | $10,705 | $11,654 |
| Sep-2019 | $11,973 | $11,807 | $13,992 |
| Sep-2020 | $12,778 | $12,632 | $15,364 |
| Sep-2021 | $13,151 | $12,518 | $15,742 |
| Sep-2022 | $9,531 | $10,691 | $11,271 |
| Sep-2023 | $9,687 | $10,760 | $11,559 |
| Sep-2024 | $11,473 | $12,004 | $13,776 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Long Duration Corporate Bond Fund - I | 18.43% | -0.85% | 1.38% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
| Bloomberg U.S. Long Corporate Index | 19.18% | -0.31% | 3.26% |
The Bloomberg U.S. Long 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.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Long Duration Corporate Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (SCCPX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$42,961,811
- Number of Portfolio Holdings378
- Advisory Fee (net of waivers)$6,280
- Portfolio Turnover47%
SECTOR WEIGHTING (as a % of Net Assets)
| Technology | 0.8% |
| Money Market Funds | 1.9% |
| Materials | 2.0% |
| Real Estate | 2.6% |
| U.S. Treasury Bonds & Notes | 3.2% |
| Communications | 3.7% |
| Consumer Discretionary | 4.1% |
| Communication Services | 6.7% |
| Information Technology | 6.8% |
| Consumer Staples | 7.0% |
| Industrials | 7.3% |
| Health Care | 10.5% |
| Energy | 11.1% |
| Utilities | 14.7% |
| Financials | 16.6% |
| Other Assets in Excess of Liabilities | 1.0% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Corporate Bonds | 94.8% |
| Money Market Funds | 2.0% |
| U.S. Treasury Bonds & Notes | 3.2% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Mid Cap Relative Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Mid Cap Relative Value Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed both its broad-based benchmark, the Russell 3000® Index, and its targeted benchmark, the Russell Mid-Cap® Value Index. U.S. equities recorded strong gains throughout the year on improving investor optimism. Stocks in the Industrials sector contributed the most to the Fund’s absolute performance, while the Fund’s investments in the Energy sector weighed down absolute results. This included an investment in a natural gas production company that declined in value for the year under review.
The Fund’s underperformance relative to its broad-based benchmark over the 12-month period was due to its below-benchmark exposure to large-cap stocks in the Information Technology sector, which outperformed the Fund’s holdings of mid-cap stocks in the same sector. The Fund’s underperformance relative to its targeted benchmark was driven by stock selection within the Financials sector, particularly an insurance company that underperformed.
Stock selection within the Industrials sector added to the Fund’s performance relative to both benchmarks. Stock selection in the Consumer Staples and Materials sectors added to the Fund’s performance relative to its targeted benchmark.
How did the Fund perform over the past 10 years?
The Fund underperformed both of its benchmarks over the past 10 years. The Fund’s performance on an absolute basis was driven by a broad-based bull market in U.S. equities. The Fund’s absolute return benefited the most from gains in its Health Care holdings. These gains were partly offset by a negative return from the Fund’s Energy sector holdings.
The Fund’s underperformance relative to its broad-based benchmark was due to its below-benchmark exposure to large-cap stocks in the Information Technology sector, which outperformed the Fund’s holdings of mid-cap stocks in the same sector over the past decade. Stock selection and a below-benchmark allocation in the Utilities sector detracted results relative to the targeted benchmark, while stock selection in most other sectors added to the Fund’s relative performance.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $127 | 1.13% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Mid Cap Relative Value Fund - A | Russell 3000® Total Return Index | Russell Midcap® Value Index | Bloomberg US Mid Cap Value Index |
|---|
| Sep-2015 | $9,425 | $10,000 | $10,000 | $10,000 |
| Sep-2016 | $10,380 | $11,496 | $11,726 | $11,738 |
| Sep-2017 | $12,369 | $13,647 | $13,294 | $13,711 |
| Sep-2018 | $13,302 | $16,046 | $14,465 | $15,102 |
| Sep-2019 | $13,531 | $16,514 | $14,696 | $15,313 |
| Sep-2020 | $12,770 | $18,992 | $13,624 | $14,095 |
| Sep-2021 | $17,196 | $25,045 | $19,400 | $20,408 |
| Sep-2022 | $14,807 | $20,630 | $16,770 | $18,339 |
| Sep-2023 | $16,990 | $24,852 | $18,622 | $20,448 |
| Sep-2024 | $21,081 | $33,598 | $24,025 | $26,626 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (November 13, 2015) |
|---|
| Sterling Capital Mid Cap Relative Value Fund - A | | | |
| Without Load | 24.07% | 9.27% | 9.17% |
| With Load | 16.94% | 7.98% | 8.45% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 13.96% |
Russell Midcap® Value Index | 29.01% | 10.33% | 10.01% |
| Bloomberg US Mid Cap Value Index | 30.22% | 11.70% | 11.27% |
The 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.
The Russell Midcap® Value Indexmeasures the performance of the midcap 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 Russell Midcap® Value Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap value market. The index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true midcap value market..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Mid Cap Relative Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$40,518,290
- Number of Portfolio Holdings46
- Advisory Fee $256,540
- Portfolio Turnover9%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 1.4% |
| Communication Services | 2.2% |
| Consumer Discretionary | 3.3% |
| Utilities | 5.2% |
| Energy | 5.7% |
| Health Care | 7.7% |
| Consumer Staples | 8.3% |
| Materials | 9.2% |
| Real Estate | 9.7% |
| Information Technology | 10.2% |
| Financials | 17.2% |
| Industrials | 19.9% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 98.6% |
| Money Market Funds | 1.4% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Mid Cap Relative Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Mid Cap Relative Value Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed both its broad-based benchmark, the Russell 3000® Index, and its targeted benchmark, the Russell Mid-Cap® Value Index. U.S. equities recorded strong gains throughout the year on improving investor optimism. Stocks in the Industrials sector contributed the most to the Fund’s absolute performance, while the Fund’s investments in the Energy sector weighed down absolute results. This included an investment in a natural gas production company that declined in value for the year under review.
The Fund’s underperformance relative to its broad-based benchmark over the 12-month period was due to its below-benchmark exposure to large-cap stocks in the Information Technology sector, which outperformed the Fund’s holdings of mid-cap stocks in the same sector. The Fund’s underperformance relative to its targeted benchmark was driven by stock selection within the Financials sector, particularly an insurance company that underperformed.
Stock selection within the Industrials sector added to the Fund’s performance relative to both benchmarks. Stock selection in the Consumer Staples and Materials sectors added to the Fund’s performance relative to its targeted benchmark.
How did the Fund perform over the past 10 years?
The Fund underperformed both of its benchmarks over the past 10 years. The Fund’s performance on an absolute basis was driven by a broad-based bull market in U.S. equities. The Fund’s absolute return benefited the most from gains in its Health Care holdings. These gains were partly offset by a negative return from the Fund’s Energy sector holdings.
The Fund’s underperformance relative to its broad-based benchmark was due to its below-benchmark exposure to large-cap stocks in the Information Technology sector, which outperformed the Fund’s holdings of mid-cap stocks in the same sector over the past decade. Stock selection and a below-benchmark allocation in the Utilities sector detracted results relative to the targeted benchmark, while stock selection in most other sectors added to the Fund’s relative performance.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $198 | 1.77% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Mid Cap Relative Value Fund - C | Russell 3000® Total Return Index | Russell Midcap® Value Index | Bloomberg US Mid Cap Value Index |
|---|
| Sep-2015 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2016 | $10,944 | $11,496 | $11,726 | $11,738 |
| Sep-2017 | $12,943 | $13,647 | $13,294 | $13,711 |
| Sep-2018 | $13,810 | $16,046 | $14,465 | $15,102 |
| Sep-2019 | $13,952 | $16,514 | $14,696 | $15,313 |
| Sep-2020 | $13,086 | $18,992 | $13,624 | $14,095 |
| Sep-2021 | $17,510 | $25,045 | $19,400 | $20,408 |
| Sep-2022 | $14,980 | $20,630 | $16,770 | $18,339 |
| Sep-2023 | $17,078 | $24,852 | $18,622 | $20,448 |
| Sep-2024 | $21,055 | $33,598 | $24,025 | $26,626 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (November 13, 2015) |
|---|
| Sterling Capital Mid Cap Relative Value Fund - C | 23.29% | 8.58% | 8.43% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 13.96% |
Russell Midcap® Value Index | 29.01% | 10.33% | 10.01% |
| Bloomberg US Mid Cap Value Index | 30.22% | 11.70% | 11.27% |
The 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.
The Russell Midcap® Value Indexmeasures the performance of the midcap 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 Russell Midcap® Value Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap value market. The index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true midcap value market..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Mid Cap Relative Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$40,518,290
- Number of Portfolio Holdings46
- Advisory Fee $256,540
- Portfolio Turnover9%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 1.4% |
| Communication Services | 2.2% |
| Consumer Discretionary | 3.3% |
| Utilities | 5.2% |
| Energy | 5.7% |
| Health Care | 7.7% |
| Consumer Staples | 8.3% |
| Materials | 9.2% |
| Real Estate | 9.7% |
| Information Technology | 10.2% |
| Financials | 17.2% |
| Industrials | 19.9% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 98.6% |
| Money Market Funds | 1.4% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Mid Cap Relative Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (STRGX)
This annual shareholder report contains important information about Sterling Capital Mid Cap Relative Value Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed both its broad-based benchmark, the Russell 3000® Index, and its targeted benchmark, the Russell Mid-Cap® Value Index. U.S. equities recorded strong gains throughout the year on improving investor optimism. Stocks in the Industrials sector contributed the most to the Fund’s absolute performance, while the Fund’s investments in the Energy sector weighed down absolute results. This included an investment in a natural gas production company that declined in value for the year under review.
The Fund’s underperformance relative to its broad-based benchmark over the 12-month period was due to its below-benchmark exposure to large-cap stocks in the Information Technology sector, which outperformed the Fund’s holdings of mid-cap stocks in the same sector. The Fund’s underperformance relative to its targeted benchmark was driven by stock selection within the Financials sector, particularly an insurance company that underperformed.
Stock selection within the Industrials sector added to the Fund’s performance relative to both benchmarks. Stock selection in the Consumer Staples and Materials sectors added to the Fund’s performance relative to its targeted benchmark.
How did the Fund perform over the past 10 years?
The Fund underperformed both of its benchmarks over the past 10 years. The Fund’s performance on an absolute basis was driven by a broad-based bull market in U.S. equities. The Fund’s absolute return benefited the most from gains in its Health Care holdings. These gains were partly offset by a negative return from the Fund’s Energy sector holdings.
The Fund’s underperformance relative to its broad-based benchmark was due to its below-benchmark exposure to large-cap stocks in the Information Technology sector, which outperformed the Fund’s holdings of mid-cap stocks in the same sector over the past decade. Stock selection and a below-benchmark allocation in the Utilities sector detracted results relative to the targeted benchmark, while stock selection in most other sectors added to the Fund’s relative performance.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $99 | 0.88% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Mid Cap Relative Value Fund - I | Russell 3000® Total Return Index | Russell Midcap® Value Index | Bloomberg US Mid Cap Value Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $9,763 | $9,951 | $9,793 | $9,854 |
| Sep-2016 | $10,775 | $11,440 | $11,484 | $11,566 |
| Sep-2017 | $12,872 | $13,579 | $13,019 | $13,510 |
| Sep-2018 | $13,878 | $15,967 | $14,165 | $14,882 |
| Sep-2019 | $14,151 | $16,433 | $14,392 | $15,089 |
| Sep-2020 | $13,388 | $18,898 | $13,342 | $13,889 |
| Sep-2021 | $18,076 | $24,921 | $18,998 | $20,110 |
| Sep-2022 | $15,603 | $20,528 | $16,423 | $18,071 |
| Sep-2023 | $17,948 | $24,729 | $18,237 | $20,148 |
| Sep-2024 | $22,327 | $33,432 | $23,528 | $26,237 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Mid Cap Relative Value Fund - I | 24.40% | 9.55% | 8.36% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell Midcap® Value Index | 29.01% | 10.33% | 8.93% |
| Bloomberg US Mid Cap Value Index | 30.22% | 11.70% | 10.13% |
The 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.
The Russell Midcap® Value Indexmeasures the performance of the midcap 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 Russell Midcap® Value Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap value market. The index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true midcap value market..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Mid Cap Relative Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (STRGX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$40,518,290
- Number of Portfolio Holdings46
- Advisory Fee $256,540
- Portfolio Turnover9%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 1.4% |
| Communication Services | 2.2% |
| Consumer Discretionary | 3.3% |
| Utilities | 5.2% |
| Energy | 5.7% |
| Health Care | 7.7% |
| Consumer Staples | 8.3% |
| Materials | 9.2% |
| Real Estate | 9.7% |
| Information Technology | 10.2% |
| Financials | 17.2% |
| Industrials | 19.9% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 98.6% |
| Money Market Funds | 1.4% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Mid Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Mid Value Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its primary benchmark, the Bloomberg Mid Cap Value, and its broad-based benchmark, the Russell 3000® Index. U.S. equities generally performed well during the 12-month period under review. Larger and more growth-oriented companies performed particularly well, as investor excitement about the commercialization of artificial intelligence drove outsized returns for the stocks of mega-cap technology companies. The anticipation of lower interest rates, which became a reality in September 2024, also benefited the Fund on an absolute basis.
The Fund’s under performance relative to its benchmark over the 12-month period was largely due to an underweight position in the Industrials sector, as well as stock selection within that sector. An overweight position in the Communications Services sector also contributed to the Fund’s weak relative performance.
Strong stock selection in the Consumer Discretionary, Consumer Staples, and Real Estate sectors offset some of the Fund’s under performance.
How did the Fund perform in the past 10 years?
For the past 10 years, the Fund underperformed its benchmark despite strong absolute returns driven by significant overall stock market gains. The under performance was due to above-benchmark exposure to smaller companies with value characteristics, factors that were out of favor with investors. Stock selection within the Communications Services and Industrials sectors also hurt relative the Fund’s relative returns, while stock selection within the Health Care and Consumer Discretionary sectors helped offset some of this under performance.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $126 | 1.15% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Mid Value Fund - A | Russell 3000® Total Return Index | Russell Midcap® Value Index | Bloomberg US Mid Cap Value Index |
|---|
| Sep-2014 | $9,425 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $9,360 | $9,951 | $9,793 | $9,854 |
| Sep-2016 | $10,583 | $11,440 | $11,484 | $11,566 |
| Sep-2017 | $12,215 | $13,579 | $13,019 | $13,510 |
| Sep-2018 | $13,013 | $15,967 | $14,165 | $14,882 |
| Sep-2019 | $12,649 | $16,433 | $14,392 | $15,089 |
| Sep-2020 | $11,920 | $18,898 | $13,342 | $13,889 |
| Sep-2021 | $17,084 | $24,921 | $18,998 | $20,110 |
| Sep-2022 | $14,097 | $20,528 | $16,423 | $18,071 |
| Sep-2023 | $15,994 | $24,729 | $18,237 | $20,148 |
| Sep-2024 | $19,176 | $33,432 | $23,528 | $26,237 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Mid Value Fund - A | | | |
| Without Load | 19.90% | 8.68% | 7.36% |
| With Load | 13.02% | 7.40% | 6.73% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell Midcap® Value Index | 29.01% | 10.33% | 8.93% |
| Bloomberg US Mid Cap Value Index | 30.22% | 11.70% | 10.13% |
The Bloomberg U.S. 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.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Mid Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$48,726,023
- Number of Portfolio Holdings41
- Advisory Fee (net of waivers)$282,731
- Portfolio Turnover39%
SECTOR WEIGHTING (as a % of Net Assets)
| Technology | 0.6% |
| Money Market Funds | 1.8% |
| Real Estate | 3.7% |
| Energy | 3.8% |
| Communication Services | 4.1% |
| Utilities | 6.2% |
| Materials | 6.3% |
| Consumer Staples | 6.9% |
| Information Technology | 7.3% |
| Health Care | 8.1% |
| Consumer Discretionary | 12.2% |
| Industrials | 13.4% |
| Financials | 25.0% |
| Other Assets in Excess of Liabilities | 0.6% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 98.2% |
| Money Market Funds | 1.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Mid Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Mid Value Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its primary benchmark, the Bloomberg Mid Cap Value, and its broad-based benchmark, the Russell 3000® Index. U.S. equities generally performed well during the 12-month period under review. Larger and more growth-oriented companies performed particularly well, as investor excitement about the commercialization of artificial intelligence drove outsized returns for the stocks of mega-cap technology companies. The anticipation of lower interest rates, which became a reality in September 2024, also benefited the Fund on an absolute basis.
The Fund’s under performance relative to its benchmark over the 12-month period was largely due to an underweight position in the Industrials sector, as well as stock selection within that sector. An overweight position in the Communications Services sector also contributed to the Fund’s weak relative performance.
Strong stock selection in the Consumer Discretionary, Consumer Staples, and Real Estate sectors offset some of the Fund’s under performance.
How did the Fund perform in the past 10 years?
For the past 10 years, the Fund underperformed its benchmark despite strong absolute returns driven by significant overall stock market gains. The under performance was due to above-benchmark exposure to smaller companies with value characteristics, factors that were out of favor with investors. Stock selection within the Communications Services and Industrials sectors also hurt relative the Fund’s relative returns, while stock selection within the Health Care and Consumer Discretionary sectors helped offset some of this under performance.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $208 | 1.90% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Mid Value Fund - C | Russell 3000® Total Return Index | Russell Midcap® Value Index | Bloomberg US Mid Cap Value Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $9,857 | $9,951 | $9,793 | $9,854 |
| Sep-2016 | $11,062 | $11,440 | $11,484 | $11,566 |
| Sep-2017 | $12,674 | $13,579 | $13,019 | $13,510 |
| Sep-2018 | $13,399 | $15,967 | $14,165 | $14,882 |
| Sep-2019 | $12,927 | $16,433 | $14,392 | $15,089 |
| Sep-2020 | $12,092 | $18,898 | $13,342 | $13,889 |
| Sep-2021 | $17,204 | $24,921 | $18,998 | $20,110 |
| Sep-2022 | $14,096 | $20,528 | $16,423 | $18,071 |
| Sep-2023 | $15,868 | $24,729 | $18,237 | $20,148 |
| Sep-2024 | $18,876 | $33,432 | $23,528 | $26,237 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Mid Value Fund - C | 18.96% | 7.87% | 6.56% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell Midcap® Value Index | 29.01% | 10.33% | 8.93% |
| Bloomberg US Mid Cap Value Index | 30.22% | 11.70% | 10.13% |
The Bloomberg U.S. 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.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Mid Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$48,726,023
- Number of Portfolio Holdings41
- Advisory Fee (net of waivers)$282,731
- Portfolio Turnover39%
SECTOR WEIGHTING (as a % of Net Assets)
| Technology | 0.6% |
| Money Market Funds | 1.8% |
| Real Estate | 3.7% |
| Energy | 3.8% |
| Communication Services | 4.1% |
| Utilities | 6.2% |
| Materials | 6.3% |
| Consumer Staples | 6.9% |
| Information Technology | 7.3% |
| Health Care | 8.1% |
| Consumer Discretionary | 12.2% |
| Industrials | 13.4% |
| Financials | 25.0% |
| Other Assets in Excess of Liabilities | 0.6% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 98.2% |
| Money Market Funds | 1.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Mid Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Mid Value Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its primary benchmark, the Bloomberg Mid Cap Value, and its broad-based benchmark, the Russell 3000® Index. U.S. equities generally performed well during the 12-month period under review. Larger and more growth-oriented companies performed particularly well, as investor excitement about the commercialization of artificial intelligence drove outsized returns for the stocks of mega-cap technology companies. The anticipation of lower interest rates, which became a reality in September 2024, also benefited the Fund on an absolute basis.
The Fund’s under performance relative to its benchmark over the 12-month period was largely due to an underweight position in the Industrials sector, as well as stock selection within that sector. An overweight position in the Communications Services sector also contributed to the Fund’s weak relative performance.
Strong stock selection in the Consumer Discretionary, Consumer Staples, and Real Estate sectors offset some of the Fund’s under performance.
How did the Fund perform in the past 10 years?
For the past 10 years, the Fund underperformed its benchmark despite strong absolute returns driven by significant overall stock market gains. The under performance was due to above-benchmark exposure to smaller companies with value characteristics, factors that were out of favor with investors. Stock selection within the Communications Services and Industrials sectors also hurt relative the Fund’s relative returns, while stock selection within the Health Care and Consumer Discretionary sectors helped offset some of this under performance.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $89 | 0.81% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Mid Value Fund - R6 | Russell 3000® Total Return Index | Russell Midcap® Value Index | Bloomberg US Mid Cap Value Index |
|---|
| Sep-2017 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2018 | $10,693 | $11,758 | $10,881 | $11,015 |
| Sep-2019 | $10,431 | $12,101 | $11,055 | $11,168 |
| Sep-2020 | $9,851 | $13,916 | $10,248 | $10,280 |
| Sep-2021 | $14,171 | $18,352 | $14,593 | $14,885 |
| Sep-2022 | $11,736 | $15,117 | $12,615 | $13,376 |
| Sep-2023 | $13,363 | $18,210 | $14,008 | $14,913 |
| Sep-2024 | $16,066 | $24,619 | $18,073 | $19,420 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (January 31, 2018) |
|---|
| Sterling Capital Mid Value Fund - R6 | 20.22% | 9.02% | 5.67% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.56% |
Russell Midcap® Value Index | 29.01% | 10.33% | 8.04% |
| Bloomberg US Mid Cap Value Index | 30.22% | 11.70% | 8.85% |
The Bloomberg U.S. 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.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Mid Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$48,726,023
- Number of Portfolio Holdings41
- Advisory Fee (net of waivers)$282,731
- Portfolio Turnover39%
SECTOR WEIGHTING (as a % of Net Assets)
| Technology | 0.6% |
| Money Market Funds | 1.8% |
| Real Estate | 3.7% |
| Energy | 3.8% |
| Communication Services | 4.1% |
| Utilities | 6.2% |
| Materials | 6.3% |
| Consumer Staples | 6.9% |
| Information Technology | 7.3% |
| Health Care | 8.1% |
| Consumer Discretionary | 12.2% |
| Industrials | 13.4% |
| Financials | 25.0% |
| Other Assets in Excess of Liabilities | 0.6% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 98.2% |
| Money Market Funds | 1.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Mid Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (OVEIX)
This annual shareholder report contains important information about Sterling Capital Mid Value Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its primary benchmark, the Bloomberg Mid Cap Value, and its broad-based benchmark, the Russell 3000® Index. U.S. equities generally performed well during the 12-month period under review. Larger and more growth-oriented companies performed particularly well, as investor excitement about the commercialization of artificial intelligence drove outsized returns for the stocks of mega-cap technology companies. The anticipation of lower interest rates, which became a reality in September 2024, also benefited the Fund on an absolute basis.
The Fund’s under performance relative to its benchmark over the 12-month period was largely due to an underweight position in the Industrials sector, as well as stock selection within that sector. An overweight position in the Communications Services sector also contributed to the Fund’s weak relative performance.
Strong stock selection in the Consumer Discretionary, Consumer Staples, and Real Estate sectors offset some of the Fund’s under performance.
How did the Fund perform in the past 10 years?
For the past 10 years, the Fund underperformed its benchmark despite strong absolute returns driven by significant overall stock market gains. The under performance was due to above-benchmark exposure to smaller companies with value characteristics, factors that were out of favor with investors. Stock selection within the Communications Services and Industrials sectors also hurt relative the Fund’s relative returns, while stock selection within the Health Care and Consumer Discretionary sectors helped offset some of this under performance.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $99 | 0.90% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Mid Value Fund - I | Russell 3000® Total Return Index | Russell Midcap® Value Index | Bloomberg US Mid Cap Value Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $9,957 | $9,951 | $9,793 | $9,854 |
| Sep-2016 | $11,283 | $11,440 | $11,484 | $11,566 |
| Sep-2017 | $13,058 | $13,579 | $13,019 | $13,510 |
| Sep-2018 | $13,948 | $15,967 | $14,165 | $14,882 |
| Sep-2019 | $13,594 | $16,433 | $14,392 | $15,089 |
| Sep-2020 | $12,846 | $18,898 | $13,342 | $13,889 |
| Sep-2021 | $18,463 | $24,921 | $18,998 | $20,110 |
| Sep-2022 | $15,269 | $20,528 | $16,423 | $18,071 |
| Sep-2023 | $17,370 | $24,729 | $18,237 | $20,148 |
| Sep-2024 | $20,874 | $33,432 | $23,528 | $26,237 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Mid Value Fund - I | 20.17% | 8.96% | 7.64% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell Midcap® Value Index | 29.01% | 10.33% | 8.93% |
| Bloomberg US Mid Cap Value Index | 30.22% | 11.70% | 10.13% |
The Bloomberg U.S. 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.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Mid Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (OVEIX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$48,726,023
- Number of Portfolio Holdings41
- Advisory Fee (net of waivers)$282,731
- Portfolio Turnover39%
SECTOR WEIGHTING (as a % of Net Assets)
| Technology | 0.6% |
| Money Market Funds | 1.8% |
| Real Estate | 3.7% |
| Energy | 3.8% |
| Communication Services | 4.1% |
| Utilities | 6.2% |
| Materials | 6.3% |
| Consumer Staples | 6.9% |
| Information Technology | 7.3% |
| Health Care | 8.1% |
| Consumer Discretionary | 12.2% |
| Industrials | 13.4% |
| Financials | 25.0% |
| Other Assets in Excess of Liabilities | 0.6% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 98.2% |
| Money Market Funds | 1.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital North Carolina Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital North Carolina Intermediate Tax-Free Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its benchmark, the ICE BofA 2-17 Year Municipal Bond Index. The Federal Reserve (the Fed) cut the federal funds rate by 50 basis points in September 2024, the only rate change during the period. As interest rates fell, bond prices rose, boosting the Fund’s returns on an absolute basis.
The Fund’s underperformance relative to its benchmark over the 12-month period was largely due to its state-specific focus, which is designed to achieve tax savings for shareholders. This restriction of investment opportunities hurt relative performance during the period as municipal bonds in the state underperformed the benchmark. The Fund’s underweight position in five-year bonds was also a drag on relative performance, as rates dropped lower, and prices rose higher among those bonds.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund underperformed its benchmark. Interest rates fluctuated during the period and ultimately closed higher. However, the Fed’s September 2024 rate cut boosted absolute performance by raising bond prices in the last weeks of the period.
The Fund’s underperformance relative to its benchmark over the 10-year period was largely due to its state-specific focus, as the municipal bonds available to the Fund underperformed the benchmark. Over the last decade credit spreads have compressed as credit fundamentals have improved, resulting in lower-quality credits outperforming sector.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $88 | 0.85% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital North Carolina Intermediate Tax-Free Fund - A | Bloomberg Municipal Bond Index | ICE BofA 2-17 Year US Municipal Securities Index |
|---|
| Sep-2014 | $9,804 | $10,000 | $10,000 |
| Sep-2015 | $10,027 | $10,316 | $10,257 |
| Sep-2016 | $10,396 | $10,892 | $10,747 |
| Sep-2017 | $10,364 | $10,987 | $10,860 |
| Sep-2018 | $10,254 | $11,025 | $10,837 |
| Sep-2019 | $10,955 | $11,968 | $11,694 |
| Sep-2020 | $11,354 | $12,458 | $12,158 |
| Sep-2021 | $11,352 | $12,785 | $12,410 |
| Sep-2022 | $10,340 | $11,315 | $11,239 |
| Sep-2023 | $10,451 | $11,616 | $11,544 |
| Sep-2024 | $11,196 | $12,821 | $12,553 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital North Carolina Intermediate Tax-Free Fund - A | | | |
| Without Load | 7.13% | 0.44% | 1.34% |
| With Load | 4.97% | 0.03% | 1.14% |
| Bloomberg Municipal Bond Index | 10.37% | 1.39% | 2.52% |
| ICE BofA 2-17 Year US Municipal Securities Index | 8.74% | 1.43% | 2.30% |
The ICE BofA 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and USD-denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital North Carolina Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$128,637,524
- Number of Portfolio Holdings82
- Advisory Fee $451,597
- Portfolio Turnover20%
HOLDINGS BY STATE OF ISSUANCE (as a % of Net Assets)
| North Carolina | 98.9% |
| Other Assets in Excess of Liabilities | 1.1% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 0.9% |
| Municipal Bonds | 99.1% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital North Carolina Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital North Carolina Intermediate Tax-Free Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its benchmark, the ICE BofA 2-17 Year Municipal Bond Index. The Federal Reserve (the Fed) cut the federal funds rate by 50 basis points in September 2024, the only rate change during the period. As interest rates fell, bond prices rose, boosting the Fund’s returns on an absolute basis.
The Fund’s underperformance relative to its benchmark over the 12-month period was largely due to its state-specific focus, which is designed to achieve tax savings for shareholders. This restriction of investment opportunities hurt relative performance during the period as municipal bonds in the state underperformed the benchmark. The Fund’s underweight position in five-year bonds was also a drag on relative performance, as rates dropped lower, and prices rose higher among those bonds.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund underperformed its benchmark. Interest rates fluctuated during the period and ultimately closed higher. However, the Fed’s September 2024 rate cut boosted absolute performance by raising bond prices in the last weeks of the period.
The Fund’s underperformance relative to its benchmark over the 10-year period was largely due to its state-specific focus, as the municipal bonds available to the Fund underperformed the benchmark. Over the last decade credit spreads have compressed as credit fundamentals have improved, resulting in lower-quality credits outperforming sector.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $165 | 1.60% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital North Carolina Intermediate Tax-Free Fund - C | Bloomberg Municipal Bond Index | ICE BofA 2-17 Year US Municipal Securities Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,142 | $10,316 | $10,257 |
| Sep-2016 | $10,438 | $10,892 | $10,747 |
| Sep-2017 | $10,327 | $10,987 | $10,860 |
| Sep-2018 | $10,142 | $11,025 | $10,837 |
| Sep-2019 | $10,755 | $11,968 | $11,694 |
| Sep-2020 | $11,073 | $12,458 | $12,158 |
| Sep-2021 | $10,979 | $12,785 | $12,410 |
| Sep-2022 | $9,923 | $11,315 | $11,239 |
| Sep-2023 | $9,956 | $11,616 | $11,544 |
| Sep-2024 | $10,586 | $12,821 | $12,553 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital North Carolina Intermediate Tax-Free Fund - C | 6.33% | -0.32% | 0.57% |
| Bloomberg Municipal Bond Index | 10.37% | 1.39% | 2.52% |
| ICE BofA 2-17 Year US Municipal Securities Index | 8.74% | 1.43% | 2.30% |
The ICE BofA 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and USD-denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital North Carolina Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$128,637,524
- Number of Portfolio Holdings82
- Advisory Fee $451,597
- Portfolio Turnover20%
HOLDINGS BY STATE OF ISSUANCE (as a % of Net Assets)
| North Carolina | 98.9% |
| Other Assets in Excess of Liabilities | 1.1% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 0.9% |
| Municipal Bonds | 99.1% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital North Carolina Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BBNTX)
This annual shareholder report contains important information about Sterling Capital North Carolina Intermediate Tax-Free Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its benchmark, the ICE BofA 2-17 Year Municipal Bond Index. The Federal Reserve (the Fed) cut the federal funds rate by 50 basis points in September 2024, the only rate change during the period. As interest rates fell, bond prices rose, boosting the Fund’s returns on an absolute basis.
The Fund’s underperformance relative to its benchmark over the 12-month period was largely due to its state-specific focus, which is designed to achieve tax savings for shareholders. This restriction of investment opportunities hurt relative performance during the period as municipal bonds in the state underperformed the benchmark. The Fund’s underweight position in five-year bonds was also a drag on relative performance, as rates dropped lower, and prices rose higher among those bonds.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund underperformed its benchmark. Interest rates fluctuated during the period and ultimately closed higher. However, the Fed’s September 2024 rate cut boosted absolute performance by raising bond prices in the last weeks of the period.
The Fund’s underperformance relative to its benchmark over the 10-year period was largely due to its state-specific focus, as the municipal bonds available to the Fund underperformed the benchmark. Over the last decade credit spreads have compressed as credit fundamentals have improved, resulting in lower-quality credits outperforming sector.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $62 | 0.60% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital North Carolina Intermediate Tax-Free Fund - I | Bloomberg Municipal Bond Index | ICE BofA 2-17 Year US Municipal Securities Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,253 | $10,316 | $10,257 |
| Sep-2016 | $10,657 | $10,892 | $10,747 |
| Sep-2017 | $10,651 | $10,987 | $10,860 |
| Sep-2018 | $10,565 | $11,025 | $10,837 |
| Sep-2019 | $11,315 | $11,968 | $11,694 |
| Sep-2020 | $11,756 | $12,458 | $12,158 |
| Sep-2021 | $11,784 | $12,785 | $12,410 |
| Sep-2022 | $10,748 | $11,315 | $11,239 |
| Sep-2023 | $10,903 | $11,616 | $11,544 |
| Sep-2024 | $11,709 | $12,821 | $12,553 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital North Carolina Intermediate Tax-Free Fund - I | 7.39% | 0.69% | 1.59% |
| Bloomberg Municipal Bond Index | 10.37% | 1.39% | 2.52% |
| ICE BofA 2-17 Year US Municipal Securities Index | 8.74% | 1.43% | 2.30% |
The ICE BofA 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and USD-denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital North Carolina Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BBNTX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$128,637,524
- Number of Portfolio Holdings82
- Advisory Fee $451,597
- Portfolio Turnover20%
HOLDINGS BY STATE OF ISSUANCE (as a % of Net Assets)
| North Carolina | 98.9% |
| Other Assets in Excess of Liabilities | 1.1% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 0.9% |
| Municipal Bonds | 99.1% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Quality Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Quality Income Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed both its primary benchmark, the Bloomberg U.S. MBS Index, and its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. The Federal Reserve (the Fed) cut the fed funds rate by 50 basis points in September 2024, the only rate change during the period. The drop in interest rates raised prices across all sectors, which boosted absolute returns.
The Fund’s selection of agency passthrough securities outperformed the sector, contributing positively to relative returns. The Fund’s overweight exposure to non-agency commercial mortgage-backed securities (CMBS) also helped returns, as the sector performed well during the period. The Fund’s shorter average duration offset some of this outperformance, as shorter-duration securities benefit less from falling interest rates. The Fund’s overweight position in agency-backed securities (ABS) also hurt relative returns, as that sector underperformed the benchmark.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund outperformed both benchmarks. The fed funds rate remained historically low until late in the period, when it rose to its highest level in more than a decade. These rate changes hurt the absolute performance of fixed-income securities.
The Fund’s shorter average duration helped it outperform its primary benchmark, as shorter-duration securities benefited from rising rates earlier than longer-duration securities. The Fund’s overweight exposure to non-agency securitized sectors helped relative returns, as those sectors generally outperformed agency MBS during the period. Security selection within MBS also contributed, as the Fund’s coupon exposure outperformed the sector as a whole.
The Fund outperformed its broader benchmark in the past 10 years largely due to its shorter average duration and overweight exposure to non-agency securitized sectors. The Fund’s security selection within agency passthroughs also contributed, as the Fund’s exposure outperformed the sector during the period.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $86 | 0.82% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Quality Income Fund - A | Bloomberg U.S. Aggregate Bond Index | Bloomberg U.S. Mortgage Backed Securities Index |
|---|
| Sep-2014 | $9,802 | $10,000 | $10,000 |
| Sep-2015 | $10,134 | $10,294 | $10,343 |
| Sep-2016 | $10,499 | $10,829 | $10,717 |
| Sep-2017 | $10,592 | $10,836 | $10,749 |
| Sep-2018 | $10,525 | $10,705 | $10,650 |
| Sep-2019 | $11,380 | $11,807 | $11,480 |
| Sep-2020 | $11,843 | $12,632 | $11,980 |
| Sep-2021 | $11,816 | $12,518 | $11,929 |
| Sep-2022 | $10,525 | $10,691 | $10,261 |
| Sep-2023 | $10,544 | $10,760 | $10,244 |
| Sep-2024 | $11,680 | $12,004 | $11,505 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Quality Income Fund - A | | | |
| Without Load | 10.77% | 0.52% | 1.77% |
| With Load | 8.62% | 0.11% | 1.56% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
| Bloomberg U.S. Mortgage Backed Securities Index | 12.32% | 0.04% | 1.41% |
The Bloomberg U.S. MBS 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.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Quality Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$87,899,672
- Number of Portfolio Holdings214
- Advisory Fee (net of waivers)$266,545
- Portfolio Turnover25%
SECTOR WEIGHTING (as a % of Net Assets)
| Real Estate | 0.3% |
| U.S. Government Agencies | 0.5% |
| Money Market Funds | 3.0% |
| U.S. Treasury Bonds & Notes | 3.9% |
| Asset Backed Securities | 11.7% |
| Commercial Mortgage-Backed Securities | 16.3% |
| Collateralized Mortgage Obligations | 25.1% |
| Mortgage-Backed Securities | 39.0% |
| Other Assets in Excess of Liabilities | 0.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 11.7% |
| Collateralized Mortgage Obligations | 25.2% |
| Commercial Mortgage-Backed Securities | 16.3% |
| Corporate Bonds | 0.3% |
| Money Market Funds | 3.0% |
| Mortgage-Backed Securities | 39.1% |
| U.S. Government Agencies | 0.5% |
| U.S. Treasury Bonds & Notes | 3.9% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Quality Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Quality Income Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed both its primary benchmark, the Bloomberg U.S. MBS Index, and its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. The Federal Reserve (the Fed) cut the fed funds rate by 50 basis points in September 2024, the only rate change during the period. The drop in interest rates raised prices across all sectors, which boosted absolute returns.
The Fund’s selection of agency passthrough securities outperformed the sector, contributing positively to relative returns. The Fund’s overweight exposure to non-agency commercial mortgage-backed securities (CMBS) also helped returns, as the sector performed well during the period. The Fund’s shorter average duration offset some of this outperformance, as shorter-duration securities benefit less from falling interest rates. The Fund’s overweight position in agency-backed securities (ABS) also hurt relative returns, as that sector underperformed the benchmark.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund outperformed both benchmarks. The fed funds rate remained historically low until late in the period, when it rose to its highest level in more than a decade. These rate changes hurt the absolute performance of fixed-income securities.
The Fund’s shorter average duration helped it outperform its primary benchmark, as shorter-duration securities benefited from rising rates earlier than longer-duration securities. The Fund’s overweight exposure to non-agency securitized sectors helped relative returns, as those sectors generally outperformed agency MBS during the period. Security selection within MBS also contributed, as the Fund’s coupon exposure outperformed the sector as a whole.
The Fund outperformed its broader benchmark in the past 10 years largely due to its shorter average duration and overweight exposure to non-agency securitized sectors. The Fund’s security selection within agency passthroughs also contributed, as the Fund’s exposure outperformed the sector during the period.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $156 | 1.49% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Quality Income Fund - C | Bloomberg U.S. Aggregate Bond Index | Bloomberg U.S. Mortgage Backed Securities Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,262 | $10,294 | $10,343 |
| Sep-2016 | $10,552 | $10,829 | $10,717 |
| Sep-2017 | $10,565 | $10,836 | $10,749 |
| Sep-2018 | $10,430 | $10,705 | $10,650 |
| Sep-2019 | $11,182 | $11,807 | $11,480 |
| Sep-2020 | $11,556 | $12,632 | $11,980 |
| Sep-2021 | $11,449 | $12,518 | $11,929 |
| Sep-2022 | $10,138 | $10,691 | $10,261 |
| Sep-2023 | $10,085 | $10,760 | $10,244 |
| Sep-2024 | $11,098 | $12,004 | $11,505 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Quality Income Fund - C | 10.04% | -0.15% | 1.05% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
| Bloomberg U.S. Mortgage Backed Securities Index | 12.32% | 0.04% | 1.41% |
The Bloomberg U.S. MBS 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.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Quality Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$87,899,672
- Number of Portfolio Holdings214
- Advisory Fee (net of waivers)$266,545
- Portfolio Turnover25%
SECTOR WEIGHTING (as a % of Net Assets)
| Real Estate | 0.3% |
| U.S. Government Agencies | 0.5% |
| Money Market Funds | 3.0% |
| U.S. Treasury Bonds & Notes | 3.9% |
| Asset Backed Securities | 11.7% |
| Commercial Mortgage-Backed Securities | 16.3% |
| Collateralized Mortgage Obligations | 25.1% |
| Mortgage-Backed Securities | 39.0% |
| Other Assets in Excess of Liabilities | 0.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 11.7% |
| Collateralized Mortgage Obligations | 25.2% |
| Commercial Mortgage-Backed Securities | 16.3% |
| Corporate Bonds | 0.3% |
| Money Market Funds | 3.0% |
| Mortgage-Backed Securities | 39.1% |
| U.S. Government Agencies | 0.5% |
| U.S. Treasury Bonds & Notes | 3.9% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Quality Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (SCSPX)
This annual shareholder report contains important information about Sterling Capital Quality Income Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed both its primary benchmark, the Bloomberg U.S. MBS Index, and its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. The Federal Reserve (the Fed) cut the fed funds rate by 50 basis points in September 2024, the only rate change during the period. The drop in interest rates raised prices across all sectors, which boosted absolute returns.
The Fund’s selection of agency passthrough securities outperformed the sector, contributing positively to relative returns. The Fund’s overweight exposure to non-agency commercial mortgage-backed securities (CMBS) also helped returns, as the sector performed well during the period. The Fund’s shorter average duration offset some of this outperformance, as shorter-duration securities benefit less from falling interest rates. The Fund’s overweight position in agency-backed securities (ABS) also hurt relative returns, as that sector underperformed the benchmark.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund outperformed both benchmarks. The fed funds rate remained historically low until late in the period, when it rose to its highest level in more than a decade. These rate changes hurt the absolute performance of fixed-income securities.
The Fund’s shorter average duration helped it outperform its primary benchmark, as shorter-duration securities benefited from rising rates earlier than longer-duration securities. The Fund’s overweight exposure to non-agency securitized sectors helped relative returns, as those sectors generally outperformed agency MBS during the period. Security selection within MBS also contributed, as the Fund’s coupon exposure outperformed the sector as a whole.
The Fund outperformed its broader benchmark in the past 10 years largely due to its shorter average duration and overweight exposure to non-agency securitized sectors. The Fund’s security selection within agency passthroughs also contributed, as the Fund’s exposure outperformed the sector during the period.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $60 | 0.57% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Quality Income Fund - I | Bloomberg U.S. Aggregate Bond Index | Bloomberg U.S. Mortgage Backed Securities Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,354 | $10,294 | $10,343 |
| Sep-2016 | $10,754 | $10,829 | $10,717 |
| Sep-2017 | $10,886 | $10,836 | $10,749 |
| Sep-2018 | $10,855 | $10,705 | $10,650 |
| Sep-2019 | $11,754 | $11,807 | $11,480 |
| Sep-2020 | $12,262 | $12,632 | $11,980 |
| Sep-2021 | $12,265 | $12,518 | $11,929 |
| Sep-2022 | $10,953 | $10,691 | $10,261 |
| Sep-2023 | $11,001 | $10,760 | $10,244 |
| Sep-2024 | $12,216 | $12,004 | $11,505 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Quality Income Fund - I | 11.04% | 0.77% | 2.02% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
| Bloomberg U.S. Mortgage Backed Securities Index | 12.32% | 0.04% | 1.41% |
The Bloomberg U.S. MBS 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.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Quality Income Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (SCSPX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$87,899,672
- Number of Portfolio Holdings214
- Advisory Fee (net of waivers)$266,545
- Portfolio Turnover25%
SECTOR WEIGHTING (as a % of Net Assets)
| Real Estate | 0.3% |
| U.S. Government Agencies | 0.5% |
| Money Market Funds | 3.0% |
| U.S. Treasury Bonds & Notes | 3.9% |
| Asset Backed Securities | 11.7% |
| Commercial Mortgage-Backed Securities | 16.3% |
| Collateralized Mortgage Obligations | 25.1% |
| Mortgage-Backed Securities | 39.0% |
| Other Assets in Excess of Liabilities | 0.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 11.7% |
| Collateralized Mortgage Obligations | 25.2% |
| Commercial Mortgage-Backed Securities | 16.3% |
| Corporate Bonds | 0.3% |
| Money Market Funds | 3.0% |
| Mortgage-Backed Securities | 39.1% |
| U.S. Government Agencies | 0.5% |
| U.S. Treasury Bonds & Notes | 3.9% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Real Estate Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Real Estate Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its benchmark, the Russell 3000® Index, and its secondary benchmark, the Bloomberg US 3000 REIT Index. REITs in the Health Care subsector helped drive the Fund’s returns on an absolute basis. The Fund’s Industrials holdings dragged on absolute returns as high supply and low demand for warehouse space weighed on that subsector.
The Fund’s underperformance relative to its primary benchmark was due to the outperformance of non-real estate benchmark holdings relative to real estate, namely in the Information Technology and Communication Services sectors. The Fund’s underperformance relative to its secondary benchmark was driven by stock selection and a below-benchmark allocation to the Specialty REIT subsector, as well as stock selection within the Retail REIT subsector.
The Fund’s returns relative to its primary benchmark benefited from the relative outperformance of the Real Estate sector to the benchmark’s Energy, Health Care, and Materials holdings. Stock selection within the Health Care REIT subsector and a below-benchmark allocation to Timber REITs added to performance relative to the Fund’s secondary benchmark.
How did the Fund perform over the past 10 years?
The Fund underperformed both of its benchmarks over the past 10 years. Absolute performance was driven by holdings within the Data Center and Self-Storage sectors, which saw higher demand for space and higher cash inflows over the past decade. Rising interest rates weighed on the Fund’s absolute returns as the price of REIT stocks tend to move in the opposite direction from interest rates.
The Fund’s underperformance relative to its primary benchmark was due to the relative underperformance of the Real Estate sector to non-real estate holdings in the benchmark, including the Information Technology sector. Stock selection and a below-benchmark allocation within the Infrastructure subsector weighed on the Fund’s performance relative to its secondary benchmark. Stock selection within the Health Care and Lodging subsectors helped on a relative basis.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $129 | 1.11% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Real Estate Fund - A | Russell 3000® Total Return Index | Bloomberg US 3000 REIT Index | S&P 500® Index |
|---|
| Sep-2015 | $9,425 | $10,000 | $10,000 | $10,000 |
| Sep-2016 | $11,297 | $11,496 | $12,086 | $11,543 |
| Sep-2017 | $11,400 | $13,647 | $12,411 | $13,691 |
| Sep-2018 | $12,103 | $16,046 | $12,973 | $16,143 |
| Sep-2019 | $14,373 | $16,514 | $15,666 | $16,830 |
| Sep-2020 | $13,176 | $18,992 | $13,807 | $19,380 |
| Sep-2021 | $17,139 | $25,045 | $18,183 | $25,194 |
| Sep-2022 | $13,952 | $20,630 | $15,173 | $21,296 |
| Sep-2023 | $14,049 | $24,852 | $14,918 | $25,900 |
| Sep-2024 | $18,658 | $33,598 | $20,104 | $35,315 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (November 13, 2015) |
|---|
| Sterling Capital Real Estate Fund - A | | | |
| Without Load | 32.80% | 5.36% | 7.65% |
| With Load | 25.18% | 4.12% | 6.94% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 13.96% |
| Bloomberg US 3000 REIT Index | 34.76% | 5.12% | 7.91% |
S&P 500® Index | 36.35% | 15.98% | 14.55% |
The 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.
The Bloomberg U.S. 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Real Estate Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$75,753,812
- Number of Portfolio Holdings31
- Advisory Fee (net of waivers)$389,422
- Portfolio Turnover5%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.8% |
| Real Estate | 99.0% |
| Other Assets in Excess of Liabilities | 0.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.2% |
| Money Market Funds | 0.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Real Estate Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Real Estate Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its benchmark, the Russell 3000® Index, and its secondary benchmark, the Bloomberg US 3000 REIT Index. REITs in the Health Care subsector helped drive the Fund’s returns on an absolute basis. The Fund’s Industrials holdings dragged on absolute returns as high supply and low demand for warehouse space weighed on that subsector.
The Fund’s underperformance relative to its primary benchmark was due to the outperformance of non-real estate benchmark holdings relative to real estate, namely in the Information Technology and Communication Services sectors. The Fund’s underperformance relative to its secondary benchmark was driven by stock selection and a below-benchmark allocation to the Specialty REIT subsector, as well as stock selection within the Retail REIT subsector.
The Fund’s returns relative to its primary benchmark benefited from the relative outperformance of the Real Estate sector to the benchmark’s Energy, Health Care, and Materials holdings. Stock selection within the Health Care REIT subsector and a below-benchmark allocation to Timber REITs added to performance relative to the Fund’s secondary benchmark.
How did the Fund perform over the past 10 years?
The Fund underperformed both of its benchmarks over the past 10 years. Absolute performance was driven by holdings within the Data Center and Self-Storage sectors, which saw higher demand for space and higher cash inflows over the past decade. Rising interest rates weighed on the Fund’s absolute returns as the price of REIT stocks tend to move in the opposite direction from interest rates.
The Fund’s underperformance relative to its primary benchmark was due to the relative underperformance of the Real Estate sector to non-real estate holdings in the benchmark, including the Information Technology sector. Stock selection and a below-benchmark allocation within the Infrastructure subsector weighed on the Fund’s performance relative to its secondary benchmark. Stock selection within the Health Care and Lodging subsectors helped on a relative basis.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $216 | 1.86% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Real Estate Fund - C | Russell 3000® Total Return Index | Bloomberg US 3000 REIT Index | S&P 500® Index |
|---|
| Sep-2015 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2016 | $11,911 | $11,496 | $12,086 | $11,543 |
| Sep-2017 | $11,931 | $13,647 | $12,411 | $13,691 |
| Sep-2018 | $12,573 | $16,046 | $12,973 | $16,143 |
| Sep-2019 | $14,821 | $16,514 | $15,666 | $16,830 |
| Sep-2020 | $13,484 | $18,992 | $13,807 | $19,380 |
| Sep-2021 | $17,415 | $25,045 | $18,183 | $25,194 |
| Sep-2022 | $14,073 | $20,630 | $15,173 | $21,296 |
| Sep-2023 | $14,064 | $24,852 | $14,918 | $25,900 |
| Sep-2024 | $18,538 | $33,598 | $20,104 | $35,315 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (November 13, 2015) |
|---|
| Sterling Capital Real Estate Fund - C | 31.81% | 4.58% | 6.86% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 13.96% |
| Bloomberg US 3000 REIT Index | 34.76% | 5.12% | 7.91% |
S&P 500® Index | 36.35% | 15.98% | 14.55% |
The 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.
The Bloomberg U.S. 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Real Estate Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$75,753,812
- Number of Portfolio Holdings31
- Advisory Fee (net of waivers)$389,422
- Portfolio Turnover5%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.8% |
| Real Estate | 99.0% |
| Other Assets in Excess of Liabilities | 0.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.2% |
| Money Market Funds | 0.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Real Estate Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Real Estate Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its benchmark, the Russell 3000® Index, and its secondary benchmark, the Bloomberg US 3000 REIT Index. REITs in the Health Care subsector helped drive the Fund’s returns on an absolute basis. The Fund’s Industrials holdings dragged on absolute returns as high supply and low demand for warehouse space weighed on that subsector.
The Fund’s underperformance relative to its primary benchmark was due to the outperformance of non-real estate benchmark holdings relative to real estate, namely in the Information Technology and Communication Services sectors. The Fund’s underperformance relative to its secondary benchmark was driven by stock selection and a below-benchmark allocation to the Specialty REIT subsector, as well as stock selection within the Retail REIT subsector.
The Fund’s returns relative to its primary benchmark benefited from the relative outperformance of the Real Estate sector to the benchmark’s Energy, Health Care, and Materials holdings. Stock selection within the Health Care REIT subsector and a below-benchmark allocation to Timber REITs added to performance relative to the Fund’s secondary benchmark.
How did the Fund perform over the past 10 years?
The Fund underperformed both of its benchmarks over the past 10 years. Absolute performance was driven by holdings within the Data Center and Self-Storage sectors, which saw higher demand for space and higher cash inflows over the past decade. Rising interest rates weighed on the Fund’s absolute returns as the price of REIT stocks tend to move in the opposite direction from interest rates.
The Fund’s underperformance relative to its primary benchmark was due to the relative underperformance of the Real Estate sector to non-real estate holdings in the benchmark, including the Information Technology sector. Stock selection and a below-benchmark allocation within the Infrastructure subsector weighed on the Fund’s performance relative to its secondary benchmark. Stock selection within the Health Care and Lodging subsectors helped on a relative basis.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $92 | 0.79% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Real Estate Fund - R6 | Russell 3000® Total Return Index | Bloomberg US 3000 REIT Index | S&P 500® Index |
|---|
| Sep-2019 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2020 | $9,199 | $11,500 | $8,813 | $11,515 |
| Sep-2021 | $12,020 | $15,166 | $11,607 | $14,970 |
| Sep-2022 | $9,820 | $12,493 | $9,686 | $12,654 |
| Sep-2023 | $9,919 | $15,049 | $9,523 | $15,389 |
| Sep-2024 | $13,217 | $20,345 | $12,833 | $20,983 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | Since Inception (January 31, 2020) |
|---|
| Sterling Capital Real Estate Fund - R6 | 33.25% | 5.84% |
Russell 3000® Total Return Index | 35.19% | 14.32% |
| Bloomberg US 3000 REIT Index | 34.76% | 5.17% |
S&P 500® Index | 36.35% | 15.06% |
The 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.
The Bloomberg U.S. 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Real Estate Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$75,753,812
- Number of Portfolio Holdings31
- Advisory Fee (net of waivers)$389,422
- Portfolio Turnover5%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.8% |
| Real Estate | 99.0% |
| Other Assets in Excess of Liabilities | 0.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.2% |
| Money Market Funds | 0.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Real Estate Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (STMDX)
This annual shareholder report contains important information about Sterling Capital Real Estate Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its benchmark, the Russell 3000® Index, and its secondary benchmark, the Bloomberg US 3000 REIT Index. REITs in the Health Care subsector helped drive the Fund’s returns on an absolute basis. The Fund’s Industrials holdings dragged on absolute returns as high supply and low demand for warehouse space weighed on that subsector.
The Fund’s underperformance relative to its primary benchmark was due to the outperformance of non-real estate benchmark holdings relative to real estate, namely in the Information Technology and Communication Services sectors. The Fund’s underperformance relative to its secondary benchmark was driven by stock selection and a below-benchmark allocation to the Specialty REIT subsector, as well as stock selection within the Retail REIT subsector.
The Fund’s returns relative to its primary benchmark benefited from the relative outperformance of the Real Estate sector to the benchmark’s Energy, Health Care, and Materials holdings. Stock selection within the Health Care REIT subsector and a below-benchmark allocation to Timber REITs added to performance relative to the Fund’s secondary benchmark.
How did the Fund perform over the past 10 years?
The Fund underperformed both of its benchmarks over the past 10 years. Absolute performance was driven by holdings within the Data Center and Self-Storage sectors, which saw higher demand for space and higher cash inflows over the past decade. Rising interest rates weighed on the Fund’s absolute returns as the price of REIT stocks tend to move in the opposite direction from interest rates.
The Fund’s underperformance relative to its primary benchmark was due to the relative underperformance of the Real Estate sector to non-real estate holdings in the benchmark, including the Information Technology sector. Stock selection and a below-benchmark allocation within the Infrastructure subsector weighed on the Fund’s performance relative to its secondary benchmark. Stock selection within the Health Care and Lodging subsectors helped on a relative basis.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $100 | 0.86% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Real Estate Fund - I | Russell 3000® Total Return Index | Bloomberg US 3000 REIT Index | S&P 500® Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,775 | $9,951 | $10,861 | $9,939 |
| Sep-2016 | $12,944 | $11,440 | $13,127 | $11,472 |
| Sep-2017 | $13,093 | $13,579 | $13,481 | $13,607 |
| Sep-2018 | $13,934 | $15,967 | $14,091 | $16,044 |
| Sep-2019 | $16,589 | $16,433 | $17,015 | $16,727 |
| Sep-2020 | $15,248 | $18,898 | $14,996 | $19,260 |
| Sep-2021 | $19,883 | $24,921 | $19,750 | $25,040 |
| Sep-2022 | $16,227 | $20,528 | $16,480 | $21,165 |
| Sep-2023 | $16,381 | $24,729 | $16,203 | $25,741 |
| Sep-2024 | $21,811 | $33,432 | $21,836 | $35,098 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Real Estate Fund - I | 33.15% | 5.63% | 8.11% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
| Bloomberg US 3000 REIT Index | 34.76% | 5.12% | 8.12% |
S&P 500® Index | 36.35% | 15.98% | 13.38% |
The 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.
The Bloomberg U.S. 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Real Estate Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (STMDX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$75,753,812
- Number of Portfolio Holdings31
- Advisory Fee (net of waivers)$389,422
- Portfolio Turnover5%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.8% |
| Real Estate | 99.0% |
| Other Assets in Excess of Liabilities | 0.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 99.2% |
| Money Market Funds | 0.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Short Duration Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Short Duration Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its targeted benchmark, the ICE BofA 1-3 Year U.S. Corporate/Government Bond Index, and underperformed its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. Late in 2023, the Federal Reserve signaled it had likely reached the end of its rate hike cycle, which caused interest rates to fall and bond prices to rise. Continued strong economic growth and investor preference for higher-yielding securities led to elevated demand for non-government bond assets during the period. This trend caused the spread between U.S. Treasuries and riskier asset classes to compress, which helped boost returns on those riskier asset classes.
The Fund’s off-benchmark position in non-government assets, particularly commercial mortgage-backed securities (CMBS), corporate bonds and asset-backed securities (ABS), boosted its performance relative to its targeted benchmark. CMBS fundamentals, in particular, benefited from the drop in interest rates during the 12-month period.
The Fund’s underperformance relative to its broad-based benchmark was driven by its above-benchmark position to bonds maturing in less than three years, which underperformed longer maturity bonds due to the move lower in yields.
How did the Fund perform over the past 10 years?
The Fund outperformed both its primary and broad-based benchmarks over the past 10 years. In general, fixed income returns during this period were hurt by higher interest rates, particularly the dramatic rise in rates in the years following the global pandemic.
The Fund’s positive performance relative to its targeted benchmark over the past 10 years was largely due to strategic decisions regarding duration, yield curve positioning, sector allocation and security selection. The Fund’s strong performance relative to its broad-based benchmark during this period was largely due to its focus on shorter-duration bonds, which outperformed longer-duration bonds favored by this benchmark over the past 10 years.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $79 | 0.76% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Short Duration Bond Fund - A | Bloomberg U.S. Aggregate Bond Index | ICE BofA U.S. Corporate & Government, 1-3 Years Index |
|---|
| Sep-2014 | $9,795 | $10,000 | $10,000 |
| Sep-2015 | $9,850 | $10,294 | $10,116 |
| Sep-2016 | $10,045 | $10,829 | $10,249 |
| Sep-2017 | $10,148 | $10,836 | $10,316 |
| Sep-2018 | $10,204 | $10,705 | $10,345 |
| Sep-2019 | $10,642 | $11,807 | $10,826 |
| Sep-2020 | $11,052 | $12,632 | $11,230 |
| Sep-2021 | $11,155 | $12,518 | $11,269 |
| Sep-2022 | $10,595 | $10,691 | $10,690 |
| Sep-2023 | $10,978 | $10,760 | $10,999 |
| Sep-2024 | $11,854 | $12,004 | $11,793 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Short Duration Bond Fund - A | | | |
| Without Load | 7.98% | 2.18% | 1.93% |
| With Load | 5.77% | 1.76% | 1.72% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
| ICE BofA U.S. Corporate & Government, 1-3 Years Index | 7.22% | 1.73% | 1.66% |
The ICE BofA 1-3 Year U.S. Corporate/Government Bond 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 $300MM. 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
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Short Duration Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$45,633,244
- Number of Portfolio Holdings119
- Advisory Fee (net of waivers)$60,334
- Portfolio Turnover68%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.2% |
| Municipal Bonds | 0.3% |
| Information Technology | 0.5% |
| Materials | 0.7% |
| Consumer Staples | 0.9% |
| Communications | 1.3% |
| Real Estate | 1.4% |
| Technology | 1.7% |
| Communication Services | 1.8% |
| U.S. Treasury Bonds & Notes | 2.2% |
| Energy | 4.0% |
| Collateralized Mortgage Obligations | 4.0% |
| Consumer Discretionary | 4.1% |
| Utilities | 4.7% |
| Commercial Mortgage-Backed Securities | 4.8% |
| Industrials | 6.6% |
| Asset Backed Securities | 25.3% |
| Financials | 34.9% |
| Other Assets in Excess of Liabilities | 0.6% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 25.4% |
| Collateralized Mortgage Obligations | 4.0% |
| Commercial Mortgage-Backed Securities | 4.8% |
| Corporate Bonds | 62.5% |
| Money Market Funds | 0.2% |
| Municipal Bonds | 0.3% |
| Preferred Stocks | 0.6% |
| U.S. Treasury Bonds & Notes | 2.2% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Short Duration Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Short Duration Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its targeted benchmark, the ICE BofA 1-3 Year U.S. Corporate/Government Bond Index, and underperformed its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. Late in 2023, the Federal Reserve signaled it had likely reached the end of its rate hike cycle, which caused interest rates to fall and bond prices to rise. Continued strong economic growth and investor preference for higher-yielding securities led to elevated demand for non-government bond assets during the period. This trend caused the spread between U.S. Treasuries and riskier asset classes to compress, which helped boost returns on those riskier asset classes.
The Fund’s off-benchmark position in non-government assets, particularly commercial mortgage-backed securities (CMBS), corporate bonds and asset-backed securities (ABS), boosted its performance relative to its targeted benchmark. CMBS fundamentals, in particular, benefited from the drop in interest rates during the 12-month period.
The Fund’s underperformance relative to its broad-based benchmark was driven by its above-benchmark position to bonds maturing in less than three years, which underperformed longer maturity bonds due to the move lower in yields.
How did the Fund perform over the past 10 years?
The Fund outperformed both its primary and broad-based benchmarks over the past 10 years. In general, fixed income returns during this period were hurt by higher interest rates, particularly the dramatic rise in rates in the years following the global pandemic.
The Fund’s positive performance relative to its targeted benchmark over the past 10 years was largely due to strategic decisions regarding duration, yield curve positioning, sector allocation and security selection. The Fund’s strong performance relative to its broad-based benchmark during this period was largely due to its focus on shorter-duration bonds, which outperformed longer-duration bonds favored by this benchmark over the past 10 years.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $156 | 1.51% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Short Duration Bond Fund - C | Bloomberg U.S. Aggregate Bond Index | ICE BofA U.S. Corporate & Government, 1-3 Years Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $9,971 | $10,294 | $10,116 |
| Sep-2016 | $10,093 | $10,829 | $10,249 |
| Sep-2017 | $10,131 | $10,836 | $10,316 |
| Sep-2018 | $10,099 | $10,705 | $10,345 |
| Sep-2019 | $10,454 | $11,807 | $10,826 |
| Sep-2020 | $10,777 | $12,632 | $11,230 |
| Sep-2021 | $10,808 | $12,518 | $11,269 |
| Sep-2022 | $10,189 | $10,691 | $10,690 |
| Sep-2023 | $10,478 | $10,760 | $10,999 |
| Sep-2024 | $11,229 | $12,004 | $11,793 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Short Duration Bond Fund - C | 7.17% | 1.44% | 1.17% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
| ICE BofA U.S. Corporate & Government, 1-3 Years Index | 7.22% | 1.73% | 1.66% |
The ICE BofA 1-3 Year U.S. Corporate/Government Bond 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 $300MM. 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
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Short Duration Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$45,633,244
- Number of Portfolio Holdings119
- Advisory Fee (net of waivers)$60,334
- Portfolio Turnover68%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.2% |
| Municipal Bonds | 0.3% |
| Information Technology | 0.5% |
| Materials | 0.7% |
| Consumer Staples | 0.9% |
| Communications | 1.3% |
| Real Estate | 1.4% |
| Technology | 1.7% |
| Communication Services | 1.8% |
| U.S. Treasury Bonds & Notes | 2.2% |
| Energy | 4.0% |
| Collateralized Mortgage Obligations | 4.0% |
| Consumer Discretionary | 4.1% |
| Utilities | 4.7% |
| Commercial Mortgage-Backed Securities | 4.8% |
| Industrials | 6.6% |
| Asset Backed Securities | 25.3% |
| Financials | 34.9% |
| Other Assets in Excess of Liabilities | 0.6% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 25.4% |
| Collateralized Mortgage Obligations | 4.0% |
| Commercial Mortgage-Backed Securities | 4.8% |
| Corporate Bonds | 62.5% |
| Money Market Funds | 0.2% |
| Municipal Bonds | 0.3% |
| Preferred Stocks | 0.6% |
| U.S. Treasury Bonds & Notes | 2.2% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Short Duration Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Short Duration Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its targeted benchmark, the ICE BofA 1-3 Year U.S. Corporate/Government Bond Index, and underperformed its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. Late in 2023, the Federal Reserve signaled it had likely reached the end of its rate hike cycle, which caused interest rates to fall and bond prices to rise. Continued strong economic growth and investor preference for higher-yielding securities led to elevated demand for non-government bond assets during the period. This trend caused the spread between U.S. Treasuries and riskier asset classes to compress, which helped boost returns on those riskier asset classes.
The Fund’s off-benchmark position in non-government assets, particularly commercial mortgage-backed securities (CMBS), corporate bonds and asset-backed securities (ABS), boosted its performance relative to its targeted benchmark. CMBS fundamentals, in particular, benefited from the drop in interest rates during the 12-month period.
The Fund’s underperformance relative to its broad-based benchmark was driven by its above-benchmark position to bonds maturing in less than three years, which underperformed longer maturity bonds due to the move lower in yields.
How did the Fund perform over the past 10 years?
The Fund outperformed both its primary and broad-based benchmarks over the past 10 years. In general, fixed income returns during this period were hurt by higher interest rates, particularly the dramatic rise in rates in the years following the global pandemic.
The Fund’s positive performance relative to its targeted benchmark over the past 10 years was largely due to strategic decisions regarding duration, yield curve positioning, sector allocation and security selection. The Fund’s strong performance relative to its broad-based benchmark during this period was largely due to its focus on shorter-duration bonds, which outperformed longer-duration bonds favored by this benchmark over the past 10 years.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $43 | 0.41% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Short Duration Bond Fund - R6 | Bloomberg U.S. Aggregate Bond Index | ICE BofA U.S. Corporate & Government, 1-3 Years Index |
|---|
| Sep-2020 | $10,000 | $10,000 | $10,000 |
| Sep-2021 | $10,120 | $9,910 | $10,035 |
| Sep-2022 | $9,645 | $8,464 | $9,519 |
| Sep-2023 | $10,040 | $8,518 | $9,794 |
| Sep-2024 | $10,865 | $9,504 | $10,501 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | Since Inception (January 29, 2021) |
|---|
| Sterling Capital Short Duration Bond Fund - R6 | 8.22% | 2.08% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | -1.36% |
| ICE BofA U.S. Corporate & Government, 1-3 Years Index | 7.22% | 1.27% |
The ICE BofA 1-3 Year U.S. Corporate/Government Bond 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 $300MM. 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
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Short Duration Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$45,633,244
- Number of Portfolio Holdings119
- Advisory Fee (net of waivers)$60,334
- Portfolio Turnover68%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.2% |
| Municipal Bonds | 0.3% |
| Information Technology | 0.5% |
| Materials | 0.7% |
| Consumer Staples | 0.9% |
| Communications | 1.3% |
| Real Estate | 1.4% |
| Technology | 1.7% |
| Communication Services | 1.8% |
| U.S. Treasury Bonds & Notes | 2.2% |
| Energy | 4.0% |
| Collateralized Mortgage Obligations | 4.0% |
| Consumer Discretionary | 4.1% |
| Utilities | 4.7% |
| Commercial Mortgage-Backed Securities | 4.8% |
| Industrials | 6.6% |
| Asset Backed Securities | 25.3% |
| Financials | 34.9% |
| Other Assets in Excess of Liabilities | 0.6% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 25.4% |
| Collateralized Mortgage Obligations | 4.0% |
| Commercial Mortgage-Backed Securities | 4.8% |
| Corporate Bonds | 62.5% |
| Money Market Funds | 0.2% |
| Municipal Bonds | 0.3% |
| Preferred Stocks | 0.6% |
| U.S. Treasury Bonds & Notes | 2.2% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Short Duration Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BBSGX)
This annual shareholder report contains important information about Sterling Capital Short Duration Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its targeted benchmark, the ICE BofA 1-3 Year U.S. Corporate/Government Bond Index, and underperformed its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. Late in 2023, the Federal Reserve signaled it had likely reached the end of its rate hike cycle, which caused interest rates to fall and bond prices to rise. Continued strong economic growth and investor preference for higher-yielding securities led to elevated demand for non-government bond assets during the period. This trend caused the spread between U.S. Treasuries and riskier asset classes to compress, which helped boost returns on those riskier asset classes.
The Fund’s off-benchmark position in non-government assets, particularly commercial mortgage-backed securities (CMBS), corporate bonds and asset-backed securities (ABS), boosted its performance relative to its targeted benchmark. CMBS fundamentals, in particular, benefited from the drop in interest rates during the 12-month period.
The Fund’s underperformance relative to its broad-based benchmark was driven by its above-benchmark position to bonds maturing in less than three years, which underperformed longer maturity bonds due to the move lower in yields.
How did the Fund perform over the past 10 years?
The Fund outperformed both its primary and broad-based benchmarks over the past 10 years. In general, fixed income returns during this period were hurt by higher interest rates, particularly the dramatic rise in rates in the years following the global pandemic.
The Fund’s positive performance relative to its targeted benchmark over the past 10 years was largely due to strategic decisions regarding duration, yield curve positioning, sector allocation and security selection. The Fund’s strong performance relative to its broad-based benchmark during this period was largely due to its focus on shorter-duration bonds, which outperformed longer-duration bonds favored by this benchmark over the past 10 years.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $52 | 0.50% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Short Duration Bond Fund - I | Bloomberg U.S. Aggregate Bond Index | ICE BofA U.S. Corporate & Government, 1-3 Years Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,082 | $10,294 | $10,116 |
| Sep-2016 | $10,307 | $10,829 | $10,249 |
| Sep-2017 | $10,439 | $10,836 | $10,316 |
| Sep-2018 | $10,522 | $10,705 | $10,345 |
| Sep-2019 | $11,001 | $11,807 | $10,826 |
| Sep-2020 | $11,454 | $12,632 | $11,230 |
| Sep-2021 | $11,590 | $12,518 | $11,269 |
| Sep-2022 | $11,036 | $10,691 | $10,690 |
| Sep-2023 | $11,463 | $10,760 | $10,999 |
| Sep-2024 | $12,407 | $12,004 | $11,793 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Short Duration Bond Fund - I | 8.24% | 2.44% | 2.18% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
| ICE BofA U.S. Corporate & Government, 1-3 Years Index | 7.22% | 1.73% | 1.66% |
The ICE BofA 1-3 Year U.S. Corporate/Government Bond 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 $300MM. 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
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Short Duration Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BBSGX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$45,633,244
- Number of Portfolio Holdings119
- Advisory Fee (net of waivers)$60,334
- Portfolio Turnover68%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.2% |
| Municipal Bonds | 0.3% |
| Information Technology | 0.5% |
| Materials | 0.7% |
| Consumer Staples | 0.9% |
| Communications | 1.3% |
| Real Estate | 1.4% |
| Technology | 1.7% |
| Communication Services | 1.8% |
| U.S. Treasury Bonds & Notes | 2.2% |
| Energy | 4.0% |
| Collateralized Mortgage Obligations | 4.0% |
| Consumer Discretionary | 4.1% |
| Utilities | 4.7% |
| Commercial Mortgage-Backed Securities | 4.8% |
| Industrials | 6.6% |
| Asset Backed Securities | 25.3% |
| Financials | 34.9% |
| Other Assets in Excess of Liabilities | 0.6% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 25.4% |
| Collateralized Mortgage Obligations | 4.0% |
| Commercial Mortgage-Backed Securities | 4.8% |
| Corporate Bonds | 62.5% |
| Money Market Funds | 0.2% |
| Municipal Bonds | 0.3% |
| Preferred Stocks | 0.6% |
| U.S. Treasury Bonds & Notes | 2.2% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Small Cap Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Small Cap Value Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its broad-based benchmark, the Russell 3000® Index, and outperformed its targeted benchmark, the Russell 2000® Value Index. U.S. equities recorded strong gains throughout the year by improving investor optimism around the potential for artificial intelligence and technology spending. Optimism around future cuts in the interest rate by the Federal Reserve also boosted returns on an absolute basis.
The Fund's outperformance relative to its targeted benchmark over the 12-month period was due to stock selection, particularly within the Industrials sector. A below-benchmark allocation to the Energy sector also helped. In contrast, stock selection within the Financials sector weighed on relative results, along with a below-benchmark exposure to the Banks subsector.
The Fund’s underperformance relative to its broad-based benchmark was driven by outsized returns of large-cap stocks held in the benchmark relative to the small-cap stocks held by the Fund, most notably within the Information Technology sector. Stock selection, particularly within the Industrials and Consumer Discretionary sectors, helped offset some of the underperformance.
How did the Fund perform over the past 10 years?
Over the past 10 years, the Fund underperformed its broad-based benchmark but outperformed its targeted benchmark. The Fund’s performance on an absolute basis was driven by a broad-based bull market in U.S. equities, although these gains were somewhat muted as small-cap value stocks generally underperformed their large-cap growth counterparts during the period.
The Fund’s outperformance relative to its targeted benchmark was driven in large part by stock selection, notably within the Health Care, Industrials, and Consumer Staples sectors. Below-benchmark exposures to the Health Care and Energy sectors also helped. The Fund’s underperformance relative to its broad-based benchmark was due to its below-benchmark exposure to large-cap stocks, which outperformed the Fund’s small-cap stocks over the past decade.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $150 | 1.31% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Small Cap Value Fund - A | Russell 3000® Total Return Index | Russell 2000® Value Index | Bloomberg US 2000 Value Index |
|---|
| Sep-2015 | $9,425 | $10,000 | $10,000 | $10,000 |
| Sep-2016 | $10,997 | $11,496 | $11,881 | $12,002 |
| Sep-2017 | $13,244 | $13,647 | $14,322 | $14,230 |
| Sep-2018 | $14,265 | $16,046 | $15,658 | $15,549 |
| Sep-2019 | $13,583 | $16,514 | $14,367 | $13,536 |
| Sep-2020 | $11,842 | $18,992 | $12,229 | $11,927 |
| Sep-2021 | $18,050 | $25,045 | $20,047 | $20,545 |
| Sep-2022 | $15,497 | $20,630 | $16,501 | $17,037 |
| Sep-2023 | $17,829 | $24,852 | $17,795 | $19,231 |
| Sep-2024 | $22,912 | $33,598 | $22,401 | $24,380 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (November 13, 2015) |
|---|
| Sterling Capital Small Cap Value Fund - A | | | |
| Without Load | 28.51% | 11.02% | 9.89% |
| With Load | 21.13% | 9.72% | 9.16% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 13.96% |
Russell 2000® Value Index | 25.88% | 9.29% | 9.02% |
| Bloomberg US 2000 Value Index | 26.77% | 12.49% | 10.00% |
The 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.
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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Small Cap Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$197,649,703
- Number of Portfolio Holdings43
- Advisory Fee (net of waivers)$1,772,661
- Portfolio Turnover3%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 1.3% |
| Communication Services | 1.7% |
| Health Care | 2.4% |
| Materials | 3.2% |
| Energy | 3.5% |
| Utilities | 4.6% |
| Real Estate | 6.2% |
| Consumer Discretionary | 7.0% |
| Consumer Staples | 9.4% |
| Information Technology | 14.6% |
| Financials | 20.7% |
| Industrials | 25.4% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 98.7% |
| Money Market Funds | 1.3% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Small Cap Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Small Cap Value Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its broad-based benchmark, the Russell 3000® Index, and outperformed its targeted benchmark, the Russell 2000® Value Index. U.S. equities recorded strong gains throughout the year by improving investor optimism around the potential for artificial intelligence and technology spending. Optimism around future cuts in the interest rate by the Federal Reserve also boosted returns on an absolute basis.
The Fund's outperformance relative to its targeted benchmark over the 12-month period was due to stock selection, particularly within the Industrials sector. A below-benchmark allocation to the Energy sector also helped. In contrast, stock selection within the Financials sector weighed on relative results, along with a below-benchmark exposure to the Banks subsector.
The Fund’s underperformance relative to its broad-based benchmark was driven by outsized returns of large-cap stocks held in the benchmark relative to the small-cap stocks held by the Fund, most notably within the Information Technology sector. Stock selection, particularly within the Industrials and Consumer Discretionary sectors, helped offset some of the underperformance.
How did the Fund perform over the past 10 years?
Over the past 10 years, the Fund underperformed its broad-based benchmark but outperformed its targeted benchmark. The Fund’s performance on an absolute basis was driven by a broad-based bull market in U.S. equities, although these gains were somewhat muted as small-cap value stocks generally underperformed their large-cap growth counterparts during the period.
The Fund’s outperformance relative to its targeted benchmark was driven in large part by stock selection, notably within the Health Care, Industrials, and Consumer Staples sectors. Below-benchmark exposures to the Health Care and Energy sectors also helped. The Fund’s underperformance relative to its broad-based benchmark was due to its below-benchmark exposure to large-cap stocks, which outperformed the Fund’s small-cap stocks over the past decade.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $233 | 2.05% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Small Cap Value Fund - C | Russell 3000® Total Return Index | Russell 2000® Value Index | Bloomberg US 2000 Value Index |
|---|
| Sep-2015 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2016 | $11,592 | $11,496 | $11,881 | $12,002 |
| Sep-2017 | $13,858 | $13,647 | $14,322 | $14,230 |
| Sep-2018 | $14,815 | $16,046 | $15,658 | $15,549 |
| Sep-2019 | $14,001 | $16,514 | $14,367 | $13,536 |
| Sep-2020 | $12,118 | $18,992 | $12,229 | $11,927 |
| Sep-2021 | $18,332 | $25,045 | $20,047 | $20,545 |
| Sep-2022 | $15,620 | $20,630 | $16,501 | $17,037 |
| Sep-2023 | $17,835 | $24,852 | $17,795 | $19,231 |
| Sep-2024 | $22,750 | $33,598 | $22,401 | $24,380 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (November 13, 2015) |
|---|
| Sterling Capital Small Cap Value Fund - C | 27.56% | 10.20% | 9.07% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 13.96% |
Russell 2000® Value Index | 25.88% | 9.29% | 9.02% |
| Bloomberg US 2000 Value Index | 26.77% | 12.49% | 10.00% |
The 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.
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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Small Cap Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$197,649,703
- Number of Portfolio Holdings43
- Advisory Fee (net of waivers)$1,772,661
- Portfolio Turnover3%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 1.3% |
| Communication Services | 1.7% |
| Health Care | 2.4% |
| Materials | 3.2% |
| Energy | 3.5% |
| Utilities | 4.6% |
| Real Estate | 6.2% |
| Consumer Discretionary | 7.0% |
| Consumer Staples | 9.4% |
| Information Technology | 14.6% |
| Financials | 20.7% |
| Industrials | 25.4% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 98.7% |
| Money Market Funds | 1.3% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Small Cap Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Small Cap Value Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its broad-based benchmark, the Russell 3000® Index, and outperformed its targeted benchmark, the Russell 2000® Value Index. U.S. equities recorded strong gains throughout the year by improving investor optimism around the potential for artificial intelligence and technology spending. Optimism around future cuts in the interest rate by the Federal Reserve also boosted returns on an absolute basis.
The Fund's outperformance relative to its targeted benchmark over the 12-month period was due to stock selection, particularly within the Industrials sector. A below-benchmark allocation to the Energy sector also helped. In contrast, stock selection within the Financials sector weighed on relative results, along with a below-benchmark exposure to the Banks subsector.
The Fund’s underperformance relative to its broad-based benchmark was driven by outsized returns of large-cap stocks held in the benchmark relative to the small-cap stocks held by the Fund, most notably within the Information Technology sector. Stock selection, particularly within the Industrials and Consumer Discretionary sectors, helped offset some of the underperformance.
How did the Fund perform over the past 10 years?
Over the past 10 years, the Fund underperformed its broad-based benchmark but outperformed its targeted benchmark. The Fund’s performance on an absolute basis was driven by a broad-based bull market in U.S. equities, although these gains were somewhat muted as small-cap value stocks generally underperformed their large-cap growth counterparts during the period.
The Fund’s outperformance relative to its targeted benchmark was driven in large part by stock selection, notably within the Health Care, Industrials, and Consumer Staples sectors. Below-benchmark exposures to the Health Care and Energy sectors also helped. The Fund’s underperformance relative to its broad-based benchmark was due to its below-benchmark exposure to large-cap stocks, which outperformed the Fund’s small-cap stocks over the past decade.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $108 | 0.94% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Small Cap Value Fund - R6 | Russell 3000® Total Return Index | Russell 2000® Value Index | Bloomberg US 2000 Value Index |
|---|
| Sep-2019 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2020 | $8,746 | $11,500 | $8,512 | $8,811 |
| Sep-2021 | $13,380 | $15,166 | $13,953 | $15,178 |
| Sep-2022 | $11,527 | $12,493 | $11,485 | $12,586 |
| Sep-2023 | $13,308 | $15,049 | $12,386 | $14,207 |
| Sep-2024 | $17,168 | $20,345 | $15,591 | $18,011 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | Since Inception (January 31, 2020) |
|---|
| Sterling Capital Small Cap Value Fund - R6 | 29.00% | 11.05% |
Russell 3000® Total Return Index | 35.19% | 14.32% |
Russell 2000® Value Index | 25.88% | 9.37% |
| Bloomberg US 2000 Value Index | 26.77% | 12.74% |
The 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.
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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Small Cap Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$197,649,703
- Number of Portfolio Holdings43
- Advisory Fee (net of waivers)$1,772,661
- Portfolio Turnover3%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 1.3% |
| Communication Services | 1.7% |
| Health Care | 2.4% |
| Materials | 3.2% |
| Energy | 3.5% |
| Utilities | 4.6% |
| Real Estate | 6.2% |
| Consumer Discretionary | 7.0% |
| Consumer Staples | 9.4% |
| Information Technology | 14.6% |
| Financials | 20.7% |
| Industrials | 25.4% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 98.7% |
| Money Market Funds | 1.3% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Small Cap Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (STSCX)
This annual shareholder report contains important information about Sterling Capital Small Cap Value Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its broad-based benchmark, the Russell 3000® Index, and outperformed its targeted benchmark, the Russell 2000® Value Index. U.S. equities recorded strong gains throughout the year by improving investor optimism around the potential for artificial intelligence and technology spending. Optimism around future cuts in the interest rate by the Federal Reserve also boosted returns on an absolute basis.
The Fund's outperformance relative to its targeted benchmark over the 12-month period was due to stock selection, particularly within the Industrials sector. A below-benchmark allocation to the Energy sector also helped. In contrast, stock selection within the Financials sector weighed on relative results, along with a below-benchmark exposure to the Banks subsector.
The Fund’s underperformance relative to its broad-based benchmark was driven by outsized returns of large-cap stocks held in the benchmark relative to the small-cap stocks held by the Fund, most notably within the Information Technology sector. Stock selection, particularly within the Industrials and Consumer Discretionary sectors, helped offset some of the underperformance.
How did the Fund perform over the past 10 years?
Over the past 10 years, the Fund underperformed its broad-based benchmark but outperformed its targeted benchmark. The Fund’s performance on an absolute basis was driven by a broad-based bull market in U.S. equities, although these gains were somewhat muted as small-cap value stocks generally underperformed their large-cap growth counterparts during the period.
The Fund’s outperformance relative to its targeted benchmark was driven in large part by stock selection, notably within the Health Care, Industrials, and Consumer Staples sectors. Below-benchmark exposures to the Health Care and Energy sectors also helped. The Fund’s underperformance relative to its broad-based benchmark was due to its below-benchmark exposure to large-cap stocks, which outperformed the Fund’s small-cap stocks over the past decade.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $120 | 1.05% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Small Cap Value Fund - I | Russell 3000® Total Return Index | Russell 2000® Value Index | Bloomberg US 2000 Value Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $9,413 | $9,951 | $9,840 | $9,773 |
| Sep-2016 | $11,004 | $11,440 | $11,691 | $11,730 |
| Sep-2017 | $13,285 | $13,579 | $14,093 | $13,907 |
| Sep-2018 | $14,345 | $15,967 | $15,407 | $15,196 |
| Sep-2019 | $13,693 | $16,433 | $14,137 | $13,229 |
| Sep-2020 | $11,970 | $18,898 | $12,033 | $11,657 |
| Sep-2021 | $18,289 | $24,921 | $19,726 | $20,079 |
| Sep-2022 | $15,741 | $20,528 | $16,237 | $16,650 |
| Sep-2023 | $18,151 | $24,729 | $17,510 | $18,795 |
| Sep-2024 | $23,388 | $33,432 | $22,042 | $23,827 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Small Cap Value Fund - I | 28.85% | 11.30% | 8.87% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
Russell 2000® Value Index | 25.88% | 9.29% | 8.22% |
| Bloomberg US 2000 Value Index | 26.77% | 12.49% | 9.07% |
The 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.
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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Small Cap Value Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (STSCX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$197,649,703
- Number of Portfolio Holdings43
- Advisory Fee (net of waivers)$1,772,661
- Portfolio Turnover3%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 1.3% |
| Communication Services | 1.7% |
| Health Care | 2.4% |
| Materials | 3.2% |
| Energy | 3.5% |
| Utilities | 4.6% |
| Real Estate | 6.2% |
| Consumer Discretionary | 7.0% |
| Consumer Staples | 9.4% |
| Information Technology | 14.6% |
| Financials | 20.7% |
| Industrials | 25.4% |
| Other Assets in Excess of Liabilities | -% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Common Stocks | 98.7% |
| Money Market Funds | 1.3% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital South Carolina Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital South Carolina Intermediate Tax-Free Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its benchmark, the ICE BofA 2-17 Year Municipal Bond Index. The Federal Reserve (the Fed) cut the federal funds rate by 50 basis points in September 2024, the only rate change during the period. As interest rates fell, bond prices rose, boosting the Fund’s returns on an absolute basis.
The Fund’s underperformance relative to its benchmark over the 12-month period was largely due to its state-specific focus, which is designed to achieve tax savings for shareholders. This restriction of investment opportunities hurt relative performance during the period as municipal bonds in the state underperformed the benchmark. The Fund’s underweight position in five-year bonds was also a drag on relative performance, as rates dropped lower, and prices rose higher among those bonds.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund underperformed its benchmark. Interest rates fluctuated during the period and ultimately closed higher. However, the Fed’s September 2024 rate cut boosted absolute performance by raising bond prices in the last weeks of the period.
The Fund’s underperformance relative to its benchmark over the 10-year period was largely due to its state-specific focus, as the municipal bonds available to the Fund underperformed the benchmark. Over the last decade credit spreads have compressed as credit fundamentals have improved, resulting in lower-quality credits outperforming.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $92 | 0.89% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital South Carolina Intermediate Tax-Free Fund - A | Bloomberg Municipal Bond Index | ICE BofA 2-17 Year US Municipal Securities Index |
|---|
| Sep-2014 | $9,798 | $10,000 | $10,000 |
| Sep-2015 | $10,004 | $10,316 | $10,257 |
| Sep-2016 | $10,363 | $10,892 | $10,747 |
| Sep-2017 | $10,364 | $10,987 | $10,860 |
| Sep-2018 | $10,245 | $11,025 | $10,837 |
| Sep-2019 | $10,923 | $11,968 | $11,694 |
| Sep-2020 | $11,314 | $12,458 | $12,158 |
| Sep-2021 | $11,411 | $12,785 | $12,410 |
| Sep-2022 | $10,422 | $11,315 | $11,239 |
| Sep-2023 | $10,543 | $11,616 | $11,544 |
| Sep-2024 | $11,290 | $12,821 | $12,553 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital South Carolina Intermediate Tax-Free Fund - A | | | |
| Without Load | 7.09% | 0.66% | 1.43% |
| With Load | 4.92% | 0.26% | 1.22% |
| Bloomberg Municipal Bond Index | 10.37% | 1.39% | 2.52% |
| ICE BofA 2-17 Year US Municipal Securities Index | 8.74% | 1.43% | 2.30% |
The ICE BofA 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and USD-denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital South Carolina Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$29,441,189
- Number of Portfolio Holdings32
- Advisory Fee (net of waivers)$104,968
- Portfolio Turnover20%
HOLDINGS BY STATE OF ISSUANCE (as a % of Net Assets)
| South Carolina | 99.1% |
| Other Assets in Excess of Liabilities | 0.9% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 4.0% |
| Municipal Bonds | 96.0% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital South Carolina Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital South Carolina Intermediate Tax-Free Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its benchmark, the ICE BofA 2-17 Year Municipal Bond Index. The Federal Reserve (the Fed) cut the federal funds rate by 50 basis points in September 2024, the only rate change during the period. As interest rates fell, bond prices rose, boosting the Fund’s returns on an absolute basis.
The Fund’s underperformance relative to its benchmark over the 12-month period was largely due to its state-specific focus, which is designed to achieve tax savings for shareholders. This restriction of investment opportunities hurt relative performance during the period as municipal bonds in the state underperformed the benchmark. The Fund’s underweight position in five-year bonds was also a drag on relative performance, as rates dropped lower, and prices rose higher among those bonds.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund underperformed its benchmark. Interest rates fluctuated during the period and ultimately closed higher. However, the Fed’s September 2024 rate cut boosted absolute performance by raising bond prices in the last weeks of the period.
The Fund’s underperformance relative to its benchmark over the 10-year period was largely due to its state-specific focus, as the municipal bonds available to the Fund underperformed the benchmark. Over the last decade credit spreads have compressed as credit fundamentals have improved, resulting in lower-quality credits outperforming.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $169 | 1.64% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital South Carolina Intermediate Tax-Free Fund - C | Bloomberg Municipal Bond Index | ICE BofA 2-17 Year US Municipal Securities Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,135 | $10,316 | $10,257 |
| Sep-2016 | $10,420 | $10,892 | $10,747 |
| Sep-2017 | $10,343 | $10,987 | $10,860 |
| Sep-2018 | $10,138 | $11,025 | $10,837 |
| Sep-2019 | $10,739 | $11,968 | $11,694 |
| Sep-2020 | $11,031 | $12,458 | $12,158 |
| Sep-2021 | $11,042 | $12,785 | $12,410 |
| Sep-2022 | $10,019 | $11,315 | $11,239 |
| Sep-2023 | $10,049 | $11,616 | $11,544 |
| Sep-2024 | $10,691 | $12,821 | $12,553 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital South Carolina Intermediate Tax-Free Fund - C | 6.39% | -0.09% | 0.67% |
| Bloomberg Municipal Bond Index | 10.37% | 1.39% | 2.52% |
| ICE BofA 2-17 Year US Municipal Securities Index | 8.74% | 1.43% | 2.30% |
The ICE BofA 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and USD-denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital South Carolina Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$29,441,189
- Number of Portfolio Holdings32
- Advisory Fee (net of waivers)$104,968
- Portfolio Turnover20%
HOLDINGS BY STATE OF ISSUANCE (as a % of Net Assets)
| South Carolina | 99.1% |
| Other Assets in Excess of Liabilities | 0.9% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 4.0% |
| Municipal Bonds | 96.0% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital South Carolina Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BSCIX)
This annual shareholder report contains important information about Sterling Capital South Carolina Intermediate Tax-Free Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its benchmark, the ICE BofA 2-17 Year Municipal Bond Index. The Federal Reserve (the Fed) cut the federal funds rate by 50 basis points in September 2024, the only rate change during the period. As interest rates fell, bond prices rose, boosting the Fund’s returns on an absolute basis.
The Fund’s underperformance relative to its benchmark over the 12-month period was largely due to its state-specific focus, which is designed to achieve tax savings for shareholders. This restriction of investment opportunities hurt relative performance during the period as municipal bonds in the state underperformed the benchmark. The Fund’s underweight position in five-year bonds was also a drag on relative performance, as rates dropped lower, and prices rose higher among those bonds.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund underperformed its benchmark. Interest rates fluctuated during the period and ultimately closed higher. However, the Fed’s September 2024 rate cut boosted absolute performance by raising bond prices in the last weeks of the period.
The Fund’s underperformance relative to its benchmark over the 10-year period was largely due to its state-specific focus, as the municipal bonds available to the Fund underperformed the benchmark. Over the last decade credit spreads have compressed as credit fundamentals have improved, resulting in lower-quality credits outperforming.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $66 | 0.64% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital South Carolina Intermediate Tax-Free Fund - I | Bloomberg Municipal Bond Index | ICE BofA 2-17 Year US Municipal Securities Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,227 | $10,316 | $10,257 |
| Sep-2016 | $10,622 | $10,892 | $10,747 |
| Sep-2017 | $10,658 | $10,987 | $10,860 |
| Sep-2018 | $10,550 | $11,025 | $10,837 |
| Sep-2019 | $11,290 | $11,968 | $11,694 |
| Sep-2020 | $11,715 | $12,458 | $12,158 |
| Sep-2021 | $11,844 | $12,785 | $12,410 |
| Sep-2022 | $10,847 | $11,315 | $11,239 |
| Sep-2023 | $10,999 | $11,616 | $11,544 |
| Sep-2024 | $11,811 | $12,821 | $12,553 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital South Carolina Intermediate Tax-Free Fund - I | 7.38% | 0.91% | 1.68% |
| Bloomberg Municipal Bond Index | 10.37% | 1.39% | 2.52% |
| ICE BofA 2-17 Year US Municipal Securities Index | 8.74% | 1.43% | 2.30% |
The ICE BofA 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and USD-denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital South Carolina Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BSCIX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$29,441,189
- Number of Portfolio Holdings32
- Advisory Fee (net of waivers)$104,968
- Portfolio Turnover20%
HOLDINGS BY STATE OF ISSUANCE (as a % of Net Assets)
| South Carolina | 99.1% |
| Other Assets in Excess of Liabilities | 0.9% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 4.0% |
| Municipal Bonds | 96.0% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Special Opportunities Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Special Opportunities Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its benchmark, the Russell 3000® Index. U.S. equities recorded strong gains throughout the year on improving investor optimism. Enthusiasm around artificial intelligence (AI) also drove outsized gains in Information Technology, which helped the Fund’s performance on an absolute basis.
The Fund’s under performance relative to its benchmark over the 12-month period was largely due to its underexposure to the benchmark’s most heavily-weighted names, particularly in the Information Technology sector and those related to the field of AI. Stock selection within the Financials and Industrials sectors also weighed on relative results.
The Fund’s above-benchmark investments in some Health Care and Information Technology stocks added to performance on a relative basis, particularly investments in a major health system provider, a generics and brand pharmaceutical company, a laser and fiber optics manufacturer, and a data infrastructure semiconductor company.
How did the Fund perform in the past 10 years?
The Fund underperformed its benchmark over the past ten years. One of the main detractors from the Fund’s performance on an absolute basis was its holdings within the Energy sector, particularly an investment in a multinational energy services company that suffered during the volatile energy landscape of the past decade. The Fund’s investments in a cruise line and an airline also weighed on absolute results given the impact of the pandemic on the travel industry.
The Fund’s relative underperformance over the past decade was driven largely by its below-benchmark exposure to some of its benchmark’s most heavily-weighted investments, particularly within the Information Technology and Communications Services sectors. The Fund’s underexposure to growth stocks also dragged on relative performance. By comparison, the Fund’s stock selection within the Health Care and Communication Services sectors added on a relative basis, most notably investments in market leaders in both the search engine and managed care provider industries.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $132 | 1.16% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Special Opportunities Fund - A | Russell 3000® Total Return Index | Bloomberg US 3000 Index |
|---|
| Sep-2014 | $9,426 | $10,000 | $10,000 |
| Sep-2015 | $9,780 | $9,951 | $9,942 |
| Sep-2016 | $10,618 | $11,440 | $11,442 |
| Sep-2017 | $12,314 | $13,579 | $13,575 |
| Sep-2018 | $14,427 | $15,967 | $15,954 |
| Sep-2019 | $14,601 | $16,433 | $16,425 |
| Sep-2020 | $15,410 | $18,898 | $18,899 |
| Sep-2021 | $21,139 | $24,921 | $25,035 |
| Sep-2022 | $17,141 | $20,528 | $20,509 |
| Sep-2023 | $20,220 | $24,729 | $24,696 |
| Sep-2024 | $25,689 | $33,432 | $33,372 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Special Opportunities Fund - A | | | |
| Without Load | 27.05% | 11.96% | 10.55% |
| With Load | 19.75% | 10.65% | 9.89% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
| Bloomberg US 3000 Index | 35.13% | 15.23% | 12.81% |
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Special Opportunities Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$432,641,379
- Number of Portfolio Holdings33
- Advisory Fee (net of waivers)$2,801,124
- Portfolio Turnover42%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.2% |
| Real Estate | 2.0% |
| Industrials | 2.1% |
| Energy | 3.7% |
| Consumer Discretionary | 4.8% |
| Materials | 4.8% |
| Financials | 10.1% |
| Communication Services | 10.6% |
| Technology | 18.9% |
| Information Technology | 20.8% |
| Health Care | 22.1% |
| Liabilities in Excess of Other Assets | -0.1% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 0.2% |
| Real Estate | 2.0% |
| Industrials | 2.1% |
| Energy | 3.7% |
| Consumer Discretionary | 4.8% |
| Materials | 4.8% |
| Financials | 10.1% |
| Communication Services | 10.6% |
| Technology | 18.9% |
| Information Technology | 20.8% |
| Health Care | 22.1% |
| Liabilities in Excess of Other Assets | -0.1% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Special Opportunities Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Special Opportunities Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its benchmark, the Russell 3000® Index. U.S. equities recorded strong gains throughout the year on improving investor optimism. Enthusiasm around artificial intelligence (AI) also drove outsized gains in Information Technology, which helped the Fund’s performance on an absolute basis.
The Fund’s under performance relative to its benchmark over the 12-month period was largely due to its underexposure to the benchmark’s most heavily-weighted names, particularly in the Information Technology sector and those related to the field of AI. Stock selection within the Financials and Industrials sectors also weighed on relative results.
The Fund’s above-benchmark investments in some Health Care and Information Technology stocks added to performance on a relative basis, particularly investments in a major health system provider, a generics and brand pharmaceutical company, a laser and fiber optics manufacturer, and a data infrastructure semiconductor company.
How did the Fund perform in the past 10 years?
The Fund underperformed its benchmark over the past ten years. One of the main detractors from the Fund’s performance on an absolute basis was its holdings within the Energy sector, particularly an investment in a multinational energy services company that suffered during the volatile energy landscape of the past decade. The Fund’s investments in a cruise line and an airline also weighed on absolute results given the impact of the pandemic on the travel industry.
The Fund’s relative underperformance over the past decade was driven largely by its below-benchmark exposure to some of its benchmark’s most heavily-weighted investments, particularly within the Information Technology and Communications Services sectors. The Fund’s underexposure to growth stocks also dragged on relative performance. By comparison, the Fund’s stock selection within the Health Care and Communication Services sectors added on a relative basis, most notably investments in market leaders in both the search engine and managed care provider industries.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $216 | 1.91% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Special Opportunities Fund - C | Russell 3000® Total Return Index | Bloomberg US 3000 Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,299 | $9,951 | $9,942 |
| Sep-2016 | $11,098 | $11,440 | $11,442 |
| Sep-2017 | $12,772 | $13,579 | $13,575 |
| Sep-2018 | $14,850 | $15,967 | $15,954 |
| Sep-2019 | $14,921 | $16,433 | $16,425 |
| Sep-2020 | $15,627 | $18,898 | $18,899 |
| Sep-2021 | $21,282 | $24,921 | $25,035 |
| Sep-2022 | $17,126 | $20,528 | $20,509 |
| Sep-2023 | $20,049 | $24,729 | $24,696 |
| Sep-2024 | $25,291 | $33,432 | $33,372 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Special Opportunities Fund - C | 26.15% | 11.13% | 9.72% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
| Bloomberg US 3000 Index | 35.13% | 15.23% | 12.81% |
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Special Opportunities Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$432,641,379
- Number of Portfolio Holdings33
- Advisory Fee (net of waivers)$2,801,124
- Portfolio Turnover42%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.2% |
| Real Estate | 2.0% |
| Industrials | 2.1% |
| Energy | 3.7% |
| Consumer Discretionary | 4.8% |
| Materials | 4.8% |
| Financials | 10.1% |
| Communication Services | 10.6% |
| Technology | 18.9% |
| Information Technology | 20.8% |
| Health Care | 22.1% |
| Liabilities in Excess of Other Assets | -0.1% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 0.2% |
| Real Estate | 2.0% |
| Industrials | 2.1% |
| Energy | 3.7% |
| Consumer Discretionary | 4.8% |
| Materials | 4.8% |
| Financials | 10.1% |
| Communication Services | 10.6% |
| Technology | 18.9% |
| Information Technology | 20.8% |
| Health Care | 22.1% |
| Liabilities in Excess of Other Assets | -0.1% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Special Opportunities Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Special Opportunities Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its benchmark, the Russell 3000® Index. U.S. equities recorded strong gains throughout the year on improving investor optimism. Enthusiasm around artificial intelligence (AI) also drove outsized gains in Information Technology, which helped the Fund’s performance on an absolute basis.
The Fund’s under performance relative to its benchmark over the 12-month period was largely due to its underexposure to the benchmark’s most heavily-weighted names, particularly in the Information Technology sector and those related to the field of AI. Stock selection within the Financials and Industrials sectors also weighed on relative results.
The Fund’s above-benchmark investments in some Health Care and Information Technology stocks added to performance on a relative basis, particularly investments in a major health system provider, a generics and brand pharmaceutical company, a laser and fiber optics manufacturer, and a data infrastructure semiconductor company.
How did the Fund perform in the past 10 years?
The Fund underperformed its benchmark over the past ten years. One of the main detractors from the Fund’s performance on an absolute basis was its holdings within the Energy sector, particularly an investment in a multinational energy services company that suffered during the volatile energy landscape of the past decade. The Fund’s investments in a cruise line and an airline also weighed on absolute results given the impact of the pandemic on the travel industry.
The Fund’s relative underperformance over the past decade was driven largely by its below-benchmark exposure to some of its benchmark’s most heavily-weighted investments, particularly within the Information Technology and Communications Services sectors. The Fund’s underexposure to growth stocks also dragged on relative performance. By comparison, the Fund’s stock selection within the Health Care and Communication Services sectors added on a relative basis, most notably investments in market leaders in both the search engine and managed care provider industries.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $93 | 0.82% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Special Opportunities Fund - R6 | Russell 3000® Total Return Index | Bloomberg US 3000 Index |
|---|
| Sep-2017 | $10,000 | $10,000 | $10,000 |
| Sep-2018 | $11,755 | $11,758 | $11,752 |
| Sep-2019 | $11,935 | $12,101 | $12,099 |
| Sep-2020 | $12,635 | $13,916 | $13,922 |
| Sep-2021 | $17,395 | $18,352 | $18,442 |
| Sep-2022 | $14,149 | $15,117 | $15,108 |
| Sep-2023 | $16,751 | $18,210 | $18,192 |
| Sep-2024 | $21,358 | $24,619 | $24,583 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (January 31, 2018) |
|---|
| Sterling Capital Special Opportunities Fund - R6 | 27.50% | 12.34% | 10.28% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.56% |
| Bloomberg US 3000 Index | 35.13% | 15.23% | 12.53% |
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Special Opportunities Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$432,641,379
- Number of Portfolio Holdings33
- Advisory Fee (net of waivers)$2,801,124
- Portfolio Turnover42%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.2% |
| Real Estate | 2.0% |
| Industrials | 2.1% |
| Energy | 3.7% |
| Consumer Discretionary | 4.8% |
| Materials | 4.8% |
| Financials | 10.1% |
| Communication Services | 10.6% |
| Technology | 18.9% |
| Information Technology | 20.8% |
| Health Care | 22.1% |
| Liabilities in Excess of Other Assets | -0.1% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 0.2% |
| Real Estate | 2.0% |
| Industrials | 2.1% |
| Energy | 3.7% |
| Consumer Discretionary | 4.8% |
| Materials | 4.8% |
| Financials | 10.1% |
| Communication Services | 10.6% |
| Technology | 18.9% |
| Information Technology | 20.8% |
| Health Care | 22.1% |
| Liabilities in Excess of Other Assets | -0.1% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Special Opportunities Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BOPIX)
This annual shareholder report contains important information about Sterling Capital Special Opportunities Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund underperformed its benchmark, the Russell 3000® Index. U.S. equities recorded strong gains throughout the year on improving investor optimism. Enthusiasm around artificial intelligence (AI) also drove outsized gains in Information Technology, which helped the Fund’s performance on an absolute basis.
The Fund’s under performance relative to its benchmark over the 12-month period was largely due to its underexposure to the benchmark’s most heavily-weighted names, particularly in the Information Technology sector and those related to the field of AI. Stock selection within the Financials and Industrials sectors also weighed on relative results.
The Fund’s above-benchmark investments in some Health Care and Information Technology stocks added to performance on a relative basis, particularly investments in a major health system provider, a generics and brand pharmaceutical company, a laser and fiber optics manufacturer, and a data infrastructure semiconductor company.
How did the Fund perform in the past 10 years?
The Fund underperformed its benchmark over the past ten years. One of the main detractors from the Fund’s performance on an absolute basis was its holdings within the Energy sector, particularly an investment in a multinational energy services company that suffered during the volatile energy landscape of the past decade. The Fund’s investments in a cruise line and an airline also weighed on absolute results given the impact of the pandemic on the travel industry.
The Fund’s relative underperformance over the past decade was driven largely by its below-benchmark exposure to some of its benchmark’s most heavily-weighted investments, particularly within the Information Technology and Communications Services sectors. The Fund’s underexposure to growth stocks also dragged on relative performance. By comparison, the Fund’s stock selection within the Health Care and Communication Services sectors added on a relative basis, most notably investments in market leaders in both the search engine and managed care provider industries.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $103 | 0.91% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Special Opportunities Fund - I | Russell 3000® Total Return Index | Bloomberg US 3000 Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,402 | $9,951 | $9,942 |
| Sep-2016 | $11,323 | $11,440 | $11,442 |
| Sep-2017 | $13,160 | $13,579 | $13,575 |
| Sep-2018 | $15,458 | $15,967 | $15,954 |
| Sep-2019 | $15,686 | $16,433 | $16,425 |
| Sep-2020 | $16,595 | $18,898 | $18,899 |
| Sep-2021 | $22,826 | $24,921 | $25,035 |
| Sep-2022 | $18,550 | $20,528 | $20,509 |
| Sep-2023 | $21,939 | $24,729 | $24,696 |
| Sep-2024 | $27,941 | $33,432 | $33,372 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Special Opportunities Fund - I | 27.36% | 12.24% | 10.82% |
Russell 3000® Total Return Index | 35.19% | 15.26% | 12.83% |
| Bloomberg US 3000 Index | 35.13% | 15.23% | 12.81% |
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market, 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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Special Opportunities Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BOPIX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$432,641,379
- Number of Portfolio Holdings33
- Advisory Fee (net of waivers)$2,801,124
- Portfolio Turnover42%
SECTOR WEIGHTING (as a % of Net Assets)
| Money Market Funds | 0.2% |
| Real Estate | 2.0% |
| Industrials | 2.1% |
| Energy | 3.7% |
| Consumer Discretionary | 4.8% |
| Materials | 4.8% |
| Financials | 10.1% |
| Communication Services | 10.6% |
| Technology | 18.9% |
| Information Technology | 20.8% |
| Health Care | 22.1% |
| Liabilities in Excess of Other Assets | -0.1% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 0.2% |
| Real Estate | 2.0% |
| Industrials | 2.1% |
| Energy | 3.7% |
| Consumer Discretionary | 4.8% |
| Materials | 4.8% |
| Financials | 10.1% |
| Communication Services | 10.6% |
| Technology | 18.9% |
| Information Technology | 20.8% |
| Health Care | 22.1% |
| Liabilities in Excess of Other Assets | -0.1% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Total Return Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Total Return Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index.
Late in 2023, the Federal Reserve signaled it had likely reached the end of its rate hike cycle, which caused interest rates to fall and bond prices to rise. Continued strong economic growth and investor preference for higher yielding securities led to elevated demand for non-government bond assets during the period, which boosted total returns for these asset classes.
The Fund’s above-benchmark position in non-government bond assets, particularly commercial mortgage-backed securities (CMBS), corporate bonds, and agency mortgage-backed securities (agency MBS), boosted its performance on a relative basis. During the period under review, CMBS fundamentals benefited from the move to lower interest rates, as investors became more comfortable taking on risks in this sector. Corporate bonds and agency MBS also benefitted from a growing appetite for risk among investors, as well as a surge of inflows toward fixed income mutual funds and ETFs.
The Fund’s relative lack of exposure to securities with maturities of less than seven years dragged on relative returns, as did an above-benchmark position in an aerospace company that saw its bonds underperform as the company struggled with quality control issues
How did the Fund perform over the past 10 years?
The Fund outperformed its benchmark over the past 10 years. In general, fixed income returns during this period were hurt by higher interest rates, particularly the dramatic rise in rates in the years following the global pandemic.
The Fund’s positive performance relative to its benchmark over the past 10 years was largely due to strategic decisions regarding duration, yield curve positioning, sector allocation and security selection. The Fund’s exposure to non-government bond assets also boosted relative returns during this period..
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $75 | 0.71% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Total Return Bond Fund - A | Bloomberg U.S. Aggregate Bond Index |
|---|
| Sep-2014 | $9,798 | $10,000 |
| Sep-2015 | $9,997 | $10,294 |
| Sep-2016 | $10,581 | $10,829 |
| Sep-2017 | $10,660 | $10,836 |
| Sep-2018 | $10,565 | $10,705 |
| Sep-2019 | $11,610 | $11,807 |
| Sep-2020 | $12,461 | $12,632 |
| Sep-2021 | $12,516 | $12,518 |
| Sep-2022 | $10,645 | $10,691 |
| Sep-2023 | $10,689 | $10,760 |
| Sep-2024 | $11,937 | $12,004 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Total Return Bond Fund - A | | | |
| Without Load | 11.67% | 0.56% | 1.99% |
| With Load* | 9.45% | 0.16% | 1.79% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Total Return Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$1,514,721,755
- Number of Portfolio Holdings375
- Advisory Fee (net of waivers)$2,541,575
- Portfolio Turnover63%
SECTOR WEIGHTING (as a % of Net Assets)
| U.S. Government Agencies | 0.6% |
| Communication Services | 0.6% |
| Technology | 1.0% |
| Money Market Funds | 1.0% |
| Industrials | 1.1% |
| Materials | 1.1% |
| Information Technology | 1.1% |
| Consumer Staples | 1.1% |
| Municipal Bonds | 1.1% |
| Health Care | 1.2% |
| Communications | 1.3% |
| Consumer Discretionary | 1.4% |
| Real Estate | 2.0% |
| Energy | 2.3% |
| Utilities | 3.0% |
| Collateralized Mortgage Obligations | 3.1% |
| Commercial Mortgage-Backed Securities | 10.5% |
| Financials | 11.0% |
| Asset Backed Securities | 11.3% |
| U.S. Treasury Bonds & Notes | 15.6% |
| Mortgage-Backed Securities | 27.4% |
| Other Assets in Excess of Liabilities | 1.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 11.5% |
| Collateralized Mortgage Obligations | 3.1% |
| Commercial Mortgage-Backed Securities | 10.7% |
| Corporate Bonds | 28.5% |
| Money Market Funds | 1.0% |
| Mortgage-Backed Securities | 27.7% |
| Municipal Bonds | 1.1% |
| U.S. Government Agencies | 0.6% |
| U.S. Treasury Bonds & Notes | 15.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Total Return Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Total Return Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index.
Late in 2023, the Federal Reserve signaled it had likely reached the end of its rate hike cycle, which caused interest rates to fall and bond prices to rise. Continued strong economic growth and investor preference for higher yielding securities led to elevated demand for non-government bond assets during the period, which boosted total returns for these asset classes.
The Fund’s above-benchmark position in non-government bond assets, particularly commercial mortgage-backed securities (CMBS), corporate bonds, and agency mortgage-backed securities (agency MBS), boosted its performance on a relative basis. During the period under review, CMBS fundamentals benefited from the move to lower interest rates, as investors became more comfortable taking on risks in this sector. Corporate bonds and agency MBS also benefitted from a growing appetite for risk among investors, as well as a surge of inflows toward fixed income mutual funds and ETFs.
The Fund’s relative lack of exposure to securities with maturities of less than seven years dragged on relative returns, as did an above-benchmark position in an aerospace company that saw its bonds underperform as the company struggled with quality control issues
How did the Fund perform over the past 10 years?
The Fund outperformed its benchmark over the past 10 years. In general, fixed income returns during this period were hurt by higher interest rates, particularly the dramatic rise in rates in the years following the global pandemic.
The Fund’s positive performance relative to its benchmark over the past 10 years was largely due to strategic decisions regarding duration, yield curve positioning, sector allocation and security selection. The Fund’s exposure to non-government bond assets also boosted relative returns during this period..
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $154 | 1.46% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Total Return Bond Fund - C | Bloomberg U.S. Aggregate Bond Index |
|---|
| Sep-2014 | $10,000 | $10,000 |
| Sep-2015 | $10,128 | $10,294 |
| Sep-2016 | $10,639 | $10,829 |
| Sep-2017 | $10,639 | $10,836 |
| Sep-2018 | $10,455 | $10,705 |
| Sep-2019 | $11,414 | $11,807 |
| Sep-2020 | $12,158 | $12,632 |
| Sep-2021 | $12,121 | $12,518 |
| Sep-2022 | $10,225 | $10,691 |
| Sep-2023 | $10,202 | $10,760 |
| Sep-2024 | $11,306 | $12,004 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Total Return Bond Fund - C | 10.83% | -0.19% | 1.24% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Total Return Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$1,514,721,755
- Number of Portfolio Holdings375
- Advisory Fee (net of waivers)$2,541,575
- Portfolio Turnover63%
SECTOR WEIGHTING (as a % of Net Assets)
| U.S. Government Agencies | 0.6% |
| Communication Services | 0.6% |
| Technology | 1.0% |
| Money Market Funds | 1.0% |
| Industrials | 1.1% |
| Materials | 1.1% |
| Information Technology | 1.1% |
| Consumer Staples | 1.1% |
| Municipal Bonds | 1.1% |
| Health Care | 1.2% |
| Communications | 1.3% |
| Consumer Discretionary | 1.4% |
| Real Estate | 2.0% |
| Energy | 2.3% |
| Utilities | 3.0% |
| Collateralized Mortgage Obligations | 3.1% |
| Commercial Mortgage-Backed Securities | 10.5% |
| Financials | 11.0% |
| Asset Backed Securities | 11.3% |
| U.S. Treasury Bonds & Notes | 15.6% |
| Mortgage-Backed Securities | 27.4% |
| Other Assets in Excess of Liabilities | 1.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 11.5% |
| Collateralized Mortgage Obligations | 3.1% |
| Commercial Mortgage-Backed Securities | 10.7% |
| Corporate Bonds | 28.5% |
| Money Market Funds | 1.0% |
| Mortgage-Backed Securities | 27.7% |
| Municipal Bonds | 1.1% |
| U.S. Government Agencies | 0.6% |
| U.S. Treasury Bonds & Notes | 15.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Total Return Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Total Return Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index.
Late in 2023, the Federal Reserve signaled it had likely reached the end of its rate hike cycle, which caused interest rates to fall and bond prices to rise. Continued strong economic growth and investor preference for higher yielding securities led to elevated demand for non-government bond assets during the period, which boosted total returns for these asset classes.
The Fund’s above-benchmark position in non-government bond assets, particularly commercial mortgage-backed securities (CMBS), corporate bonds, and agency mortgage-backed securities (agency MBS), boosted its performance on a relative basis. During the period under review, CMBS fundamentals benefited from the move to lower interest rates, as investors became more comfortable taking on risks in this sector. Corporate bonds and agency MBS also benefitted from a growing appetite for risk among investors, as well as a surge of inflows toward fixed income mutual funds and ETFs.
The Fund’s relative lack of exposure to securities with maturities of less than seven years dragged on relative returns, as did an above-benchmark position in an aerospace company that saw its bonds underperform as the company struggled with quality control issues
How did the Fund perform over the past 10 years?
The Fund outperformed its benchmark over the past 10 years. In general, fixed income returns during this period were hurt by higher interest rates, particularly the dramatic rise in rates in the years following the global pandemic.
The Fund’s positive performance relative to its benchmark over the past 10 years was largely due to strategic decisions regarding duration, yield curve positioning, sector allocation and security selection. The Fund’s exposure to non-government bond assets also boosted relative returns during this period..
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $38 | 0.36% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Total Return Bond Fund - R6 | Bloomberg U.S. Aggregate Bond Index |
|---|
| Sep-2017 | $10,000 | $10,000 |
| Sep-2018 | $9,933 | $9,878 |
| Sep-2019 | $10,964 | $10,895 |
| Sep-2020 | $11,808 | $11,656 |
| Sep-2021 | $11,901 | $11,552 |
| Sep-2022 | $10,149 | $9,866 |
| Sep-2023 | $10,238 | $9,929 |
| Sep-2024 | $11,461 | $11,078 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | Since Inception (January 31, 2018) |
|---|
| Sterling Capital Total Return Bond Fund - R6 | 11.95% | 0.89% | 2.09% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.67% |
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Total Return Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$1,514,721,755
- Number of Portfolio Holdings375
- Advisory Fee (net of waivers)$2,541,575
- Portfolio Turnover63%
SECTOR WEIGHTING (as a % of Net Assets)
| U.S. Government Agencies | 0.6% |
| Communication Services | 0.6% |
| Technology | 1.0% |
| Money Market Funds | 1.0% |
| Industrials | 1.1% |
| Materials | 1.1% |
| Information Technology | 1.1% |
| Consumer Staples | 1.1% |
| Municipal Bonds | 1.1% |
| Health Care | 1.2% |
| Communications | 1.3% |
| Consumer Discretionary | 1.4% |
| Real Estate | 2.0% |
| Energy | 2.3% |
| Utilities | 3.0% |
| Collateralized Mortgage Obligations | 3.1% |
| Commercial Mortgage-Backed Securities | 10.5% |
| Financials | 11.0% |
| Asset Backed Securities | 11.3% |
| U.S. Treasury Bonds & Notes | 15.6% |
| Mortgage-Backed Securities | 27.4% |
| Other Assets in Excess of Liabilities | 1.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 11.5% |
| Collateralized Mortgage Obligations | 3.1% |
| Commercial Mortgage-Backed Securities | 10.7% |
| Corporate Bonds | 28.5% |
| Money Market Funds | 1.0% |
| Mortgage-Backed Securities | 27.7% |
| Municipal Bonds | 1.1% |
| U.S. Government Agencies | 0.6% |
| U.S. Treasury Bonds & Notes | 15.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Total Return Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BIBTX)
This annual shareholder report contains important information about Sterling Capital Total Return Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index.
Late in 2023, the Federal Reserve signaled it had likely reached the end of its rate hike cycle, which caused interest rates to fall and bond prices to rise. Continued strong economic growth and investor preference for higher yielding securities led to elevated demand for non-government bond assets during the period, which boosted total returns for these asset classes.
The Fund’s above-benchmark position in non-government bond assets, particularly commercial mortgage-backed securities (CMBS), corporate bonds, and agency mortgage-backed securities (agency MBS), boosted its performance on a relative basis. During the period under review, CMBS fundamentals benefited from the move to lower interest rates, as investors became more comfortable taking on risks in this sector. Corporate bonds and agency MBS also benefitted from a growing appetite for risk among investors, as well as a surge of inflows toward fixed income mutual funds and ETFs.
The Fund’s relative lack of exposure to securities with maturities of less than seven years dragged on relative returns, as did an above-benchmark position in an aerospace company that saw its bonds underperform as the company struggled with quality control issues
How did the Fund perform over the past 10 years?
The Fund outperformed its benchmark over the past 10 years. In general, fixed income returns during this period were hurt by higher interest rates, particularly the dramatic rise in rates in the years following the global pandemic.
The Fund’s positive performance relative to its benchmark over the past 10 years was largely due to strategic decisions regarding duration, yield curve positioning, sector allocation and security selection. The Fund’s exposure to non-government bond assets also boosted relative returns during this period..
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $49 | 0.46% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Total Return Bond Fund - I | Bloomberg U.S. Aggregate Bond Index |
|---|
| Sep-2014 | $10,000 | $10,000 |
| Sep-2015 | $10,229 | $10,294 |
| Sep-2016 | $10,853 | $10,829 |
| Sep-2017 | $10,962 | $10,836 |
| Sep-2018 | $10,880 | $10,705 |
| Sep-2019 | $11,997 | $11,807 |
| Sep-2020 | $12,908 | $12,632 |
| Sep-2021 | $12,998 | $12,518 |
| Sep-2022 | $11,073 | $10,691 |
| Sep-2023 | $11,159 | $10,760 |
| Sep-2024 | $12,491 | $12,004 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Total Return Bond Fund - I | 11.94% | 0.81% | 2.25% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Total Return Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BIBTX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$1,514,721,755
- Number of Portfolio Holdings375
- Advisory Fee (net of waivers)$2,541,575
- Portfolio Turnover63%
SECTOR WEIGHTING (as a % of Net Assets)
| U.S. Government Agencies | 0.6% |
| Communication Services | 0.6% |
| Technology | 1.0% |
| Money Market Funds | 1.0% |
| Industrials | 1.1% |
| Materials | 1.1% |
| Information Technology | 1.1% |
| Consumer Staples | 1.1% |
| Municipal Bonds | 1.1% |
| Health Care | 1.2% |
| Communications | 1.3% |
| Consumer Discretionary | 1.4% |
| Real Estate | 2.0% |
| Energy | 2.3% |
| Utilities | 3.0% |
| Collateralized Mortgage Obligations | 3.1% |
| Commercial Mortgage-Backed Securities | 10.5% |
| Financials | 11.0% |
| Asset Backed Securities | 11.3% |
| U.S. Treasury Bonds & Notes | 15.6% |
| Mortgage-Backed Securities | 27.4% |
| Other Assets in Excess of Liabilities | 1.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 11.5% |
| Collateralized Mortgage Obligations | 3.1% |
| Commercial Mortgage-Backed Securities | 10.7% |
| Corporate Bonds | 28.5% |
| Money Market Funds | 1.0% |
| Mortgage-Backed Securities | 27.7% |
| Municipal Bonds | 1.1% |
| U.S. Government Agencies | 0.6% |
| U.S. Treasury Bonds & Notes | 15.8% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Ultra Short Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Ultra Short Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its targeted benchmark, the FTSE 6-Month Treasury Bill Index, and underperformed its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. The Fund’s absolute returns benefited from falling interest rates as investors anticipated the first interest rate reduction in years by the Federal Reserve.
The Fund’s outperformance relative to its targeted benchmark was driven by its exposure to off-benchmark one- and two-year securities, whose key rates fell more than the six-month key rate that represents the primary benchmark. The Fund’s allocation to risk products, including corporate bonds, commercial mortgage-backed securities, and asset-backed securities, also proved helpful for relative returns, as all of these products outperformed Treasuries over the period.
The Fund’s underperformance relative to its broad-based benchmark was largely due to the fall in interest rates during the period since the Fund’s duration is much shorter than this benchmark.
How did the Fund perform over the past 10 years?
Over the past 10 years, the Fund outperformed both its targeted and broad-based benchmarks. The Fund’s absolute return benefited from the strong performance of risk assets and Treasuries, with most securities maturing over the 10-year period.
The outperformance of risk assets relative to Treasuries helped drive the Fund’s performance relative to both benchmarks over the last 10 years. Above-benchmark exposures to corporate bonds, commercial-backed securities, and asset-backed securities all contributed positively to relative returns for the Fund. Duration contributed to the Fund’s outperformance relative to its broad-based benchmark, as rates generally rose during this period, but curve position was a modest drag relative to this benchmark. Meanwhile, both duration and curve position were modest drags on the Fund’s performance relative to its targeted benchmark.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $64 | 0.62% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Ultra Short Bond Fund - A | Bloomberg U.S. Aggregate Bond Index |
|---|
| Sep-2014 | $10,000 | $10,000 |
| Sep-2015 | $10,025 | $10,294 |
| Sep-2016 | $10,124 | $10,829 |
| Sep-2017 | $10,226 | $10,836 |
| Sep-2018 | $10,349 | $10,705 |
| Sep-2019 | $10,628 | $11,807 |
| Sep-2020 | $10,862 | $12,632 |
| Sep-2021 | $10,916 | $12,518 |
| Sep-2022 | $10,799 | $10,691 |
| Sep-2023 | $11,336 | $10,760 |
| Sep-2024 | $12,031 | $12,004 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Ultra Short Bond Fund - A | 6.12% | 2.51% | 1.87% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
The FTSE U.S. 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.
The Bloomberg U.S. Aggregate BondCap Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Ultra Short Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$28,099,385
- Number of Portfolio Holdings120
- Advisory Fee (net of waivers)$0
- Portfolio Turnover51%
SECTOR WEIGHTING (as a % of Net Assets)
| Communications | 0.2% |
| Materials | 0.4% |
| Consumer Staples | 0.9% |
| Money Market Funds | 0.9% |
| Health Care | 1.1% |
| Consumer Discretionary | 1.7% |
| Real Estate | 1.7% |
| Technology | 1.8% |
| Information Technology | 2.0% |
| Energy | 2.8% |
| U.S. Treasury Bonds & Notes | 3.3% |
| Industrials | 3.7% |
| Utilities | 5.0% |
| Commercial Mortgage-Backed Securities | 9.9% |
| Financials | 25.9% |
| Asset Backed Securities | 38.1% |
| Other Assets in Excess of Liabilities | 0.6% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 38.4% |
| Commercial Mortgage-Backed Securities | 9.9% |
| Corporate Bonds | 47.5% |
| Money Market Funds | 0.9% |
| U.S. Treasury Bonds & Notes | 3.3% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Ultra Short Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BUSIX)
This annual shareholder report contains important information about Sterling Capital Ultra Short Bond Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023 and September 30, 2024, the Fund outperformed its targeted benchmark, the FTSE 6-Month Treasury Bill Index, and underperformed its broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index. The Fund’s absolute returns benefited from falling interest rates as investors anticipated the first interest rate reduction in years by the Federal Reserve.
The Fund’s outperformance relative to its targeted benchmark was driven by its exposure to off-benchmark one- and two-year securities, whose key rates fell more than the six-month key rate that represents the primary benchmark. The Fund’s allocation to risk products, including corporate bonds, commercial mortgage-backed securities, and asset-backed securities, also proved helpful for relative returns, as all of these products outperformed Treasuries over the period.
The Fund’s underperformance relative to its broad-based benchmark was largely due to the fall in interest rates during the period since the Fund’s duration is much shorter than this benchmark.
How did the Fund perform over the past 10 years?
Over the past 10 years, the Fund outperformed both its targeted and broad-based benchmarks. The Fund’s absolute return benefited from the strong performance of risk assets and Treasuries, with most securities maturing over the 10-year period.
The outperformance of risk assets relative to Treasuries helped drive the Fund’s performance relative to both benchmarks over the last 10 years. Above-benchmark exposures to corporate bonds, commercial-backed securities, and asset-backed securities all contributed positively to relative returns for the Fund. Duration contributed to the Fund’s outperformance relative to its broad-based benchmark, as rates generally rose during this period, but curve position was a modest drag relative to this benchmark. Meanwhile, both duration and curve position were modest drags on the Fund’s performance relative to its targeted benchmark.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $38 | 0.37% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Ultra Short Bond Fund - I | Bloomberg U.S. Aggregate Bond Index |
|---|
| Sep-2014 | $10,000 | $10,000 |
| Sep-2015 | $10,040 | $10,294 |
| Sep-2016 | $10,164 | $10,829 |
| Sep-2017 | $10,302 | $10,836 |
| Sep-2018 | $10,452 | $10,705 |
| Sep-2019 | $10,772 | $11,807 |
| Sep-2020 | $11,035 | $12,632 |
| Sep-2021 | $11,118 | $12,518 |
| Sep-2022 | $11,027 | $10,691 |
| Sep-2023 | $11,591 | $10,760 |
| Sep-2024 | $12,333 | $12,004 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Ultra Short Bond Fund - I | 6.39% | 2.74% | 2.12% |
| Bloomberg U.S. Aggregate Bond Index | 11.57% | 0.33% | 1.84% |
The FTSE U.S. 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.
The Bloomberg U.S. Aggregate BondCap Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-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.
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Ultra Short Bond Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BUSIX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$28,099,385
- Number of Portfolio Holdings120
- Advisory Fee (net of waivers)$0
- Portfolio Turnover51%
SECTOR WEIGHTING (as a % of Net Assets)
| Communications | 0.2% |
| Materials | 0.4% |
| Consumer Staples | 0.9% |
| Money Market Funds | 0.9% |
| Health Care | 1.1% |
| Consumer Discretionary | 1.7% |
| Real Estate | 1.7% |
| Technology | 1.8% |
| Information Technology | 2.0% |
| Energy | 2.8% |
| U.S. Treasury Bonds & Notes | 3.3% |
| Industrials | 3.7% |
| Utilities | 5.0% |
| Commercial Mortgage-Backed Securities | 9.9% |
| Financials | 25.9% |
| Asset Backed Securities | 38.1% |
| Other Assets in Excess of Liabilities | 0.6% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Asset Backed Securities | 38.4% |
| Commercial Mortgage-Backed Securities | 9.9% |
| Corporate Bonds | 47.5% |
| Money Market Funds | 0.9% |
| U.S. Treasury Bonds & Notes | 3.3% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Virginia Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Virginia Intermediate Tax-Free Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its benchmark, the ICE BofA 2-17 Year Municipal Bond Index. The Federal Reserve (the Fed) cut the federal funds rate by 50 basis points in September 2024, the only rate change during the period. As interest rates fell, bond prices rose, boosting the Fund’s returns on an absolute basis.
The Fund’s underperformance relative to its benchmark over the 12-month period was largely due to its state-specific focus, which is designed to achieve tax savings for shareholders. This restriction of investment opportunities hurt relative performance during the period as municipal bonds in the state underperformed the benchmark. The Fund’s underweight position in five-year bonds was also a drag on relative performance, as rates dropped lower, and prices rose higher among those bonds.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund underperformed its benchmark. Interest rates fluctuated during the period and ultimately closed higher. However, the Fed’s September 2024 rate cut boosted absolute performance by raising bond prices in the last weeks of the period.
The Fund’s underperformance relative to its benchmark over the 10-year period was largely due to its state-specific focus, as the municipal bonds available to the Fund underperformed the benchmark. Over the last decade credit spreads have compressed as credit fundamentals have improved, resulting in lower-quality credits outperforming.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $90 | 0.87% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Virginia Intermediate Tax-Free Fund - A | Bloomberg Municipal Bond Index | ICE BofA 2-17 Year US Municipal Securities Index |
|---|
| Sep-2014 | $9,797 | $10,000 | $10,000 |
| Sep-2015 | $9,991 | $10,316 | $10,257 |
| Sep-2016 | $10,356 | $10,892 | $10,747 |
| Sep-2017 | $10,315 | $10,987 | $10,860 |
| Sep-2018 | $10,198 | $11,025 | $10,837 |
| Sep-2019 | $10,926 | $11,968 | $11,694 |
| Sep-2020 | $11,341 | $12,458 | $12,158 |
| Sep-2021 | $11,282 | $12,785 | $12,410 |
| Sep-2022 | $10,299 | $11,315 | $11,239 |
| Sep-2023 | $10,407 | $11,616 | $11,544 |
| Sep-2024 | $11,128 | $12,821 | $12,553 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Virginia Intermediate Tax-Free Fund - A | | | |
| Without Load | 6.92% | 0.37% | 1.28% |
| With Load | 4.77% | -0.03% | 1.07% |
| Bloomberg Municipal Bond Index | 10.37% | 1.39% | 2.52% |
| ICE BofA 2-17 Year US Municipal Securities Index | 8.74% | 1.43% | 2.30% |
The ICE BofA 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and USD-denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Virginia Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$45,425,038
- Number of Portfolio Holdings39
- Advisory Fee $182,296
- Portfolio Turnover21%
HOLDINGS BY STATE OF ISSUANCE (as a % of Net Assets)
| Virginia | 101.3% |
| Liabilities in Excess of Other Assets | -1.3% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 0.6% |
| Municipal Bonds | 99.4% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Virginia Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital Virginia Intermediate Tax-Free Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its benchmark, the ICE BofA 2-17 Year Municipal Bond Index. The Federal Reserve (the Fed) cut the federal funds rate by 50 basis points in September 2024, the only rate change during the period. As interest rates fell, bond prices rose, boosting the Fund’s returns on an absolute basis.
The Fund’s underperformance relative to its benchmark over the 12-month period was largely due to its state-specific focus, which is designed to achieve tax savings for shareholders. This restriction of investment opportunities hurt relative performance during the period as municipal bonds in the state underperformed the benchmark. The Fund’s underweight position in five-year bonds was also a drag on relative performance, as rates dropped lower, and prices rose higher among those bonds.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund underperformed its benchmark. Interest rates fluctuated during the period and ultimately closed higher. However, the Fed’s September 2024 rate cut boosted absolute performance by raising bond prices in the last weeks of the period.
The Fund’s underperformance relative to its benchmark over the 10-year period was largely due to its state-specific focus, as the municipal bonds available to the Fund underperformed the benchmark. Over the last decade credit spreads have compressed as credit fundamentals have improved, resulting in lower-quality credits outperforming.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $155 | 1.50% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Virginia Intermediate Tax-Free Fund - C | Bloomberg Municipal Bond Index | ICE BofA 2-17 Year US Municipal Securities Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,122 | $10,316 | $10,257 |
| Sep-2016 | $10,413 | $10,892 | $10,747 |
| Sep-2017 | $10,295 | $10,987 | $10,860 |
| Sep-2018 | $10,102 | $11,025 | $10,837 |
| Sep-2019 | $10,734 | $11,968 | $11,694 |
| Sep-2020 | $11,058 | $12,458 | $12,158 |
| Sep-2021 | $10,918 | $12,785 | $12,410 |
| Sep-2022 | $9,901 | $11,315 | $11,239 |
| Sep-2023 | $9,914 | $11,616 | $11,544 |
| Sep-2024 | $10,535 | $12,821 | $12,553 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Virginia Intermediate Tax-Free Fund - C | 6.27% | -0.37% | 0.52% |
| Bloomberg Municipal Bond Index | 10.37% | 1.39% | 2.52% |
| ICE BofA 2-17 Year US Municipal Securities Index | 8.74% | 1.43% | 2.30% |
The ICE BofA 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and USD-denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Virginia Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$45,425,038
- Number of Portfolio Holdings39
- Advisory Fee $182,296
- Portfolio Turnover21%
HOLDINGS BY STATE OF ISSUANCE (as a % of Net Assets)
| Virginia | 101.3% |
| Liabilities in Excess of Other Assets | -1.3% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 0.6% |
| Municipal Bonds | 99.4% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital Virginia Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BVATX)
This annual shareholder report contains important information about Sterling Capital Virginia Intermediate Tax-Free Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its benchmark, the ICE BofA 2-17 Year Municipal Bond Index. The Federal Reserve (the Fed) cut the federal funds rate by 50 basis points in September 2024, the only rate change during the period. As interest rates fell, bond prices rose, boosting the Fund’s returns on an absolute basis.
The Fund’s underperformance relative to its benchmark over the 12-month period was largely due to its state-specific focus, which is designed to achieve tax savings for shareholders. This restriction of investment opportunities hurt relative performance during the period as municipal bonds in the state underperformed the benchmark. The Fund’s underweight position in five-year bonds was also a drag on relative performance, as rates dropped lower, and prices rose higher among those bonds.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund underperformed its benchmark. Interest rates fluctuated during the period and ultimately closed higher. However, the Fed’s September 2024 rate cut boosted absolute performance by raising bond prices in the last weeks of the period.
The Fund’s underperformance relative to its benchmark over the 10-year period was largely due to its state-specific focus, as the municipal bonds available to the Fund underperformed the benchmark. Over the last decade credit spreads have compressed as credit fundamentals have improved, resulting in lower-quality credits outperforming.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $64 | 0.62% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital Virginia Intermediate Tax-Free Fund - I | Bloomberg Municipal Bond Index | ICE BofA 2-17 Year US Municipal Securities Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,224 | $10,316 | $10,257 |
| Sep-2016 | $10,624 | $10,892 | $10,747 |
| Sep-2017 | $10,608 | $10,987 | $10,860 |
| Sep-2018 | $10,514 | $11,025 | $10,837 |
| Sep-2019 | $11,283 | $11,968 | $11,694 |
| Sep-2020 | $11,741 | $12,458 | $12,158 |
| Sep-2021 | $11,709 | $12,785 | $12,410 |
| Sep-2022 | $10,725 | $11,315 | $11,239 |
| Sep-2023 | $10,865 | $11,616 | $11,544 |
| Sep-2024 | $11,646 | $12,821 | $12,553 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital Virginia Intermediate Tax-Free Fund - I | 7.19% | 0.63% | 1.54% |
| Bloomberg Municipal Bond Index | 10.37% | 1.39% | 2.52% |
| ICE BofA 2-17 Year US Municipal Securities Index | 8.74% | 1.43% | 2.30% |
The ICE BofA 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and USD-denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital Virginia Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (BVATX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$45,425,038
- Number of Portfolio Holdings39
- Advisory Fee $182,296
- Portfolio Turnover21%
HOLDINGS BY STATE OF ISSUANCE (as a % of Net Assets)
| Virginia | 101.3% |
| Liabilities in Excess of Other Assets | -1.3% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 0.6% |
| Municipal Bonds | 99.4% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital West Virginia Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital West Virginia Intermediate Tax-Free Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its benchmark, the ICE BofA 2-17 Year Municipal Bond Index. The Federal Reserve (the Fed) cut the federal funds rate by 50 basis points in September 2024, the only rate change during the period. As interest rates fell, bond prices rose, boosting the Fund’s returns on an absolute basis.
The Fund’s underperformance relative to its benchmark over the 12-month period was largely due to its state-specific focus, which is designed to achieve tax savings for shareholders. This restriction of investment opportunities hurt relative performance during the period as municipal bonds in the state underperformed the benchmark. The Fund’s underweight position in five-year bonds was also a drag on relative performance, as rates dropped lower, and prices rose higher among those bonds.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund underperformed its benchmark. Interest rates fluctuated during the period and ultimately closed higher. However, the Fed’s September 2024 rate cut boosted absolute performance by raising bond prices in the last weeks of the period.
The Fund’s underperformance relative to its benchmark over the 10-yweeks ear period was largely due to its state-specific focus, as the municipal bonds available to the Fund underperformed the benchmark. Over the last decade credit spreads have compressed as credit fundamentals have improved, resulting in lower-quality credits outperforming.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $91 | 0.88% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital West Virginia Intermediate Tax-Free Fund - A | Bloomberg Municipal Bond Index | ICE BofA 2-17 Year US Municipal Securities Index |
|---|
| Sep-2014 | $9,797 | $10,000 | $10,000 |
| Sep-2015 | $10,012 | $10,316 | $10,257 |
| Sep-2016 | $10,404 | $10,892 | $10,747 |
| Sep-2017 | $10,433 | $10,987 | $10,860 |
| Sep-2018 | $10,331 | $11,025 | $10,837 |
| Sep-2019 | $11,012 | $11,968 | $11,694 |
| Sep-2020 | $11,415 | $12,458 | $12,158 |
| Sep-2021 | $11,497 | $12,785 | $12,410 |
| Sep-2022 | $10,557 | $11,315 | $11,239 |
| Sep-2023 | $10,670 | $11,616 | $11,544 |
| Sep-2024 | $11,472 | $12,821 | $12,553 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital West Virginia Intermediate Tax-Free Fund - A | | | |
| Without Load | 7.51% | 0.82% | 1.59% |
| With Load | 5.32% | 0.41% | 1.38% |
| Bloomberg Municipal Bond Index | 10.37% | 1.39% | 2.52% |
| ICE BofA 2-17 Year US Municipal Securities Index | 8.74% | 1.43% | 2.30% |
The ICE BofA 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and USD-denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital West Virginia Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$55,553,254
- Number of Portfolio Holdings43
- Advisory Fee $240,969
- Portfolio Turnover25%
HOLDINGS BY STATE OF ISSUANCE (as a % of Net Assets)
| West Virginia | 98.8% |
| Other Assets in Excess of Liabilities | 1.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 2.6% |
| Municipal Bonds | 97.4% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital West Virginia Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
This annual shareholder report contains important information about Sterling Capital West Virginia Intermediate Tax-Free Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its benchmark, the ICE BofA 2-17 Year Municipal Bond Index. The Federal Reserve (the Fed) cut the federal funds rate by 50 basis points in September 2024, the only rate change during the period. As interest rates fell, bond prices rose, boosting the Fund’s returns on an absolute basis.
The Fund’s underperformance relative to its benchmark over the 12-month period was largely due to its state-specific focus, which is designed to achieve tax savings for shareholders. This restriction of investment opportunities hurt relative performance during the period as municipal bonds in the state underperformed the benchmark. The Fund’s underweight position in five-year bonds was also a drag on relative performance, as rates dropped lower, and prices rose higher among those bonds.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund underperformed its benchmark. Interest rates fluctuated during the period and ultimately closed higher. However, the Fed’s September 2024 rate cut boosted absolute performance by raising bond prices in the last weeks of the period.
The Fund’s underperformance relative to its benchmark over the 10-yweeks ear period was largely due to its state-specific focus, as the municipal bonds available to the Fund underperformed the benchmark. Over the last decade credit spreads have compressed as credit fundamentals have improved, resulting in lower-quality credits outperforming.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $152 | 1.47% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital West Virginia Intermediate Tax-Free Fund - C | Bloomberg Municipal Bond Index | ICE BofA 2-17 Year US Municipal Securities Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,142 | $10,316 | $10,257 |
| Sep-2016 | $10,461 | $10,892 | $10,747 |
| Sep-2017 | $10,422 | $10,987 | $10,860 |
| Sep-2018 | $10,233 | $11,025 | $10,837 |
| Sep-2019 | $10,837 | $11,968 | $11,694 |
| Sep-2020 | $11,150 | $12,458 | $12,158 |
| Sep-2021 | $11,135 | $12,785 | $12,410 |
| Sep-2022 | $10,149 | $11,315 | $11,239 |
| Sep-2023 | $10,213 | $11,616 | $11,544 |
| Sep-2024 | $10,904 | $12,821 | $12,553 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital West Virginia Intermediate Tax-Free Fund - C | 6.77% | 0.12% | 0.87% |
| Bloomberg Municipal Bond Index | 10.37% | 1.39% | 2.52% |
| ICE BofA 2-17 Year US Municipal Securities Index | 8.74% | 1.43% | 2.30% |
The ICE BofA 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and USD-denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital West Virginia Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
KEY FUND STATISTICS (as of Period End)
- Net Assets$55,553,254
- Number of Portfolio Holdings43
- Advisory Fee $240,969
- Portfolio Turnover25%
HOLDINGS BY STATE OF ISSUANCE (as a % of Net Assets)
| West Virginia | 98.8% |
| Other Assets in Excess of Liabilities | 1.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 2.6% |
| Municipal Bonds | 97.4% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
Sterling Capital West Virginia Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (OWVAX)
This annual shareholder report contains important information about Sterling Capital West Virginia Intermediate Tax-Free Fund for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at https://sterlingcapitalfunds.com/funds/. You can also request this information by contacting us at (888) 228-1872. This report describes material fund changes to the Fund that occurred during the period in the MATERIAL FUND CHANGES section of this report.
WHAT FACTORS INFLUENCED PERFORMANCE FOR THE PERIOD?
For the 12-month period between October 1, 2023, and September 30, 2024, the Fund underperformed its benchmark, the ICE BofA 2-17 Year Municipal Bond Index. The Federal Reserve (the Fed) cut the federal funds rate by 50 basis points in September 2024, the only rate change during the period. As interest rates fell, bond prices rose, boosting the Fund’s returns on an absolute basis.
The Fund’s underperformance relative to its benchmark over the 12-month period was largely due to its state-specific focus, which is designed to achieve tax savings for shareholders. This restriction of investment opportunities hurt relative performance during the period as municipal bonds in the state underperformed the benchmark. The Fund’s underweight position in five-year bonds was also a drag on relative performance, as rates dropped lower, and prices rose higher among those bonds.
How did the Fund perform in the past 10 years?
For the 10-year period between October 1, 2014, and September 30, 2024, the Fund underperformed its benchmark. Interest rates fluctuated during the period and ultimately closed higher. However, the Fed’s September 2024 rate cut boosted absolute performance by raising bond prices in the last weeks of the period.
The Fund’s underperformance relative to its benchmark over the 10-yweeks ear period was largely due to its state-specific focus, as the municipal bonds available to the Fund underperformed the benchmark. Over the last decade credit spreads have compressed as credit fundamentals have improved, resulting in lower-quality credits outperforming.
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
WHAT WERE THE FUND COSTS FOR THE YEAR?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Institutional | $65 | 0.63% |
PERFORMANCE OF HYPOTHETICAL
$10,000 INVESTMENT
| Sterling Capital West Virginia Intermediate Tax-Free Fund - I | Bloomberg Municipal Bond Index | ICE BofA 2-17 Year US Municipal Securities Index |
|---|
| Sep-2014 | $10,000 | $10,000 | $10,000 |
| Sep-2015 | $10,244 | $10,316 | $10,257 |
| Sep-2016 | $10,672 | $10,892 | $10,747 |
| Sep-2017 | $10,728 | $10,987 | $10,860 |
| Sep-2018 | $10,651 | $11,025 | $10,837 |
| Sep-2019 | $11,380 | $11,968 | $11,694 |
| Sep-2020 | $11,837 | $12,458 | $12,158 |
| Sep-2021 | $11,941 | $12,785 | $12,410 |
| Sep-2022 | $10,994 | $11,315 | $11,239 |
| Sep-2023 | $11,151 | $11,616 | $11,544 |
| Sep-2024 | $12,005 | $12,821 | $12,553 |
AVERAGE ANNUAL TOTAL RETURNS
| 1 Year | 5 Years | 10 Years |
|---|
| Sterling Capital West Virginia Intermediate Tax-Free Fund - I | 7.66% | 1.08% | 1.84% |
| Bloomberg Municipal Bond Index | 10.37% | 1.39% | 2.52% |
| ICE BofA 2-17 Year US Municipal Securities Index | 8.74% | 1.43% | 2.30% |
The ICE BofA 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and USD-denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities..
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
Sterling Capital West Virginia Intermediate Tax-Free Fund
September 30, 2024
ANNUAL SHAREHOLDER REPORT
https://sterlingcapitalfunds.com/funds/
Class Institutional (OWVAX)
KEY FUND STATISTICS (as of Period End)
- Net Assets$55,553,254
- Number of Portfolio Holdings43
- Advisory Fee $240,969
- Portfolio Turnover25%
HOLDINGS BY STATE OF ISSUANCE (as a % of Net Assets)
| West Virginia | 98.8% |
| Other Assets in Excess of Liabilities | 1.2% |
ASSET WEIGHTING (as a % of Net Assets)
| Value | Value |
|---|
| Money Market Funds | 2.6% |
| Municipal Bonds | 97.4% |
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
Availability of Additional Information
For additional information about the Fund, including its prospectus, financial information, and holdings, visit https://sterlingcapitalfunds.com/funds/.
Information about the Fund’s proxy voting records is available by calling (888) 228-1872.
| (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. |
| ● | Registrant may incorporate the following information by reference, if this information has been disclosed in the registrant’s definitive proxy statement or definitive information statement. The proxy statement or information statement must be filed no later than 120 days after the end of the fiscal year covered by the Annual Report. |
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 $331,825 for 2024 and $310,500 for 2023. |
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 2024 and $0 for 2023. 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 $86,100 for 2024 and $82,000 for 2023. Fees for both 2023 and 2022 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 2024 and $0 for 2023.
| (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 nonaudit 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 SX 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 2024 and $0 for 2023. |
| Item 5. | Audit Committee of Listed Registrants. |
Not applicable
| Item 6. | Schedule of 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. |
| Item 7. | Financial Statements and Financial Highlights for Open-End Management Investment Companies. |
STERLING CAPITAL FUNDS
FINANCIAL STATEMENTS
Sterling Capital Behavioral Large Cap Value Fund
Schedule of Investments
September 30, 2024
| Shares | | | | | Fair Value | |
| COMMON STOCKS — 99.32% | | | | |
| | | | | Aerospace & Defense — 1.83% | | | | |
| | 5,570 | | | Raytheon Technologies Corp. | | $ | 674,861 | |
| | | | | | | | | |
| | | | | Automobiles — 1.57% | | | | |
| | 5,390 | | | Ford Motor Co. | | | 56,918 | |
| | 11,590 | | | General Motors Co. | | | 519,696 | |
| | | | | | | | 576,614 | |
| | | | | Banks — 6.99% | | | | |
| | 1,350 | | | Citigroup, Inc. | | | 84,510 | |
| | 6,535 | | | JPMorgan Chase & Co. | | | 1,377,970 | |
| | 3,280 | | | PNC Financial Services Group, Inc. | | | 606,308 | |
| | 9,000 | | | Wells Fargo & Co. | | | 508,410 | |
| | | | | | | | 2,577,198 | |
| | | | | Biotechnology — 4.16% | | | | |
| | 4,050 | | | AbbVie, Inc. | | | 799,794 | |
| | 1,610 | | | Amgen, Inc. | | | 518,758 | |
| | 590 | | | United Therapeutics Corp.(a) | | | 211,427 | |
| | | | | | | | 1,529,979 | |
| | | | | Broadline Retail — 0.41% | | | | |
| | 2,310 | | | eBay, Inc. | | | 150,404 | |
| | | | | | | | | |
| | | | | Building Products — 0.64% | | | | |
| | 130 | | | Carlisle Cos., Inc. | | | 58,468 | |
| | 1,000 | | | Owens Corning | | | 176,520 | |
| | | | | | | | 234,988 | |
| | | | | Capital Markets — 7.26% | | | | |
| | 900 | | | Ameriprise Financial, Inc. | | | 422,829 | |
| | 8,580 | | | Bank of New York Mellon Corp. (The) | | | 616,559 | |
| | 1,310 | | | Goldman Sachs Group, Inc. (The) | | | 648,594 | |
| | 5,175 | | | Janus Henderson Group PLC | | | 197,012 | |
| | 6,110 | | | Morgan Stanley | | | 636,906 | |
| | 5,050 | | | Virtu Financial, Inc., Class A | | | 153,823 | |
| | | | | | | | 2,675,723 | |
| | | | | Chemicals — 0.43% | | | | |
| | 4,330 | | | Axalta Coating Systems Ltd.(a) | | | 156,703 | |
| | | | | | | | | |
| | | | | Construction Materials — 2.14% | | | | |
| | 6,630 | | | CRH PLC | | | 614,866 | |
| | 605 | | | Eagle Materials, Inc. | | | 174,028 | |
| | | | | | | | 788,894 | |
| | | | | Consumer Finance — 0.52% | | | | |
| | 3,825 | | | Synchrony Financial | | | 190,791 | |
| | | | | | | | | |
| | | | | Consumer Staples Distribution & Retail — 2.39% | |
| | 3,750 | | | Kroger Co. (The) | | | 214,875 | |
| | 3,600 | | | Target Corp. | | | 561,096 | |
| | 1,720 | | | US Foods Holding Corp.(a) | | | 105,780 | |
| | | | | | | | 881,751 | |
| | | | | Containers & Packaging — 1.01% | | | | |
| | 930 | | | Berry Global Group, Inc. | | | 63,221 | |
| | 3,230 | | | Siligan Holdgins, Inc. | | | 169,576 | |
| | 2,540 | | | Sonoco Products Co. | | | 138,760 | |
| | | | | | | | 371,557 | |
| | | | | Diversified Consumer Services — 0.44% | | | | |
| | 2,560 | | | H&R Block, Inc. | | | 162,688 | |
| | | | | | | | | |
| | | | | Diversified Telecommunication Services — 2.84% | |
| | 31,075 | | | AT&T, Inc. | | | 683,650 | |
| | 8,070 | | | Verizon Communications, Inc. | | | 362,424 | |
| | | | | | | | 1,046,074 | |
| | | | | Electric Utilities — 3.66% | | | | |
| | 2,480 | | | American Electric Power Co., Inc. | | | 254,448 | |
| | 2,550 | | | Constellation Energy Corp. | | | 663,051 | |
| | 3,725 | | | Duke Energy Corp. | | | 429,493 | |
| | | | | | | | 1,346,992 | |
| | | | | Electrical Equipment — 0.38% | | | | |
| | 510 | | | Acuity Brands, Inc. | | | 140,449 | |
| Shares | | | | | Fair Value | |
| COMMON STOCKS — (continued) | | | |
| | | | | Electronic Equipment, Instruments & Components — 0.48% | | | | |
| | 1,460 | | | TD SYNNEX Corp. | | $ | 175,317 | |
| | | | | | | | | |
| | | | | Energy Equipment & Services — 0.48% | | | | |
| | 6,680 | | | TechnipFMC PLC | | | 175,216 | |
| | | | | | | | | |
| | | | | Financial Services — 1.53% | | | | |
| | 7,180 | | | Corebridge Financial, Inc. | | | 209,369 | |
| | 8,050 | | | MGIC Investment Corp. | | | 206,080 | |
| | 12,275 | | | Western Union Co. (The) | | | 146,441 | |
| | | | | | | | 561,890 | |
| | | | | Food Products — 1.18% | | | | |
| | 1,200 | | | Ingredion, Inc. | | | 164,916 | |
| | 2,270 | | | Kraft Heinz Co. (The) | | | 79,700 | |
| | 4,110 | | | Pilgrim's Pride Corp.(a) | | | 189,265 | |
| | | | | | | | 433,881 | |
| | | | | Ground Transportation — 0.36% | | | | |
| | 910 | | | Ryder System, Inc. | | | 132,678 | |
| | | | | | | | | |
| | | | | Health Care Providers & Services — 6.63% | | | | |
| | 1,965 | | | Cencora Inc. | | | 442,282 | |
| | 1,640 | | | Cigna Group (The) | | | 568,162 | |
| | 1,190 | | | DaVita, Inc.(a) | | | 195,077 | |
| | 1,480 | | | HCA Healthcare, Inc. | | | 601,515 | |
| | 554 | | | McKesson Corp. | | | 273,909 | |
| | 1,230 | | | Tenet Healthcare Corp.(a) | | | 204,426 | |
| | 700 | | | Universal Health Services, Inc., Class B | | | 160,307 | |
| | | | | | | | 2,445,678 | |
| | | | | Health Care Reits — 0.44% | | | | |
| | 3,990 | | | Omega Healthcare Investors, Inc. | | | 162,393 | |
| | | | | | | | | |
| | | | | Hotels, Restaurants & Leisure — 1.84% | | | | |
| | 2,840 | | | Royal Caribbean Cruises Ltd. | | | 503,702 | |
| | 3,760 | | | Travel + Leisure Co.(a) | | | 173,261 | |
| | | | | | | | 676,963 | |
| | | | | Household Durables — 2.41% | | | | |
| | 855 | | | DR Horton, Inc. | | | 163,108 | |
| | 2,760 | | | Lennar Corp., Class A | | | 517,445 | |
| | 1,350 | | | Toll Brothers, Inc. | | | 208,562 | |
| | | | | | | | 889,115 | |
| | | | | Household Products — 1.94% | | | | |
| | 860 | | | Colgate-Palmolive Co. | | | 89,277 | |
| | 3,225 | | | Kimberly-Clark Corp. | | | 458,853 | |
| | 5,370 | | | Reynolds Consumer Products, Inc. | | | 167,007 | |
| | | | | | | | 715,137 | |
| | | | | Independent Power/Renewable Electricity Producers — 0.68% | |
| | 2,110 | | | Vistra Energy Corp. | | | 250,119 | |
| | | | | | | | | |
| | | | | Industrial Conglomerates — 1.64% | | | | |
| | 4,430 | | | 3M Co. | | | 605,581 | |
| | | | | | | | | |
| | | | | Insurance — 5.17% | | | | |
| | 4,970 | | | Aflac, Inc. | | | 555,646 | |
| | 2,760 | | | Allstate Corp. | | | 523,434 | |
| | 1,640 | | | Axis Capital Holdings Ltd. | | | 130,560 | |
| | 4,455 | | | Prudential Financial, Inc. | | | 539,501 | |
| | 700 | | | Reinsurance Group of America, Inc. | | | 152,509 | |
| | | | | | | | 1,901,650 | |
| | | | | Interactive Media & Services — 1.45% | | | | |
| | 935 | | | Meta Platforms, Inc., Class A | | | 535,231 | |
| | | | | | | | | |
| | | | | It Services — 2.16% | | | | |
| | 3,600 | | | International Business Machines Corp. | | | 795,888 | |
| | | | | | | | | |
| | | | | Machinery — 6.03% | | | | |
| | 2,300 | | | Allison Transmission Holdings, Inc. | | | 220,961 | |
| | 1,965 | | | Caterpillar, Inc. | | | 768,551 | |
| | 1,270 | | | Cummins, Inc. | | | 411,213 | |
| | 8,730 | | | Gates Industrial Corp. PLC(a) | | | 153,212 | |
| 2 | See accompanying notes to financial statements. | |
Sterling Capital Behavioral Large Cap Value Fund
Schedule of Investments (continued)
September 30, 2024
| Shares | | | | | Fair Value | |
| COMMON STOCKS — (continued) | | | | |
| | | | | Machinery — (continued) | | | | |
| | 1,050 | | | Parker-Hannifin Corp. | | $ | 663,411 | |
| | | | | | | | 2,217,348 | |
| | | | | Marine Transportation — 0.46% | | | | |
| | 1,380 | | | Kirby Corp.(a) | | | 168,953 | |
| | | | | | | | | |
| | | | | Media — 1.29% | | | | |
| | 1,460 | | | Charter Communications, Inc., Class A(a) | | | 473,157 | |
| | | | | | | | | |
| | | | | Mortgage Real Estate Investment -Trusts (Reits) — 0.41% | |
| | 13,375 | | | Rithm Capital Corp. | | | 151,806 | |
| | | | | | | | | |
| | | | | Multi-Utilities — 1.53% | | | | |
| | 9,730 | | | Dominion Resources, Inc. | | | 562,297 | |
| | | | | | | | | |
| | | | | Office Reits (New) — 0.47% | | | | |
| | 5,850 | | | Cousins Properties, Inc. | | | 172,458 | |
| | | | | | | | | |
| | | | | Oil, Gas & Consumable Fuels — 5.31% | | | | |
| | 1,260 | | | EOG Resources, Inc. | | | 154,892 | |
| | 25,490 | | | Kinder Morgan, Inc. | | | 563,074 | |
| | 1,580 | | | Marathon Petroleum Corp. | | | 257,398 | |
| | 5,940 | | | ONEOK, Inc. | | | 541,312 | |
| | 3,250 | | | Valero Energy Corp. | | | 438,848 | |
| | | | | | | | 1,955,524 | |
| | | | | Pharmaceuticals — 2.92% | | | | |
| | 6,570 | | | Bristol-Myers Squibb Co. | | | 339,931 | |
| | 1,365 | | | Jazz Pharmaceuticals PLC(a) | | | 152,075 | |
| | 7,920 | | | Organon & Co. | | | 151,510 | |
| | 9,980 | | | Pfizer, Inc. | | | 288,821 | |
| | 12,190 | | | Viatris, Inc. | | | 141,526 | |
| | | | | | | | 1,073,863 | |
| | | | | Professional Services — 0.30% | | | | |
| | 670 | | | Leidos Holdings, Inc. | | | 109,210 | |
| | | | | | | | | |
| | | | | Retail Reits — 3.16% | | | | |
| | 9,260 | | | Realty Income Corp. | | | 587,269 | |
| | 3,415 | | | Simon Property Group, Inc. | | | 577,203 | |
| | | | | | | | 1,164,472 | |
| | | | | Semiconductors & Semiconductor Equipment — 3.60% | |
| | 2,060 | | | Applied Materials, Inc. | | | 416,223 | |
| | 560 | | | KLA-Tencor Corp. | | | 433,670 | |
| | 2,790 | | | QUALCOMM, Inc. | | | 474,439 | |
| | | | | | | | 1,324,332 | |
| | | | | Software — 0.47% | | | | |
| | 6,340 | | | Gen Digital, Inc. | | | 173,906 | |
| | | | | | | | | |
| | | | | Specialized Reits — 1.23% | | | | |
| | 3,150 | | | EPR Properties(a) | | | 154,476 | |
| | 2,450 | | | Gaming and Leisure Properties, Inc. | | | 126,053 | |
| | 5,175 | | | VICI Properties, Inc. | | | 172,379 | |
| | | | | | | | 452,908 | |
| | | | | Specialty Retail — 1.29% | | | | |
| | 1,650 | | | Best Buy Co., Inc. | | | 170,445 | |
| | 740 | | | Dick's Sporting Goods, Inc. | | | 154,438 | |
| | 6,860 | | | Gap, Inc. (The) | | | 151,263 | |
| | | | | | | | 476,146 | |
| | | | | Technology Hardware, Storage & Peripherals — 2.22% | |
| | 4,570 | | | Dell Technolodies, Inc., Class C | | | 541,727 | |
| | 4,350 | | | HP, Inc. | | | 156,035 | |
| | 980 | | | NetApp, Inc. | | | 121,040 | |
| | | | | | | | 818,802 | |
| | | | | Tobacco — 3.57% | | | | |
| | 11,810 | | | Altria Group, Inc. | | | 602,782 | |
| | 5,840 | | | Philip Morris International, Inc. | | | 708,976 | |
| | | | | | | | 1,311,758 | |
| | | | | Total Common Stocks | | | | |
| | | | | (Cost $29,660,798) | | | 36,569,343 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 0.69% | | | | |
| | 252,712 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(b) | | $ | 252,712 | |
| | | | | | | | |
| | | | Total Money Market Funds | | | | |
| | | | (Cost $252,712) | | | 252,712 | |
| | | | | |
| Total Investments— 100.01% | | | | |
| (Cost $29,913,510) | | | 36,822,055 | |
| Liabilities in Excess of Other Assets — (0.01)% | | | (4,508 | ) |
| NET ASSETS — 100.00% | | $ | 36,817,547 | |
| (a) | Non-income producing security. |
| (b) | Represents the current yield as of report date. |
| | See accompanying notes to financial statements. | 3 |
Sterling Capital Mid Value Fund
Schedule of Investments
September 30, 2024
| Shares | | | | | Fair Value | |
| COMMON STOCKS — 97.66% | | | | |
| | | | | Automobile Components — 2.93% | | | | |
| | 48,125 | | | Gentex Corp. | | $ | 1,428,831 | |
| | | | | | | | | |
| | | | | Banks — 3.99% | | | | |
| | 5,336 | | | M&T Bank Corp. | | | 950,448 | |
| | 10,125 | | | Pinnacle Financial Partners, Inc. | | | 991,947 | |
| | | | | | | | 1,942,395 | |
| | | | | | | | | |
| | | | | Broadline Retail — 1.81% | | | | |
| | 13,573 | | | eBay, Inc. | | | 883,738 | |
| | | | | | | | | |
| | | | | Chemicals — 3.37% | | | | |
| | 27,915 | | | Corteva, Inc. | | | 1,641,122 | |
| | | | | | | | | |
| | | | | Consumer Finance — 5.31% | | | | |
| | 6,514 | | | Discover Financial Services | | | 913,849 | |
| | 73,145 | | | SLM Corp. | | | 1,672,826 | |
| | | | | | | | 2,586,675 | |
| | | | | Consumer Staples Distribution & Retail — 5.49% | |
| | 14,574 | | | Dollar General Corp. | | | 1,232,523 | |
| | 9,244 | | | Target Corp. | | | 1,440,771 | |
| | | | | | | | 2,673,294 | |
| | | | | | | | | |
| | | | | Containers & Packaging — 2.89% | | | | |
| | 14,704 | | | Crown Holdings, Inc. | | | 1,409,820 | |
| | | | | | | | | |
| | | | | Diversified Reits — 3.67% | | | | |
| | 14,375 | | | CBRE Group, Inc., Class A(a) | | | 1,789,400 | |
| | | | | | | | | |
| | | | | Diversified Telecommunication Services — 0.00% | |
| | 24,177 | | | GCI Liberty Escrow Shares(a) | | | — | |
| | | | | | | | | |
| | | | | Electrical Equipment — 1.76% | | | | |
| | 23,852 | | | Sensata Technologies Holding PLC | | | 855,333 | |
| | | | | | | | | |
| | | | | Electronic Equipment, Instruments & Components — 2.68% | |
| | 9,837 | | | Arrow Electronics, Inc.(a) | | | 1,306,649 | |
| | | | | | | | | |
| | | | | Entertainment — 2.71% | | | | |
| | 8,584 | | | Take-Two Interactive Software, Inc.(a) | | | 1,319,447 | |
| | | | | | | | | |
| | | | | Financial Services — 9.19% | | | | |
| | 16,596 | | | Euronet Worldwide, Inc.(a) | | | 1,646,820 | |
| | 12,673 | | | Global Payments, Inc. | | | 1,297,969 | |
| | 44,251 | | | Radian Group, Inc. | | | 1,535,067 | |
| | | | | | | | 4,479,856 | |
| | | | | | | | | |
| | | | | Food Products — 1.40% | | | | |
| | 3,566 | | | Hershey Co. (The) | | | 683,887 | |
| | | | | | | | | |
| | | | | Health Care Providers & Services — 6.79% | | | | |
| | 20,066 | | | Centene Corp.(a) | | | 1,510,568 | |
| | 1,356 | | | Cigna Group (The) | | | 469,773 | |
| | 4,195 | | | Humana, Inc. | | | 1,328,724 | |
| | | | | | | | 3,309,065 | |
| | | | | Hotels, Restaurants & Leisure — 2.44% | | | | |
| | 5,162 | | | Hilton Worldwide Holdings, Inc. | | | 1,189,841 | |
| | | | | | | | | |
| | | | | Household Durables — 3.42% | | | | |
| | 10,338 | | | Mohawk Industries, Inc.(a) | | | 1,661,111 | |
| | | | | | | | | |
| | | | | Insurance — 6.50% | | | | |
| | 18,569 | | | Globe Life, Inc. | | | 1,966,643 | |
| | 764 | | | Markel Corp.(a) | | | 1,198,395 | |
| | | | | | | | 3,165,038 | |
| | | | | Interactive Media & Services — 1.40% | |
| | 12,684 | | | IAC, Inc.(a) | | | 682,653 | |
| | | | | | | | | |
| | | | | It Services — 2.81% | | | | |
| | 14,704 | | | ASGN, Inc.(a) | | | 1,370,854 | |
| | | | | | | | | |
| | | | | Life Sciences Tools & Services — 1.36% | |
| | 33,192 | | | Fortrea Holdings, Inc.(a) | | | 663,840 | |
| | | | | | | | | |
| | | | | Multi-Utilities — 6.24% | | | | |
| | 15,672 | | | CMS Energy Corp. | | | 1,106,913 | |
| Shares | | | | | Fair Value | |
| COMMON STOCKS — (continued) | | | | |
| | | | | Multi-Utilities — (continued) | | | | |
| | 55,778 | | | Nisource, Inc. | | $ | 1,932,708 | |
| | | | | | | | 3,039,621 | |
| | | | | | | | | |
| | | | | Oil, Gas & Consumable Fuels — 3.79% | | | | |
| | 23,567 | | | Devon Energy Corp. | | | 921,941 | |
| | 68,119 | | | Permian Resources Corp. | | | 927,100 | |
| | | | | | | | 1,849,041 | |
| | | | | | | | | |
| | | | | Professional Services — 8.77% | | | | |
| | 9,538 | | | Jacobs Solutions, Inc. | | | 1,248,524 | |
| | 8,968 | | | Paycom Software, Inc. | | | 1,493,800 | |
| | 20,669 | | | SS&C Technologies Holdings, Inc. | | | 1,533,845 | |
| | | | | | | | 4,276,169 | |
| | | | | | | | | |
| | | | | Software — 1.84% | | | | |
| | 65,899 | | | NCR Voyix Corp.(a) | | | 894,249 | |
| | | | | | | | | |
| | | | | Technology Services — 0.63% | | | | |
| | 9,538 | | | Amentum Holdings, Inc.(a) | | | 307,601 | |
| | | | | | | | | |
| | | | | Textiles, Apparel & Luxury Goods — 1.61% | |
| | 9,439 | | | Columbia Sportswear Co. | | | 785,230 | |
| | | | | | | | | |
| | | | | Trading Companies & Distributors — 2.86% | |
| | 30,764 | | | Air Lease Corp. | | | 1,393,302 | |
| | | | | | | | | |
| | | | | Total Common Stocks | | | | |
| | | | | (Cost $35,335,371) | | | 47,588,062 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 1.78% | | | | |
| | 864,922 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(b) | | | 864,922 | |
| | | | | | | | | |
| | | | | Total Money Market Funds | | | | |
| | | | | (Cost $864,922) | | | 864,922 | |
| | | | | |
| Total Investments— 99.44% | | | | |
| (Cost $36,200,293) | | | 48,452,984 | |
| Other Assets in Excess of Liabilities— 0.56% | | | 273,039 | |
| NET ASSETS — 100.00% | | $ | 48,726,023 | |
| (a) | Non-income producing security. |
| (b) | Represents the current yield as of report date. |
| 4 | See accompanying notes to financial statements. | |
Sterling Capital Behavioral Small Cap Value Fund
Schedule of Investments
September 30, 2024
| Shares | | | | | Fair Value | |
| COMMON STOCKS — 99.21% | | | | |
| | | | | Apparel & Textile Products — 0.33% | |
| | 40,860 | | | Under Amour, Inc., Class A(a) | | $ | 364,063 | |
| | | | | | | | | |
| | | | | Automotive — 0.43% | |
| | 10,090 | | | Phinia, Inc. | | | 464,443 | |
| | | | | | | | | |
| | | | | Banking — 1.07% |
| | 8,640 | | | Capital City Bank Group, Inc.(a) | | | 304,906 | |
| | 9,410 | | | Enterprise Financial Services Corp. | | | 482,356 | |
| | 10,670 | | | Orrstown Financial Services, Inc.(a) | | | 383,693 | |
| | | | | | | | 1,170,955 | |
| | | | | Banks — 13.72% |
| | 2,060 | | | 1st Source Corp. | | | 123,353 | |
| | 12,600 | | | Amalgamated Financial Corp. | | | 395,262 | |
| | 26,410 | | | Associated Banc-Corp. | | | 568,871 | |
| | 10,374 | | | Axos Financial, Inc.(a) | | | 652,317 | |
| | 31,880 | | | Banc of California, Inc. | | | 469,592 | |
| | 12,740 | | | Bank of NT Butterfield & Son Ltd. (The) | | | 469,851 | |
| | 7,178 | | | Bank OZK | | | 308,582 | |
| | 17,061 | | | BankUnited, Inc. | | | 621,703 | |
| | 16,313 | | | Business First Bancshares, Inc. | | | 418,755 | |
| | 14,860 | | | Byline Bancorp, Inc. | | | 397,802 | |
| | 12,474 | | | Cathay General Bancorp | | | 535,758 | |
| | 17,113 | | | Central Pacific Financial Corp. | | | 505,005 | |
| | 16,060 | | | Columbia Banking System, Inc. | | | 419,327 | |
| | 7,850 | | | Community Trust Bancorp, Inc.(a) | | | 389,831 | |
| | 11,156 | | | Customers Bancorp, Inc.(a) | | | 518,196 | |
| | 4,130 | | | East West Bancorp, Inc. | | | 341,716 | |
| | 6,612 | | | First Financial Corp. | | | 289,936 | |
| | 12,730 | | | Hancock Whitney Corp. | | | 651,394 | |
| | 2,300 | | | Hanmi Financial Corp. | | | 42,780 | |
| | 14,082 | | | Independent Bank Corp. Michigan(a) | | | 469,635 | |
| | 8,839 | | | Mercantile Bank Corp. | | | 386,441 | |
| | 6,422 | | | Northeast Bank | | | 495,329 | |
| | 14,000 | | | Northeast Community Bancorp, Inc. | | | 370,300 | |
| | 16,673 | | | OFG Bancorp | | | 748,950 | |
| | 44,510 | | | Old National Bancorp | | | 830,556 | |
| | 4,822 | | | Preferred Bank | | | 386,966 | |
| | 6,350 | | | QCR Holdings, Inc. | | | 470,091 | |
| | 15,706 | | | RBB Bancorp(a) | | | 361,552 | |
| | 9,983 | | | South Plains Financial, Inc.(a) | | | 338,623 | |
| | 3,700 | | | UMB Financial Corp. | | | 388,907 | |
| | 17,290 | | | Univest Financial Corp.(a) | | | 486,541 | |
| | 4,540 | | | Western Alliance Bancorp | | | 392,665 | |
| | 3,469 | | | Wintrust Financial Corp. | | | 376,491 | |
| | 7,390 | | | Zions Bancorp. | | | 348,956 | |
| | | | | | | | 14,972,034 | |
| | | | | Biotech & Pharma — 0.38% |
| | 21,300 | | | Innoviva, Inc.(a) | | | 411,303 | |
| | | | | | | | | |
| | | | | Building Products — 2.42% |
| | 6,501 | | | Apogee Enterprises, Inc. | | | 455,168 | |
| | 1,870 | | | Griffon Corp. | | | 130,900 | |
| | 26,670 | | | Masterbrand, Inc.(a) | | | 494,462 | |
| | 3,865 | | | Owens Corning | | | 682,249 | |
| | 6,629 | | | UFP Industries, Inc. | | | 869,790 | |
| | | | | | | | 2,632,569 | |
| | | | | Cable & Satellite — 0.30% | |
| | 15,380 | | | Liberty Global Ltd.(a) | | | 324,672 | |
| | | | | | | | | |
| | | | | Chemicals — 1.42% |
| | 3,380 | | | Cabot Corp. | | | 377,782 | |
| | 3,850 | | | CF Industries Holdings, Inc. | | | 330,330 | |
| | 41,880 | | | LSB Industries, Inc.(a) | | | 336,715 | |
| | 2,590 | | | Minerals Technologies, Inc. | | | 200,026 | |
| | 35,960 | | | Rayonier Advanced Materials, Inc.(a) | | | 307,818 | |
| | | | | | | | 1,552,671 | |
| Shares | | | | | Fair Value | |
| COMMON STOCKS — (continued) | | | | |
| | | | | Commercial Services & Supplies — 0.92% |
| | 30,408 | | | Interface, Inc. | | $ | 576,840 | |
| | 31,522 | | | Steelcase, Inc., Class A | | | 425,232 | |
| | | | | | | | 1,002,072 | |
| | | | | Commercial Support Services — 0.67% |
| | 70,870 | | | Acacia Research Corp.(a) | | | 330,254 | |
| | 10,340 | | | Heidrick & Struggles International, Inc. | | | 401,813 | |
| | | | | | | | 732,067 | |
| | | | | Construction & Engineering — 2.26% | |
| | 7,090 | | | Argan, Inc. | | | 719,138 | |
| | 7,480 | | | Limbach Holdings, Inc.(a) | | | 566,685 | |
| | 4,876 | | | Sterling Construction Co., Inc.(a) | | | 707,118 | |
| | 17,450 | | | Tutor Perini Corp.(a) | | | 473,942 | |
| | | | | | | | 2,466,883 | |
| | | | | Consumer Finance — 0.94% |
| | 12,438 | | | Bread Financial Holdings, Inc. | | | 591,800 | |
| | 8,739 | | | Synchrony Financial | | | 435,901 | |
| | | | | | | | 1,027,701 | |
| | | | | Consumer Staples Distribution & Retail — 0.41% |
| | 8,989 | | | Andersons, Inc. (The) | | | 450,708 | |
| | | | | | | | | |
| | | | | Containers & Packaging — 0.29% | |
| | 6,000 | | | Siligan Holdgins, Inc. | | | 315,000 | |
| | | | | | | | | |
| | | | | Diversified Consumer Services — 1.43%
| |
| | 45,550 | | | ADT, Inc.(a) | | | 329,327 | |
| | 690 | | | Graham Holdings Co., Class B | | | 566,987 | |
| | 29,871 | | | Perdoceo Education Corp. | | | 664,330 | |
| | | | | | | | 1,560,644 | |
| | | | | Diversified Telecommunication Services — 0.74%
| |
| | 38,510 | | | Liberty Latin America Ltd., Class A(a) | | | 368,926 | |
| | 46,770 | | | Liberty Latin America Ltd., Class C(a) | | | 443,847 | |
| | | | | | | | 812,773 | |
| | | | | Electric Utilities — 2.14% | |
| | 17,080 | | | AES Corp. | | | 342,625 | |
| | 11,040 | | | Black Hills Corp. | | | 674,765 | |
| | 8,889 | | | Otter Tail Corp. | | | 694,764 | |
| | 1,357 | | | Portland General Electric Co. | | | 65,000 | |
| | 12,530 | | | TXNM Energy, Inc. | | | 548,438 | |
| | | | | | | | 2,325,592 | |
| | | | | Electrical Equipment — 0.61% | |
| | 2,987 | | | Powell Industries, Inc. | | | 663,084 | |
| | | | | | | | | |
| | | | | Electronic Equipment, Instruments & Components — 3.32% | |
| | 6,560 | | | Bel Fuse, Inc., Class B | | | 515,026 | |
| | 10,490 | | | Benchmark Electronics, Inc. | | | 464,917 | |
| | 5,950 | | | Eplus, Inc.(a) | | | 585,123 | |
| | 1,824 | | | Insight Enterprises, Inc.(a) | | | 392,871 | |
| | 4,097 | | | Jabil, Inc. | | | 490,944 | |
| | 5,238 | | | PC Connection, Inc. | | | 395,102 | |
| | 9,030 | | | ScanSource, Inc.(a) | | | 433,711 | |
| | 2,920 | | | TD SYNNEX Corp. | | | 350,634 | |
| | | | | | | | 3,628,328 | |
| | | | | Energy Equipment & Services — 1.09% | |
| | 27,820 | | | Liberty Oilfield Services, Inc., Class A
| | | 531,084 | |
| | 46,240 | | | Newpark Resources, Inc.(a) | | | 320,443 | |
| | 43,590 | | | ProPetro Holding Corp.(a) | | | 333,899 | |
| | | | | | | | 1,185,426 | |
| | | | | Entertainment — 0.56% | |
| | 17,517 | | | Cinemark Holdings, Inc.(a) | | | 487,674 | |
| | 8,107 | | | Marcus Corp. (The)(a) | | | 122,172 | |
| | | | | | | | 609,846 | |
| | | | | Equity Real Estate -Investment Trusts -(Reits) — 1.54% | |
| | 16,690 | | | American Assets Trust, Inc. | | | 445,957 | |
| | 25,636 | | | Essential Properties Realty Trust, Inc. | | | 875,469 | |
| | 27,980 | | | GEO Group, Inc. (The)(a) | | | 359,543 | |
| | | | | | | | 1,680,969 | |
| See accompanying notes to financial statements. | 5 |
Sterling Capital Behavioral Small Cap Value Fund
Schedule of Investments (continued)
September 30, 2024
| Shares | | | | | Fair Value | |
| COMMON STOCKS — (continued) | | | | |
| | | | | Financial Services — 4.01% | |
| | 13,620 | | | Banco Latinoamericano de Comercio Exterior SA, Class E | | $ | 442,514 | |
| | 15,937 | | | Corebridge Financial, Inc. | | | 464,723 | |
| | 12,824 | | | Enact Holdings, Inc. | | | 465,896 | |
| | 13,260 | | | Jackson Financial Corp., Class A | | | 1,209,710 | |
| | 14,017 | | | MGIC Investment Corp. | | | 358,835 | |
| | 11,529 | | | Mr Cooper Group, Inc.(a) | | | 1,062,743 | |
| | 10,668 | | | Radian Group, Inc. | | | 370,073 | |
| | | | | | | | 4,374,494 | |
| | | | | Food Products — 1.53% | |
| | 8,300 | | | Cal-Maine Foods, Inc. | | | 621,172 | |
| | 21,975 | | | Dole PLC | | | 357,973 | |
| | 2,620 | | | Ingredion, Inc. | | | 360,067 | |
| | 7,140 | | | Pilgrim's Pride Corp.(a) | | | 328,797 | |
| | | | | | | | 1,668,009 | |
| | | | | Gas Utilities — 1.38% | |
| | 2,560 | | | Atmos Energy Corp. | | | 355,098 | |
| | 5,515 | | | National Fuel Gas Co. | | | 334,264 | |
| | 11,680 | | | Northwest Natural Holdings Co. | | | 476,778 | |
| | 13,560 | | | UGI Corp. | | | 339,271 | |
| | | | | | | | 1,505,411 | |
| | | | | Health Care Equipment & Supplies — 2.02% | |
| | 7,170 | | | Inmode Ltd.(a) | | | 121,532 | |
| | 4,882 | | | Lantheus Holdings, Inc.(a) | | | 535,799 | |
| | 11,400 | | | Omnicell, Inc.(a) | | | 497,040 | |
| | 80,981 | | | OraSure Technologies, Inc.(a) | | | 345,789 | |
| | 24,270 | | | Tactile Systems Technology, Inc.(a) | | | 354,585 | |
| | 21,790 | | | Zimvie, Inc.(a) | | | 345,807 | |
| | | | | | | | 2,200,552 | |
| | | | | Health Care Facilities & Services — 0.40% | |
| | 37,910 | | | MEDNAX, Inc.(a) | | | 439,377 | |
| | | | | | | | | |
| | | | | Health Care Providers & Services — 3.43% | |
| | 31,670 | | | AdaptHealth Corp.(a) | | | 355,654 | |
| | 3,321 | | | Addus HomeCare Corp.(a) | | | 441,793 | |
| | 4,100 | | | Cross Country Healthcare, Inc.(a) | | | 55,104 | |
| | 2,678 | | | DaVita, Inc.(a) | | | 439,005 | |
| | 4,810 | | | Encompass Health Corp. | | | 464,838 | |
| | 3,574 | | | Ensign Group, Inc. (The) | | | 514,013 | |
| | 10,133 | | | Select Medical Holdings Corp. | | | 353,338 | |
| | 3,313 | | | Tenet Healthcare Corp.(a) | | | 550,620 | |
| | 2,507 | | | Universal Health Services, Inc., Class B | | | 574,127 | |
| | | | | | | | 3,748,492 | |
| | | | | Health Care Reits — 1.52% |
| | 2,590 | | | Alexandria Real Estate Equities, Inc. | | | 307,563 | |
| | 12,360 | | | LTC Properties, Inc. | | | 453,488 | |
| | 1,780 | | | National Health Investors, Inc.(a) | | | 149,627 | |
| | 40,020 | | | Sabra Health Care REIT, Inc. | | | 744,772 | |
| | | | | | | | 1,655,450 | |
| | | | | Health Care Technology — 0.70% |
| | 15,290 | | | HealthStream, Inc.(a) | | | 440,964 | |
| | 33,280 | | | Veradigm, Inc.(a) | | | 322,816 | |
| | | | | | | | 763,780 | |
| | | | | Hotel & Resort Reits — 1.49% |
| | 39,939 | | | Apple Hospitality REIT, Inc. | | | 593,093 | |
| | 54,356 | | | DiamondRock Hospitality Co. | | | 474,528 | |
| | 20,825 | | | Park Hotels & Resorts, Inc. | | | 293,633 | |
| | 17,780 | | | Xenia Hotels & Resorts, Inc. | | | 262,611 | |
| | | | | | | | 1,623,865 | |
| | | | | Household Durables — 3.15% |
| | 10,390 | | | KB Home | | | 890,319 | |
| | 11,866 | | | La-Z-Boy, Inc. | | | 509,407 | |
| | 6,058 | | | M/I Homes, Inc.(a) | | | 1,038,099 | |
| | 2,080 | | | Mohawk Industries, Inc.(a) | | | 334,214 | |
| Shares | | | | | Fair Value | |
| COMMON STOCKS — (continued) | | | | |
| | | | | Household Durables — (continued) | |
| | 4,334 | | | Toll Brothers, Inc. | | $ | 669,560 | |
| | | | | | | | 3,441,599 | |
| | | | | Household Products — 0.59% | |
| | 6,277 | | | Central Garden & Pet Co.(a) | | | 228,922 | |
| | 13,060 | | | Central Garden & Pet Co., Class A(a) | | | 410,084 | |
| | | | | | | | 639,006 | |
| | | | | Independent Power/Renewable Electricity Producers — 0.30% | |
| | 10,110 | | | Brookfield Renewable Corp.
| | | 330,193 | |
| | | | | | | | | |
| | | | | Industrial Intermediate Prod — 0.33% | |
| | 17,270 | | | Mayville Engineering Co., Inc.(a) | | | 364,052 | |
| | | | | | | | | |
| | | | | Industrial Reits — 0.68% | |
| | 5,532 | | | Innovative Industrial Properties, Inc. | | | 744,607 | |
| | | | | | | | | |
| | | | | Industrial Support Services — 0.36% | |
| | 7,290 | | | DXP Enterprises, Inc.(a) | | | 388,994 | |
| | | | | | | | | |
| | | | | Insurance — 5.97% |
| | 5,380 | | | Ambac Financial Group, Inc.(a) | | | 60,310 | |
| | 3,290 | | | Assured Guaranty Ltd. | | | 261,621 | |
| | 5,735 | | | Axis Capital Holdings Ltd. | | | 456,563 | |
| | 7,119 | | | Brighthouse Financial, Inc.(a) | | | 320,569 | |
| | 7,060 | | | CAN Financial Corp. | | | 345,516 | |
| | 18,210 | | | CNO Financial Group, Inc. | | | 639,170 | |
| | 8,843 | | | Employers Holdings, Inc. | | | 424,199 | |
| | 850 | | | Everest Group, Ltd. | | | 333,056 | |
| | 22,270 | | | Fidelis Insurance Holdings Ltd. | | | 402,196 | |
| | 3,230 | | | HCI Group, Inc.(a) | | | 345,804 | |
| | 9,560 | | | Lincoln National Corp. | | | 301,236 | |
| | 12,550 | | | Old Republic International Corp. | | | 444,521 | |
| | 1,831 | | | Reinsurance Group of America, Inc. | | | 398,920 | |
| | 2,085 | | | RenaissanceRe Holdings, Ltd. | | | 567,954 | |
| | 30,530 | | | United Insurance Holdings Corp.(a) | | | 344,073 | |
| | 17,920 | | | Universal Insurance Holdings, Inc.(a) | | | 397,107 | |
| | 7,977 | | | Unum Group | | | 474,153 | |
| | | | | | | | 6,516,968 | |
| | | | | Interactive Media & Services — 0.20% | |
| | 6,238 | | | Yelp, Inc.(a) | | | 218,829 | |
| | | | | | | | | |
| | | | | Leisure Facilities & Services — 0.64% | |
| | 26,290 | | | El Pollo Loco Holdings, Inc.(a) | | | 360,173 | |
| | 4,220 | | | Monarch Casino & Resort, Inc. | | | 334,519 | |
| | | | | | | | 694,692 | |
| | | | | Machinery — 0.71% | |
| | 10,517 | | | Mueller Industries, Inc. | | | 779,310 | |
| | | | | | | | | |
| | | | | Marine Transportation — 1.19% | |
| | 30,830 | | | Costamare, Inc. | | | 484,648 | |
| | 5,726 | | | Matson, Inc. | | | 816,642 | |
| | | | | | | | 1,301,290 | |
| | | | | Media — 0.89% | |
| | 34,200 | | | Magnite, Inc.(a) | | | 473,670 | |
| | 14,680 | | | PubMatic, Inc., Class A(a) | | | 218,292 | |
| | 8,699 | | | Scholastic Corp. | | | 278,455 | |
| | | | | | | | 970,417 | |
| | | | | Metals & Mining — 1.88% | |
| | 2,007 | | | Alpha Metallurgical Resources, Inc. | | | 474,012 | |
| | 15,010 | | | Constellium SE(a) | | | 244,063 | |
| | 3,480 | | | Kaiser Aluminum Corp. | | | 252,370 | |
| | 5,705 | | | Olympic Steel, Inc. | | | 222,495 | |
| | 82,960 | | | SSR Mining, Inc. | | | 471,213 | |
| | 44,054 | | | SunCoke Energy, Inc. | | | 382,389 | |
| | | | | | | | 2,046,542 | |
| | | | | Mortgage Real Estate Investment -Trusts (Reits) — 1.06% | |
| | 29,670 | | | Franklin BSP Realty Trust, Inc. | | | 387,490 | |
| | 28,750 | | | PennyMac Mortgage Investment Trust | | | 409,976 | |
| 6 | See accompanying notes to financial statements. | |
Sterling Capital Behavioral Small Cap Value Fund
Schedule of Investments (continued)
September 30, 2024
| Shares | | | | | Fair Value | |
| COMMON STOCKS — (continued) | |
| | | | | Mortgage Real Estate Investment -Trusts (Reits) — (continued) | |
| | 31,784 | | | Rithm Capital Corp. | | $ | 360,748 | |
| | | | | | | | 1,158,214 | |
| | | | | Multi-Utilities — 1.12% | |
| | 15,240 | | | Avista Corp. | | | 590,550 | |
| | 11,110 | | | NorthWestern Corp. | | | 635,714 | |
| | | | | | | | 1,226,264 | |
| | | | | Office Reits (New) — 1.43%
| |
| | 12,438 | | | Cousins Properties, Inc. | | | 366,672 | |
| | 23,440 | | | Equity Commonwealth(a) | | | 466,456 | |
| | 11,734 | | | Highwoods Properties, Inc. | | | 393,206 | |
| | 8,708 | | | Kilroy Realty Corp. | | | 337,000 | |
| | | | | | | | 1,563,334 | |
| | | | | Oil & Gas Producers — 1.95% | | |
| | 20,780 | | | Antero Midstream Corp. | | | 312,739 | |
| | 22,640 | | | CNX Resources Corp.(a) | | | 737,385 | |
| | 16,570 | | | Excelerate Energy, Inc., Class A(a) | | | 364,706 | |
| | 29,510 | | | SandRidge Energy, Inc.(a) | | | 360,907 | |
| | 61,980 | | | VAALCO Energy, Inc. | | | 355,765 | |
| | | | | | | | 2,131,502 | |
| | | | | Oil, Gas & Consumable Fuels — 3.57% | |
| | 21,720 | | | Ardmore Shipping Corp. | | | 393,132 | |
| | 930 | | | CONSOL Energy, Inc.(a) | | | 97,325 | |
| | 9,873 | | | International Seaways, Inc. | | | 509,052 | |
| | 13,350 | | | Magnolia Oil & Gas Corp., Class A | | | 326,007 | |
| | 19,410 | | | Permian Resources Corp. | | | 264,170 | |
| | 8,460 | | | Scorpio Tankers, Inc. | | | 603,197 | |
| | 15,935 | | | SM Energy Co. | | | 636,921 | |
| | 9,786 | | | Teekay Tankers Ltd., Class A | | | 570,035 | |
| | 16,160 | | | World Fuel Services Corp. | | | 499,506 | |
| | | | | | | | 3,899,345 | |
| | | | | Paper & Forest Products — 0.52% | |
| | 6,560 | | | Sylvamo Corp. | | | 563,176 | |
| | | | | | | | | |
| | | | | Passenger Airlines — 0.85% | |
| | 1,333 | | | Copa Holdings SA, Class A | | | 125,089 | |
| | 9,474 | | | SkyWest, Inc.(a) | | | 805,479 | |
| | | | | | | | 930,568 | |
| | | | | Pharmaceuticals — 2.24% | |
| | 9,279 | | | Amphastar Pharmaceuticals, Inc.(a) | | | 450,311 | |
| | 8,920 | | | Harmony Biosciences Holdings, Inc.(a) | | | 356,800 | |
| | 2,996 | | | Jazz Pharmaceuticals PLC(a) | | | 333,784 | |
| | 15,000 | | | Organon & Co. | | | 286,950 | |
| | 18,260 | | | Phibro Animal Health Corp., Class A(a) | | | 411,215 | |
| | 11,400 | | | Royalty Pharma PLC, Class A | | | 322,506 | |
| | 24,822 | | | Viatris, Inc. | | | 288,183 | |
| | | | | | | | 2,449,749 | |
| | | | | Professional Services — 0.35% | |
| | 18,070 | | | Kelly Services, Inc., Class A(a) | | | 386,879 | |
| | | | | | | | | |
| | | | | Publishing & Broadcasting — 0.25% | |
| | 16,010 | | | Thryv Holdings Inc.(a) | | | 275,852 | |
| | | | | | | | | |
| | | | | Real Estate Management & Development — 0.91% |
| | 34,040 | | | DigitalBridge Group, Inc. | | | 480,985 | |
| | 15,130 | | | Forestar Group, Inc.(a) | | | 489,758 | |
| | 999 | | | RMR Group, Inc. (The), Class A(a) | | | 25,355 | |
| | | | | | | | 996,098 | |
| | | | | Reit — 0.96% | |
| | 22,780 | | | Alexander & Baldwin, Inc. | | | 437,376 | |
| | 20,040 | | | COPT Defense Properties | | | 607,813 | |
| | | | | | | | 1,045,189 | |
| | | | | Renewable Energy — 0.34% | |
| | 7,950 | | | REX American Resources Corp.(a) | | | 368,006 | |
| | | | | | | | | |
| | | | | Retail - Discretionary — 0.32% | |
| | 16,520 | | | Kohl's Corp. | | | 348,572 | |
| Shares | | | | | Fair Value | |
| COMMON STOCKS — (continued) | | | |
| | | | | Retail Reits — 0.58% | | | | |
| | 27,078 | | | Kimco Realty Corp. | | $ | 628,751 | |
| | | | | | | | | |
| | | | | Semiconductors & Semiconductor Equipment — 0.92% | |
| | 14,936 | | | Amkor Technology, Inc. | | | 457,042 | |
| | 21,920 | | | Photronics, Inc.(a) | | | 542,739 | |
| | | | | | | | 999,781 | |
| | | | | Software — 1.30% | | | | |
| | 25,233 | | | Adeia, Inc. | | | 300,525 | |
| | 15,920 | | | Consensus Cloud Solutions, Inc.(a) | | | 374,916 | |
| | 2,847 | | | InterDigital, Inc. | | | 403,220 | |
| | 11,020 | | | RingCentral, Inc., Class A(a) | | | 348,563 | |
| | | | | | | | 1,427,224 | |
| | | | | Specialized Reits — 2.27% | | | | |
| | 6,855 | | | EPR Properties(a) | | | 336,169 | |
| | 6,410 | | | Gaming and Leisure Properties, Inc. | | | 329,795 | |
| | 20,630 | | | Safehold, Inc. | | | 541,125 | |
| | 126,979 | | | Uniti Group, Inc. | | | 716,162 | |
| | 16,940 | | | VICI Properties, Inc. | | | 564,271 | |
| | | | | | | | 2,487,522 | |
| | | | | Specialty Finance — 0.98% | | | | |
| | 43,530 | | | AG Mortgage Investment Trust, Inc. | | | 326,910 | |
| | 26,530 | | | Chimera Investment Corp.(a) | | | 419,970 | |
| | 8,010 | | | Dave, Inc.(a) | | | 320,080 | |
| | | | | | | | 1,066,960 | |
| | | | | Specialty Retail — 1.92% | | | | |
| | 3,230 | | | Abercrombie & Fitch Co., Class A(a) | | | 451,877 | |
| | 25,260 | | | American Eagle Outfitters, Inc.
| | | 565,571 | |
| | 13,830 | | | Gap, Inc. (The) | | | 304,952 | |
| | 8,710 | | | Shoe Carnival, Inc. | | | 381,934 | |
| | 10,240 | | | Urban Outfitters, Inc.(a) | | | 392,294 | |
| | | | | | | | 2,096,628 | |
| | | | | Steel — 0.67% | | | | |
| | 8,900 | | | Universal Stainless & Alloy Products, Inc.(a) | | | 343,807 | |
| | 11,530 | | | Worthington Steel, Inc. | | | 392,135 | |
| | | | | | | | 735,942 | |
| | | | | Technology Hardware — 0.47% | | | | |
| | 49,020 | | | Cricut, Inc.(a) | | | 339,709 | |
| | 13,330 | | | Daktronics, Inc.(a) | | | 172,090 | |
| | | | | | | | 511,799 | |
| | | | | Technology Hardware, Storage & Peripherals — 0.06% | |
| | 6,380 | | | Xerox Holdings Corp. | | | 66,224 | |
| | | | | | | | | |
| | | | | Telecommunications — 0.52% | | | | |
| | 22,770 | | | EchoStar Corp., Class A(a) | | | 565,152 | |
| | | | | | | | | |
| | | | | Textiles, Apparel & Luxury Goods — 1.20% | |
| | 3,610 | | | Carter's, Inc. | | | 234,578 | |
| | 4,090 | | | Columbia Sportswear Co. | | | 340,247 | |
| | 13,872 | | | G-III Apparel Group Ltd.(a) | | | 423,373 | |
| | 4,680 | | | Skechers U.S.A., Inc., Class A(a) | | | 313,186 | |
| | | | | | | | 1,311,384 | |
| | | | | Trading Companies & Distributors — 1.92% | |
| | 5,298 | | | BlueLinx Holdings, Inc.(a) | | | 558,515 | |
| | 8,215 | | | Boise Cascade Co. | | | 1,158,151 | |
| | 29,210 | | | NOW, Inc.(a) | | | 377,685 | |
| | | | | | | | 2,094,351 | |
| | | | | Wireless Telecommunication Services — 0.17% |
| | 8,060 | | | Telephone & Data Systems, Inc. | | | 187,395 | |
| | | | | Total Common Stocks | | | | |
| | | | | (Cost $85,958,845) | | | 108,291,593 | |
| See accompanying notes to financial statements. | 7 |
Sterling Capital Behavioral Small Cap Value Fund
Schedule of Investments (continued)
September 30, 2024
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 0.73% | |
| | | | | | | | | |
| | 800,314 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(b) | | $ | 800,314 | |
| | | | | | | | | |
| | | | | Total Money Market Funds | | | | |
| | | | | (Cost $800,314) | | | 800,314 | |
| | | | | |
| Total Investments— 99.94% | | | | |
| (Cost $86,759,159) | | | 109,091,907 | |
| Other Assets in Excess of Liabilities— 0.06% | | | 65,395 | |
| NET ASSETS — 100.00% | | $ | 109,157,302 | |
| (a) | Non-income producing security. |
| (b) | Represents the current yield as of report date. |
| 8 | See accompanying notes to financial statements. | |
Sterling Capital Special Opportunities Fund
Schedule of Investments
September 30, 2024
| Shares | | | | | Fair Value | |
| COMMON STOCKS — 99.89% | | | | |
| | | | | Asset Management — 1.49% | |
| | 51,547 | | | Apollo Global Management, Inc. | | $ | 6,438,736 | |
| | | | | | | | | |
| | | | | Capital Markets — 5.87% | |
| | 240,468 | | | Charles Schwab Corp. (The) | | | 15,584,731 | |
| | 18,985 | | | S&P Global, Inc. | | | 9,808,031 | |
| | | | | | | | 25,392,762 | |
| | | | | Communications Equipment — 2.12% | |
| | 41,606 | | | F5 Networks, Inc.(a) | | | 9,161,641 | |
| | | | | | | | | |
| | | | | Construction Materials — 2.62% | |
| | 122,530 | | | CRH PLC | | | 11,363,432 | |
| | | | | | | | | |
| | | | | Containers & Packaging — 2.13% | |
| | 95,919 | | | Crown Holdings, Inc. | | | 9,196,714 | |
| | | | | | | | | |
| | | | | Entertainment — 3.35% | |
| | 94,169 | | | Take-Two Interactive Software, Inc.(a) | | | 14,474,717 | |
| | | | | | | | | |
| | | | | Health Care Equipment & Supplies — 5.45% |
| | 55,528 | | | Danaher Corp. | | | 15,437,894 | |
| | 121,521 | | | DexCom, Inc.(a) | | | 8,146,768 | |
| | | | | | | | 23,584,662 | |
| | | | | Health Care Facilities & Services — 4.73% | |
| | 35,024 | | | UnitedHealth Group, Inc. | | | 20,477,832 | |
| | | | | | | | | |
| | | | | Health Care Providers & Services — 2.87% | |
| | 30,504 | | | HCA Healthcare, Inc. | | | 12,397,741 | |
| | | | | | | | | |
| | | | | Insurance — 2.71% | |
| | 113,270 | | | Brown & Brown, Inc. | | | 11,734,772 | |
| | | | | | | | | |
| | | | | Interactive Media & Services — 3.98% | |
| | 103,066 | | | Alphabet, Inc., Class C | | | 17,231,605 | |
| | | | | | | | | |
| | | | | Internet & Direct Marketing Retail — 4.77% | |
| | 110,761 | | | Amazon.com, Inc.(a) | | | 20,638,097 | |
| | | | | | | | | |
| | | | | IT Services — 7.40% | |
| | 160,712 | | | Akamai Technologies, Inc.(a) | | | 16,223,876 | |
| | 133,409 | | | Global Payments, Inc. | | | 13,663,750 | |
| | 29,063 | | | Okta, Inc.(a) | | | 2,160,543 | |
| | | | | | | | 32,048,169 | |
| | | | | Life Sciences Tools & Services — 3.50% | |
| | 63,974 | | | IQVIA Holdings, Inc.(a) | | | 15,159,919 | |
| | | | | | | | | |
| | | | | Machinery — 1.11% | |
| | 11,478 | | | Deere & Co. | | | 4,790,114 | |
| | | | | | | | | |
| | | | | Oil & Gas Producers — 3.69% | |
| | 175,281 | | | ONEOK, Inc. | | | 15,973,358 | |
| | | | | | | | | |
| | | | | Pharmaceuticals — 5.52% | |
| | 1,326,280 | | | Teva Pharmaceutical Industries Ltd. - ADR(a) | | | 23,899,565 | |
| | | | | | | | | |
| | | | | Professional Services — 1.02% | |
| | 16,454 | | | Verisk Analytics, Inc. | | | 4,409,014 | |
| | | | | | | | | |
| | | | | Real Estate Management & Development — 1.98% | |
| | 68,675 | | | CBRE Group, Inc., Class A(a) | | | 8,548,664 | |
| | | | | | | | | |
| | | | | Semiconductors — 9.93% | |
| | 241,553 | | | Coherent Corp.(a) | | | 21,476,477 | |
| | 298,172 | | | Marvell Technology, Inc. | | | 21,504,165 | |
| | | | | | | | 42,980,642 | |
| | | | | Semiconductors & Semiconductor Equipment — 4.13% | |
| | 81,586 | | | NVIDIA Corp. | | | 9,907,804 | |
| | 33,179 | | | NXP Semiconductors N.V. | | | 7,963,292 | |
| | | | | | | | 17,871,096 | |
| | | | | Software — 12.58% | |
| | 19,254 | | | Intuit, Inc. | | | 11,956,734 | |
| | 54,083 | | | Microsoft Corp. | | | 23,271,914 | |
| | 112,537 | | | Oracle Corp. | | | 19,176,305 | |
| | | | | | | | 54,404,953 | |
| Shares | | | | | Fair Value | |
| COMMON STOCKS — (continued) | | | | |
| | | | | Technology Services — 3.63% | |
| | 57,063 | | | Visa, Inc., Class A | | $ | 15,689,472 | |
| | | | | | | | | |
| | | | | Wireless Telecommunication Services — 3.31% |
| | 69,356 | | | T-Mobile US, Inc. | | | 14,312,304 | |
| | | | | Total Common Stocks | | | | |
| | | | | (Cost $250,124,169) | | | 432,179,981 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 0.21% | | | | |
| | | | | | | | | |
| | 905,139 | | | Federated Hermes Treasury Obligations Fund, Institutional Shares, 4.81%(b) | | | 905,139 | |
| | | | | | | | | |
| | | | | Total Money Market Funds | | | | |
| | | | | (Cost $905,139) | | | 905,139 | |
| | | | | | | | | |
| Total Investments— 100.10% | | | | |
| (Cost $251,029,308) | | | 433,085,120 | |
| Liabilities in Excess of Other Assets — (0.10)% | | | (443,741 | ) |
| NET ASSETS — 100.00% | | $ | 432,641,379 | |
| (a) | Non-income producing security. |
| (b) | Represents the current yield as of report date. |
| See accompanying notes to financial statements. | 9 |
Sterling Capital Equity Income Fund
Schedule of Investments
September 30, 2024
| Shares | | | | | Fair Value | |
| COMMON STOCKS — 97.22% | | |
| | | | | Beverages — 4.25% | | | | |
| | 473,054 | | | PepsiCo, Inc. | | $ | 80,442,833 | |
| | | | | | | | | |
| | | | | Biotechnology — 4.14% | | | | |
| | 397,151 | | | AbbVie, Inc. | | | 78,429,379 | |
| | | | | | | | | |
| | | | | Capital Markets — 18.05% | | | | |
| | 183,196 | | | Ameriprise Financial, Inc. | | | 86,067,313 | |
| | 1,059,069 | | | Charles Schwab Corp. (The) | | | 68,638,262 | |
| | 55,129 | | | Goldman Sachs Group, Inc. (The) | | | 27,294,919 | |
| | 1,141,857 | | | Nasdaq, Inc. | | | 83,366,980 | |
| | 621,409 | | | Raymond James Financial, Inc. | | | 76,097,746 | |
| | | | | | | | 341,465,220 | |
| | | | | Containers & Packaging — 3.81% | | | | |
| | 326,684 | | | Avery Dennison Corp. | | | 72,118,760 | |
| | | | | | | | | |
| | | | | Food Products — 4.93% | | | | |
| | 485,878 | | | Hershey Co. (The) | | | 93,181,681 | |
| | | | | | | | | |
| | | | | Health Care Equipment & Supplies — 1.71% |
| | 283,888 | | | Abbott Laboratories | | | 32,366,071 | |
| | | | | | | | | |
| | | | | Health Care Providers & Services — 10.26% | |
| | 177,251 | | | Elevance Health, Inc. | | | 92,170,520 | |
| | 174,207 | | | UnitedHealth Group, Inc. | | | 101,855,349 | |
| | | | | | | | 194,025,869 | |
| | | | | Insurance — 8.53% | | | | |
| | 595,123 | | | Aflac, Inc. | | | 66,534,751 | |
| | 203,765 | | | Marsh & McLennan Cos., Inc. | | | 45,457,934 | |
| | 599,763 | | | MetLife, Inc. | | | 49,468,452 | |
| | | | | | | | 161,461,137 | |
| | | | | It Services — 0.59% | | | | |
| | 31,386 | | | Accenture PLC, Class A | | | 11,094,323 | |
| | | | | | | | | |
| | | | | Oil, Gas & Consumable Fuels — 2.52% | |
| | 352,478 | | | Valero Energy Corp. | | | 47,595,104 | |
| | | | | | | | | |
| | | | | Pharmaceuticals — 3.02% | | | | |
| | 212,769 | | | Johnson & Johnson | | | 34,481,344 | |
| | 200,360 | | | Merck & Co., Inc. | | | 22,752,882 | |
| | | | | | | | 57,234,226 | |
| | | | | Professional Services — 7.94% | | | | |
| | 323,317 | | | Automatic Data Processing, Inc. | | | 89,471,513 | |
| | 372,980 | | | Booz Allen Hamilton Corp.(a) | | | 60,706,225 | |
| | | | | | | | 150,177,738 | |
| | | | | Semiconductors & Semiconductor Equipment — 8.15% | |
| | 372,565 | | | Analog Devices, Inc. | | | 85,753,287 | |
| | 853,073 | | | Microchip Technology, Inc. | | | 68,493,231 | |
| | | | | | | | 154,246,518 | |
| | | | | Software — 4.52% | | | | |
| | 198,958 | | | Microsoft Corp. | | | 85,611,627 | |
| | | | | | | | | |
| | | | | Specialized Reits — 3.49% | | | | |
| | 1,226,557 | | | CubeSmart | | | 66,025,563 | |
| | | | | | | | | |
| | | | | Specialty Retail — 4.21% | | | | |
| | 196,888 | | | Home Depot, Inc. (The) | | | 79,779,018 | |
| | | | | | | | | |
| | | | | Textiles, Apparel & Luxury Goods — 0.53% | |
| | 112,505 | | | NIKE, Inc., Class B | | | 9,945,442 | |
| | | | | | | | | |
| | | | | Tobacco — 3.42% | | | | |
| | 1,269,238 | | | Altria Group, Inc. | | | 64,781,908 | |
| | | | | | | | | |
| | | | | Trading Companies & Distributors — 3.15% | |
| | 300,280 | | | Exagen, Inc. | | | 59,626,600 | |
| | | | | | | | | |
| | | | | Total Common Stocks | | | | |
| | | | | (Cost $1,222,419,957) | | | 1,839,609,017 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 2.76% | | |
| | 52,282,780 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.83%(b) | | $ | 52,282,780 | |
| | | | | | | | | |
| | | | | Total Money Market Funds | | | | |
| | | | | (Cost $52,282,780) | | | 52,282,780 | |
| | | | | |
| Total Investments— 99.98% | | | | |
| (Cost $1,274,702,737) | | | 1,891,891,797 | |
| Other Assets in Excess of Liabilities— 0.02% | | | 374,354 | |
| NET ASSETS — 100.00% | | $ | 1,892,266,151 | |
| (a) | Non-income producing security. |
| (b) | Represents the current yield as of report date. |
| 10 | See accompanying notes to financial statements. | |
Sterling Capital Behavioral International Equity Fund
Schedule of Investments
September 30, 2024
| Shares | | | | | Fair Value | |
| COMMON STOCKS — 98.37% | | | | |
| | | | | Australia — 5.27% | | | | |
| | 80,585 | | | Australia and New Zealand Banking Group Ltd. | | $ | 1,698,286 | |
| | 45,301 | | | Computershare Ltd. | | | 791,507 | |
| | 108,712 | | | Fortescue Metals Group Ltd. | | | 1,554,425 | |
| | 187,544 | | | Origin Energy Ltd. | | | 1,298,012 | |
| | 78,369 | | | Westpac Banking Corp. | | | 1,718,775 | |
| | | | | | | | 7,061,005 | |
| | | | | Austria — 1.55% | | | | |
| | 23,550 | | | Erste Group Bank AG | | | 1,291,434 | |
| | 18,586 | | | OMV AG | | | 793,853 | |
| | | | | | | | 2,085,287 | |
| | | | | Belgium — 2.76% | | | | |
| | 25,959 | | | Ageas SA/N.V. | | | 1,385,096 | |
| | 5,100 | | | D'ieteren SA/NV | | | 1,078,377 | |
| | 31,390 | | | Solvay SA | | | 1,230,295 | |
| | | | | | | | 3,693,768 | |
| | | | | Denmark — 1.96% | | | | |
| | 10,101 | | | Carlsberg A/S, Class B(a) | | | 1,203,235 | |
| | 9,540 | | | Danske Bank A/S | | | 287,094 | |
| | 6,946 | | | Pandora A/S | | | 1,143,705 | |
| | | | | | | | 2,634,034 | |
| | | | | Finland — 0.37% | | | | |
| | 30,505 | | | Fortum Oyj(a) | | | 502,529 | |
| | | | | | | | | |
| | | | | France — 13.06% | | | | |
| | 16,820 | | | Amundi SA 144A(a)(b) | | | 1,255,741 | |
| | 45,928 | | | AXA SA | | | 1,765,832 | |
| | 3,982 | | | BNP Paribas SA | | | 272,901 | |
| | 6,555 | | | Capgemini SE | | | 1,415,591 | |
| | 27,819 | | | Carrefour SA | | | 474,233 | |
| | 18,760 | | | Cie de Saint-Gobain SA | | | 1,707,012 | |
| | 52,574 | | | Credit Agricole SA | | | 803,449 | |
| | 11,912 | | | Eiffage SA | | | 1,149,155 | |
| | 72,763 | | | Engie SA | | | 1,257,007 | |
| | 9,475 | | | Ipsen SA(a) | | | 1,165,781 | |
| | 70,912 | | | Orange SA | | | 812,081 | |
| | 25,212 | | | Renault SA | | | 1,094,551 | |
| | 9,901 | | | Sanofi SA | | | 1,134,409 | |
| | 8,222 | | | Sodexo SA(a) | | | 674,257 | |
| | 43,945 | | | STMicroelectronics N.V. | | | 1,304,013 | |
| | 104,000 | | | Vivendi SA | | | 1,202,004 | |
| | | | | | | | 17,488,017 | |
| | | | | Germany — 8.83% | | | | |
| | 45,934 | | | Bayer AG(a) | | | 1,550,995 | |
| | 86,993 | | | Deutsche Bank AG | | | 1,501,189 | |
| | 69,617 | | | Deutsche Telekom AG | | | 2,045,643 | |
| | 35,863 | | | Fresenius SE & Co. KGaA(a) | | | 1,366,875 | |
| | 13,399 | | | HeidelbergCement AG | | | 1,456,121 | |
| | 14,276 | | | Henkel AG & Co. KGaA | | | 1,341,604 | |
| | 24,525 | | | Mercedes-Benz Group AG | | | 1,584,936 | |
| | 30,081 | | | Traton SE | | | 984,725 | |
| | | | | | | | 11,832,088 | |
| | | | | Hong Kong — 2.86% | | | | |
| | 247,340 | | | CK Hutchingson Holdings Ltd. | | | 1,422,261 | |
| | 382,552 | | | Henderson Land Development Co. Ltd.(a) | | | 1,220,448 | |
| | 30,600 | | | Jardine Matheson Holdings Ltd.(a) | | | 1,193,400 | |
| | | | | | | | 3,836,109 | |
| | | | | Israel — 2.48% | | | | |
| | 14,525 | | | Azrieli Group Ltd.(a) | | | 1,010,591 | |
| | 4,667 | | | Check Point Software Technologies Ltd.(a) | | | 899,844 | |
| | 78,886 | | | Teva Pharmaceutical Industries Ltd. - ADR(a) | | | 1,421,526 | |
| | | | | | | | 3,331,961 | |
| | | | | Italy — 4.70% | | | | |
| | 176,176 | | | Enel SpA | | | 1,407,486 | |
| | 426,996 | | | Intesa Sanpaolo SpA | | | 1,824,515 | |
| Shares | | | | | Fair Value | |
| COMMON STOCKS — (continued) | | | | |
| | | | | Italy — (continued) | | | | |
| | 87,393 | | | Poste Italiane SpA | | $ | 1,225,117 | |
| | 41,854 | | | UniCredit SpA | | | 1,834,520 | |
| | | | | | | | 6,291,638 | |
| | | | | Japan — 23.24% | | | | |
| | 164,000 | | | Asahi Kasei Corp. | | | 1,234,636 | |
| | 14,500 | | | Central Japan Railway Co.(a) | | | 334,643 | |
| | 500 | | | Disco Corp. | | | 130,423 | |
| | 268,200 | | | ENEOS Holdings, Inc. | | | 1,453,103 | |
| | 189,800 | | | Idemitsu Kosan Co. Ltd. | | | 1,357,554 | |
| | 80,800 | | | Inpex Corp. | | | 1,089,514 | |
| | 83,200 | | | Isuzu Motors Ltd. | | | 1,117,823 | |
| | 35,147 | | | ITOCHU Corp. | | | 1,877,605 | |
| | 23,500 | | | Japan Tobacco, Inc. | | | 683,294 | |
| | 79,000 | | | JFE Holdings, Inc. | | | 1,054,525 | |
| | 78,300 | | | Kawasaki Kisen Kaisha Ltd. | | | 1,206,166 | |
| | 49,500 | | | Komatsu Ltd. | | | 1,365,921 | |
| | 36,700 | | | Makita Corp.(a) | | | 1,236,143 | |
| | 70,065 | | | Marubeni Corp.(a) | | | 1,140,735 | |
| | 185,100 | | | Mitsubishi Chemical Group Corp.(a) | | | 1,183,429 | |
| | 72,546 | | | Mitsui & Co. Ltd. | | | 1,604,113 | |
| | 19,700 | | | Nippon Steel Corp. | | | 438,341 | |
| | 39,600 | | | Nippon Yusen KK | | | 1,438,247 | |
| | 79,900 | | | Ono Pharmaceutical Co., Ltd. | | | 1,062,646 | |
| | 7,800 | | | Otsuka Corp. | | | 192,334 | |
| | 15,700 | | | Otsuka Holdings Co., Ltd. | | | 882,958 | |
| | 146,800 | | | Panasonic Holdings Corp. | | | 1,269,594 | |
| | 87,314 | | | Renesas Electronics Corp. | | | 1,263,007 | |
| | 89,700 | | | Shionogi & Co., Ltd. | | | 1,281,607 | |
| | 53,100 | | | Subaru Corp. | | | 916,989 | |
| | 56,285 | | | Sumitomo Corp. | | | 1,250,821 | |
| | 73,200 | | | Sumitomo Electric Industries Ltd.(a) | | | 1,169,112 | |
| | 18,700 | | | Suzuki Motor Corp. | | | 207,200 | |
| | 3,500 | | | Tokyo Electron Ltd. | | | 615,864 | |
| | 60,400 | | | Toyota Tsusho Corp. | | | 1,086,338 | |
| | | | | | | | 31,144,685 | |
| | | | | Netherlands — 3.65% | | | | |
| | 67,443 | | | ABN AMRO Bank N.V. | | | 1,216,918 | |
| | 25,041 | | | Koninklijke Ahold Delhaize N.V. | | | 865,185 | |
| | 42,370 | | | Koninklijke Philips N.V. | | | 1,387,958 | |
| | 28,712 | | | NN Group NV | | | 1,431,603 | |
| | | | | | | | 4,901,664 | |
| | | | | Norway — 0.66% | | | | |
| | 43,067 | | | DNB Bank ASA | | | 883,227 | |
| | | | | | | | | |
| | | | | Singapore — 1.65% | | | | |
| | 51,000 | | | Jardine Cycle & Carriage Ltd.(a) | | | 1,095,247 | |
| | 210,600 | | | Singapore Airlines, Ltd. | | | 1,114,294 | |
| | | | | | | | 2,209,541 | |
| | | | | Spain — 3.00% | | | | |
| | 150,295 | | | Banco Bilbao Vizcaya Argentaria SA | | | 1,624,612 | |
| | 232,183 | | | CaixBank SA | | | 1,386,738 | |
| | 207,657 | | | Telefónica S.A. | | | 1,016,435 | |
| | | | | | | | 4,027,785 | |
| | | | | Sweden — 3.82% | | | | |
| | 39,929 | | | Essity AB, Class B | | | 1,246,067 | |
| | 104,736 | | | Securitas AB, Class B | | | 1,329,473 | |
| | 59,014 | | | Swedbank SB, Class A(a) | | | 1,251,209 | |
| | 172,175 | | | Telefonaktiebolaget LM Ericsson, Class B | | | 1,300,797 | |
| | | | | | | | 5,127,546 | |
| | | | | Switzerland — 7.27% | | | | |
| | 7,326 | | | Cie Financiere Richemont SA | | | 1,158,240 | |
| | 18,070 | | | Holcim Ltd.(a) | | | 1,762,802 | |
| | 21,650 | | | Julius Baer Group, Ltd. | | | 1,302,121 | |
| | 27,151 | | | Novartis AG | | | 3,116,767 | |
| | See accompanying notes to financial statements. | 11 |
Sterling Capital Behavioral International Equity Fund
Schedule of Investments (continued)
September 30, 2024
| Shares | | | | | Fair Value | |
| COMMON STOCKS — (continued) | | | | |
| | | | | Switzerland — (continued) | | | | |
| | 2,915 | | | Roche Holding AG | | $ | 932,056 | |
| | 10,745 | | | Swiss Re AG | | | 1,481,675 | |
| | | | | | | | 9,753,661 | |
| | | | | United Kingdom — 11.24% | | | | |
| | 31,070 | | | 3i Group PLC | | | 1,372,904 | |
| | 195,775 | | | Aviva PLC | | | 1,265,817 | |
| | 50,904 | | | British American Tobacco PLC | | | 1,853,900 | |
| | 81,692 | | | GSK PLC | | | 1,656,340 | |
| | 49,175 | | | Imperial Brands PLC | | | 1,428,669 | |
| | 10,766 | | | Next PLC | | | 1,408,022 | |
| | 56,200 | | | Shell PLC | | | 1,821,738 | |
| | 337,868 | | | Tesco PLC | | | 1,620,339 | |
| | 1,394,274 | | | Vodafone Group PLC | | | 1,398,841 | |
| | 121,903 | | | WPP PLC | | | 1,243,885 | |
| | | | | | | | 15,070,455 | |
| | | | | Total Common Stocks | | | | |
| | | | | (Cost $110,884,783) | | | 131,875,000 | |
| | | | | |
| MONEY MARKET FUNDS — 0.75% | | | | |
| | 1,002,032 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(c) | | | 1,002,032 | |
| | | | | | | | | |
| Total | | | | |
| (Cost $1,002,032) | | | 1,002,032 | |
| | | | | |
Total Investments — 99.12%
| | | | |
| (Cost $111,886,815) | | | 132,877,032 | |
Other Assets in Excess of Liabilities— 0.88%
| | | 1,174,101 | |
NET ASSETS — 100.00%
| | $ | 134,051,133 | |
| (a) | Non-income producing security. |
| (b) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. The security may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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. |
| 12 | See accompanying notes to financial statements. | |
Sterling Capital Mid Cap Relative Value Fund
Schedule of Investments
September 30, 2024
| Shares | | | | | Fair Value | |
| COMMON STOCKS — 98.63% | | | | |
| | | | | Automobile Components — 1.37% | |
| | 4,904 | | | Dorman Products, Inc.(a) | | $ | 554,740 | |
| | | | | | | | | |
| | | | | Banks — 5.69% | | | | |
| | 6,825 | | | East West Bancorp, Inc. | | | 564,701 | |
| | 28,994 | | | Huntington Bancshares, Inc. | | | 426,212 | |
| | 5,629 | | | UMB Financial Corp. | | | 591,663 | |
| | 6,645 | | | Wintrust Financial Corp. | | | 721,181 | |
| | | | | | | | 2,303,757 | |
| | | | | Building Products — 4.36% | | | | |
| | 3,915 | | | Carlisle Cos., Inc. | | | 1,760,771 | |
| | | | | | | | | |
| | | | | Capital Markets — 2.11% | | | | |
| | 1,818 | | | Ameriprise Financial, Inc. | | | 854,115 | |
| | | | | | | | | |
| | | | | Chemicals — 3.86% | | | | |
| | 11,783 | | | Avient Corp. | | | 592,921 | |
| | 6,472 | | | Westlake Corp. | | | 972,676 | |
| | | | | | | | 1,565,597 | |
| | | | | Communications Equipment — 1.34% | |
| | 8,841 | | | Ciena Corp.(a) | | | 544,517 | |
| | | | | | | | | |
| | | | | Construction & Engineering — 2.71% | | | | |
| | 8,913 | | | MasTec, Inc.(a) | | | 1,097,190 | |
| | | | | | | | | |
| | | | | Consumer Staples Distribution & Retail — 8.33% | |
| | 7,534 | | | BJ's Wholesale Club Holdings, Inc.(a) | | | 621,404 | |
| | 3,949 | | | Casey's General Stores, Inc. | | | 1,483,679 | |
| | 16,225 | | | Performance Food Group Co.(a) | | | 1,271,553 | |
| | | | | | | | 3,376,636 | |
| | | | | Containers & Packaging — 5.36% | | | | |
| | 5,271 | | | Avery Dennison Corp. | | | 1,163,626 | |
| | 14,801 | | | Berry Global Group, Inc. | | | 1,006,172 | |
| | | | | | | | 2,169,798 | |
| | | | | Electrical Equipment — 2.74% | | | | |
| | 15,824 | | | nVent Electric PLC | | | 1,111,794 | |
| | | | | | | | | |
| | | | | Electronic Equipment, Instruments & Components — 4.36% | |
| | 5,710 | | | Arrow Electronics, Inc.(a) | | | 758,459 | |
| | 4,437 | | | CDW Corp. | | | 1,004,094 | |
| | | | | | | | 1,762,553 | |
| | | | | Entertainment — 2.19% | | | | |
| | 5,773 | | | Take-Two Interactive Software, Inc.(a) | | | 887,368 | |
| | | | | | | | | |
| | | | | Financial Services — 3.87% | | | | |
| | 8,727 | | | Fiserv, Inc.(a) | | | 1,567,806 | |
| | | | | | | | | |
| | | | | Gas Utilities — 2.54% | | | | |
| | 13,980 | | | Southwest Gas Corp. | | | 1,031,165 | |
| | | | | | | | | |
| | | | | Health Care Equipment & Supplies — 1.29% | |
| | 2,176 | | | Becton Dickinson and Co. | | | 524,634 | |
| | | | | | | | | |
| | | | | Health Care Reits — 1.93% | | | | |
| | 42,126 | | | Sabra Health Care REIT, Inc. | | | 783,965 | |
| | | | | | | | | |
| | | | | Household Durables — 1.95% | | | | |
| | 5,520 | | | PulteGroup, Inc. | | | 792,286 | |
| | | | | | | | | |
| | | | | Industrial Reits — 2.36% | | | | |
| | 5,106 | | | EastGroup Properties, Inc. | | | 953,903 | |
| | | | | | | | | |
| | | | | Insurance — 5.53% | | | | |
| | 5,321 | | | American Financial Group, Inc. | | | 716,207 | |
| | 11,180 | | | First American Financial Corp. | | | 737,992 | |
| | 5,321 | | | Hanover Insurance Group, Inc. (The) | | | 788,093 | |
| | | | | | | | 2,242,292 | |
| | | | | Life Sciences Tools & Services — 6.43% | |
| | 3,008 | | | ICON PLC(a) | | | 864,228 | |
| | 6,475 | | | Revvity, Inc. | | | 827,181 | |
| | 1,474 | | | Thermo Fisher Scientific, Inc. | | | 911,773 | |
| | | | | | | | 2,603,182 | |
| Shares | | | | | Fair Value | |
| COMMON STOCKS — (continued) | | | | |
| | | | | Machinery — 2.04% | | | | |
| | 8,252 | | | Oshkosh Corp. | | $ | 826,933 | |
| | | | | | | | | |
| | | | | Multi-Utilities — 2.69% | | | | |
| | 31,372 | | | Nisource, Inc. | | | 1,087,040 | |
| | | | | | | | | |
| | | | | Oil, Gas & Consumable Fuels — 5.64% | |
| | 27,835 | | | Coterra Energy, Inc. | | | 666,648 | |
| | 3,891 | | | Diamondback Energy, Inc. | | | 670,808 | |
| | 7,220 | | | Phillips 66 | | | 949,070 | |
| | | | | | | | 2,286,526 | |
| | | | | Professional Services — 4.29% | | | | |
| | 3,446 | | | CACI International, Inc., Class A(a) | | | 1,738,714 | |
| | | | | | | | | |
| | | | | Residential Reits — 1.97% | | | | |
| | 5,027 | | | Mid-America Apartment Communities, Inc. | | | 798,790 | |
| | | | | | | | | |
| | | | | Retail Reits — 1.65% | | | | |
| | 24,067 | | | Brixmor Property Group, Inc. | | | 670,507 | |
| | | | | | | | | |
| | | | | Semiconductors & Semiconductor Equipment — 0.91% | |
| | 3,742 | | | Skyworks Solutions, Inc. | | | 369,597 | |
| | | | | | | | | |
| | | | | Software — 3.61% | | | | |
| | 3,627 | | | Commvault Systems, Inc.(a) | | | 558,014 | |
| | 5,012 | | | PTC, Inc.(a) | | | 905,468 | |
| | | | | | | | 1,463,482 | |
| | | | | Specialized Reits — 1.77% | | | | |
| | 4,423 | | | Digital Realty Trust, Inc. | | | 715,774 | |
| | | | | | | | | |
| | | | | Trading Companies & Distributors — 3.74% | |
| | 1,873 | | | United Rentals, Inc. | | | 1,516,624 | |
| | | | | | | | | |
| | | | | Total Common Stocks | | | | |
| | | | | (Cost $17,136,027) | | | 39,962,056 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 1.36% | | | | |
| | 550,915 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(b) | | | 550,915 | |
| | | | | | | | | |
| | | | | Total Money Market Funds | | | | |
| | | | | (Cost $550,915) | | | 550,915 | |
| | | | | |
Total Investments— 99.99%
| | | | |
| (Cost $17,686,942) | | | 40,512,971 | |
| Other Assets in Excess of Liabilities— 0.01% | | | 5,319 | |
| NET ASSETS — 100.00% | | $ | 40,518,290 | |
| (a) | Non-income producing security. |
| (b) | Represents the current yield as of report date. |
| | See accompanying notes to financial statements. | 13 |
Sterling Capital Real Estate Fund
Schedule of Investments
September 30, 2024
| Shares | | | | | Fair Value | |
| COMMON STOCKS — 99.02% | | | | |
| | | | | Equity Real Estate -Investment Trusts -(Reits) — 2.21% | |
| | 49,102 | | | Essential Properties Realty Trust, Inc. | | $ | 1,676,833 | |
| | | | | | | | | |
| | | | | Health Care Reits — 14.69% | | | | |
| | 15,723 | | | Alexandria Real Estate Equities, Inc. | | | 1,867,106 | |
| | 96,533 | | | Sabra Health Care REIT, Inc. | | | 1,796,479 | |
| | 47,311 | | | Ventas, Inc. | | | 3,034,054 | |
| | 34,601 | | | Welltower, Inc. | | | 4,429,967 | |
| | | | | | | | 11,127,606 | |
| | | | | Hotel & Resort Reits — 2.98% | | | | |
| | 34,294 | | | Apple Hospitality REIT, Inc. | | | 509,266 | |
| | 16,334 | | | Ryman Hospitality Properties, Inc. | | | 1,751,658 | |
| | | | | | | | 2,260,924 | |
| | | | | Industrial Reits — 13.10% | | | | |
| | 11,832 | | | EastGroup Properties, Inc. | | | 2,210,454 | |
| | 32,078 | | | First Industrial Realty Trust, Inc. | | | 1,795,726 | |
| | 46,882 | | | Prologis, Inc. | | | 5,920,260 | |
| | | | | | | | 9,926,440 | |
| | | | | Office Reits (New) — 1.48% | | | | |
| | 33,425 | | | Highwoods Properties, Inc. | | | 1,120,072 | |
| | | | | | | | | |
| | | | | Real Estate Management & Development — 1.32% | |
| | 12,941 | | | Howard Hughes Holdings, Inc.(a) | | | 1,002,022 | |
| | | | | | | | | |
| | | | | Residential Reits — 16.87% | | | | |
| | 12,944 | | | Camden Property Trust | | | 1,598,972 | |
| | 9,010 | | | Essex Property Trust, Inc. | | | 2,661,734 | |
| | 74,134 | | | Invitation Homes, Inc. | | | 2,613,965 | |
| | 15,098 | | | Mid-America Apartment Communities, Inc. | | | 2,399,072 | |
| | 22,269 | | | NexPoint Residential Trust, Inc. | | | 980,059 | |
| | 55,743 | | | UDR, Inc. | | | 2,527,388 | |
| | | | | | | | 12,781,190 | |
| | | | | Retail Reits — 11.88% | | | | |
| | 74,790 | | | Brixmor Property Group, Inc. | | | 2,083,649 | |
| | 37,352 | | | InvenTrust Properties Corp.(a) | | | 1,059,676 | |
| | 90,898 | | | Kite Realty Group Trust | | | 2,414,251 | |
| | 58,766 | | | NETSTREIT Corp.(a) | | | 971,402 | |
| | 74,448 | | | Tanger Factory Outlet Centers, Inc. | | | 2,470,185 | |
| | | | | | | | 8,999,163 | |
| | | | | Specialized Reits — 34.49% | | | | |
| | 30,511 | | | American Tower Corp., Class A | | | 7,095,637 | |
| | 44,763 | | | CubeSmart | | | 2,409,592 | |
| | 30,495 | | | Digital Realty Trust, Inc. | | | 4,935,006 | |
| | 3,916 | | | Equinix, Inc. | | | 3,475,959 | |
| | 17,374 | | | Extra Space Storage, Inc. | | | 3,130,621 | |
| | 9,777 | | | SBA Communications Corp., Class A | | | 2,353,324 | |
| | 81,565 | | | VICI Properties, Inc. | | | 2,716,930 | |
| | | | | | | | 26,117,069 | |
| | | | | Total Common Stocks | | | | |
| | | | | (Cost $40,093,646) | | | 75,011,319 | |
| Shares | | | Fair Value | |
| MONEY MARKET FUNDS — 0.78% | | | | |
| | 590,532 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(b) | | | 590,532 | |
| | | | | |
| | | | | Total Money Market Funds | | | | |
| | | | | (Cost $590,532) | | | 590,532 | |
| | | | | |
Total Investments— 99.80%
| | | | |
| (Cost $40,684,178) | | | 75,601,851 | |
| Other Assets in Excess of Liabilities— 0.20% | | | 151,961 | |
| NET ASSETS — 100.00% | | $ | 75,753,812 | |
| (a) | Non-income producing security. |
| (b) | Represents the current yield as of report date. |
| 14 | See accompanying notes to financial statements. | |
Sterling Capital Small Cap Value Fund
Schedule of Investments
September 30, 2024
| Shares | | | | | Fair Value | |
| COMMON STOCKS — 98.65% | | | | |
| | | | | Aerospace & Defense — 4.29% | | | | |
| | 42,006 | | | Moog, Inc., Class A | | $ | 8,486,052 | |
| | | | | | | | | |
| | | | | Automobile Components — 2.29% | | | | |
| | 28,065 | | | Dorman Products, Inc.(a) | | | 3,174,713 | |
| | 165,802 | | | Garret Motion, Inc.(a) | | | 1,356,260 | |
| | | | | | | | 4,530,973 | |
| | | | | Banks — 12.61% | | | | |
| | 76,739 | | | Columbia Banking System, Inc. | | | 2,003,655 | |
| | 76,054 | | | Community Bank System, Inc. | | | 4,416,457 | |
| | 94,014 | | | Glacier Bancorp, Inc. | | | 4,296,440 | |
| | 122,812 | | | Old National Bancorp | | | 2,291,672 | |
| | 54,300 | | | United Bankshares, Inc. | | | 2,014,530 | |
| | 80,768 | | | Webster Financial Corp. | | | 3,764,596 | |
| | 56,410 | | | Wintrust Financial Corp. | | | 6,122,178 | |
| | | | | | | | 24,909,528 | |
| | | | | Capital Markets — 2.24% | | | | |
| | 24,894 | | | Affiliated Managers Group, Inc. | | | 4,426,153 | |
| | | | | | | | | |
| | | | | Chemicals — 3.19% | | | | |
| | 125,126 | | | Avient Corp. | | | 6,296,340 | |
| | | | | | | | | |
| | | | | Construction & Engineering — 3.39% | |
| | 54,498 | | | MasTec, Inc.(a) | | | 6,708,704 | |
| | | | | | | | | |
| | | | | Consumer Staples Distribution & Retail — 9.42% | |
| | 75,143 | | | BJ's Wholesale Club Holdings, Inc.(a) | | | 6,197,795 | |
| | 19,696 | | | Casey's General Stores, Inc. | | | 7,399,984 | |
| | 64,185 | | | Performance Food Group Co.(a) | | | 5,030,178 | |
| | | | | | | | 18,627,957 | |
| | | | | Electric Utilities — 2.25% | | | | |
| | 92,920 | | | Portland General Electric Co. | | | 4,450,868 | |
| | | | | | | | | |
| | | | | Electrical Equipment — 2.76% | | | | |
| | 53,410 | | | EnerSys | | | 5,450,491 | |
| | | | | | | | | |
| | | | | Electronic Equipment, Instruments & Components — 7.71% | |
| | 62,412 | | | Belden, Inc. | | | 7,310,317 | |
| | 51,616 | | | Crane NXT Co. | | | 2,895,658 | |
| | 51,300 | | | Eplus, Inc.(a) | | | 5,044,842 | |
| | | | | | | | 15,250,817 | |
| | | | | Entertainment — 1.70% | | | | |
| | 21,902 | | | Take-Two Interactive Software, Inc.(a) | | | 3,366,556 | |
| | | | | | | | | |
| | | | | Gas Utilities — 2.29% | | | | |
| | 61,390 | | | Southwest Gas Corp. | | | 4,528,126 | |
| | | | | | | | | |
| | | | | Household Durables — 4.66% | | | | |
| | 78,552 | | | Ethan Allen Interiors, Inc. | | | 2,505,023 | |
| | 32,682 | | | Meritage Homes Corp. | | | 6,702,098 | |
| | | | | | | | 9,207,121 | |
| | | | | Industrial Reits — 3.08% | | | | |
| | 108,778 | | | First Industrial Realty Trust, Inc. | | | 6,089,393 | |
| | | | | | | | | |
| | | | | Insurance — 5.89% | | | | |
| | 41,931 | | | Hanover Insurance Group, Inc. (The) | | | 6,210,400 | |
| | 58,069 | | | Selective Insurance Group, Inc. | | | 5,417,838 | |
| | | | | | | | 11,628,238 | |
| | | | | Life Sciences Tools & Services — 2.35% | |
| | 15,502 | | | West Pharmaceutical Services, Inc. | | | 4,653,080 | |
| | | | | | | | | |
| | | | | Machinery — 6.24% | | | | |
| | 45,206 | | | Crane Co. | | | 7,155,206 | |
| | 51,461 | | | Oshkosh Corp. | | | 5,156,907 | |
| | | | | | | | 12,312,113 | |
| | | | | Office Reits (New) — 1.55%
| | | | |
| | 91,522 | | | Highwoods Properties, Inc. | | | 3,066,902 | |
| | | | | | | | | |
| | | | | Oil, Gas & Consumable Fuels — 3.51% | |
| | 16,769 | | | Chord Energy Corp. | | | 2,183,827 | |
| | 40,841 | | | Matador Resources Co. | | | 2,018,362 | |
| Shares | | | | | Fair Value | |
| COMMON STOCKS — (continued) | | | | |
| | | | | Oil, Gas & Consumable Fuels — (continued) | |
| | 77,332 | | | Northern Oil and Gas, Inc. | | $ | 2,738,326 | |
| | | | | | | | 6,940,515 | |
| | | | | | | | | |
| | | | | Professional Services — 4.10% | | | | |
| | 16,056 | | | CACI International, Inc., Class A(a) | | | 8,101,215 | |
| | | | | | | | | |
| | | | | Retail Reits — 1.56% | | | | |
| | 92,851 | | | Tanger Factory Outlet Centers, Inc. | | | 3,080,796 | |
| | | | | | | | | |
| | | | | Semiconductors & Semiconductor Equipment — 3.94% | |
| | 64,533 | | | ON Semiconductor Corp.(a) | | | 4,685,741 | |
| | 30,066 | | | Qorvo, Inc.(a) | | | 3,105,818 | |
| | | | | | | | 7,791,559 | |
| | | | | Software — 2.97% | | | | |
| | 32,444 | | | PTC, Inc.(a) | | | 5,861,333 | |
| | | | | | | | | |
| | | | | Trading Companies & Distributors — 4.66% | |
| | 11,231 | | | Herc Holdings, Inc. | | | 1,790,558 | |
| | 9,165 | | | United Rentals, Inc. | | | 7,421,176 | |
| | | | | | | | 9,211,734 | |
| | | | | Total Common Stocks | | | | |
| | | | | (Cost $54,568,773) | | | 194,976,564 | |
| Shares | | | Fair Value | |
MONEY MARKET FUNDS — 1.34%
| | | | |
| | 2,653,604 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(b) | | | 2,653,604 | |
| | | | |
| | | | | Total Money Market Funds | | | |
| | | | | (Cost $2,653,604) | | | 2,653,604 | |
| | | | | |
| Total Investments— 99.99% | | | | |
| (Cost $57,222,377) | | | 197,630,168 | |
| | | | | |
| Other Assets in Excess of Liabilities— 0.01% | | | 19,535 | |
| | | | | |
| NET ASSETS — 100.00% | | $ | 197,649,703 | |
| (a) | Non-income producing security. |
| (b) | Represents the current yield as of report date. |
| See accompanying notes to financial statements. | 15 |
Sterling Capital Ultra Short Bond Fund
Schedule of Investments
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — 47.15% | |
| | | | | AEROSPACE & DEFENSE — 0.86% |
| $ | 250,000 | | | Boeing Co. (The), 2.60%, 10/30/25 | | $ | 243,042 | |
| |
| | | | | ASSET MANAGEMENT — 2.64% |
| | 250,000 | | | Blackstone Private Credit Fund, 2.70%, 1/15/25 | | | 248,149 | |
| | 200,000 | | | Blue Owl Credit Income Corp., 5.50%, 3/21/25 | | | 199,820 | |
| | 300,000 | | | UBS Group AG, 2.19%, 6/05/26 (SOFR + 204.40 bps)(a)(b) | | | 294,481 | |
| | | | | | | | 742,450 | |
| | | | | AUTOMOTIVE — 1.70% |
| | 250,000 | | | General Motors Financial Co., Inc., 5.46%, 10/15/24 (SOFR + 62 bps)(b) | | | 250,029 | |
| | 230,000 | | | Ford Motor Credit Co., LLC, 2.30%, 2/10/25 | | | 227,421 | |
| | | | | | | | 477,450 | |
| | | | | BANKS — 7.96% |
| | 325,000 | | | Citigroup, Inc., 5.53%, 10/30/24 (SOFR + 68.6 bps)(b)(c) | | | 325,151 | |
| | 270,000 | | | BNP Paribas SA, 3.38%, 1/09/25(a) | | | 268,536 | |
| | 250,000 | | | Manufacturers & Traders Trust Co., 2.90%, 2/06/25 | | | 247,903 | |
| | 250,000 | | | ABN AMRO Bank N.V., 4.75%, 7/28/25(a) | | | 248,881 | |
| | 250,000 | | | Fifth Third Bank NA, 5.85%, 10/27/25 | | | 250,083 | |
| | 250,000 | | | HSBC Holdings PLC, 2.63%, 11/07/25 (TSFR3M + 140.161 bps)(b) | | | 249,251 | |
| | 250,000 | | | Citizens Bank NA, 5.28%, 1/26/26 (SOFR +102 bps)(b) | | | 249,788 | |
| | 400,000 | | | Wells Fargo & Co., 3.91%, 4/25/26(b) | | | 397,450 | |
| | | | | | | | 2,237,043 | |
| | | | | BEVERAGES — 0.89% |
| | 250,000 | | | Constellation Brands, Inc., 4.75%, 11/15/24 | | | 249,751 | |
| |
| | | | | CAPITAL MARKETS — 6.15% |
| | 250,000 | | | FS KKR Capital Corp., 1.65%, 10/12/24 | | | 249,590 | |
| | 250,000 | | | Ares Capital Corp., 4.25%, 3/01/25 | | | 248,910 | |
| | 250,000 | | | Ares Capital Corp., 3.25%, 7/15/25 | | | 246,263 | |
| | 300,000 | | | Blue Owl Capital Corp., 3.75%, 7/22/25 | | | 296,370 | |
| | 150,000 | | | Macquarie Group Ltd., 5.55%, 10/14/25 (SOFR + 71 bps)(a)(b) | | | 150,010 | |
| | 400,000 | | | Morgan Stanley, 0.86%, 10/21/25(b) | | | 398,947 | |
| | 140,000 | | | Brightsphere Investment Group, Inc., 4.80%, 7/27/26 | | | 136,854 | |
| | | | | | | | 1,726,944 | |
| | | | | COMMERCIAL SERVICES & SUPPLIES — 0.77% |
| | 216,000 | | | GFL Environmental, Inc., 5.13%, 12/15/26(a)(b) | | | 215,471 | |
| | | | | | | | | |
| | | | | ELECTRIC UTILITIES — 2.97% |
| | 250,000 | | | Niagara Mohawk Power Corp., 3.51%, 10/01/24(a) | | | 250,001 | |
| | 250,000 | | | FirstEnergy Transmission LLC, 4.35%, 1/15/25(a) | | | 249,615 | |
| | 85,000 | | | NextEra Energy Capital Holdings, Inc., Series K, 6.05%, 3/01/25 | | | 85,356 | |
| | 250,000 | | | Puget Energy, Inc., 3.65%, 5/15/25 | | | 247,333 | |
| | | | | | | | 832,305 | |
| | | | | ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.89% |
| | 250,000 | | | Keysight Technologies, Inc., 4.55%, 10/30/24 | | | 249,161 | |
| | | | | | | | | |
| | | | | HEALTH CARE FACILITIES & SERVICES — 1.07% |
| | 300,000 | | | HCA, Inc., 5.38%, 2/01/25 | | | 300,096 | |
| | | | | | | | | |
| | | | | INSURANCE — 4.98% |
| | 300,000 | | | Nationwide Mutual Insurance Co., 7.50%, 12/15/24 (US0003M + 229 bps)(a)(b) | | | 300,510 | |
| | 250,000 | | | CNO Global Funding, 1.65%, 1/06/25(a) | | | 247,376 | |
| | 300,000 | | | F&G Global Funding, 5.15%, 7/07/25(a) | | | 299,884 | |
| | 250,000 | | | Reliance Standard Life Global Funding II, 5.24%, 2/02/26(a) | | | 251,180 | |
| | 300,000 | | | Athene Global Funding, 2.19%, 8/27/26 (SOFRIX +103 bps)(a)(c) | | | 299,911 | |
| | | | | | | | 1,398,861 | |
| |
| | | | | METALS & MINING — 0.40% |
| | 107,000 | | | Newmont Corp./ Newcrest Finance Pty Ltd., 5.30%, 3/15/26 | | | 111,312 | |
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) | |
| | | | | MORTGAGE REAL ESTATE INVESTMENT -TRUSTS (REITS) — 0.77% |
| $ | 225,000 | | | Starwood Property Trust, Inc., 3.63%, 7/15/26(a) | | $ | 217,294 | |
| |
| | | | | MULTI-UTILITIES — 2.03% |
| | 303,000 | | | DTE Energy Co., Series C, 2.53%, 10/01/24 | | | 303,000 | |
| | 271,000 | | | Sempra Energy, 3.30%, 4/01/25 | | | 268,605 | |
| | | | | | | | 571,605 | |
| | | | | OIL & GAS PRODUCERS — 2.04% |
| | 158,000 | | | DCP Midstream Operating LP, 5.38%, 7/15/25 | | | 158,392 | |
| | 175,000 | | | NuStar Logistics LP, 5.75%, 10/01/25 | | | 175,269 | |
| | 250,000 | | | Aker BP ASA, 2.00%, 7/15/26(a) | | | 239,394 | |
| | | | | | | | 573,055 | |
| | | | | OIL, GAS & CONSUMABLE FUELS — 0.78% |
| | 220,000 | | | Energy Transfer LP, 5.75%, 4/01/25 | | | 219,682 | |
| | | | | | | | | |
| | | | | REIT — 1.68% |
| | 250,000 | | | VICI Properties LP / VICI Note Co., Inc., 3.50%, 2/15/25(a) | | | 247,898 | |
| | 225,000 | | | SBA Tower Trust, 3.87%, 10/15/49(a) | | | 224,845 | |
| | | | | | | | 472,743 | |
| | | | | SEMICONDUCTORS — 0.92% |
| | 260,000 | | | Broadcom Corp./ Broadcom Cayman Fin Ltd., 3.13%, 1/15/25 | | | 258,482 | |
| | | | | | | | | |
| | | | | SOFTWARE — 0.91% |
| | 250,000 | | | Concentrix Corp., 6.65%, 8/02/26 | | | 256,871 | |
| | | | | | | | | |
| | | | | SPECIALTY FINANCE — 3.40% |
| | 300,000 | | | AerCap Ireland Capital DAC, 1.65%, 10/29/24(d) | | | 299,159 | |
| | 108,000 | | | Ladder Capital Finance Holdings LLLP, Class B, 5.25%, 10/01/25(a) | | | 107,677 | |
| | 300,000 | | | Avolon Holdings Funding Ltd., 5.50%, 1/15/26(a) | | | 301,502 | |
| | 250,000 | | | Capital One Financial Corp., 2.64%, 3/03/26 (SOFR + 129.00 bps)(b) | | | 247,223 | |
| | | | | | | | 955,561 | |
| | | | | TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 1.06% |
| | 300,000 | | | Hewlett Packard Enterprise Co., 5.90%, 10/01/24 | | | 300,000 | |
| | | | | | | | | |
| | | | | TELECOMMUNICATIONS — 0.22% |
| | 62,501 | | | Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC, 4.74%, 3/20/25(a) | | | 62,338 | |
| | | | | | | | | |
| | | | | TRADING COMPANIES & DISTRIBUTORS — 0.88% |
| | 250,000 | | | Air Lease Corp., 2.30%, 2/01/25(d) | | | 247,504 | |
| | | | | | | | | |
| | | | | TRANSPORTATION & LOGISTICS — 1.18% |
| | 187,500 | | | Delta Air Lines, Inc./ SkyMiles IP Ltd., 4.50%, 10/20/25(a) | | | 186,384 | |
| | 148,000 | | | United Airlines, Inc., 4.38%, 4/15/26(a) | | | 145,746 | |
| | | | | | | | 332,130 | |
| | | | | Total (Cost $13,205,098) | | | 13,251,151 | |
Principal
Amount | | | | | Fair Value | |
| ASSET BACKED SECURITIES — 38.15% |
| | 106,071 | | | GM Financial Consumer Automobile Receivables, Series 1 , Class A4, 0.54%, 10/16/24 | | | 105,247 | |
| | 199,597 | | | Carmax Auto Owner Trust 2023-3, Series 3 , Class A2A, 5.72%, 6/15/25 | | | 200,186 | |
| | 275,000 | | | Hertz Vehicle Financing LLC, Series 1A , Class A, 1.21%, 12/26/25(a) | | | 273,374 | |
| | 144,000 | | | GM Financial Consumer Automobile Receivables, Series 4 , Class A4, 0.99%, 1/16/26 | | | 138,975 | |
| | 325,000 | | | Carmax Select Receivables Trust 2024-A, Series A , Class A2A, 5.78%, 2/15/26 | | | 327,641 | |
| | 194,775 | | | GreatAmerica Leasing Receivables Funding LLC, Series 1 , Class A2, 5.35%, 2/16/26(a) | | | 195,214 | |
| 16 | See accompanying notes to financial statements. | |
Sterling Capital Ultra Short Bond Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| ASSET BACKED SECURITIES — (continued) |
| $ | 283,000 | | | Mercedes-Benz Auto Lease Trust 2024-A, Series A , Class A2B, 5.76%, 2/17/26 (SOFR30A + 42 bps)(b) | | $ | 283,066 | |
| | 475,000 | | | Avis Budget Rental Car Funding AESOP LLC, Series 2019-3A , Class A, 2.36%, 3/20/26(a) | | | 471,763 | |
| | 300,000 | | | World Omni Select Auto Trust 2024-A, Series A , Class A2A, 5.37%, 5/15/26 | | | 302,054 | |
| | 47,199 | | | World Omni Auto Receivables Trust, Series B , Class A3, 0.42%, 6/15/26 | | | 46,792 | |
| | 117,816 | | | CarMax Auto Owner Trust, Series 4 , Class A4, 0.63%, 6/15/26 | | | 117,013 | |
| | 173,145 | | | Freddie Mac, Series 4213 , Class GV, 3.50%, 6/15/26 | | | 172,267 | |
| | 251,767 | | | World Omni Auto Receivables Trust, Series C , Class A4, 0.61%, 10/15/26 | | | 251,297 | |
| | 162,146 | | | AmeriCredit Automobile Receivables Trust, Series 2 , Class B, 0.69%, 1/19/27 | | | 160,835 | |
| | 99,273 | | | Fannie Mae, Series 140 , Class BH, 2.50%, 1/25/27 | | | 97,744 | |
| | 149,705 | | | Santander Drive Auto Receivables Trust, Series 1 , Class A2, 5.71%, 2/16/27 | | | 150,088 | |
| | 240,356 | | | Santander Drive Auto Receivables Trust, Series 5 , Class B, 4.43%, 3/15/27 | | | 239,917 | |
| | 87,435 | | | World Omni Select Auto Trust, Series A , Class A2A, 5.92%, 3/15/27 | | | 87,618 | |
| | 200,000 | | | Ford Credit Floorplan Master Owner Trust, Series 1 , Class A2, 6.09%, 4/15/27 (SOFR30A + 75 bps)(a)(b) | | | 199,999 | |
| | 79,355 | | | GM Financial Consumer Automobile Receivables, Series 3 , Class A3, 3.64%, 4/16/27 | | | 78,925 | |
| | 14,574 | | | Enterprise Fleet Financing, Series 2 , Class A2, 0.48%, 5/20/27(a) | | | 14,504 | |
| | 350,000 | | | Ford Credit Auto Owner Trust 2022-A, Series A , Class B, 1.91%, 7/15/27 | | | 338,587 | |
| | 107,884 | | | Santander Drive Auto Receivables Trust, Series 5 , Class A2, 6.31%, 7/15/27 | | | 108,221 | |
| | 350,000 | | | Wheels Fleet Lease Funding 1 LLC, Series 1A , Class A2, 5.84%, 8/18/27 (TSFR1M + 83 bps)(a)(b) | | | 350,420 | |
| | 147,751 | | | OneMain Direct Auto Receivables Trust, Series 1A , Class A, 3.63%, 9/14/27(a) | | | 146,726 | |
| | 100,000 | | | OneMain Financial Issuance Trust 2021-1, Series 1A , Class A2, 6.10%, 9/14/27 (SOFR30A + 76 bps)(a)(b) | | | 100,049 | |
| | 350,000 | | | GreatAmerica Leasing Receivables Funding LLC, Series 2 , Class B, 1.31%, 9/15/27(a) | | | 337,937 | |
| | 408,329 | | | Chesapeake Funding II LLC, Series 1A , Class A1, 5.52%, 9/15/27(a) | | | 413,108 | |
| | 547,000 | | | Enterprise Fleet Financing, Series 1 , Class A3, 3.27%, 1/20/28(a) | | | 539,328 | |
| | 400,000 | | | AmeriCredit Automobile Receivables Trust 2024-1, Series 1 , Class A2A, 5.75%, 2/18/28 | | | 402,037 | |
| | 395,000 | | | Synchrony Card Funding LLC, Series A1 , Class A, 3.37%, 4/15/28 | | | 392,039 | |
| | 300,000 | | | PFS Financing Corp., Series C , Class A, 6.14%, 4/17/28(a) (c) | | | 300,234 | |
| | 122,891 | | | OneMain Direct Auto Receivables Trust, Series 1A , Class A, 0.87%, 7/14/28(a) | | | 120,497 | |
| | 104,975 | | | Enterprise Fleet Financing, Series 2 , Class A2, 4.65%, 5/21/29(a) | | | 104,831 | |
| | 152,984 | | | Freddie Mac, Series 4841 , Class PV, 4.50%, 11/01/29 | | | 152,358 | |
| | 300,000 | | | ARI Fleet Lease Trust, Series A , Class A3, 3.43%, 1/15/31(a) | | | 297,395 | |
| | 395,000 | | | Ford Credit Auto Owner Trust, Series 1 , Class A, 2.04%, 8/15/31(a) | | | 390,864 | |
| | 60,646 | | | Chesapeake Funding II LLC, Series 1A , Class A1, 0.47%, 4/15/33(a) | | | 60,347 | |
| | 275,000 | | | Ford Credit Auto Owner Trust, Series 2 , Class A, 1.06%, 4/15/33(a) | | | 265,399 | |
Principal
Amount | | | | | Fair Value | |
| ASSET BACKED SECURITIES — (continued) |
| $ | 450,000 | | | OneMain Financial Issuance Trust, Series 3A , Class A, 5.94%, 5/15/34(a) | | $ | 454,945 | |
| | 296,440 | | | Fannie Mae, Series 80 , Class VM, 3.00%, 8/25/34 | | | 293,647 | |
| | 278,783 | | | SMB Private Education Loan Trust, Series 2017-A , Class A2A, 2.88%, 9/15/34(a) | | | 275,312 | |
| | 224,723 | | | Fannie Mae , 6.84%, 7/01/36 (H15T1Y + 219.40 bps)(b) | | | 232,579 | |
| | 122,200 | | | OPG Trust, Series 2021-PORT , Class C, 6.04%, 10/15/36(a) | | | 120,634 | |
| | 343,312 | | | SMB Private Education Loan Trust, Series B , Class A2B, 6.21%, 6/15/37(a)(b) | | | 343,164 | |
| | 132,350 | | | Government National Mortgage Association, Series 144 , Class GA, 2.50%, 12/20/40 | | | 130,236 | |
| | 134,602 | | | SMB Private Education Loan Trust 2024-C, Series C , Class A1B, 6.44%, 6/17/52 (SOFR30A + 110 bps)(a) | | | 133,514 | |
| | | | | Total (Cost $10,633,691) | | | 10,718,927 | |
Principal
Amount | | | | | Fair Value | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES — 9.88% |
| | 306,036 | | | JPMBB Commercial Mortgage Securities Trust, 3.49%, 12/15/24 | | | 305,008 | |
| | 165,000 | | | Freddie Mac Multifamily Structured Pass Through, Series K052, Class A2, 3.15%, 11/25/25 | | | 162,901 | |
| | 29 | | | Citicorp Residential Mortgage Trust, STEP, Series 2007- 2, Class A6, 6.77%, 6/25/37 | | | 29 | |
| | 154,820 | | | ELP Commercial Mortgage Trust, Series 2021-ELP, Class C, 6.53%, 11/15/38(a)(b) | | | 154,139 | |
| | 161,462 | | | BX Commercial Mortgage Trust, Series 2021-ACNT, Class C, 6.71%, 11/15/38(a)(b) | | | 160,352 | |
| | 100,228 | | | BX Commercial Mortgage Trust, Series 2021-CIP, Class B, 6.48%, 12/15/38(a) | | | 99,351 | |
| | 9,522 | | | JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class A5, 3.93%, 9/15/47 | | | 9,500 | |
| | 391,000 | | | Wells Fargo Commercial Mortgage Trust, Series LC18, Class A5, 3.41%, 12/15/47 | | | 388,895 | |
| | 400,000 | | | CSAIL Commercial Mortgage Trust, Series 2015-C3, Class A4, 3.72%, 8/15/48 | | | 395,169 | |
| | 350,000 | | | Wells Fargo Commercial Mortgage Trust, Series P2, Class A4, 3.81%, 12/15/48 | | | 346,103 | |
| | 350,000 | | | Morgan Stanley Bank of America Merrill Lynch Trust, Series C29, Class A4, 3.33%, 5/15/49 | | | 343,349 | |
| | 133,759 | | | GS Mortgage Securities Trust 2015-GC30, Series GC30, Class A3, 3.12%, 5/10/50 | | | 132,686 | |
| | 28,200 | | | WFRBS Commercial Mortgage Trust, Series C22, Class A5, 3.75%, 9/15/57 | | | 27,814 | |
| | 152,891 | | | WFRBS Commercial Mortgage Trust, Series C23, Class A5, 3.92%, 10/15/57 | | | 152,350 | |
| | 100,000 | | | Citigroup Commercial Mortgage Trust, Series GC33, Class A4, 3.78%, 9/10/58 | | | 98,515 | |
| | | | | Total (Cost $2,733,675) | | | 2,776,161 | |
Principal
Amount | | | | | Fair Value | |
| U.S. TREASURY BONDS & NOTES — 3.30% |
| | 425,000 | | | United States Treasury Bill, 5.10%, 11/12/24 | | | 422,679 | |
| | 510,000 | | | United States Treasury Note, 1.38%, 1/31/25 | | | 504,711 | |
| | | | | Total (Cost $926,772) | | | 927,390 | |
| | See accompanying notes to financial statements. | 17 |
Sterling Capital Ultra Short Bond Fund
Schedule of Investments (continued)
September 30, 2024
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 0.92% |
| | 258,007 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(e) | | $ | 258,007 | |
| | | | | | | | | |
| | | | | Total Money Market Funds | | | | |
| | | | | (Cost $258,007) | | | 258,007 | |
| | | | | |
| Total Investments— 99.40% | | | | |
| (Cost $27,757,243) | | | 27,931,636 | |
| Other Assets in Excess of Liabilities— 0.60% | | | 167,749 | |
| NET ASSETS — 100.00% | | $ | 28,099,385 | |
| (a) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. The security may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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, 2024. 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) | All or a portion of the securities are held in a separate collateral account at US Bank. The total value of securities held in a separate collateral account as of the year ended September 30, 2024 is $546,683, which represents 1.9% of net assets. |
| (e) | Represents the current yield as of report date. |
| 18 | See accompanying notes to financial statements. | |
Sterling Capital Short Duration Bond Fund
Schedule of Investments
September 30, 2024
| Shares | | | | | Fair Value | |
| PREFERRED STOCKS — 0.56% |
| Trading Companies & Distributors — 0.56% |
| 9,825 | | | WESCO International, Inc., Series A(a) | | $ | 253,976 | |
| | | | | | | | | |
| | | | Total Preferred Stocks | | | | |
| | | | (Cost $253,682) | | | 253,976 | |
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — 62.13% | |
| | | | | AEROSPACE & DEFENSE — 3.30% |
| $ | 408,000 | | | RTX Corp., 5.75%, 11/08/26 | | | 420,577 | |
| | 440,000 | | | Boeing Co. (The), 2.70%, 2/01/27 | | | 417,109 | |
| | 400,000 | | | BAE Systems PLC, 5.00%, 3/26/27(b) | | | 406,343 | |
| | 250,000 | | | Howmet Aerospace, Inc., 6.75%, 1/15/28 | | | 267,084 | |
| | | | | | | | 1,511,113 | |
| | | | | ASSET MANAGEMENT — 1.71% |
| | 426,000 | | | Apollo Management Holdings LP, 4.40%, 5/27/26(b) | | | 425,792 | |
| | 371,000 | | | Blackstone Private Credit Fund, 3.25%, 3/15/27 | | | 353,544 | |
| | | | | | | | 779,336 | |
| | | | | AUTOMOTIVE — 2.65% |
| | 344,000 | | | General Motors Financial Co., Inc., 5.40%, 4/06/26 | | | 348,101 | |
| | 419,000 | | | Hyundai Capital America, 5.25%, 1/08/27(b) | | | 426,366 | |
| | 425,000 | | | Ford Motor Credit Co. LLC, 5.80%, 3/05/27 | | | 432,672 | |
| | | | | | | | 1,207,139 | |
| | | | | BANKS — 15.42% |
| | 275,000 | | | KeyBank NA, 4.70%, 1/26/26 | | | 275,332 | |
| | 494,000 | | | Svenska Handelsbanken AB, 5.25%, 6/15/26(b) | | | 502,833 | |
| | 450,000 | | | NatWest Markets PLC, 6.11%, 9/29/26(b) | | | 449,099 | |
| | 404,000 | | | Canadian Imperial Bank of Commerce, 5.93%, 10/02/26 | | | 417,365 | |
| | 300,000 | | | Cooperatieve Rabobank UA/NY, 5.50%, 10/05/26 | | | 308,510 | |
| | 400,000 | | | Citibank NA, 5.49%, 12/04/26 | | | 411,386 | |
| | 414,000 | | | Macquarie Bank Ltd., 5.39%, 12/07/26(b) | | | 425,088 | |
| | 650,000 | | | Wells Fargo Bank NA, 5.25%, 12/11/26 | | | 665,989 | |
| | 424,000 | | | PNC Financial Services Group Inc. (The), 4.76%, 1/26/27(c) | | | 425,514 | |
| | 342,000 | | | Bank of Montreal, 5.37%, 6/04/27 | | | 353,636 | |
| | 400,000 | | | National Australia Bank Ltd/New York, 5.09%, 6/11/27 | | | 410,957 | |
| | 345,000 | | | Lloyds Banking Group PLC, 5.99%, 8/07/27 | | | 354,072 | |
| | 310,000 | | | ING Groep N.V., 6.08%, 9/11/27(c) | | | 319,531 | |
| | 500,000 | | | Danske Bank A/S, 5.43%, 3/01/28(b) | | | 512,478 | |
| | 497,000 | | | JPMorgan Chase & Co., 5.57%, 4/22/28 | | | 512,291 | |
| | 350,000 | | | Bank of Nova Scotia (The), 4.40%, 9/08/28 (SOFR + 100 bps)(d) | | | 351,087 | |
| | 339,000 | | | Barclays PLC, 4.84%, 9/10/28 (SOFR + 134 bps) | | | 341,740 | |
| | | | | | | | 7,036,908 | |
| | | | | BEVERAGES — 0.90% |
| | 400,000 | | | Diageo Capital PLC, 5.38%, 10/05/26 | | | 409,597 | |
| |
| | | | | CAPITAL MARKETS — 4.40% |
| | 400,000 | | | UBS Group AG, 4.13%, 4/15/26(b) | | | 398,105 | |
| | 237,000 | | | Brightsphere Investment Group, Inc., 4.80%, 7/27/26 | | | 231,674 | |
| | 413,000 | | | Charles Schwab Corp. (The), 5.88%, 8/24/26 | | | 424,922 | |
| | 400,000 | | | Blackstone Secured Lending Fund, 5.88%, 11/15/27 | | | 406,398 | |
| | 528,000 | | | Morgan Stanley, 5.65%, 4/13/28 | | | 544,907 | |
| | | | | | | | 2,006,006 | |
| | | | | COMMERCIAL SERVICES & SUPPLIES — 1.53% |
| | 351,000 | | | GFL Environmental, Inc., 5.13%, 12/15/26(b)(d) | | | 350,141 | |
| | 339,000 | | | Element Fleet Management Corp., 5.64%, 3/13/27(b) | | | 347,568 | |
| | | | | | | | 697,709 | |
| | | | | COMMERCIAL SUPPORT SERVICES — 0.76% |
| | 344,000 | | | Prime Security Services Borrower LLC, 5.75%, 4/15/26(b) | | | 345,600 | |
| | | | | | | | | |
| | | | | CONSUMER FINANCE — 0.88% |
| | 396,000 | | | American Express Co., 5.10%, 2/16/28 | | | 403,487 | |
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) | |
| | | | | DIVERSIFIED FINANCIAL SERVICES — 0.92% |
| $ | 408,000 | | | National Rural Utilities Cooperative Finance Corp., 5.60%, 11/13/26 | | $ | 420,103 | |
| |
| | | | | ELECTRIC UTILITIES — 2.94% |
| | 419,000 | | | Southern California Edison Co., 4.90%, 6/01/26 | | | 422,959 | |
| | 380,000 | | | Duke Energy Corp., 4.85%, 1/05/27(e) | | | 385,996 | |
| | 133,000 | | | Georgia Power Co., 5.00%, 2/23/27 | | | 135,885 | |
| | 400,000 | | | FirstEnergy Corp., 3.90%, 7/15/27 | | | 395,901 | |
| | | | | | | | 1,340,741 | |
| |
| | | | | ENTERTAINMENT — 0.92% |
| | 415,000 | | | Take-Two Interactive Software, Inc., 5.00%, 3/28/26 | | | 418,904 | |
| | | | | | | | | |
| | | | | HOME CONSTRUCTION — 0.74% |
| | 335,000 | | | Meritage Homes Corp., 5.13%, 6/06/27 | | | 338,274 | |
| | | | | | | | | |
| | | | | HOTELS, RESTAURANTS & LEISURE — 0.70% |
| | 315,000 | | | Carnival Corp., 5.75%, 3/01/27(b) | | | 319,138 | |
| | | | | | | | | |
| | | | | INSTITUTIONAL FINANCIAL SERVICES — 0.93% |
| | 70,000 | | | LPL Holdings, Inc., 5.70%, 5/20/27 | | | 71,532 | |
| | 350,000 | | | Sumitomo Mitsui Trust Bank Ltd., 4.45%, 9/10/27(b) | | | 351,927 | |
| | | | | | | | 423,459 | |
| | | | | INSURANCE — 6.97% |
| | 425,000 | | | Reliance Standard Life Global Funding II, 5.24%, 2/02/26(b) | | | 427,006 | |
| | 417,000 | | | Corebridge Global Funding, 5.75%, 7/02/26(b) | | | 427,528 | |
| | 407,000 | | | New York Life Global Funding, Class B, 5.45%, 9/18/26 | | | 418,320 | |
| | 439,000 | | | SBL Holdings, Inc., 5.13%, 11/13/26(b) | | | 434,673 | |
| | 279,000 | | | Aon North America, Inc., 5.13%, 3/01/27 | | | 285,337 | |
| | 400,000 | | | F&G Global Funding, 5.88%, 6/10/27(b) | | | 409,693 | |
| | 425,000 | | | Athene Global Funding, 5.35%, 7/09/27(b) | | | 433,886 | |
| | 345,000 | | | GA Global Funding Trust, 4.40%, 9/23/27(b) | | | 344,098 | |
| | | | | | | | 3,180,541 | |
| | | | | METALS & MINING — 0.66% |
| | 291,000 | | | Newmont Corp./ Newcrest Finance Pty Ltd., 5.30%, 3/15/26 | | | 302,726 | |
| | | | | | | | | |
| | | | | MORTGAGE REAL ESTATE INVESTMENT -TRUSTS (REITS) — 1.03% |
| | 489,000 | | | Starwood Property Trust, Inc., 3.63%, 7/15/26(b) | | | 472,253 | |
| | | | | | | | | |
| | | | | MULTI-UTILITIES — 1.74% |
| | 419,000 | | | CenterPoint Energy, Inc., 5.25%, 8/10/26 | | | 425,795 | |
| | 390,000 | | | Ameren Corp., 1.95%, 3/15/27 | | | 369,334 | |
| | | | | | | | 795,129 | |
| | | | | OIL & GAS PRODUCERS — 2.11% |
| | 343,000 | | | NuStar Logistics LP, 5.75%, 10/01/25 | | | 343,527 | |
| | 333,000 | | | Permian Resources Operating LLC, 8.00%, 4/15/27(b) | | | 342,764 | |
| | 274,000 | | | ONEOK Inc., 4.25%, 9/24/27 | | | 274,180 | |
| | | | | | | | 960,471 | |
| | | | | OIL, GAS & CONSUMABLE FUELS — 1.91% |
| | 408,000 | | | Energy Transfer LP, 6.05%, 12/01/26 | | | 422,333 | |
| | 109,000 | | | Diamondback Energy, Inc., 5.20%, 4/18/27 | | | 111,236 | |
| | 340,000 | | | Apache Corp., 4.88%, 11/15/27 | | | 339,828 | |
| | | | | | | | 873,397 | |
| | | | | REIT — 1.37% |
| | 208,000 | | | VICI Properties LP / VICI Note Co., Inc., 4.25%, 12/01/26(b) | | | 205,998 | |
| | 425,000 | | | Brixmor Operating Partnership LP, 3.90%, 3/15/27 | | | 418,115 | |
| | | | | | | | 624,113 | |
| | | | | SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.49% |
| | 220,000 | | | Broadcom, Inc., 5.05%, 7/12/27 | | | 224,785 | |
| | | | | | | | | |
| | | | | SOFTWARE — 0.75% |
| | 333,000 | | | Concentrix Corp., 6.65%, 8/02/26 | | | 342,151 | |
| | See accompanying notes to financial statements. | 19 |
Sterling Capital Short Duration Bond Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) | |
| | | | | SPECIALTY FINANCE — 2.64% |
| $ | 502,000 | | | Ladder Capital Finance Holdings LLLP, Class B, 5.25%, 10/01/25(b) | | $ | 500,498 | |
| | 248,000 | | | OneMain Finance Corp., 3.50%, 1/15/27 | | | 237,047 | |
| | 450,000 | | | AerCap Ireland Capital DAC, 6.10%, 1/15/27 | | | 465,849 | |
| | | | | | | | 1,203,394 | |
| | | | | TECHNOLOGY HARDWARE — 0.34% |
| | 155,000 | | | Hewlett Packard Enterprise Co., 4.40%, 9/25/27 | | | 155,128 | |
| | | | | | | | | |
| | | | | TECHNOLOGY SERVICES — 0.65% |
| | 292,000 | | | Fiserv, Inc., 5.15%, 3/15/27 | | | 298,565 | |
| | | | | | | | | |
| | | | | TELECOMMUNICATIONS — 1.29% |
| | 581,000 | | | Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC, 5.15%, 3/20/28(b) | | | 586,658 | |
| | | | | | | | | |
| | | | | TRANSPORTATION & LOGISTICS — 0.56% |
| | 258,000 | | | United Airlines, Inc., 4.38%, 4/15/26(b) | | | 254,071 | |
| | | | | | | | | |
| | | | | WIRELESS TELECOMMUNICATION SERVICES — 0.92% |
| | 408,000 | | | Sprint Corp., 7.63%, 3/01/26 | | | 421,466 | |
| | | | | | | | | |
| | | | | Total (Cost $27,805,688) | | | 28,352,362 | |
Principal
Amount | | | | | Fair Value | |
| ASSET BACKED SECURITIES — 25.28% |
| | 656,000 | | | Avis Budget Rental Car Funding AESOP LLC, Series 2A , Class A, 2.02%, 2/20/27(b) | | | 635,711 | |
| | 589,908 | | | OneMain Direct Auto Receivables Trust, Series 1A , Class A, 3.63%, 9/14/27(b) | | | 585,819 | |
| | 240,000 | | | Americredit Automobile Receivables Trust, Series 1 , Class C, 2.98%, 9/20/27 | | | 234,350 | |
| | 1,288,000 | | | Hertz Vehicle Financing III LP, Series 2A , Class A, 1.68%, 12/27/27(b) | | | 1,212,792 | |
| | 590,000 | | | Avis Budget Rental Car Funding AESOP LLC, Series 3A , Class A, 5.44%, 2/22/28(b) | | | 600,831 | |
| | 500,000 | | | AmeriCredit Automobile Receivables Trust, Series 2 , Class C, 5.32%, 4/18/28 | | | 507,164 | |
| | 850,000 | | | Santander Drive Auto Receivables Trust, Series 1 , Class B, 5.23%, 12/15/28 | | | 860,301 | |
| | 500,000 | | | PFS Financing Corp., Series D , Class A, 5.34%, 4/16/29(b) | | | 513,008 | |
| | 810,000 | | | Synchrony Card Funding LLC, Series A1 , Class A, 5.54%, 7/15/29 | | | 827,045 | |
| | 1,183,000 | | | Enterprise Fleet Financing, Series 1 , Class A3, 5.42%, 10/22/29(b) | | | 1,206,444 | |
| | 392,000 | | | OneMain Direct Auto Receivables Trust, Series 1A , Class A, 5.41%, 11/14/29(b) | | | 399,279 | |
| | 205,000 | | | Ally Auto Receivables Trust, Series 3 , Class A4, 5.07%, 6/15/31(e) | | | 207,126 | |
| | 378,863 | | | ARI Fleet Lease Trust, Series B , Class A2, 6.05%, 7/15/32(b) | | | 383,222 | |
| | 103,257 | | | Chesapeake Funding II LLC, Series 1A , Class A1, 0.47%, 4/15/33(b) | | | 102,748 | |
| | 700,000 | | | OneMain Financial Issuance Trust, Series 3A , Class A, 5.94%, 5/15/34(b) | | | 707,692 | |
| | 370,422 | | | Fannie Mae , 6.84%, 7/01/36 (H15T1Y + 219.40 bps)(d) | | | 383,373 | |
| | 608,400 | | | OPG Trust, Series 2021-PORT , Class C, 6.04%, 10/15/36(b) | | | 600,605 | |
| | 364,337 | | | BX Trust, Series 2021-RISE , Class C, 6.66%, 11/15/36(b) | | | 358,872 | |
| | 447,596 | | | Sierra Timeshare 2024-2 Receivables Funding LLC, Series 2A , Class A, 5.14%, 6/20/41(b) | | | 451,204 | |
| | 267,000 | | | MVW 2024-2 LLC, Series 2A , Class A, 4.43%, 3/20/42(b) | | | 266,114 | |
| | 531,268 | | | SMB Private Education Loan Trust 2021-B, Series B , Class A, 1.31%, 7/17/51(b) | | | 492,948 | |
| | | | | Total (Cost $11,420,372) | | | 11,536,648 | |
Principal
Amount | | | | | Fair Value | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES — 4.79% |
| $ | 23 | | | Citicorp Residential Mortgage Trust, STEP, Series 2007- 2, Class A6, 6.77%, 6/25/37 | | $ | 23 | |
| | 394,041 | | | ELP Commercial Mortgage Trust, Series 2021-ELP, Class C, 6.53%, 11/15/38(b)(d) | | | 392,308 | |
| | 407,879 | | | BX Commercial Mortgage Trust, Series 2021-ACNT, Class C, 6.71%, 11/15/38(b)(d) | | | 405,074 | |
| | 324,003 | | | BX Commercial Mortgage Trust, Series 2021-CIP, Class B, 6.48%, 12/15/38(b) | | | 321,168 | |
| | 261,884 | | | SMR Mortgage Trust, Series 2022-IND, Class A, 6.99%, 2/15/39(b) | | | 257,315 | |
| | 12,400 | | | GS Mortgage Securities Trust, Series 2010-C1, Class B, 5.15%, 8/10/43(b) | | | 12,360 | |
| | 11,426 | | | JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class A5, 3.93%, 9/15/47 | | | 11,400 | |
| | 415,092 | | | CD Mortgage Trust, Series 2016-CD2, Class A4, 3.53%, 11/10/49 | | | 398,939 | |
| | 410,000 | | | CD Mortgage Trust, Series 2017-CD3, Class A4, 3.63%, 2/10/50 | | | 388,943 | |
| | | | | Total (Cost $2,183,714) | | | 2,187,530 | |
Principal
Amount | | | | | Fair Value | |
| COLLATERALIZED MORTGAGE OBLIGATIONS — 3.98% |
| | 12,663 | | | Fannie Mae, Series 152, Class PC, 1.75%, 8/25/42 | | | 12,558 | |
| | 17,817 | | | Fannie Mae, Series 72, Class NA, 2.50%, 8/25/42 | | | 17,507 | |
| | 368,463 | | | Fannie Mae, Series 35, Class CB, 2.00%, 2/25/43 | | | 354,893 | |
| | 215,017 | | | Fannie Mae, Series 100, Class DA, 3.00%, 2/25/43 | | | 209,094 | |
| | 205,268 | | | Fannie Mae, Series 71, Class PD, 2.50%, 3/25/43 | | | 201,856 | |
| | 310,561 | | | Freddie Mac, Series 4828, Class QA, 3.50%, 3/15/47 | | | 303,699 | |
| | 619,882 | | | Chase Home Lending Mortgage Trust, Series 2019-ATR2, Class A3, 3.50%, 7/25/49(b) | | | 570,521 | |
| | 150,000 | | | CSAIL Commercial Mortgage Trust, Series 2015-C7, Class A5, 3.50%, 11/15/49 | | | 145,064 | |
| | | | | Total (Cost $1,912,754) | | | 1,815,192 | |
Principal
Amount | | | | | Fair Value | |
| MUNICIPAL BONDS — 0.31% |
| | | | | Texas — 0.31% |
| | 140,000 | | | Dallas Fort Worth International Airport, Current Refunding, Taxable Revenue Bonds Series A, 4.74%,11/1/26(e) | | | 142,110 | |
| | | | Total (Cost $140,000) | | | 142,110 | |
Principal
Amount | | | | | Fair Value | |
| U.S. TREASURY BONDS & NOTES — 2.16% |
| | 739,900 | | | United States Treasury Note/Bond, 4.50%, 4/15/27 | | | 755,797 | |
| | 250,000 | | | United States Treasury Note, 0.38%, 7/31/27 | | | 228,564 | |
| | | | | Total (Cost $974,401) | | | 984,361 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 0.17% |
| | 76,012 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(f) | | | 76,012 | |
| | | | | | | | | |
| | | | | Total Money Market Funds | | | | |
| | | | | (Cost $76,012) | | | 76,012 | |
| | | | | |
| Total Investments— 99.38% | | | | |
| (Cost $44,766,623) | | | 45,348,191 | |
| Other Assets in Excess of Liabilities— 0.62% | | | 285,053 | |
| NET ASSETS — 100.00% | | $ | 45,633,244 | |
| (a) | Security is perpetual in nature and has no stated maturity date. |
| 20 | See accompanying notes to financial statements. | |
Sterling Capital Short Duration Bond Fund
Schedule of Investments (continued)
September 30, 2024
| (b) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. The security may be resold in transactions exempt from registration, normally to qualified institutional buyers. The Advisor, using Board approved procedures, has deemed these securities or a portion of these securities to be liquid. |
| (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) | 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, 2024. The maturity date reflected is the final maturity date. |
| (e) | All or a portion of the securities are held in a separate collateral account at US Bank. The total value of securities held in a separate collateral account as of the year ended September 30, 2024 is $735,327, which represents 1.6% of net assets. |
| (f) | Represents the current yield as of report date. |
| | See accompanying notes to financial statements. | 21 |
Sterling Capital Intermediate U.S. Government Fund
Schedule of Investments
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| ASSET BACKED SECURITIES — 3.40% |
| $ | 100,000 | | | Avis Budget Rental Car Funding AESOP LLC, Series 2019-3A , Class A, 2.36%, 3/20/26(a) | | $ | 99,318 | |
| | 183,000 | | | Avis Budget Rental Car Funding AESOP LLC, Series 2023-1A , Class A, 5.36%, 6/20/30(a) | | | 187,983 | |
| | 67,581 | | | United States Small Business Administration, Series 2015-20G , Class 1, 2.88%, 7/01/35(b) | | | 64,164 | |
| | 150,000 | | | BANK5 Trust, Series 2024-5YR6 , Class A3, 6.23%, 5/15/57 | | | 159,589 | |
| | 100,000 | | | BANK5 Trust, Series 2024-5YR6 , Class AS, 6.79%, 5/15/57 | | | 106,730 | |
| | | | | Total (Cost $606,743) | | | 617,784 | |
Principal
Amount | | | | | Fair Value | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES — 16.83% |
| | 138,562 | | | Freddie Mac Multifamily Structured Pass Through, Series K049, Class A2, 3.01%, 7/25/25 | | | 136,878 | |
| | 370,349 | | | Fannie Mae-Aces, Series 2015-M17, Class A2, 3.01%, 11/25/25(c) | | | 364,832 | |
| | 210,000 | | | Freddie Mac Multifamily Structured Pass Through, Series K060, Class A2, 3.30%, 10/25/26 | | | 206,995 | |
| | 490,509 | | | Freddie Mac Multifamily Structured Pass Through, Series K061, Class A2, 3.35%, 11/25/26(c) | | | 483,071 | |
| | 380,746 | | | Fannie Mae-Aces, Series 2017-M7, Class A2, 2.96%, 2/25/27(c) | | | 371,601 | |
| | 209,375 | | | Fannie Mae-Aces, Series 2017-M8, Class A2, 3.06%, 5/25/27 | | | 204,397 | |
| | 125,000 | | | Freddie Mac Multifamily Structured Pass Through, Series K066, Class A2, 3.12%, 6/25/27 (Special footnote)(c) | | | 122,268 | |
| | 159,438 | | | Freddie Mac Multifamily Structured Pass Through, Series K069, Class A2, 3.19%, 9/25/27(c) | | | 156,027 | |
| | 275,000 | | | Freddie Mac Multifamily Structured Pass Through, Series K079, Class A2, 3.93%, 6/25/28 | | | 274,710 | |
| | 383,836 | | | Fannie Mae-Aces, Series 2018-M10, Class A2, 3.47%, 7/25/28(c) | | | 376,278 | |
| | 9,522 | | | JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class A5, 3.93%, 9/15/47 | | | 9,500 | |
| | 226,087 | | | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C19, Class A4, 3.53%, 12/15/47 | | | 225,502 | |
| | 130,094 | | | Citigroup Commercial Mortgage Trust, Series 2015- GC29, Class A3, 2.94%, 4/10/48 | | | 128,980 | |
| | | | | Total (Cost $3,146,149) | | | 3,061,039 | |
Principal
Amount | | | | | Fair Value | |
| MORTGAGE-BACKED SECURITIES — 35.17% |
| | | | | Fannie Mae — 22.28% | | | | |
| | 151,068 | | | 4.00%, 12/01/33, Pool #MA1689 | | | 150,504 | |
| | 37,308 | | | 4.00%, 12/01/36, Pool #MA2856 | | | 37,104 | |
| | 38,089 | | | 4.00%, 2/01/37, Pool #MA2914 | | | 37,887 | |
| | 351,322 | | | 1.50%, 12/01/40, Pool #MA4202 | | | 296,474 | |
| | 128,572 | | | 6.00%, 9/01/43, Pool #MA5158 | | | 132,007 | |
| | 35,274 | | | 4.00%, 5/01/47, Pool #BE9598 | | | 34,243 | |
| | 103,875 | | | 3.50%, 12/01/47, Pool #CA0833 | | | 97,979 | |
| | 47,174 | | | 5.00%, 8/01/48, Pool #CA2219 | | | 48,018 | |
| | 50,637 | | | 3.50%, 9/01/49, Pool #BJ9608 | | | 47,762 | |
| | 54,615 | | | 3.50%, 10/01/49, Pool #CA4431 | | | 51,449 | |
| | 82,967 | | | 3.00%, 3/01/50, Pool #FM2714 | | | 75,803 | |
| | 190,489 | | | 3.00%, 7/01/50, Pool #CA6421 | | | 173,568 | |
| | 190,818 | | | 3.00%, 7/01/50, Pool #CA6422 | | | 173,600 | |
| | 152,799 | | | 2.00%, 8/01/50, Pool #CA6799 | | | 128,219 | |
Principal
Amount | | | | | Fair Value | |
| MORTGAGE-BACKED SECURITIES — (continued) |
| | | | | Fannie Mae — (continued) | | | | |
| | 173,653 | | | 2.50%, 8/01/50, Pool #CA6707 | | | 153,028 | |
| | 242,400 | | | 2.00%, 9/01/50, Pool #CA7019 | | | 202,959 | |
| | 275,771 | | | 2.50%, 9/01/50, Pool #BQ2883 | | | 240,390 | |
| | 129,404 | | | 2.50%, 9/01/50, Pool #BQ0538 | | | 112,480 | |
| | 436,332 | | | 3.50%, 9/01/50, Pool #FS5284 | | | 411,553 | |
| | 341,989 | | | 2.00%, 10/01/50, Pool #CA7224 | | | 286,049 | |
| | 270,316 | | | 2.50%, 10/01/50, Pool #FM4638 | | | 235,701 | |
| | 250,553 | | | 2.50%, 10/01/50, Pool #FM4530 | | | 218,329 | |
| | 177,945 | | | 4.00%, 7/01/52, Pool #FS2516 | | | 171,041 | |
| | 401,747 | | | 4.50%, 11/01/52, Pool #FS6858 | | | 395,296 | |
| | 134,062 | | | 5.00%, 11/01/52, Pool #CB5278 | | | 134,043 | |
| | | | | | | $ | 4,045,486 | |
| | | | | Freddie Mac — 12.23% | | | | |
| | 88,191 | | | 4.00%, 12/01/35, Pool #ZA2401 | | | 87,714 | |
| | 83,865 | | | 3.50%, 6/01/36, Pool #ZA2414 | | | 81,761 | |
| | 53,505 | | | 4.00%, 3/01/39, Pool #ZA6403 | | | 52,970 | |
| | 181,053 | | | 2.00%, 12/01/40, Pool #RB5090 | | | 158,352 | |
| | 113,690 | | | 3.50%, 1/01/47, Pool #ZT0941 | | | 108,081 | |
| | 88,814 | | | 3.00%, 12/01/51, Pool #SD8184 | | | 79,969 | |
| | 108,468 | | | 3.50%, 6/01/52, Pool #SD2670 | | | 102,453 | |
| | 170,117 | | | 4.50%, 6/01/52, Pool #SD1265 | | | 167,983 | |
| | 168,256 | | | 4.50%, 8/01/52, Pool #SD1515 | | | 165,658 | |
| | 256,616 | | | 5.00%, 9/01/52, Pool #RA7936 | | | 256,938 | |
| | 174,468 | | | 4.00%, 2/01/53, Pool #SD7560 | | | 169,148 | |
| | 154,357 | | | 5.50%, 2/01/53, Pool #QF8052 | | | 156,733 | |
| | 182,224 | | | 5.00%, 3/01/53, Pool #SD2390 | | | 183,051 | |
| | 91,913 | | | 6.00%, 5/01/53, Pool #SD3072 | | | 94,422 | |
| | 157,109 | | | 6.00%, 7/01/53, Pool #SD3223 | | | 162,395 | |
| | 197,086 | | | 5.50%, 6/01/54, Pool #SD5479 | | | 200,233 | |
| | | | | | | | 2,227,861 | |
| | | | | Ginnie Mae II — 0.66% | | | | |
| | 25,393 | | | 5.00%, 11/20/38, Pool #4283 | | | 25,162 | |
| | 97,758 | | | 4.00%, 7/20/52, Pool #786280 | | | 94,720 | |
| | | | | | | | 119,882 | |
| | | | | Total (Cost $6,818,929) | | | 6,393,229 | |
Principal
Amount | | | | | Fair Value | |
| COLLATERALIZED MORTGAGE OBLIGATIONS — 21.83% |
| | 134,972 | | | Freddie Mac, Series 3787, Class LM, 4.00%, 1/15/31 | | | 135,213 | |
| | 72,074 | | | Freddie Mac, Series 4151, Class PA, 2.00%, 1/15/33 | | | 68,512 | |
| | 175,000 | | | Freddie Mac, Series 4172, Class KB, 3.00%, 2/15/33 | | | 164,283 | |
| | 232,165 | | | Ginnie Mae, Series 181, Class AV, 5.50%, 2/20/33 | | | 238,187 | |
| | 70,914 | | | Fannie Mae, Series 2013-44, Class DJ, 1.85%, 5/25/33 | | | 66,297 | |
| | 29,663 | | | Fannie Mae, Series 2003-44, Class Q, 3.50%, 6/25/33 | | | 29,166 | |
| | 159,780 | | | Ginnie Mae, Series 2023-79, Class DV, 5.50%, 5/20/34 | | | 164,999 | |
| | 118,968 | | | Fannie Mae, Series 2005-31, Class PB, 5.50%, 4/25/35 | | | 122,749 | |
| | 44,215 | | | Ginnie Mae, Series 2013-133, Class PL, 3.50%, 2/16/37 | | | 43,536 | |
| | 162,048 | | | Freddie Mac, Series 4863, Class AJ, 3.50%, 7/15/38 | | | 158,797 | |
| | 57,575 | | | Freddie Mac, Series 4122, Class BC, 3.00%, 5/15/40 | | | 55,210 | |
| | 157,503 | | | Ginnie Mae, Series 137, Class WA, 5.59%, 7/20/40 | | | 163,515 | |
| 22 | See accompanying notes to financial statements. | |
Sterling Capital Intermediate U.S. Government Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| COLLATERALIZED MORTGAGE OBLIGATIONS — (continued) |
| | 150,000 | | | Ginnie Mae, Series 81, Class AL, 4.50%, 8/20/40 | | | 149,808 | |
| | 184,228 | | | Fannie Mae, Series 2012-87, Class MB, 2.00%, 5/25/42 | | | 173,087 | |
| | 28,316 | | | Fannie Mae, Series 2016-49, Class DA, 3.50%, 10/25/42 | | | 28,076 | |
| | 128,026 | | | Fannie Mae, Series 2012-150, Class KA, 1.75%, 1/25/43 | | | 108,472 | |
| | 155,259 | | | Freddie Mac, Series 4173, Class NB, 3.00%, 3/15/43 | | | 143,137 | |
| | 315,000 | | | Freddie Mac, Series 4669, Class QY, 3.50%, 9/15/44 | | | 305,894 | |
| | 42,928 | | | Ginnie Mae, Series 2015-162, Class EB, 2.50%, 9/20/44 | | | 40,665 | |
| | 362,959 | | | Freddie Mac, Series 4601, Class NJ, 1.90%, 9/15/45 | | | 323,447 | |
| | 165,028 | | | Fannie Mae, Series 2016-49, Class PA, 3.00%, 9/25/45 | | | 156,105 | |
| | 98,674 | | | Freddie Mac, Series 4656, Class PA, 3.50%, 10/15/45 | | | 96,209 | |
| | 128,571 | | | Fannie Mae, Series 2016-24, Class CD, 1.75%, 2/25/46 | | | 109,683 | |
| | 215,873 | | | Fannie Mae, Series 2016-88, Class PK, 2.50%, 3/25/46 | | | 198,656 | |
| | 121,155 | | | Freddie Mac, Series 5380, Class A, 5.50%, 9/25/47 | | | 121,945 | |
| | 250,143 | | | Fannie Mae, Series 2019-25, Class PD, 2.50%, 5/25/48 | | | 225,426 | |
| | 202,111 | | | Freddie Mac, Series 4942, Class NC, 2.50%, 10/25/49 | | | 178,259 | |
| | 205,411 | | | Ginnie Mae, Series 2022-137, Class PA, 4.00%, 5/20/52 | | | 200,581 | |
| | | | | Total (Cost $4,087,121) | | $ | 3,969,914 | |
Principal
Amount | | | | | Fair Value | |
| U.S. GOVERNMENT AGENCIES — 9.98% |
| |
| | 1,000,000 | | | Fannie Mae, 6.25%, 5/15/29 | | | 1,110,164 | |
| | 500,000 | | | Fannie Mae, 7.13%, 1/15/30 | | | 581,660 | |
| | 60,000 | | | Federal Home Loan Banks, 1.90%, 10/07/31 | | | 51,916 | |
| | 86,000 | | | Federal Farm Credit Banks Funding Corp., 2.40%, 3/24/36 | | | 70,849 | |
| | | | | | | | | |
| | | | | Total (Cost $1,838,357) | | | 1,814,589 | |
Principal
Amount | | | | | Fair Value | |
| MUNICIPAL BONDS — 0.45% |
| | | | Wisconsin — 0.45% | | | | |
| $ | 80,000 | | | State of Wisconsin, TXB, Revenue Bonds, Pension Fundings Series A, (AGM), 5.70%,5/1/26(b) | | | 81,349 | |
| | | | Total (Cost $81,676) | | | 81,349 | |
Principal
Amount | | | | | Fair Value | |
| U.S. TREASURY BONDS & NOTES — 10.61% |
| | 730,000 | | | United States Treasury Note, 0.63%, 8/15/30 | | | 614,740 | |
| | | | | | | | | |
| | 1,150,200 | | | United States Treasury Note, 1.13%, 2/15/31 | | | 988,228 | |
| | 350,000 | | | United States Treasury Note, 2.75%, 8/15/32(b) | | | 326,703 | |
| | | | | | | | | |
| | | | | Total (Cost $1,960,499) | | | 1,929,671 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 1.31% |
| 239,017 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(d) | | | 239,017 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 1.31% - continued |
| |
| | | | Total Money Market Funds | | | | |
| | | | (Cost $239,017) | | $ | 239,017 | |
| | | | | |
| Total Investments— 99.58% | | | | |
| (Cost $18,778,491) | | | 18,106,592 | |
| Other Assets in Excess of Liabilities— 0.42% | | | 76,335 | |
| NET ASSETS — 100.00% | | $ | 18,182,927 | |
| (a) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. The security may be resold in transactions exempt from registration, normally to qualified institutional buyers. The Advisor, using Board approved procedures, has deemed these securities or a portion of these securities to be liquid. |
| (b) | All or a portion of the securities are held in a separate collateral account at US Bank. The total value of securities held in a separate collateral account as of the year ended September 30, 2024 is $285,717, which represents 1.6% of net assets. |
| (c) | The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2024. The maturity date reflected is the final maturity date. |
| (d) | Represents the current yield as of report date. |
| AGM | Assured Guaranty Municipal Corp. |
| TXB | Taxable Bond |
| | See accompanying notes to financial statements. | 23 |
Sterling Capital Total Return Bond Fund
Schedule of Investments
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — 28.20% |
| | | | | AEROSPACE & DEFENSE — 0.88% | | | | |
| $ | 1,667,000 | | | Boeing Co. (The), 6.30%, 5/01/29(a) | | $ | 1,752,917 | |
| | 646,000 | | | Howmet Aerospace, Inc., 4.85%, 10/15/31 | | | 658,458 | |
| | 2,684,000 | | | L3Harris Technologies, Inc., 5.40%, 7/31/33 | | | 2,799,913 | |
| | 2,729,000 | | | BAE Systems PLC, 5.30%, 3/26/34(a) | | | 2,833,792 | |
| | 2,573,000 | | | Boeing Co. (The), 5.71%, 5/01/40 | | | 2,507,549 | |
| | 2,961,000 | | | RTX Corp., 4.50%, 6/01/42 | | | 2,751,790 | |
| | | | | | | | 13,304,419 | |
| | | | | ASSET MANAGEMENT — 0.47% | | | | |
| | 3,430,000 | | | Apollo Debt Solutions BDC, 6.90%, 4/13/29(a) | | | 3,564,596 | |
| | 3,464,000 | | | Blackstone Private Credit Fund, 5.95%, 7/16/29(a) | | | 3,525,084 | |
| | | | | | | | 7,089,680 | |
| | | | | AUTOMOBILES — 0.08% | | | | |
| | 1,149,000 | | | Ford Motor Co., 6.10%, 8/19/32 | | | 1,176,749 | |
| | | | | | | | | |
| | | | | AUTOMOTIVE — 0.14% | | | | |
| | 2,088,000 | | | General Motors Financial Co., Inc., 5.85%, 4/06/30 | | | 2,174,524 | |
| | | | | | | | | |
| | | | | BANKS — 4.52% | | | | |
| | 2,800,000 | | | Lloyds Banking Group PLC, 4.58%, 12/10/25 | | | 2,790,013 | |
| | 3,659,000 | | | Macquarie Group Ltd., 1.34%, 1/12/27(a)(b) | | | 3,509,353 | |
| | 2,864,000 | | | Fifth Third Bancorp, 4.06%, 4/25/28(b) | | | 2,830,802 | |
| | 2,893,000 | | | Wells Fargo & Co., MTN, 4.81%, 7/25/28(b) | | | 2,927,582 | |
| | 4,961,000 | | | Bank of America Corp., 3.42%, 12/20/28(b)(c) | | | 4,824,699 | |
| | 1,823,000 | | | Mitsubishi UFJ Financial Group, Inc., 5.42%, 2/22/29(c) | | | 1,883,150 | |
| | 3,242,000 | | | Huntington Bancshares, Inc., 6.21%, 8/21/29 | | | 3,427,226 | |
| | 3,845,000 | | | KeyCorp, 2.55%, 10/01/29 | | | 3,481,910 | |
| | 5,953,000 | | | JPMorgan Chase & Co., 5.01%, 1/23/30(c) | | | 6,101,365 | |
| | 1,997,000 | | | Citizens Financial Group, Inc., 5.84%, 1/23/30(c) | | | 2,076,037 | |
| | 1,867,000 | | | Comerica, Inc., 5.98%, 1/30/30 (SOFR + 215.50 bps)(c) | | | 1,923,370 | |
| | 3,571,000 | | | First Citizens BancShares, Inc., 3.38%, 3/15/30(b) | | | 3,495,199 | |
| | 4,192,000 | | | Sumitomo Mitsui Financial Group, Inc., 2.13%, 7/08/30 | | | 3,695,354 | |
| | 3,554,000 | | | Toronto-Dominion Bank (The), 3.63%, 9/15/31 (USSW5 + 220.50 bps)(b) | | | 3,487,332 | |
| | 2,110,000 | | | Westpac Banking Corp., GMTN, 4.32%, 11/23/31 | | | 2,094,530 | |
| | 3,464,000 | | | Citigroup, Inc., 3.06%, 1/25/33(c) | | | 3,092,003 | |
| | 4,496,000 | | | JPMorgan Chase & Co., 4.91%, 7/25/33(c) | | | 4,587,841 | |
| | 1,760,000 | | | US Bancorp, 5.85%, 10/21/33(b)(c) | | | 1,875,405 | |
| | 5,639,000 | | | Wells Fargo & Co., 5.39%, 4/24/34 (SOFR + 202 bps)(b) (c) | | | 5,844,124 | |
| | 4,433,000 | | | Bank of America Corp., 5.29%, 4/25/34(b)(c) | | | 4,599,525 | |
| | | | | | | | 68,546,820 | |
| | | | | BEVERAGES — 0.31% | | | | |
| | 2,641,000 | | | Bacardi Ltd / Bacardi-Martini BV, 5.40%, 6/15/33(a) | | | 2,686,366 | |
| | 2,144,000 | | | Anheuser-Busch InBev Finance, Inc., 4.90%, 2/01/46 | | | 2,105,961 | |
| | | | | | | | 4,792,327 | |
| | | | | BIOTECH & PHARMA — 0.32% | | | | |
| | 2,801,000 | | | CSL Finance PLC, 4.25%, 4/27/32(a) | | | 2,754,574 | |
| | 2,085,000 | | | Merck & Co., Inc., 4.75%, 5/19/33 | | | 2,126,172 | |
| | | | | | | | 4,880,746 | |
| | | | | BIOTECHNOLOGY — 0.27% | | | | |
| | 3,939,000 | | | Amgen, Inc., 5.25%, 3/02/30 | | | 4,105,109 | |
| | | | | | | | | |
| | | | | CABLE & SATELLITE — 0.27% | | | | |
| | 2,082,000 | | | Charter Communications Operating LLC, 6.10%, 6/01/29 | | | 2,153,720 | |
| | 1,900,000 | | | Charter Communications Operating LLC, 6.55%, 6/01/34 | | | 1,976,183 | |
| | | | | | | | 4,129,903 | |
| | | | | CAPITAL MARKETS — 1.92% | | | | |
| | 2,477,000 | | | Ares Capital Corp., 3.88%, 1/15/26 | | | 2,440,709 | |
| | 2,125,000 | | | Blue Owl Capital Corp., 3.40%, 7/15/26 | | | 2,056,856 | |
| | 1,515,000 | | | Barings BDC, Inc., 3.30%, 11/23/26 | | | 1,445,118 | |
| | 4,031,000 | | | Morgan Stanley, 3.59%, 7/22/28 | | | 3,948,792 | |
| | 1,893,000 | | | Ares Management Corp., 6.38%, 11/10/28 | | | 2,035,177 | |
| | 1,805,000 | | | Jefferies Financial Group, Inc., 4.15%, 1/23/30 | | | 1,761,587 | |
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) |
| | | | | CAPITAL MARKETS — (continued) | |
| $ | 3,509,000 | | | BlackRock, Inc., 1.90%, 1/28/31(d) | | $ | 3,063,476 | |
| | 4,343,000 | | | FactSet Research Systems, Inc., 3.45%, 3/01/32 | | | 3,948,552 | |
| | 4,937,000 | | | UBS Group AG, 4.99%, 8/05/33(a)(c) | | | 4,993,387 | |
| | 3,357,000 | | | Morgan Stanley, MTN, 5.25%, 4/21/34(b)(c) | | | 3,463,991 | |
| | | | | | | | 29,157,645 | |
| | | | | CHEMICALS — 0.18% | | | | |
| | 2,657,000 | | | LYB International Finance III LLC, 5.50%, 3/01/34 | | | 2,761,036 | |
| | | | | | | | | |
| | | | | CONSTRUCTION MATERIALS — 0.36% | |
| | 3,274,000 | | | CRH America Finance, Inc., 5.40%, 5/21/34 | | | 3,410,315 | |
| | 2,321,000 | | | Vulcan Materials Co., 4.50%, 6/15/47 | | | 2,084,069 | |
| | | | | | | | 5,494,384 | |
| | | | | CONSUMER SERVICES — 0.33% | | | | |
| | 2,317,000 | | | Duke University, 3.30%, 10/01/46 | | | 1,825,599 | |
| | 3,898,000 | | | Lehigh University, 3.48%, 11/15/46 | | | 3,134,034 | |
| | | | | | | | 4,959,633 | |
| | | | | CONTAINERS & PACKAGING — 0.18% | |
| | 2,617,000 | | | Smurfit Kappa Treasury ULC, 5.44%, 4/03/34(a) | | | 2,728,398 | |
| | | | | | | | | |
| | | | | DIVERSIFIED FINANCIAL SERVICES — 0.14% | |
| | 2,256,000 | | | Corebridge Financial, Inc., 3.90%, 4/05/32 | | | 2,113,969 | |
| | | | | | | | | |
| | | | | DIVERSIFIED TELECOMMUNICATION SERVICES — 0.25% |
| | 4,544,000 | | | AT&T, Inc., Class B, 3.50%, 6/01/41 | | | 3,715,960 | |
| | | | | | | | | |
| | | | | ELECTRIC UTILITIES — 2.35% | | | | |
| | 4,099,000 | | | NextEra Energy Capital Holdings, Inc., 2.44%, 1/15/32 | | | 3,548,631 | |
| | 2,971,000 | | | Entergy Louisiana LLC, 2.35%, 6/15/32 | | | 2,557,290 | |
| | 3,881,000 | | | Southern California Edison Co., 5.95%, 11/01/32 | | | 4,215,259 | |
| | 2,683,000 | | | DTE Electric Co., 5.20%, 4/01/33 | | | 2,806,396 | |
| | 2,688,000 | | | Georgia Power Co., 4.95%, 5/17/33 | | | 2,760,812 | |
| | 2,658,000 | | | CenterPoint Energy Houston Electric LLC, 5.15%, 3/01/34 | | | 2,749,189 | |
| | 2,206,000 | | | Duke Energy Florida LLC, 6.40%, 6/15/38 | | | 2,517,977 | |
| | 3,106,000 | | | Indiana Michigan Power Co., 4.55%, 3/15/46 | | | 2,803,232 | |
| | 4,927,000 | | | Duke Energy Progress LLC, 3.60%, 9/15/47 | | | 3,876,909 | |
| | 3,916,000 | | | Puget Sound Energy, Inc., 4.22%, 6/15/48 | | | 3,342,563 | |
| | 2,037,000 | | | Entergy Louisiana LLC, 5.70%, 3/15/54 | | | 2,166,269 | |
| | 2,000,000 | | | Southern California Edison Co., 5.75%, 4/15/54 | | | 2,136,341 | |
| | | | | | | | 35,480,868 | |
| | | | | ENERGY EQUIPMENT & SERVICES — 0.13% | |
| | 2,018,000 | | | Halliburton Co., 4.85%, 11/15/35 | | | 2,012,569 | |
| | | | | | | | | |
| | | | | ENTERTAINMENT — 0.18% | | | | |
| | 2,653,000 | | | Take-Two Interactive Software, Inc., 5.00%, 3/28/26 | | | 2,677,955 | |
| | | | | | | | | |
| | | | | ENTERTAINMENT CONTENT — 0.16% | |
| | 2,700,000 | | | Warnermedia Holdings, Inc., 4.28%, 3/15/32 | | | 2,407,123 | |
| | | | | | | | | |
| | | | | FINANCIAL SERVICES — 0.33% | | | | |
| | 2,074,000 | | | KKR Group Finance Co. III LLC, 5.13%, 6/01/44(a) | | | 2,005,391 | |
| | 3,890,000 | | | Blue Owl Finance LLC, 4.13%, 10/07/51(a) | | | 2,923,921 | |
| | | | | | | | 4,929,312 | |
| | | | | FOOD — 0.24% | | | | |
| | 3,820,000 | | | Kraft Heinz Foods Co., 4.88%, 10/01/49 | | | 3,586,492 | |
| | | | | | | | | |
| | | | | GAS & WATER UTILITIES — 0.13% | |
| | 2,396,000 | | | Sempra Global, 3.25%, 1/15/32(a) | | | 2,043,996 | |
| | | | | | | | | |
| | | | | HEALTH CARE EQUIPMENT & SUPPLIES — 0.30% |
| | 4,206,000 | | | GE HealthCare Technologies, Inc., 5.86%, 3/15/30 | | | 4,499,343 | |
| | | | | | | | | |
| | | | | HEALTH CARE FACILITIES & SERVICES — 0.28% | |
| | 1,446,000 | | | IQVIA, Inc., 6.25%, 2/01/29 | | | 1,537,746 | |
| | 2,671,000 | | | HCA, Inc., 5.50%, 6/01/33 | | | 2,771,373 | |
| | | | | | | | 4,309,119 | |
| | | | | | | | | |
| | | | | HOTELS, RESTAURANTS & LEISURE — 0.16% | |
| | 2,468,000 | | | Carnival Corp., 4.00%, 8/01/28(a) | | | 2,381,728 | |
| 24 | See accompanying notes to financial statements. | |
Sterling Capital Total Return Bond Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) |
| | | | | HOUSEHOLD DURABLES — 0.21% | |
| $ | 3,335,000 | | | Meritage Homes Corp., 3.88%, 4/15/29(a) | | $ | 3,186,781 | |
| | | | | | | | | |
| | | | | HOUSEHOLD PRODUCTS — 0.14% | |
| | 2,275,000 | | | SC Johnson & Son, Inc., 4.75%, 10/15/46(a) | | | 2,095,284 | |
| | | | | | | | | |
| | | | | INSTITUTIONAL FINANCIAL SERVICES — 0.19% | |
| | 2,730,000 | | | LPL Holdings, Inc., 6.75%, 11/17/28 | | | 2,931,251 | |
| | | | | | | | | |
| | | | | INSURANCE — 2.51% | | | | |
| | 2,806,000 | | | SBL Holdings, Inc., 5.13%, 11/13/26(a) | | | 2,778,339 | |
| | 2,141,000 | | | F&G Annuities & Life, Inc., 7.40%, 1/13/28 | | | 2,261,550 | |
| | 2,147,000 | | | GA Global Funding Trust, 5.50%, 1/08/29(a) | | | 2,224,939 | |
| | 2,214,000 | | | AXIS Specialty Finance LLC, 3.90%, 7/15/29 | | | 2,147,449 | |
| | 2,535,000 | | | RGA Global Funding, 5.50%, 1/11/31(a) | | | 2,648,412 | |
| | 1,722,000 | | | SBL Holdings, Inc., 5.00%, 2/18/31(a) | | | 1,573,411 | |
| | 1,793,000 | | | Sammons Financial Group, Inc., 3.35%, 4/16/31(a) | | | 1,561,751 | |
| | 2,662,000 | | | Enstar Group Ltd., 3.10%, 9/01/31 | | | 2,297,767 | |
| | 4,740,000 | | | Athene Holding Ltd., 5.88%, 1/15/34 | | | 4,951,370 | |
| | 1,715,000 | | | CNO Financial Group, Inc., 6.45%, 6/15/34 | | | 1,807,607 | |
| | 2,480,000 | | | Transatlantic Holdings, Inc., 8.00%, 11/30/39 | | | 3,254,432 | |
| | 3,454,000 | | | Meiji Yasuda Life Insurance Co., 5.20%, 10/20/45(a) | | | 3,448,613 | |
| | 3,973,000 | | | Global Atlantic Fin Co., 6.75%, 3/15/54(a) | | | 4,221,284 | |
| | 2,770,000 | | | Nippon Life Insurance Co., 5.95%, 4/16/54(a) | | | 2,888,611 | |
| | | | | | | | 38,065,535 | |
| | | | | INTERACTIVE MEDIA & SERVICES — 0.18% | |
| | 2,677,000 | | | Meta Platforms, Inc., 5.40%, 8/15/54 | | | 2,800,888 | |
| | | | | | | | | |
| | | | | INTERNET & DIRECT MARKETING RETAIL — 0.15% | |
| | 3,517,000 | | | Amazon.com, Inc., 2.70%, 6/03/60(d) | | | 2,255,126 | |
| | | | | | | | | |
| | | | | INTERNET MEDIA & SERVICES — 0.16% | |
| | 2,415,000 | | | Uber Technologies, Inc., 4.50%, 8/15/29(a) | | | 2,393,513 | |
| | | | | | | | | |
| | | | | IT SERVICES — 0.19% | | | | |
| | 2,870,000 | | | Gartner, Inc., 4.50%, 7/01/28(a) | | | 2,840,482 | |
| | | | | | | | | |
| | | | | METALS & MINING — 0.33% | | | | |
| | 3,028,000 | | | Newmont Corp., 2.80%, 10/01/29 | | | 2,837,627 | |
| | 2,088,000 | | | Steel Dynamics, Inc., 5.38%, 8/15/34 | | | 2,152,642 | |
| | | | | | | | 4,990,269 | |
| | | | | MULTI-UTILITIES — 0.56% | |
| | 2,026,000 | | | National Grid PLC, 5.81%, 6/12/33 | | | 2,166,902 | |
| | 4,084,000 | | | Sempra, 3.80%, 2/01/38 | | | 3,559,566 | |
| | 3,070,000 | | | CMS Energy Corp., 4.70%, 3/31/43 | | | 2,817,707 | |
| | | | | | | | 8,544,175 | |
| | | | | OIL & GAS PRODUCERS — 0.49% | |
| | 2,108,000 | | | Cheniere Corpus Christi Holdings LLC, 3.70%, 11/15/29 | | | 2,025,442 | |
| | 2,350,000 | | | Woodside Finance Ltd, 5.10%, 9/12/34 | | | 2,331,279 | |
| | 3,194,000 | | | Transcanada Trust, 5.60%, 3/07/82(c) | | | 3,105,938 | |
| | | | | | | | 7,462,659 | |
| | | | | OIL, GAS & CONSUMABLE FUELS — 1.70% | |
| | 2,167,000 | | | Cheniere Energy, Inc., 4.63%, 10/15/28 | | | 2,153,803 | |
| | 1,010,000 | | | Hess Corp., 7.88%, 10/01/29(d) | | | 1,155,006 | |
| | 3,568,000 | | | Aker BP ASA, 3.75%, 1/15/30(a) | | | 3,400,369 | |
| | 2,415,000 | | | Pioneer Natural Resources Co., 1.90%, 8/15/30 | | | 2,115,932 | |
| | 1,927,000 | | | Ovintiv, Inc., 6.25%, 7/15/33 | | | 2,037,328 | |
| | 1,936,000 | | | Energy Transfer LP, 6.55%, 12/01/33 | | | 2,137,538 | |
| | 1,896,000 | | | Targa Resources Corp., 6.50%, 3/30/34 | | | 2,093,569 | |
| | 2,037,000 | | | Diamondback Energy, Inc., 5.40%, 4/18/34 | | | 2,077,680 | |
| | 3,790,000 | | | MPLX LP, 4.50%, 4/15/38 | | | 3,498,897 | |
| | 2,583,000 | | | Apache Corp., 5.10%, 9/01/40 | | | 2,298,701 | |
| | 2,318,000 | | | ONEOK, Inc., 7.15%, 1/15/51 | | | 2,672,119 | |
| | | | | | | | 25,640,942 | |
| | | | | PERSONAL PRODUCTS — 0.16% | |
| | 2,295,000 | | | Kenvue, Inc., 5.00%, 3/22/30 | | | 2,395,591 | |
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) |
| | | | | REIT — 2.05% | | | | |
| $ | 3,279,000 | | | American Tower Trust #1, Series 2018-1, Class A, 3.65%, 3/23/28(a),(d) | | $ | 3,184,179 | |
| | 2,480,000 | | | Retail Opportunity Investments Partnership LP, 6.75%, 10/15/28 | | | 2,652,097 | |
| | 1,361,000 | | | LXP Industrial Trust, 6.75%, 11/15/28 | | | 1,455,368 | |
| | 2,764,000 | | | LXP Industrial Trust, 2.70%, 9/15/30 | | | 2,456,267 | |
| | 2,961,000 | | | Store Capital LLC, 2.75%, 11/18/30 | | | 2,587,763 | |
| | 2,254,000 | | | Tanger Properties LP, 2.75%, 9/01/31 | | | 1,939,501 | |
| | 1,870,000 | | | Invitation Homes Operating Partnership LP, 4.15%, 4/15/32 | | | 1,784,829 | |
| | 2,380,000 | | | Prologis Targeted US Logistics Fund LP, 5.50%, 4/01/34(a) | | | 2,489,789 | |
| | 2,728,000 | | | VICI Properties LP, 5.75%, 4/01/34 | | | 2,857,984 | |
| | 2,460,000 | | | Phillips Edison Grocery Center, 4.95%, 1/15/35 | | | 2,414,090 | |
| | 5,037,000 | | | SBA Tower Trust, 3.87%, 10/15/49(a) | | | 5,033,523 | |
| | 2,124,000 | | | Alexandria Real Estate Equities, Inc., 5.63%, 5/15/54 | | | 2,171,853 | |
| | | | | | | | 31,027,243 | |
| | | | | RETAIL - DISCRETIONARY — 0.18% | |
| | 3,160,000 | | | ERAC USA Finance LLC, 4.20%, 11/01/46(a) | | | 2,770,238 | |
| | | | | | | | | |
| | | | | SEMICONDUCTORS — 0.14% | |
| | 2,130,000 | | | Broadcom, Inc., 4.15%, 11/15/30 | | | 2,099,568 | |
| | | | | | | | | |
| | | | | SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.75% | |
| | 2,613,000 | | | NVIDIA Corp., 2.85%, 4/01/30 | | | 2,469,948 | |
| | 2,355,000 | | | Marvell Technology, Inc., 2.95%, 4/15/31 | | | 2,125,392 | |
| | 1,527,000 | | | Marvell Technology, Inc., 5.95%, 9/15/33 | | | 1,637,813 | |
| | 2,059,000 | | | KLA Corp., 4.70%, 2/01/34 | | | 2,098,798 | |
| | 3,093,000 | | | Broadcom, Inc., 4.93%, 5/15/37(a) | | | 3,086,528 | |
| | | | | | | | 11,418,479 | |
| | | | | SOFTWARE — 0.34% | | | | |
| | 2,815,000 | | | Oracle Corp., 4.90%, 2/06/33 | | | 2,864,522 | |
| | 2,253,000 | | | Concentrix Corp., 6.85%, 8/02/33 | | | 2,331,585 | |
| | | | | | | | 5,196,107 | |
| | | | | SPECIALTY FINANCE — 0.93% | | | | |
| | 3,445,000 | | | Avolon Holdings Funding Ltd., 5.75%, 3/01/29(a) | | | 3,549,436 | |
| | 2,094,000 | | | Radian Group, Inc., 6.20%, 5/15/29 | | | 2,186,732 | |
| | 2,330,000 | | | Penske Truck Leasing Co. Lp, 6.20%, 6/15/30(a) | | | 2,513,845 | |
| | 3,205,000 | | | AerCap Ireland Capital DAC, 6.15%, 9/30/30 | | | 3,450,217 | |
| | 2,337,000 | | | First American Financial Corp., 5.45%, 9/30/34 | | | 2,323,885 | |
| | | | | | | | 14,024,115 | |
| | | | | SPECIALTY RETAIL — 0.13% | |
| | 1,909,000 | | | Home Depot, Inc. (The), 4.95%, 6/25/34 | | | 1,982,464 | |
| | | | | | | | | |
| | | | | TECHNOLOGY HARDWARE — 0.36% | |
| | 3,328,000 | | | Hewlett Packard Enterprise Co., 4.85%, 10/15/31 | | | 3,317,561 | |
| | 2,028,000 | | | Dell International LLC / EMC Corp., 5.40%, 4/15/34 | | | 2,111,229 | |
| | | | | | | | 5,428,790 | |
| | | | | TECHNOLOGY SERVICES — 0.33% | |
| | 2,684,000 | | | S&P Global, Inc., 5.25%, 9/15/33 | | | 2,842,570 | |
| | 2,010,000 | | | Fiserv, Inc., 5.45%, 3/15/34 | | | 2,099,296 | |
| | | | | | | | 4,941,866 | |
| | | | | TELECOMMUNICATIONS — 0.67% | |
| | 19,375 | | | Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC, 4.74%, 3/20/25(a) | | | 19,325 | |
| | 2,611,000 | | | Sprint Capital Corp., 8.75%, 3/15/32 | | | 3,236,188 | |
| | 2,750,000 | | | AT&T, Inc., 2.55%, 12/01/33 | | | 2,315,383 | |
| | 4,208,000 | | | T-Mobile USA, Inc., 6.00%, 6/15/54 | | | 4,627,699 | |
| | | | | | | | 10,198,595 | |
| | | | | TOBACCO — 0.14% | | | | |
| | 1,988,000 | | | Philip Morris International, Inc., 5.63%, 9/07/33 | | | 2,114,445 | |
| | | | | | | | | |
| | | | | TOBACCO & CANNABIS — 0.13% | |
| | 1,823,000 | | | BAT Capital Corp., 6.42%, 8/02/33 | | | 2,001,571 | |
| | See accompanying notes to financial statements. | 25 |
Sterling Capital Total Return Bond Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) |
| | | | TRANSPORTATION & LOGISTICS — 0.20% | |
| $ | 3,094,000 | | | Burlington Northern Santa Fe LLC, 4.95%, 9/15/41 | | $ | 3,091,385 | |
| | | | Total (Cost $420,997,010) | | | 427,357,169 | |
Principal
Amount | | | | | Fair Value | |
| ASSET BACKED SECURITIES — 11.34% |
| | 1,403,000 | | | Avis Budget Rental Car Funding AESOP LLC, Series 2A , Class A, 2.02%, 2/20/27(a) | | | 1,359,607 | |
| | 8,720,000 | | | Carvana Auto Receivables Trust, Series P2 , Class B, 1.27%, 3/10/27 | | | 8,329,616 | |
| | 6,250,000 | | | Avis Budget Rental Car Funding AESOP LLC, Series 1A , Class A, 1.38%, 8/20/27(a) | | | 5,925,509 | |
| | 5,730,000 | | | CarMax Auto Owner Trust, Series 4 , Class A4, 5.96%, 5/15/29 | | | 5,986,189 | |
| | 7,101,000 | | | Enterprise Fleet Financing, Series 1 , Class A3, 5.42%, 10/22/29(a) | | | 7,241,721 | |
| | 13,050,000 | | | OneMain Direct Auto Receivables Trust, Series 1A , Class A, 5.41%, 11/14/29(a) | | | 13,292,336 | |
| | 4,543,000 | | | Avis Budget Rental Car Funding AESOP LLC, Series 8A , Class A, 6.02%, 2/20/30(a) | | | 4,778,283 | |
| | 6,364,000 | | | Verizon Master Trust, Series 3 , Class A1A, 5.34%, 4/22/30 | | | 6,540,364 | |
| | 3,127,000 | | | Avis Budget Rental Car Funding AESOP LLC, Series 2023-1A , Class A, 5.36%, 6/20/30(a) | | | 3,212,134 | |
| | 17,494,000 | | | Hertz Vehicle Financing III LLC, Series 2A , Class A, 5.48%, 1/27/31(a) | | | 17,933,478 | |
| | 5,625,000 | | | ARI Fleet Lease Trust, Series B , Class A3, 5.89%, 7/15/32(a) | | | 5,825,739 | |
| | 305,592 | | | New Century Home Equity Loan Trust, Series 4 , Class M1, 6.09%, 10/25/33(d) | | | 308,507 | |
| | 21,820 | | | RAAC Trust, STEP, Series 2004-SP1 , Class AI3, 6.12%, 3/25/34 | | | 21,558 | |
| | 11,959,000 | | | Ford Credit Auto Owner Trust, Series 2 , Class A, 1.53%, 5/15/34(a) | | | 11,304,543 | |
| | 1,452,684 | | | Saxon Asset Securities Trust, Series 3 , Class M1, 5.87%, 12/26/34(c) | | | 1,399,558 | |
| | 3,950,000 | | | OneMain Financial Issuance Trust, Series S1 , Class A, 4.13%, 5/14/35(a) | | | 3,928,644 | |
| | 20,805,000 | | | OneMain Financial Issuance Trust, Series 1A , Class A1, 1.55%, 6/16/36(a) | | | 19,515,128 | |
| | 4,830,150 | | | OPG Trust, Series 2021-PORT , Class C, 6.04%, 10/15/36(a) | | | 4,768,264 | |
| | 2,863,975 | | | BX Trust, Series 2021-RISE , Class C, 6.66%, 11/15/36(a) | | | 2,821,015 | |
| | 4,791,000 | | | Citibank Credit Card Issuance Trust, Series A3 , Class A3, 6.15%, 6/15/39 | | | 5,238,545 | |
| | 4,464,000 | | | MVW 2024-2 LLC, Series 2A , Class A, 4.43%, 3/20/42(a) | | | 4,449,185 | |
| | 1,796,000 | | | BANK5 Trust, Series 2023-5YR3 , Class AS, 7.56%, 9/15/56 | | | 1,939,121 | |
| | 14,887,000 | | | SMB Private Education Loan Trust, Series 2024-E , Class A-1A, 5.09%, 10/16/56(a) | | | 15,092,241 | |
| | 9,898,000 | | | BANK5 Trust, Series 2024-5YR6 , Class A3, 6.23%, 5/15/57 | | | 10,530,780 | |
| | 9,377,000 | | | BANK5 Trust, Series 2024-5YR6 , Class AS, 6.79%, 5/15/57 | | | 10,008,037 | |
| | | | | Total (Cost $172,100,347) | | | 171,750,102 | |
Principal
Amount | | | | | Fair Value | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES — 10.54% |
| | 2,874,151 | | | Fannie Mae-Aces, Series 2017-M8, Class A2, 3.06%, 5/25/27 | | | 2,805,809 | |
Principal
Amount | | | | | Fair Value | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) |
| $ | 4,264,153 | | | FRESB Mortgage Trust, Series SB52, Class A10F, 3.48%, 6/25/28 | | $ | 4,150,802 | |
| | 1,396,000 | | | Benchmark Mortgage Trust, Series V6, Class A3, 5.93%, 3/15/29 | | | 1,465,676 | |
| | 5,293,000 | | | Benchmark Mortgage Trust, Series V6, Class AS, 6.38%, 3/15/29 | | | 5,558,529 | |
| | 1,827,274 | | | Fannie Mae-Aces, Series 2019-M9, Class A2, 2.94%, 6/25/29 | | | 1,745,669 | |
| | 3,386,000 | | | Freddie Mac Multifamily Structured Pass Through, Series K153, Class A3, 3.12%, 10/25/31 | | | 3,175,506 | |
| | 8,536,000 | | | Freddie Mac Multifamily Structured Pass Through, Series K155, Class A3, 3.75%, 4/25/33 | | | 8,266,540 | |
| | 44,265 | | | CSFB Mortgage-Backed Pass-Through Certificates, Series 1, Class 2A1, 6.50%, 2/25/34 | | | 44,317 | |
| | 39,637 | | | CHL Mortgage Pass-Through Trust, Series 3, Class A4, 5.75%, 4/25/34 | | | 39,082 | |
| | 9,057 | | | Citigroup Mortgage Loan Trust, Inc., Series NCM2, Class 3CB2, 6.50%, 9/01/34(d) | | | 9,018 | |
| | 14,937 | | | Adjustable Rate Mortgage Trust, Series 5, Class 4A1, 5.03%, 4/25/35 | | | 14,996 | |
| | 130 | | | Citicorp Residential Mortgage Trust, STEP, Series 2007-2, Class A6, 6.77%, 6/25/37 | | | 129 | |
| | 3,080,414 | | | ELP Commercial Mortgage Trust, Series 2021-ELP, Class C, 6.53%, 11/15/38(a)(c) | | | 3,066,861 | |
| | 3,207,646 | | | BX Commercial Mortgage Trust, Series 2021-ACNT, Class C, 6.71%, 11/15/38(a)(c) | | | 3,185,593 | |
| | 2,949,275 | | | BX Commercial Mortgage Trust, Series 2021-CIP, Class B, 6.48%, 12/15/38(a) | | | 2,923,469 | |
| | 2,597,776 | | | SMR Mortgage Trust, Series 2022-IND, Class A, 6.99%, 2/15/39(a) | | | 2,552,461 | |
| | 110,487 | | | GS Mortgage Securities Trust, Series 2010-C1, Class B, 5.15%, 8/10/43(a) | | | 110,130 | |
| | 110,572 | | | Freddie Mac, Series 4710, Class GA, 3.00%, 3/15/44 | | | 109,337 | |
| | 1,409,990 | | | JP Morgan Chase Commercial Mortgage, Series C3, Class B, 5.01%, 2/15/46(a)(c) | | | 1,318,355 | |
| | 105,140 | | | COMM Mortgage Trust, 3.69%, 8/10/47 | | | 104,927 | |
| | 198,908 | | | GS Mortgage Securities Trust, 3.93%, 9/01/47 | | | 198,604 | |
| | 953,592 | | | COMM Mortgage Trust, Series 2014-CCRE20, Class A4, 3.59%, 11/10/47 | | | 952,033 | |
| | 1,337,000 | | | CSAIL 2015-C4 Commercial Mortgage Trust, Series C4, Class A4, 3.81%, 11/15/48 | | | 1,321,509 | |
| | 2,812,000 | | | Wells Fargo Commercial Mortgage Trust, Series P2, Class A4, 3.81%, 12/15/48 | | | 2,780,688 | |
| | 2,209,000 | | | GS Mortgage Securities Trust, Series 2016-GS4, Class A4, 3.44%, 11/10/49 | | | 2,159,119 | |
| | 4,314,000 | | | CD Mortgage Trust, Series 2016-CD2, Class A4, 3.53%, 11/10/49 | | | 4,146,119 | |
| | 2,562,000 | | | Morgan Stanley Capital I Trust, Series BNK2, Class A4, 3.05%, 11/15/49 | | | 2,448,113 | |
| | 1,517,000 | | | JP Morgan Chase Commercial Mortgage, Series JP4, Class A4, 3.65%, 12/15/49(c) | | | 1,470,003 | |
| | 5,198,000 | | | Morgan Stanley Bank of America Merrill Lynch Trust, Series C32, Class A4, 3.72%, 12/15/49 | | | 5,087,113 | |
| | 723,000 | | | Wells Fargo Commercial Mortgage Trust, Series C37, Class A5, 3.79%, 12/15/49 | | | 710,403 | |
| | 530,000 | | | CD Mortgage Trust, Series 2017-CD3, Class A4, 3.63%, 2/10/50 | | | 502,780 | |
| | 3,742,000 | | | JPMCC Commercial Mortgage Securities Trust, Series JP5, Class A5, 3.72%, 3/15/50 | | | 3,645,121 | |
| | 1,337,000 | | | Citigroup Commercial Mortgage Trust, Series P7, Class A4, 3.71%, 4/14/50 | | | 1,292,553 | |
| | 7,241,000 | | | COMM Mortgage Trust, Series COR2, Class A3, 3.51%, 9/10/50 | | | 6,964,478 | |
| 26 | See accompanying notes to financial statements. | |
Sterling Capital Total Return Bond Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) |
| $ | 8,591,000 | | | Wells Fargo Commercial Mortgage Trust, Series C40, Class A4, 3.58%, 10/15/50 | | $ | 8,352,500 | |
| | 8,910,000 | | | Morgan Stanley Capital I, Series HR2, Class A4, 3.59%, 12/15/50 | | | 8,655,705 | |
| | 9,850,000 | | | Morgan Stanley Capital I Trust, Series H3, Class A5, 4.18%, 7/15/51 | | | 9,683,997 | |
| | 3,447,000 | | | CFCRE Commercial Mortgage Trust, Series C7, Class A3, 3.84%, 12/10/54 | | | 3,370,259 | |
| | 3,127,000 | | | Benchmark Mortgage Trust, Series V2, Class AS, 6.54%, 5/15/55 | | | 3,270,915 | |
| | 8,156,000 | | | Benchmark 2024-V7 Mortgage Trust, Series V7, Class A3, 6.23%, 5/15/56 | | | 8,696,596 | |
| | 6,548,000 | | | Benchmark 2024-V7 Mortgage Trust, Series V7, Class AS, 6.53%, 5/15/56 | | | 6,924,293 | |
| | 8,434,000 | | | Benchmark Mortgage Trust, Series V5, Class A3, 5.81%, 1/10/57 | | | 8,827,617 | |
| | 2,940,000 | | | BBCMS Mortgage Trust, Series 5C25, Class A3, 5.95%, 3/15/57 | | | 3,092,979 | |
| | 2,002,000 | | | BBCMS Mortgage Trust 2024-5C25, Series 5C25, Class AS, 6.36%, 3/15/57 | | | 2,099,555 | |
| | 3,398,000 | | | BBCMS Mortgage Trust 2024-C26, Series C26, Class A5, 5.83%, 5/15/57 | | | 3,701,027 | |
| | 3,049,000 | | | BBCMS Mortgage Trust 2024-C26, Series C26, Class AS, 6.09%, 5/15/57 | | | 3,264,623 | |
| | 7,717,000 | | | BMO 2024-C9 Mortgage Trust, Series C9, Class A5, 5.76%, 7/15/57 | | | 8,346,398 | |
| | 6,115,000 | | | BMO Mortgage Trust, Series 2024-C9, Class AS, 6.13%, 7/15/57 | | | 6,517,560 | |
| | 458,163 | | | WFRBS Commercial Mortgage Trust, Series C23, Class A5, 3.92%, 10/15/57 | | | 456,542 | |
| | | | | Total (Cost $162,322,284) | | | 159,586,408 | |
Principal
Amount | | | | | Fair Value | |
| MUNICIPAL BONDS — 1.07% |
| | | | | Alabama — 0.18% | | | | |
| | 2,675,000 | | | Alabama Economic Settlement Authority, Economic Imports, Taxable BP - Settlement Revenue Series B, 4.26%,9/15/32(d) | | | 2,637,318 | |
| | | | | California — 0.09% | | | | |
| | 1,145,000 | | | State of California, Build America Bonds, School Improvements G.O., 7.63%,3/1/40(d) | | | 1,432,773 | |
| | | | | New York — 0.80% | | | | |
| | 5,000,000 | | | City of New York NY, 5.68%,10/1/33 | | | 5,469,559 | |
| | 345,000 | | | Metropolitan Transportation Authority, Taxable Green Bonds, Green Purpose Revenue Bonds Series C2, 5.18%,11/15/49 | | | 320,771 | |
| | 7,130,000 | | | New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Taxable Revenue, Callable 2/1/27 @ 100, 3.00%,11/1/33 | | | 6,359,937 | |
| | | | | Total (Cost $16,455,035) | | | 16,220,358 | |
Principal
Amount | | | | | Fair Value | |
| MORTGAGE-BACKED SECURITIES — 27.41% |
| | | | | Fannie Mae — 15.97% | | | | |
| | 2,265 | | | 5.00%, 9/01/25, Pool #255892 | | | 2,263 | |
| | 829,320 | | | 4.00%, 12/01/33, Pool #MA1689 | | | 826,225 | |
| | 488,343 | | | 4.00%, 6/01/34, Pool #MA1922 | | | 485,509 | |
| | 452,188 | | | 4.00%, 3/01/35, Pool #MA2211 | | | 449,137 | |
| | 200,742 | | | 5.50%, 8/01/37, Pool #995082 | | | 207,490 | |
| | 2,187,643 | | | 3.50%, 8/01/38, Pool #FM2472 | | | 2,124,927 | |
| | 76,162 | | | 4.50%, 10/01/39, Pool #AC2645 | | | 76,577 | |
| | 86,185 | | | 5.00%, 6/01/40, Pool #AD4927 | | | 88,756 | |
| | 87,057 | | | 5.00%, 6/01/40, Pool #AD8718 | | | 89,657 | |
Principal
Amount | | | | | Fair Value | |
| MORTGAGE-BACKED SECURITIES — (continued) |
| | | | | Fannie Mae — (continued) | | | | |
| $ | 5,119,244 | | | 4.00%, 8/01/40, Pool #FM4673 | | $ | 5,083,905 | |
| | 11,083,395 | | | 1.50%, 12/01/40, Pool #MA4202 | | | 9,353,056 | |
| | 167,523 | | | 4.50%, 12/01/40, Pool #AH1100 | | | 169,386 | |
| | 107,650 | | | 4.50%, 3/01/41, Pool #AB2467 | | | 108,849 | |
| | 182,350 | | | 4.50%, 5/01/41, Pool #AI1023 | | | 182,894 | |
| | 134,569 | | | 4.50%, 11/01/41, Pool #AJ4994 | | | 136,067 | |
| | 155,703 | | | 4.50%, 12/01/41, Pool #AJ7696 | | | 157,436 | |
| | 394,175 | | | 3.50%, 6/01/42, Pool #AB5373 | | | 376,199 | |
| | 677,171 | | | 3.50%, 5/01/43, Pool #AL3605 | | | 642,321 | |
| | 341,967 | | | 3.50%, 5/01/43, Pool #AB9368 | | | 326,372 | |
| | 8,056,899 | | | 3.00%, 8/01/43, Pool #AL9500 | | | 7,474,916 | |
| | 908,851 | | | 3.50%, 8/01/43, Pool #AU0613 | | | 867,596 | |
| | 186,821 | | | 4.50%, 11/01/44, Pool #MA2100 | | | 187,286 | |
| | 547,642 | | | 4.50%, 1/01/45, Pool #MA2158 | | | 549,005 | |
| | 665,640 | | | 4.00%, 3/01/45, Pool #MA2217(d) | | | 649,482 | |
| | 601,263 | | | 4.00%, 6/01/46, Pool #MA2653 | | | 586,482 | |
| | 534,303 | | | 4.50%, 7/01/46, Pool #AS7568 | | | 535,303 | |
| | 736,637 | | | 4.00%, 11/01/46, Pool #MA2808 | | | 717,617 | |
| | 975,989 | | | 4.00%, 5/01/47, Pool #BE9598 | | | 947,454 | |
| | 1,193,032 | | | 4.00%, 8/01/47, Pool #BH5117 | | | 1,159,628 | |
| | 3,066,803 | | | 4.00%, 4/01/48, Pool #BM3900 | | | 2,976,693 | |
| | 1,154,810 | | | 5.00%, 8/01/48, Pool #CA2219 | | | 1,175,486 | |
| | 2,834,327 | | | 3.00%, 11/01/48, Pool #BM5822 | | | 2,601,427 | |
| | 9,642,656 | | | 4.50%, 11/01/48, Pool #BM7046 | | | 9,702,460 | |
| | 3,983,984 | | | 3.50%, 10/01/49, Pool #CA4431 | | | 3,753,006 | |
| | 9,839,030 | | | 3.00%, 3/01/50, Pool #FM2870 | | | 9,012,445 | |
| | 5,639,161 | | | 3.00%, 3/01/50, Pool #FM2714 | | | 5,152,229 | |
| | 6,562,418 | | | 2.00%, 7/01/50, Pool #CA6301 | | | 5,500,440 | |
| | 8,149,365 | | | 2.50%, 9/01/50, Pool #BQ0538 | | | 7,083,560 | |
| | 14,955,504 | | | 3.50%, 9/01/50, Pool #FS5284 | | | 14,106,206 | |
| | 3,471,950 | | | 3.00%, 10/01/50, Pool #CA7381 | | | 3,156,318 | |
| | 4,488,662 | | | 4.00%, 8/01/51, Pool #FS8708 | | | 4,350,752 | |
| | 4,173,280 | | | 3.00%, 11/01/51, Pool #CB2170 | | | 3,757,797 | |
| | 10,947,265 | | | 3.50%, 4/01/52, Pool #FS1185 | | | 10,205,718 | |
| | 13,829,536 | | | 3.50%, 4/01/52, Pool #FS1475 | | | 13,007,503 | |
| | 1,763,655 | | | 4.00%, 5/01/52, Pool #FS1790 | | | 1,692,409 | |
| | 8,517,966 | | | 4.50%, 6/01/52, Pool #FS2157 | | | 8,472,616 | |
| | 6,379,132 | | | 4.50%, 11/01/52, Pool #FS3809 | | | 6,280,640 | |
| | 6,341,110 | | | 5.00%, 11/01/52, Pool #CB5278 | | | 6,340,247 | |
| | 7,118,376 | | | 5.50%, 3/01/53, Pool #FS3925 | | | 7,250,490 | |
| | 7,393,739 | | | 4.50%, 5/01/53, Pool #CB6304 | | | 7,279,574 | |
| | 15,891,034 | | | 5.00%, 5/01/53, Pool #FS4929 | | | 16,162,391 | |
| | 8,941,388 | | | 5.50%, 5/01/53, Pool #FS4571 | | | 9,086,520 | |
| | 9,490,241 | | | 6.00%, 6/01/53, Pool #FS6616 | | | 9,740,145 | |
| | 11,880,877 | | | 5.50%, 7/01/53, Pool #FS5589 | | | 12,113,058 | |
| | 6,611,363 | | | 6.00%, 7/01/53, Pool #FS5233 | | | 6,799,446 | |
| | 19,769,417 | | | 6.00%, 9/01/53, Pool #CB7124 | | | 20,656,416 | |
| | | | | | | | 241,977,787 | |
| | | | | Freddie Mac — 11.05% | | | | |
| | 2,946 | | | 5.00%, 7/01/25, Pool #ZA1892 | | | 2,943 | |
| | 44,460 | | | 2.50%, 1/01/28, Pool #ZK4918 | | | 43,411 | |
| | 170,034 | | | 3.50%, 7/01/30, Pool #ZS8575 | | | 168,057 | |
| | 25,873 | | | 5.00%, 3/01/36, Pool #ZS4230 | | | 26,537 | |
| | 808,080 | | | 4.00%, 4/01/36, Pool #ZA2413 | | | 803,785 | |
| | 1,080,264 | | | 3.50%, 6/01/36, Pool #ZA2414(d) | | | 1,053,171 | |
| | 7,611 | | | 5.00%, 7/01/36, Pool #ZS1139 | | | 7,814 | |
| | 613,617 | | | 3.50%, 8/01/36, Pool #ZA2425 | | | 596,402 | |
| | 82,717 | | | 6.50%, 9/01/36, Pool #ZS4257 | | | 86,667 | |
| | 1,560,688 | | | 3.50%, 11/01/36, Pool #ZA2439 | | | 1,519,379 | |
| | 34,391 | | | 5.00%, 2/01/37, Pool #ZI5759 | | | 35,416 | |
| | 1,233,645 | | | 4.00%, 5/01/37, Pool #ZA2461 | | | 1,223,864 | |
| | 29,997 | | | 4.50%, 10/01/39, Pool #ZI9349 | | | 30,160 | |
| | 4,097,860 | | | 3.00%, 5/01/40, Pool #RB5049 | | | 3,872,919 | |
| | See accompanying notes to financial statements. | 27 |
Sterling Capital Total Return Bond Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| MORTGAGE-BACKED SECURITIES — (continued) |
| | | | | Freddie Mac — (continued) | | | | |
| $ | 92,852 | | | 5.00%, 6/01/40, Pool #ZA1049 | | $ | 95,625 | |
| | 230,424 | | | 5.00%, 7/01/40, Pool #ZJ0194 | | | 237,302 | |
| | 27,258 | | | 5.00%, 9/01/40, Pool #ZA1066 | | | 28,072 | |
| | 5,634,362 | | | 2.00%, 12/01/40, Pool #RB5090 | | | 4,927,922 | |
| | 337,908 | | | 4.00%, 12/01/42, Pool #ZS3671 | | | 331,518 | |
| | 258,971 | | | 3.50%, 5/01/43, Pool #ZL5915 | | | 247,154 | |
| | 135,345 | | | 4.00%, 5/01/44, Pool #ZA4468 | | | 132,143 | |
| | 68,185 | | | 4.00%, 7/01/44, Pool #ZS4573 | | | 66,614 | |
| | 119,046 | | | 4.00%, 9/01/44, Pool #ZL8439 | | | 115,965 | |
| | 1,504,073 | | | 3.50%, 1/01/45, Pool #ZL8964 | | | 1,430,788 | |
| | 1,361,707 | | | 3.50%, 5/01/46, Pool #ZS4663 | | | 1,284,398 | |
| | 381,531 | | | 4.00%, 8/01/46, Pool #ZS4673 | | | 371,797 | |
| | 923,874 | | | 3.50%, 9/01/46, Pool #ZS4678 | | | 874,848 | |
| | 2,107,759 | | | 3.50%, 9/01/47, Pool #ZM4305 | | | 1,988,131 | |
| | 573,692 | | | 3.50%, 1/01/48, Pool #ZM5375 | | | 541,130 | |
| | 476,952 | | | 4.00%, 2/01/48, Pool #ZT1639 | | | 463,598 | |
| | 466,199 | | | 4.00%, 6/01/48, Pool #ZT0541 | | | 454,375 | |
| | 5,433,920 | | | 2.50%, 11/01/49, Pool #QA4396 | | | 4,742,369 | |
| | 2,423,750 | | | 3.00%, 11/01/49, Pool #QA4336 | | | 2,218,227 | |
| | 2,084,821 | | | 3.50%, 6/01/50, Pool #RA2794 | | | 1,964,280 | |
| | 8,633,462 | | | 2.50%, 7/01/50, Pool #RA2970 | | | 7,520,478 | |
| | 212,558 | | | 3.00%, 1/01/51, Pool #SD8123 | | | 192,820 | |
| | 1,185,469 | | | 3.00%, 12/01/51, Pool #SD8184 | | | 1,067,411 | |
| | 4,736,398 | | | 3.50%, 4/01/52, Pool #RA7191 | | | 4,441,090 | |
| | 9,482,395 | | | 4.00%, 5/01/52, Pool #RA7306 | | | 9,148,565 | |
| | 11,191,772 | | | 3.50%, 6/01/52, Pool #SD2670 | | | 10,571,105 | |
| | 9,896,492 | | | 4.00%, 8/01/52, Pool #SD3617 | | | 9,620,924 | |
| | 9,073,198 | | | 4.50%, 8/01/52, Pool #SD1515 | | | 8,933,107 | |
| | 9,434,925 | | | 5.00%, 9/01/52, Pool #RA7936 | | | 9,446,772 | |
| | 8,635,054 | | | 5.00%, 10/01/52, Pool #SD1710 | | | 8,666,565 | |
| | 8,886,580 | | | 5.50%, 2/01/53, Pool #QF8052 | | | 9,023,335 | |
| | 11,267,690 | | | 4.00%, 3/01/53, Pool #SD3107 | | | 10,871,091 | |
| | 2,958,944 | | | 5.00%, 3/01/53, Pool #SD2390 | | | 2,972,372 | |
| | 15,669,492 | | | 5.50%, 3/01/53, Pool #SD2774 | | | 15,923,829 | |
| | 5,560,728 | | | 6.00%, 5/01/53, Pool #SD3072 | | | 5,712,518 | |
| | 9,700,269 | | | 5.00%, 8/01/53, Pool #SD3814 | | | 9,704,196 | |
| | 3,513,174 | | | 6.00%, 8/01/53, Pool #SD3636 | | | 3,613,121 | |
| | 1,638,967 | | | 5.00%, 9/01/53, Pool #SD4220 | | | 1,641,783 | |
| | 6,045,327 | | | 6.00%, 10/01/53, Pool #SD4222 | | | 6,210,781 | |
| | | | | | | | 167,268,644 | |
| | | | | Ginnie Mae I — 0.00% | | | | |
| | 47,005 | | | 5.00%, 2/15/40, Pool #737037 | | | 48,037 | |
| | | | | | | | — | |
| | | | | Ginnie Mae II — 0.39% | | | | |
| | 6,031,240 | | | 4.00%, 7/20/52, Pool #786280 | | | 5,843,803 | |
| | | | | | | | — | |
| | | | | Total (Cost $423,854,753) | | | 415,138,271 | |
Principal
Amount | | | | | Fair Value | |
| COLLATERALIZED MORTGAGE OBLIGATIONS — 3.05% |
| | 156,029 | | | Fannie Mae, Series 2014-39, Class VP, 3.00%, 8/25/27 | | | 155,307 | |
| | 444,893 | | | Freddie Mac, Series 4136, Class HZ, 3.50%, 11/15/27 | | | 439,118 | |
| | 507,000 | | | Freddie Mac, Series 4120, Class YK, 2.00%, 10/15/32 | | | 430,439 | |
| | 324,000 | | | Freddie Mac, Series 4160, Class HH, 2.50%, 12/15/32 | | | 305,122 | |
| | 8,615,777 | | | Ginnie Mae, Series 132, Class DV, 6.00%, 7/20/34 | | | 8,813,857 | |
| | 115,203 | | | Ginnie Mae, Series 2008-51, Class PG, 5.00%, 6/20/38 | | | 117,194 | |
| | 663,143 | | | Fannie Mae, Series 2013-16, Class A, 1.75%, 1/25/40 | | | 652,652 | |
| | 191,743 | | | Freddie Mac, Series 3632, Class PK, 5.00%, 2/15/40 | | | 195,417 | |
| | 2,547,765 | | | Ginnie Mae, Series 2014-2, Class AG, 2.29%, 3/20/40 | | | 2,266,449 | |
| | 170,321 | | | Freddie Mac, Series 4077, Class PJ, 3.50%, 11/15/40 | | | 169,049 | |
| | 730,000 | | | Freddie Mac, Series 3762, Class LN, 4.00%, 11/15/40 | | | 704,082 | |
| | 551,664 | | | Fannie Mae, Series 2011-38, Class D, 4.50%, 5/25/41(d) | | | 556,269 | |
| | 1,343,909 | | | Freddie Mac, Series 4100, Class PA, 3.00%, 1/15/42 | | | 1,297,268 | |
Principal
Amount | | | | | Fair Value | |
| COLLATERALIZED MORTGAGE OBLIGATIONS — (continued) |
| $ | 6,956,976 | | | Freddie Mac, Series 4112, Class PB, 4.00%, 9/15/42 | | $ | 6,705,870 | |
| | 891,000 | | | Fannie Mae, Series 2013-70, Class CY, 3.50%, 7/25/43 | | | 793,303 | |
| | 280,124 | | | Freddie Mac, Series 4328, Class KD, 3.00%, 8/15/43 | | | 271,599 | |
| | 1,256,049 | | | Freddie Mac, Series 4427, Class KA, 2.25%, 7/15/44 | | | 1,178,565 | |
| | 126,005 | | | Fannie Mae, Series 2017-64, Class PD, 2.50%, 7/25/47 | | | 112,255 | |
| | 9,399,222 | | | Freddie Mac, Series 5300, Class AB, 5.50%, 1/25/49 | | | 9,538,657 | |
| | 11,202,122 | | | Ginnie Mae, Series 154, Class GA, 6.00%, 4/20/50 | | | 11,549,080 | |
| | | | | Total (Cost $45,839,625) | | | 46,251,552 | |
Principal
Amount | | | | | Fair Value | |
| U.S. GOVERNMENT AGENCIES — 0.61% |
| | 4,769,000 | | | Federal Farm Credit Banks Funding Corp., 4.13%, 12/15/32 | | | 4,810,957 | |
| | 5,325,000 | | | Federal Farm Credit Banks Funding Corp., 2.40%, 3/24/36 | | | 4,386,896 | |
| | | | | | | | | |
| | | | | Total (Cost $9,063,772) | | | 9,197,853 | |
Principal
Amount | | | | | Fair Value | |
| U.S. TREASURY BONDS & NOTES — 15.59% |
| | 30,556,200 | | | U.S. Treasury Note, 2.63%, 2/15/29 | | | 29,363,792 | |
| | 87,139,500 | | | United States Treasury Note, 4.13%, 11/15/32(d) | | | 89,552,855 | |
| | 2,219,300 | | | United States Treasury Note, 4.00%, 2/15/34 | | | 2,255,017 | |
| | 120,131,100 | | | United States Treasury Bond, 2.50%, 2/15/45 | | | 91,693,816 | |
| | 42,337,700 | | | United States Treasury Bond, 1.38%, 8/15/50 | | | 23,287,389 | |
| | | | | | | | | |
| | | | | Total (Cost $222,705,751) | | | 236,152,869 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 1.00% |
| | 15,090,151 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(e) | | | 15,090,151 | |
| | | | | | | | | |
| | | | | Total Money Market Funds | | | | |
| | | | | (Cost $15,090,151) | | | 15,090,151 | |
| | | | | | | | | |
| Total Investments— 98.81% | | | | |
| (Cost $1,488,428,728) | | | 1,496,744,733 | |
| Other Assets in Excess of Liabilities— 1.19% | | | 17,977,022 | |
| NET ASSETS — 100.00% | | $ | 1,514,721,755 | |
| (a) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. The security may be resold in transactions exempt from registration, normally to qualified institutional buyers. The Advisor, using Board approved procedures, has deemed these securities or a portion of these securities to be liquid. |
| (b) | 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. |
| (c) | The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2024. 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. The total value of securities held in a separate collateral account as of the year ended September 30, 2024 is $92,518,967, which represents 6.1% of net assets. |
| (e) | Represents the current yield as of report date. |
| GMTN | Global Medium Term Note |
| G.O. | Global Obligation |
| MTN | Medium Term Note |
| STEP | Step Coupon Bond |
| 28 | See accompanying notes to financial statements. | |
Sterling Capital Long Duration Corporation Bond Fund
Schedule of Investments
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — 93.92% | | | |
| | | | | AEROSPACE & DEFENSE — 3.64% | | | | |
| $ | 72,000 | | | L3Harris Technologies, Inc., 4.85%, 4/27/35 | | $ | 72,059 | |
| | 172,000 | | | Howmet Aerospace, Inc., 5.95%, 2/01/37 | | | 188,089 | |
| | 198,000 | | | RTX Corp., 4.45%, 11/16/38 | | | 188,328 | |
| | 139,000 | | | Boeing Co. (The), 5.71%, 5/01/40 | | | 135,464 | |
| | 93,000 | | | Boeing Co. (The), 3.90%, 5/01/49 | | | 67,345 | |
| | 173,000 | | | RTX Corp., 2.82%, 9/01/51 | | | 115,510 | |
| | 257,000 | | | Lockheed Martin Corp., 4.15%, 6/15/53 | | | 226,235 | |
| | 118,000 | | | L3Harris Technologies, Inc., 5.60%, 7/31/53 | | | 123,937 | |
| | 90,000 | | | RTX Corp., 6.40%, 3/15/54 | | | 106,132 | |
| | 200,000 | | | BAE Systems PLC, 5.50%, 3/26/54(a) | | | 209,475 | |
| | 60,000 | | | Boeing Co. (The), 6.86%, 5/01/54(a) | | | 65,823 | |
| | 96,000 | | | Boeing Co. (The), 3.83%, 3/01/59 | | | 65,023 | |
| | | | | | | | 1,563,420 | |
| | | | | AIR FREIGHT & LOGISTICS — 0.27% | |
| | 129,000 | | | FedEx Corp., 4.55%, 4/01/46 | | | 114,930 | |
| | | | | | | | | |
| | | | | AUTOMOBILES — 0.31% | | | | |
| | 141,000 | | | General Motors Co., 5.15%, 4/01/38 | | | 135,010 | |
| | | | | | | | | |
| | | | | AUTOMOTIVE — 0.32% | | | | |
| | 67,000 | | | General Motors Financial Co., Inc., 6.10%, 1/07/34 | | | 69,726 | |
| | 80,000 | | | Ford Motor Co., 4.75%, 1/15/43 | | | 66,241 | |
| | | | | | | | 135,967 | |
| | | | | BANKS — 6.65% | | | | |
| | 96,000 | | | Bank of America Corp., 2.48%, 9/21/36(b) | | | 80,924 | |
| | 53,000 | | | Fifth Third Bancorp, 8.25%, 3/01/38 | | | 66,663 | |
| | 219,000 | | | Bank of America Corp., 4.24%, 4/24/38 | | | 207,282 | |
| | 178,000 | | | JPMorgan Chase & Co., 3.88%, 7/24/38(b) | | | 162,476 | |
| | 76,000 | | | Citigroup, Inc., 3.88%, 1/24/39(b) | | | 67,552 | |
| | 96,000 | | | Westpac Banking Corp., 2.96%, 11/16/40 | | | 72,563 | |
| | 89,000 | | | Citigroup, Inc., 5.32%, 3/26/41(b) | | | 91,091 | |
| | 431,000 | | | JPMorgan Chase & Co., 3.11%, 4/22/41(b) | | | 346,420 | |
| | 211,000 | | | Wells Fargo & Co., 3.07%, 4/30/41(b) | | | 165,791 | |
| | 370,000 | | | Bank of America Corp., MTN, 2.68%, 6/19/41(b) | | | 277,732 | |
| | 106,000 | | | Citigroup, Inc., 5.88%, 1/30/42 | | | 116,283 | |
| | 129,000 | | | JPMorgan Chase & Co., 3.16%, 4/22/42(b) | | | 103,330 | |
| | 204,000 | | | Barclays PLC, 3.33%, 11/24/42 (H15T1Y + 130 bps) | | | 156,590 | |
| | 309,000 | | | Wells Fargo & Co., 5.38%, 11/02/43 | | | 310,440 | |
| | 200,000 | | | Lloyds Banking Group PLC, 3.37%, 12/14/46 | | | 148,512 | |
| | 129,000 | | | JPMorgan Chase & Co., 4.26%, 2/22/48(b) | | | 116,833 | |
| | 109,000 | | | Charles Schwab Corp. (The), Series H, 4.00%, 12/31/49 (H15T10Y + 307.90 bps)(b)(c) | | | 97,440 | |
| | 170,000 | | | Bank of America Corp., MTN, 4.33%, 3/15/50(b) | | | 153,730 | |
| | 117,000 | | | Wells Fargo & Co., MTN, 5.01%, 4/04/51(b) | | | 114,590 | |
| | | | | | | | 2,856,242 | |
| | | | | BEVERAGES — 3.25% | | | | |
| | 170,000 | | | Anheuser-Busch Cos. LLC, 4.70%, 2/01/36 | | | 170,463 | |
| | 109,000 | | | Diageo Capital PLC, 3.88%, 4/29/43 | | | 95,010 | |
| | 284,000 | | | Anheuser-Busch Cos. LLC, 4.90%, 2/01/46 (FIXED) | | | 279,372 | |
| | 200,000 | | | Bacardi Ltd., 5.30%, 5/15/48(a) | | | 188,876 | |
| | 186,000 | | | Constellation Brands, Inc., 3.75%, 5/01/50 | | | 146,716 | |
| | 96,000 | | | PepsiCo, Inc., 2.75%, 10/21/51 | | | 65,786 | |
| | 194,000 | | | PepsiCo, Inc., 4.65%, 2/15/53 | | | 187,440 | |
| | 53,000 | | | Anheuser-Busch InBev Worldwide, Inc., 5.80%, 1/23/59 | | | 59,651 | |
| | 215,000 | | | Anheuser-Busch InBev Worldwide, Inc., 4.60%, 6/01/60 | | | 203,429 | |
| | | | | | | | 1,396,743 | |
| | | | | BIOTECH & PHARMA — 1.78% | | | | |
| | 97,000 | | | Wyeth LLC, 5.95%, 4/01/37 | | | 107,310 | |
| | 105,000 | | | Pfizer Investment Enterprises Pte Ltd., 5.11%, 5/19/43 | | | 106,835 | |
| | 200,000 | | | Roche Holdings, Inc., 2.61%, 12/13/51(a) | | | 132,172 | |
| | 190,000 | | | CSL Finance PLC, 4.75%, 4/27/52(a) | | | 177,987 | |
| | 186,000 | | | CSL Finance PLC, 5.42%, 4/03/54(a) | | | 192,559 | |
| | 50,000 | | | Novartis Capital Corp., 4.70%, 9/18/54 | | | 48,868 | |
| | | | | | | | 765,731 | |
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) | | | |
| | | | | BIOTECHNOLOGY — 3.06% | | | | |
| $ | 64,000 | | | AbbVie, Inc., 4.05%, 11/21/39 | | $ | 59,025 | |
| | 96,000 | | | Gilead Sciences, Inc., 2.60%, 10/01/40 | | | 71,787 | |
| | 178,000 | | | Amgen, Inc., 2.80%, 8/15/41 | | | 134,643 | |
| | 56,000 | | | Amgen, Inc., 5.15%, 11/15/41 | | | 56,074 | |
| | 100,000 | | | AbbVie, Inc., 4.40%, 11/06/42 | | | 94,230 | |
| | 251,000 | | | Amgen, Inc., 5.60%, 3/02/43 | | | 263,646 | |
| | 117,000 | | | Baxalta, Inc., 5.25%, 6/23/45 | | | 117,000 | |
| | 149,000 | | | AbbVie, Inc., 4.45%, 5/14/46 | | | 138,950 | |
| | 55,000 | | | Gilead Sciences, Inc., 2.80%, 10/01/50 | | | 37,357 | |
| | 100,000 | | | Amgen, Inc., 5.65%, 3/02/53 | | | 105,056 | |
| | 76,000 | | | Amgen, Inc., 2.77%, 9/01/53 | | | 49,308 | |
| | 93,000 | | | AbbVie, Inc., 5.40%, 3/15/54 | | | 98,482 | |
| | 109,000 | | | Amgen, Inc., 4.40%, 2/22/62 | | | 93,139 | |
| | | | | | | | 1,318,697 | |
| | | | | CABLE & SATELLITE — 1.52% | | | | |
| | 166,000 | | | Time Warner Cable LLC, 6.55%, 5/01/37 | | | 164,086 | |
| | 76,000 | | | Time Warner Cable LLC, 5.88%, 11/15/40 | | | 68,753 | |
| | 186,000 | | | Charter Communications Operating LLC, 6.48%, 10/23/45 | | | 179,372 | |
| | 99,000 | | | Charter Communications Operating LLC, 6.83%, 10/23/55 | | | 98,564 | |
| | 207,000 | | | Charter Communications Operating LLC, 4.40%, 12/01/61 | | | 140,560 | |
| | | | | | | | 651,335 | |
| | | | | CAPITAL MARKETS — 2.26% | | | | |
| | 69,000 | | | Morgan Stanley, 5.42%, 7/21/34(b) | | | 71,880 | |
| | 109,000 | | | Morgan Stanley, 2.48%, 9/16/36 | | | 91,045 | |
| | 150,000 | | | Goldman Sachs Group, Inc. (The), 6.75%, 10/01/37 | | | 172,404 | |
| | 211,000 | | | Morgan Stanley, 3.97%, 7/22/38(b) | | | 190,960 | |
| | 36,000 | | | Morgan Stanley, 3.22%, 4/22/42(b) | | | 28,949 | |
| | 40,000 | | | Jefferies Financial Group, Inc., 6.50%, 1/20/43 | | | 43,945 | |
| | 200,000 | | | UBS Group AG, 3.18%, 2/11/43(a) | | | 155,754 | |
| | 141,000 | | | Intercontinental Exchange, Inc., 4.25%, 9/21/48 | | | 125,150 | |
| | 113,000 | | | S&P Global, Inc., 3.70%, 3/01/52 | | | 92,102 | |
| | | | | | | | 972,189 | |
| | | | | CHEMICALS — 0.20% | | | | |
| | 45,000 | | | Dow Chemical Co. (The), 4.38%, 11/15/42 | | | 39,632 | |
| | 56,000 | | | LYB International Finance III LLC, 4.20%, 5/01/50 | | | 45,923 | |
| | | | | | | | 85,555 | |
| | | | | COMMERCIAL SERVICES & SUPPLIES — 0.26% |
| | 162,000 | | | Republic Services, Inc., 2.95%, 1/15/52 | | | 110,965 | |
| | | | | | | | | |
| | | | | COMMUNICATIONS EQUIPMENT — 0.12% | |
| | 48,000 | | | Cisco Systems, Inc., 5.30%, 2/26/54 | | | 50,863 | |
| | | | | | | | | |
| | | | | CONSTRUCTION MATERIALS — 0.36% | |
| | 88,000 | | | Vulcan Materials Co., 4.50%, 6/15/47 | | | 79,017 | |
| | 88,000 | | | Martin Marietta Materials, Inc., 4.25%, 12/15/47 | | | 76,067 | |
| | | | | | | | 155,084 | |
| | | | | CONTAINERS & PACKAGING — 0.74% | |
| | 27,000 | | | Packaging Corp. of America, 4.05%, 12/15/49 | | | 22,427 | |
| | 113,000 | | | Packaging Corp. of America, 3.05%, 10/01/51 | | | 79,036 | |
| | 200,000 | | | Smurfit Kappa Treasury ULC, 5.78%, 4/03/54(a) | | | 214,043 | |
| | | | | | | | 315,506 | |
| | | | | DIVERSIFIED FINANCIAL SERVICES — 0.77% | |
| | 76,000 | | | Voya Financial, Inc., 4.80%, 6/15/46 | | | 68,872 | |
| | 120,000 | | | Corebridge Financial, Inc., 4.40%, 4/05/52 | | | 102,616 | |
| | 150,000 | | | Apollo Global Management, Inc., 5.80%, 5/21/54 | | | 159,649 | |
| | | | | | | | 331,137 | |
| | | | | DIVERSIFIED TELECOMMUNICATION SERVICES — 3.85% |
| | 80,000 | | | Verizon Communications, Inc., 4.40%, 11/01/34 | | | 78,046 | |
| | 255,000 | | | AT&T, Inc., 4.50%, 5/15/35 | | | 247,552 | |
| | 158,000 | | | Verizon Communications, Inc., 5.25%, 3/16/37 | | | 164,084 | |
| | 162,000 | | | Verizon Communications, Inc., 2.65%, 11/20/40 | | | 119,244 | |
| | See accompanying notes to financial statements. | 29 |
Sterling Capital Long Duration Corporation Bond Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) | | |
| | | | | DIVERSIFIED TELECOMMUNICATION SERVICES — (continued) | |
| $ | 152,000 | | | Verizon Communications, Inc., 3.40%, 3/22/41 | | $ | 123,999 | |
| | 186,000 | | | AT&T, Inc., Class B, 3.50%, 6/01/41 | | | 152,106 | |
| | 150,000 | | | Deutsche Telekom AG, 3.63%, 1/21/50(a) | | | 115,871 | |
| | 345,000 | | | AT&T, Inc., 3.65%, 9/15/59 | | | 250,014 | |
| | 439,000 | | | AT&T, Inc., 3.85%, 6/01/60 | | | 331,887 | |
| | 88,000 | | | Verizon Communications, Inc., 3.70%, 3/22/61 | | | 66,466 | |
| | | | | | | | 1,649,269 | |
| | | | | ELECTRIC UTILITIES — 12.69% | | | | |
| | 88,000 | | | NextEra Energy Capital Holdings, Inc., 2.44%, 1/15/32 | | | 76,184 | |
| | 93,000 | | | Appalachian Power Co., 5.80%, 10/01/35 | | | 97,248 | |
| | 61,000 | | | Commonwealth Edison Co., 5.90%, 3/15/36 | | | 67,101 | |
| | 45,000 | | | Florida Power & Light Co., 5.85%, 5/01/37 | | | 47,862 | |
| | 110,000 | | | Duke Energy Carolinas LLC, 6.10%, 6/01/37 | | | 120,956 | |
| | 61,000 | | | Duke Energy Florida LLC, 6.35%, 9/15/37 | | | 68,917 | |
| | 117,000 | | | Public Service Electric & Gas Co., MTN, 5.38%, 11/01/39 | | | 121,793 | |
| | 85,000 | | | Massachusetts Electric Co., 5.90%, 11/15/39(a) | | | 89,214 | |
| | 65,000 | | | Puget Sound Energy, Inc., 5.64%, 4/15/41 | | | 67,927 | |
| | 129,000 | | | Florida Power & Light Co., 4.13%, 2/01/42 | | | 116,283 | |
| | 121,000 | | | Virginia Electric and Power Co., 4.00%, 1/15/43 | | | 103,813 | |
| | 76,000 | | | MidAmerican Energy Co., 4.80%, 9/15/43 | | | 73,459 | |
| | 145,000 | | | Consolidated Edison Co. of New York, Inc., 4.45%, 3/15/44 | | | 132,967 | |
| | 76,000 | | | Exelon Corp., 5.10%, 6/15/45 | | | 74,275 | |
| | 76,000 | | | Exelon Corp., 4.45%, 4/15/46 | | | 67,579 | |
| | 215,000 | | | Duke Energy Indiana LLC, 3.75%, 5/15/46 | | | 173,856 | |
| | 88,000 | | | Duke Energy Ohio, Inc., 3.70%, 6/15/46 | | | 70,034 | |
| | 129,000 | | | FirstEnergy Corp., 4.85%, 7/15/47 | | | 118,458 | |
| | 109,000 | | | DTE Electric Co., 3.75%, 8/15/47 | | | 88,585 | |
| | 100,000 | | | Alabama Power Co., 3.70%, 12/01/47(d) | | | 80,735 | |
| | 88,000 | | | Connecticut Light and Power Co. (The), 4.00%, 4/01/48 | | | 75,071 | |
| | 76,000 | | | Consolidated Edison Co. of New York, Inc., 4.65%, 12/01/48 | | | 70,085 | |
| | 76,000 | | | CenterPoint Energy Houston Electric LLC, 4.25%, 2/01/49 | | | 66,807 | |
| | 55,000 | | | FirstEnergy Transmission LLC, 4.55%, 4/01/49(a) | | | 49,428 | |
| | 125,000 | | | San Diego Gas & Electric Co., 4.10%, 6/15/49 | | | 105,598 | |
| | 223,000 | | | Entergy Texas, Inc., 3.55%, 9/30/49 | | | 169,282 | |
| | 113,000 | | | Union Electric Co., 3.25%, 10/01/49 | | | 83,591 | |
| | 121,000 | | | Xcel Energy, Inc., 3.50%, 12/01/49 | | | 89,142 | |
| | 279,000 | | | Georgia Power Co., 3.70%, 1/30/50 | | | 221,474 | |
| | 120,000 | | | AEP Transmission Co. LLC, 3.65%, 4/01/50(d) | | | 94,590 | |
| | 113,000 | | | San Diego Gas & Electric Co., 3.32%, 4/15/50 | | | 83,080 | |
| | 161,000 | | | Baltimore Gas and Electric Co., 2.90%, 6/15/50 | | | 110,212 | |
| | 211,000 | | | CenterPoint Energy Houston Electric LLC, 2.90%, 7/01/50(d) | | | 143,511 | |
| | 88,000 | | | Berkshire Hathaway Energy Co., 4.25%, 10/15/50 | | | 75,064 | |
| | 141,000 | | | Duke Energy Progress LLC, 2.90%, 8/15/51 | | | 95,810 | |
| | 258,000 | | | PECO Energy Co., 2.85%, 9/15/51 | | | 174,445 | |
| | 121,000 | | | Puget Sound Energy, Inc., 2.89%, 9/15/51 | | | 80,504 | |
| | 141,000 | | | DTE Electric Co., 3.65%, 3/01/52 | | | 112,004 | |
| | 96,000 | | | Northern States Power Co., 3.20%, 4/01/52 | | | 69,875 | |
| | 55,000 | | | Northern States Power Co., 4.50%, 6/01/52 | | | 50,470 | |
| | 96,000 | | | MidAmerican Energy Co., 2.70%, 8/01/52 | | | 63,096 | |
| | 137,000 | | | Duke Energy Corp., 5.00%, 8/15/52 | | | 129,815 | |
| | 84,000 | | | Oncor Electric Delivery Co. LLC, 4.95%, 9/15/52 | | | 81,747 | |
| | 71,000 | | | Duke Energy Carolinas LLC, 5.35%, 1/15/53 | | | 73,186 | |
| | 190,000 | | | Southern California Edison Co., 5.70%, 3/01/53 | | | 200,253 | |
| | 56,000 | | | Union Electric Co., 5.45%, 3/15/53 | | | 58,396 | |
| | 117,000 | | | Indiana Michigan Power Co., 5.63%, 4/01/53 | | | 123,303 | |
| | 80,000 | | | Berkshire Hathaway Energy Co., 4.60%, 5/01/53 | | | 72,015 | |
| | 77,000 | | | Public Service Electric and Gas Co., 5.45%, 8/01/53 | | | 81,545 | |
| | 65,000 | | | Entergy Texas, Inc., 5.80%, 9/01/53 | | | 69,347 | |
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) | | |
| | | | | ELECTRIC UTILITIES — (continued) | | | | |
| $ | 73,000 | | | Duke Energy Corp., 6.10%, 9/15/53 | | $ | 79,899 | |
| | 53,000 | | | Southern California Edison Co., 5.88%, 12/01/53 | | | 57,394 | |
| | 58,000 | | | Duke Energy Carolinas LLC, 5.40%, 1/15/54 | | | 60,278 | |
| | 142,000 | | | NextEra Energy Capital Holdings, Inc., 5.55%, 3/15/54 | | | 148,104 | |
| | 120,000 | | | Entergy Louisiana LLC, 5.70%, 3/15/54 | | | 127,615 | |
| | 60,000 | | | Southern California Edison Co., 5.75%, 4/15/54 | | | 64,090 | |
| | 88,000 | | | Dominion Energy South Carolina, Inc., 5.10%, 6/01/65 | | | 86,054 | |
| | | | | | | | 5,453,426 | |
| | | | | ENERGY EQUIPMENT & SERVICES — 0.39% | |
| | 84,000 | | | Halliburton Co., 4.85%, 11/15/35 | | | 83,774 | |
| | 88,000 | | | Halliburton Co., 5.00%, 11/15/45 | | | 84,133 | |
| | | | | | | | 167,907 | |
| | | | | ENTERTAINMENT — 0.21% | | | | |
| | 135,000 | | | Walt Disney Co. (The), 2.75%, 9/01/49 | | | 91,792 | |
| | | | | | | | | |
| | | | | ENTERTAINMENT CONTENT — 0.44% | |
| | 180,000 | | | Warnermedia Holdings, Inc., 5.05%, 3/15/42 | | | 146,885 | |
| | 56,000 | | | Warnermedia Holdings, Inc., 5.14%, 3/15/52 | | | 43,199 | |
| | | | | | | | 190,084 | |
| | | | | EQUITY REAL ESTATE -INVESTMENT TRUSTS -(REITS) — 0.22% | |
| | 129,000 | | | NNN REIT, Inc., 3.50%, 4/15/51 | | | 95,105 | |
| | | | | | | | | |
| | | | | FINANCIAL SERVICES — 1.45% | | | | |
| | 97,000 | | | Blackstone Holdings Finance Co. LLC, 6.25%, 8/15/42(a) | | | 105,340 | |
| | 81,000 | | | Carlyle Holdings II Finance LLC, 5.63%, 3/30/43(a) | | | 82,377 | |
| | 105,000 | | | KKR Group Finance Co. III LLC, 5.13%, 6/01/44(a) | | | 101,527 | |
| | 200,000 | | | UBS Group AG, 5.38%, 9/06/45 (USISSO01 + 186 bps)(a) | | | 204,198 | |
| | 76,000 | | | Blue Owl Finance LLC, 4.13%, 10/07/51(a) | | | 57,125 | |
| | 37,000 | | | BlackRock Funding, Inc., 5.25%, 3/14/54 | | | 38,280 | |
| | 33,000 | | | BlackRock Funding, Inc., 5.35%, 1/08/55 | | | 34,693 | |
| | | | | | | | 623,540 | |
| | | | | FOOD — 1.25% | | | | |
| | 167,000 | | | Kraft Heinz Foods Co., 6.88%, 1/26/39 | | | 196,622 | |
| | 150,000 | | | Nestle Holdings, Inc., 2.50%, 9/14/41(a) | | | 110,026 | |
| | 96,000 | | | Cargill, Inc., 4.76%, 11/23/45(a) | | | 92,161 | |
| | 73,000 | | | Kraft Heinz Foods Co., 4.88%, 10/01/49 | | | 68,538 | |
| | 76,000 | | | Cargill, Inc., 4.38%, 4/22/52(a) | | | 68,913 | |
| | | | | | | | 536,260 | |
| | | | | FOOD & STAPLES RETAILING — 0.22% | |
| | 125,000 | | | Kenvue, Inc., 2.50%, 9/22/41 | | | 93,575 | |
| | | | | | | | | |
| | | | | FOOD PRODUCTS — 0.32% | |
| | 125,000 | | | Hershey Co. (The), 3.13%, 11/15/49 | | | 91,401 | |
| | 64,000 | | | Hormel Foods Corp., 3.05%, 6/03/51 | | | 45,682 | |
| | | | | | | | 137,083 | |
| | | | | GAS & WATER UTILITIES — 0.39% | |
| | 243,000 | | | Southern Co Gas Capital Corp., 3.15%, 9/30/51 | | | 167,778 | |
| | | | | | | | | |
| | | | | GAS UTILITIES — 0.18% | | | | |
| | 88,000 | | | Atmos Energy Corp., 4.13%, 10/15/44 | | | 77,705 | |
| | | | | | | | | |
| | | | | HEALTH CARE EQUIPMENT & SUPPLIES — 0.80% | |
| | 84,000 | | | Becton Dickinson & Co., 4.88%, 5/15/44 | | | 77,298 | |
| | 84,000 | | | Stryker Corp., 4.63%, 3/15/46 | | | 79,242 | |
| | 70,000 | | | Abbott Laboratories, 4.90%, 11/30/46(d) | | | 71,283 | |
| | 100,000 | | | GE HealthCare Technologies, Inc., 6.38%, 11/22/52 | | | 116,788 | |
| | | | | | | | 344,611 | |
| | | | | HEALTH CARE FACILITIES & SERVICES — 0.81% | |
| | 133,000 | | | HCA, Inc., 5.50%, 6/15/47 | | | 131,957 | |
| | 162,000 | | | HCA, Inc., 3.50%, 7/15/51 | | | 116,620 | |
| | 93,000 | | | HCA, Inc., 6.00%, 4/01/54 | | | 98,129 | |
| | | | | | | | 346,706 | |
| | | | | HEALTH CARE PROVIDERS & SERVICES — 2.12% | |
| | 68,000 | | | CVS Health Corp., 4.78%, 3/25/38 | | | 64,133 | |
| | 76,000 | | | Cigna Group (The), 4.80%, 8/15/38 | | | 73,958 | |
| 30 | See accompanying notes to financial statements. | |
Sterling Capital Long Duration Corporation Bond Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) | | |
| | | | | HEALTH CARE PROVIDERS & SERVICES — (continued) | |
| $ | 179,000 | | | UnitedHealth Group, Inc., 3.50%, 8/15/39 | | $ | 154,068 | |
| | 105,000 | | | CVS Health Corp., 2.70%, 8/21/40 | | | 74,493 | |
| | 137,000 | | | CVS Health Corp., 5.13%, 7/20/45 | | | 127,522 | |
| | 154,000 | | | UnitedHealth Group, Inc., 3.75%, 10/15/47 | | | 126,251 | |
| | 194,000 | | | Elevance Health, Inc., 4.38%, 12/01/47 | | | 171,553 | |
| | 123,000 | | | UnitedHealth Group, Inc., 4.95%, 5/15/62 | | | 118,675 | |
| | | | | | | | 910,653 | |
| | | | | HOTELS, RESTAURANTS & LEISURE — 0.86% | |
| | 149,000 | | | McDonald's Corp., 4.88%, 12/09/45 | | | 144,369 | |
| | 145,000 | | | McDonald's Corp., 3.63%, 9/01/49 | | | 114,088 | |
| | 145,000 | | | Starbucks Corp., 3.50%, 11/15/50 | | | 110,161 | |
| | | | | | | | 368,618 | |
| | | | | HOUSEHOLD PRODUCTS — 0.49% | | | | |
| | 250,000 | | | Haleon US Capital LLC, 4.00%, 3/24/52 | | | 212,469 | |
| | | | | | | | | |
| | | | | INDEPENDENT POWER/RENEWABLE ELECTRICITY PRODUCERS — 0.15% | |
| | 70,000 | | | Tennessee Valley Authority, 4.25%, 9/15/52 | | | 64,956 | |
| | | | | | | | | |
| | | | | INSURANCE — 4.86% | | | | |
| | 52,000 | | | Enstar Group Ltd., 3.10%, 9/01/31 | | | 44,885 | |
| | 106,000 | | | New York Life Insurance Co., 6.75%, 11/15/39(a) | | | 124,611 | |
| | 85,000 | | | Enstar Finance LLC, 5.50%, 1/15/42 (H15T5Y + 400.60bps)(b) | | | 79,287 | |
| | 76,000 | | | Securian Financial Group, Inc., 4.80%, 4/15/48(a) | | | 68,587 | |
| | 76,000 | | | Berkshire Hathaway Finance Corp., 4.20%, 8/15/48 | | | 69,730 | |
| | 100,000 | | | Nationwide Mutual Insurance Co., 4.35%, 4/30/50(a) | | | 80,907 | |
| | 134,000 | | | New York Life Insurance Co., 3.75%, 5/15/50(a) | | | 107,255 | |
| | 88,000 | | | Pacific LifeCorp, 3.35%, 9/15/50(a) | | | 64,087 | |
| | 109,000 | | | Prudential Financial, Inc., 3.70%, 10/01/50 (H15T5Y + 303.5 bps) | | | 100,647 | |
| | 136,000 | | | Northwestern Mutual Life Insurance Co. (The), 3.45%, 3/30/51(a) | | | 101,174 | |
| | 185,000 | | | Athene Holding Ltd., 3.95%, 5/25/51 | | | 142,124 | |
| | 96,000 | | | Fidelity National Financial, Inc., 3.20%, 9/17/51 | | | 64,170 | |
| | 105,000 | | | Global Atlantic Fin Co., 4.70%, 10/15/51 (H15T5Y + 379.60 bps)(a)(b) | | | 100,513 | |
| | 60,000 | | | Berkshire Hathaway Finance Corp., 3.85%, 3/15/52 | | | 50,569 | |
| | 92,000 | | | Aon North America, Inc., 5.75%, 3/01/54 | | | 97,293 | |
| | 147,000 | | | Global Atlantic Fin Co., 6.75%, 3/15/54(a) | | | 156,186 | |
| | 143,000 | | | Athene Holding Ltd., 6.25%, 4/01/54 | | | 152,037 | |
| | 200,000 | | | Nippon Life Insurance Co., 5.95%, 4/16/54(a) | | | 208,564 | |
| | 62,000 | | | Corebridge Financial, Inc., 6.38%, 9/15/54 (H15T5Y + 264.60 bps)(b) | | | 62,657 | |
| | 100,000 | | | W R Berkley Corp., 3.15%, 9/30/61 | | | 64,734 | |
| | 76,000 | | | Guardian Life Insurance Co. of America (The), 4.88%, 6/19/64(a) | | | 71,021 | |
| | 88,000 | | | New York Life Insurance Co., 4.45%, 5/15/69(a) | | | 76,188 | |
| | | | | | | | 2,087,226 | |
| | | | | INTERACTIVE MEDIA & SERVICES — 0.72% | |
| | 178,000 | | | Meta Platforms, Inc., 4.45%, 8/15/52 | | | 163,914 | |
| | 78,000 | | | Meta Platforms, Inc., 5.40%, 8/15/54 | | | 81,610 | |
| | 59,000 | | | Meta Platforms, Inc., 5.75%, 5/15/63 | | | 64,581 | |
| | | | | | | | 310,105 | |
| | | | | INTERNET & DIRECT MARKETING RETAIL — 0.85% | |
| | 241,000 | | | Amazon.com, Inc., 2.50%, 6/03/50 | | | 158,994 | |
| | 319,000 | | | Amazon.com, Inc., 2.70%, 6/03/60 | | | 204,545 | |
| | | | | | | | 363,539 | |
| | | | | IT SERVICES — 0.77% | | | | |
| | 96,000 | | | Visa, Inc., 4.30%, 12/14/45 | | | 89,273 | |
| | 272,000 | | | Fiserv, Inc., 4.40%, 7/01/49 | | | 240,152 | |
| | | | | | | | 329,425 | |
| | | | | LIFE SCIENCES TOOLS & SERVICES — 0.22% | |
| | 137,000 | | | Danaher Corp., 2.80%, 12/10/51 | | | 93,784 | |
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) | | |
| | | | | MACHINERY — 0.55% | | | | |
| $ | 88,000 | | | Deere & Co., 3.90%, 6/09/42 | | $ | 78,714 | |
| | 96,000 | | | Caterpillar, Inc., 3.80%, 8/15/42 | | | 84,083 | |
| | 69,000 | | | Cummins, Inc., 5.45%, 2/20/54 | | | 72,899 | |
| | | | | | | | 235,696 | |
| | | | | MEDIA — 1.21% | | | | |
| | 141,000 | | | Comcast Corp., 3.25%, 11/01/39 | | | 115,201 | |
| | 109,000 | | | Comcast Corp., 3.40%, 7/15/46 | | | 84,317 | |
| | 141,000 | | | Comcast Corp., 2.80%, 1/15/51 | | | 93,467 | |
| | 96,000 | | | Comcast Corp., 2.89%, 11/01/51 | | | 64,336 | |
| | 158,000 | | | Comcast Corp., 5.50%, 5/15/64 | | | 163,127 | |
| | | | | | | | 520,448 | |
| | | | | METALS & MINING — 0.73% | | | | |
| | 100,000 | | | Southern Copper Corp., 7.50%, 7/27/35 | | | 118,987 | |
| | 64,000 | | | Newmont Corp., 4.88%, 3/15/42 | | | 63,202 | |
| | 88,000 | | | Steel Dynamics, Inc., 3.25%, 10/15/50 | | | 61,789 | |
| | 108,000 | | | Nucor Corp., 2.98%, 12/15/55 | | | 70,616 | |
| | | | | | | | 314,594 | |
| | | | | MULTI-UTILITIES — 1.30% | | | | |
| | 211,000 | | | Sempra, 3.80%, 2/01/38 | | | 183,905 | |
| | 55,000 | | | Dominion Energy, Inc., 3.30%, 4/15/41 | | | 42,564 | |
| | 76,000 | | | CMS Energy Corp., 4.70%, 3/31/43 | | | 69,754 | |
| | 92,000 | | | NiSource, Inc., 4.80%, 2/15/44 | | | 86,193 | |
| | 121,000 | | | CMS Energy Corp, 3.75%, 12/01/50 | | | 105,610 | |
| | 77,000 | | | Dominion Energy, Inc., 4.85%, 8/15/52 | | | 71,203 | |
| | | | | | | | 559,229 | |
| | | | | OIL & GAS PRODUCERS — 4.69% | | | | |
| | 155,000 | | | Shell International Finance BV, 6.38%, 12/15/38 | | | 179,657 | |
| | 85,000 | | | Enterprise Products Operating LLC, 6.13%, 10/15/39 | | | 93,834 | |
| | 100,000 | | | Cheniere Corpus Christi Holdings LLC, 2.74%, 12/31/39 | | | 82,874 | |
| | 105,000 | | | BP Capital Markets America, Inc., 3.06%, 6/17/41 | | | 81,462 | |
| | 105,000 | | | Shell International Finance BV, 4.55%, 8/12/43 | | | 98,881 | |
| | 80,000 | | | Eastern Gas Transmission & Storage, Inc., 4.80%, 11/01/43 | | | 74,539 | |
| | 141,000 | | | DCP Midstream Operating LP, 5.60%, 4/01/44 | | | 140,233 | |
| | 109,000 | | | Plains All American Pipeline LP/PAA Finance Corp., 4.70%, 6/15/44 | | | 96,315 | |
| | 90,000 | | | Marathon Petroleum Corp., 4.75%, 9/15/44 | | | 80,097 | |
| | 100,000 | | | Apache Corp., 5.35%, 7/01/49 | | | 86,660 | |
| | 149,000 | | | BP Capital Markets America, Inc., 2.94%, 6/04/51 | | | 101,121 | |
| | 227,000 | | | Enterprise Products Operating LLC, 3.30%, 2/15/53 | | | 162,195 | |
| | 73,000 | | | TotalEnergies Capital SA, 5.49%, 4/05/54 | | | 75,338 | |
| | 97,000 | | | Woodside Finance Ltd., 5.70%, 9/12/54 | | | 96,356 | |
| | 150,000 | | | Aker BP ASA, 5.80%, 10/01/54(a) | | | 147,547 | |
| | 80,000 | | | ConocoPhillips Co., 4.03%, 3/15/62 | | | 64,373 | |
| | 100,000 | | | TotalEnergies Capital SA, 5.43%, 9/10/64 | | | 100,454 | |
| | 255,000 | | | ONEOK, Inc., 5.85%, 11/01/64 | | | 252,799 | |
| | | | | | | | 2,014,735 | |
| | | | | OIL, GAS & CONSUMABLE FUELS — 6.07% | |
| | 100,000 | | | TransCanada PipeLines Ltd., 4.63%, 3/01/34 | | | 98,400 | |
| | 176,000 | | | MPLX LP, 4.50%, 4/15/38 | | | 162,482 | |
| | 122,000 | | | TransCanada PipeLines Ltd., 4.75%, 5/15/38 | | | 117,430 | |
| | 85,000 | | | Energy Transfer Partners, LP, 7.50%, 7/01/38 | | | 101,105 | |
| | 216,000 | | | Exxon Mobil Corp., 4.23%, 3/19/40 | | | 201,978 | |
| | 73,000 | | | Williams Cos., Inc. (The), 6.30%, 4/15/40 | | | 79,523 | |
| | 85,000 | | | Equinor ASA, 5.10%, 8/17/40 | | | 86,969 | |
| | 111,000 | | | Hess Corp., 5.60%, 2/15/41 | | | 115,314 | |
| | 97,000 | | | Kinder Morgan Energy Partners LP, 5.63%, 9/01/41 | | | 96,364 | |
| | 114,000 | | | Apache Corp., 5.25%, 2/01/42 | | | 102,188 | |
| | 166,000 | | | Energy Transfer LP, 5.00%, 5/15/44 | | | 151,943 | |
| | 88,000 | | | Spectra Energy Partners LP, 4.50%, 3/15/45 | | | 76,610 | |
| | 113,000 | | | Energy Transfer LP, 5.35%, 5/15/45 | | | 107,569 | |
| | 72,000 | | | Kinder Morgan, Inc., 5.55%, 6/01/45 | | | 71,073 | |
| | 76,000 | | | Exxon Mobil Corp., 4.11%, 3/01/46 | | | 67,659 | |
| | See accompanying notes to financial statements. | 31 |
Sterling Capital Long Duration Corporation Bond Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) | | |
| | | | | OIL, GAS & CONSUMABLE FUELS — (continued) | |
| $ | 129,000 | | | MPLX LP, 5.20%, 12/01/47 | | $ | 120,857 | |
| | 64,000 | | | MPLX LP, 4.70%, 4/15/48 | | | 55,749 | |
| | 113,000 | | | Energy Transfer LP, 5.00%, 5/15/50 | | | 101,962 | |
| | 57,000 | | | ONEOK, Inc., 7.15%, 1/15/51 | | | 65,708 | |
| | 56,000 | | | MPLX LP, 4.95%, 3/14/52 | | | 50,202 | |
| | 70,000 | | | Diamondback Energy, Inc., 4.25%, 3/15/52 | | | 56,563 | |
| | 89,000 | | | Targa Resources Corp., 6.25%, 7/01/52 | | | 95,680 | |
| | 52,000 | | | Kinder Morgan, Inc., 5.45%, 8/01/52 | | | 50,489 | |
| | 120,000 | | | Ovintiv, Inc., 7.10%, 7/15/53 | | | 134,563 | |
| | 89,000 | | | ONEOK, Inc., 6.63%, 9/01/53 | | | 98,638 | |
| | 36,000 | | | Energy Transfer LP, 5.95%, 5/15/54 | | | 36,849 | |
| | 101,000 | | | Diamondback Energy, Inc., 5.90%, 4/18/64 | | | 101,674 | |
| | | | | | | | 2,605,541 | |
| | | | | PERSONAL PRODUCTS — 0.34% | | | | |
| | 141,000 | | | Kenvue, Inc., 5.05%, 3/22/53 | | | 144,735 | |
| | | | | | | | | |
| | | | | PHARMACEUTICALS — 1.69% | | | | |
| | 158,000 | | | Bristol-Myers Squibb Co., 2.35%, 11/13/40 | | | 112,930 | |
| | 96,000 | | | Zoetis, Inc., 4.70%, 2/01/43 | | | 91,360 | |
| | 31,000 | | | Bristol-Myers Squibb Co., 5.50%, 2/22/44 | | | 32,819 | |
| | 121,000 | | | Bristol-Myers Squibb Co., 4.25%, 10/26/49 | | | 106,123 | |
| | 195,000 | | | Bristol-Myers Squibb Co., 2.55%, 11/13/50 | | | 124,113 | |
| | 88,000 | | | Merck & Co, Inc., 2.75%, 12/10/51 | | | 59,318 | |
| | 141,000 | | | Bristol-Myers Squibb Co., 3.70%, 3/15/52 | | | 111,844 | |
| | 73,000 | | | Bristol-Myers Squibb Co., 6.40%, 11/15/63 | | | 85,750 | |
| | | | | | | | 724,257 | |
| | | | | REIT — 2.33% | | | | |
| | 157,000 | | | American Tower Trust #1, Series 2018-1, Class A, 3.65%, 3/23/28(a) | | | 152,460 | |
| | 88,000 | | | UDR, Inc., 3.10%, 11/01/34 | | | 74,894 | |
| | 121,000 | | | Kimco Realty OP LLC, 4.25%, 4/01/45 | | | 103,761 | |
| | 88,000 | | | Simon Property Group LP, 3.25%, 9/13/49 | | | 63,876 | |
| | 207,000 | | | American Tower Corp., 3.70%, 10/15/49 | | | 160,048 | |
| | 70,000 | | | Alexandria Real Estate Equities, Inc., 3.00%, 5/18/51 | | | 46,648 | |
| | 40,000 | | | Mid-America Apartments LP, 2.88%, 9/15/51 | | | 26,929 | |
| | 148,000 | | | American Homes 4 Rent LP, 4.30%, 4/15/52 | | | 122,284 | |
| | 56,000 | | | Prologis LP, 5.25%, 6/15/53 | | | 56,690 | |
| | 40,000 | | | Public Storage Operating Co., 5.35%, 8/01/53 | | | 41,299 | |
| | 46,000 | | | VICI Properties LP, 6.13%, 4/01/54 | | | 48,206 | |
| | 80,000 | | | Alexandria Real Estate Equities, Inc., 5.63%, 5/15/54 | | | 81,802 | |
| | 20,000 | | | Realty Income Corp., 5.38%, 9/01/54 | | | 20,331 | |
| | | | | | | | 999,228 | |
| | | | | RETAIL - DISCRETIONARY — 0.27% | | | | |
| | 110,000 | | | ERAC USA Finance LLC, 5.63%, 3/15/42(a) | | | 116,753 | |
| | | | | | | | | |
| | | | | ROAD & RAIL — 1.47% | | | | |
| | 73,000 | | | CSX Corp., 6.00%, 10/01/36 | | | 81,265 | |
| | 105,000 | | | Union Pacific Corp., 3.60%, 9/15/37 | | | 94,087 | |
| | 31,000 | | | Union Pacific Corp., 3.38%, 2/14/42 | | | 25,417 | |
| | 76,000 | | | Norfolk Southern Corp., 3.95%, 10/01/42 | | | 65,720 | |
| | 72,000 | | | CSX Corp., 4.30%, 3/01/48 | | | 64,530 | |
| | 56,000 | | | Norfolk Southern Corp., 3.40%, 11/01/49 | | | 42,004 | |
| | 227,000 | | | Union Pacific Corp., 2.95%, 3/10/52 | | | 159,324 | |
| | 109,000 | | | CSX Corp., 4.50%, 11/15/52 | | | 100,665 | |
| | | | | | | | 633,012 | |
| | | | | SEMICONDUCTORS — 0.59% | | | | |
| | 126,000 | | | NXP BV / NXP Funding LLC / NXP USA, Inc., 5.00%, 1/15/33 | | | 127,389 | |
| | 178,000 | | | NXP BV / NXP Funding LLC / NXP USA, Inc., 3.25%, 11/30/51 | | | 125,116 | |
| | | | | | | | 252,505 | |
| | | | | SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.22% | |
| | 60,000 | | | Broadcom, Inc., 3.47%, 4/15/34(a) | | | 53,977 | |
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) | | |
| | | | | SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — (continued) | |
| $ | 154,000 | | | Broadcom, Inc., 3.50%, 2/15/41(a) | | $ | 126,509 | |
| | 76,000 | | | QUALCOMM, Inc., 4.30%, 5/20/47 | | | 68,762 | |
| | 170,000 | | | Lam Research Corp., 2.88%, 6/15/50 | | | 118,603 | |
| | 96,000 | | | Broadcom, Inc., 3.75%, 2/15/51(a) | | | 76,224 | |
| | 80,000 | | | KLA Corp., 4.95%, 7/15/52 | | | 79,420 | |
| | | | | | | | 523,495 | |
| | | | | SOFTWARE — 3.02% | | | | |
| | 109,000 | | | Oracle Corp., 3.80%, 11/15/37 | | | 96,285 | |
| | 239,000 | | | Oracle Corp., 3.65%, 3/25/41 | | | 197,392 | |
| | 121,000 | | | Oracle Corp., 4.00%, 7/15/46 | | | 100,231 | |
| | 105,000 | | | Oracle Corp., 3.60%, 4/01/50 | | | 79,823 | |
| | 96,000 | | | Microsoft Corp., 2.53%, 6/01/50 | | | 65,797 | |
| | 198,000 | | | Microsoft Corp., 2.50%, 9/15/50 | | | 133,968 | |
| | 96,000 | | | Oracle Corp., 3.95%, 3/25/51 | | | 77,139 | |
| | 121,000 | | | Salesforce, Inc., 2.90%, 7/15/51 | | | 84,313 | |
| | 77,000 | | | Oracle Corp., 6.90%, 11/09/52 | | | 92,737 | |
| | 56,000 | | | Oracle Corp., 4.38%, 5/15/55 | | | 47,739 | |
| | 96,000 | | | Oracle Corp., 3.85%, 4/01/60 | | | 72,000 | |
| | 325,000 | | | Microsoft Corp., 2.68%, 6/01/60 | | | 213,725 | |
| | 56,000 | | | Salesforce, Inc., 3.05%, 7/15/61 | | | 37,567 | |
| | | | | | | | 1,298,716 | |
| | | | | SPECIALTY FINANCE — 0.58% | | | | |
| | 300,000 | | | AerCap Ireland Capital DAC, 3.85%, 10/29/41 | | | 250,611 | |
| | | | | | | | | |
| | | | | SPECIALTY RETAIL — 1.28% | | | | |
| | 117,000 | | | Lowe's Cos, Inc., 5.00%, 4/15/40 | | | 115,650 | |
| | 141,000 | | | Home Depot, Inc. (The), 3.13%, 12/15/49 | | | 103,964 | |
| | 162,000 | | | Lowe's Cos, Inc., 3.50%, 4/01/51 | | | 119,634 | |
| | 242,000 | | | Home Depot, Inc. (The), 2.75%, 9/15/51 | | | 163,855 | |
| | 47,000 | | | Home Depot, Inc. (The), 5.30%, 6/25/54 | | | 49,341 | |
| | | | | | | | 552,444 | |
| | | | | TECHNOLOGY HARDWARE — 0.23% | |
| | 100,000 | | | Hewlett Packard Enterprise Co., 5.60%, 10/15/54 | | | 97,968 | |
| | | | | | | | | |
| | | | | TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 1.63% | |
| | 162,000 | | | Apple, Inc., 3.85%, 5/04/43 | | | 145,845 | |
| | 70,000 | | | Hewlett Packard Enterprise Co., 6.35%, 10/15/45 | | | 76,796 | |
| | 88,000 | | | Apple, Inc., 3.85%, 8/04/46 | | | 77,332 | |
| | 141,000 | | | Apple, Inc., 2.65%, 5/11/50 | | | 97,524 | |
| | 202,000 | | | Apple, Inc., 2.70%, 8/05/51 | | | 138,982 | |
| | 186,000 | | | Apple, Inc., 3.95%, 8/08/52 | | | 163,349 | |
| | | | | | | | 699,828 | |
| | | | | TELECOMMUNICATIONS — 1.77% | | | | |
| | 223,000 | | | T-Mobile USA, Inc., 4.38%, 4/15/40 | | | 205,448 | |
| | 80,000 | | | Telefonica Emisiones SA, 5.21%, 3/08/47 | | | 75,804 | |
| | 125,000 | | | T-Mobile USA, Inc., 5.65%, 1/15/53 | | | 131,303 | |
| | 135,000 | | | T-Mobile USA, Inc., 3.60%, 11/15/60 | | | 97,994 | |
| | 235,000 | | | T-Mobile USA, Inc., 5.80%, 9/15/62 | | | 249,011 | |
| | | | | | | | 759,560 | |
| | | | | TEXTILES, APPAREL & LUXURY GOODS — 0.22% | |
| | 121,000 | | | NIKE, Inc., 3.38%, 3/27/50 | | | 95,322 | |
| | | | | | | | | |
| | | | | TOBACCO — 0.57% | | | | |
| | 194,000 | | | Philip Morris International, Inc., 4.38%, 11/15/41 | | | 176,389 | |
| | 88,000 | | | Altria Group, Inc., 3.88%, 9/16/46 | | | 68,659 | |
| | | | | | | | 245,048 | |
| | | | | TOBACCO & CANNABIS — 0.54% | |
| | 69,000 | | | BAT Capital Corp., 4.39%, 8/15/37 | | | 62,708 | |
| | 64,000 | | | BAT Capital Corp., 4.54%, 8/15/47 | | | 53,962 | |
| | 100,000 | | | BAT Capital Corp., 7.08%, 8/02/53 | | | 116,003 | |
| | | | | | | | 232,673 | |
| | | | | TRANSPORTATION & LOGISTICS — 1.13% | |
| | 61,999 | | | Polar Tankers, Inc., 5.95%, 5/10/37(a) | | | 65,445 | |
| 32 | See accompanying notes to financial statements. | |
Sterling Capital Long Duration Corporation Bond Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — (continued) | | |
| | | | | TRANSPORTATION & LOGISTICS — (continued) | |
| $ | 88,000 | | | Burlington Northern Santa Fe LLC, 4.95%, 9/15/41 | | $ | 87,926 | |
| | 149,000 | | | Burlington Northern Santa Fe LLC, 4.90%, 4/01/44 | | | 147,639 | |
| | 178,000 | | | Burlington Northern Santa Fe LLC, 5.20%, 4/15/54 | | | 183,632 | |
| | | | | | | | 484,642 | |
| | | | | WIRELESS TELECOMMUNICATION SERVICES — 0.72% | |
| | 200,000 | | | America Movil SAB de CV, 6.13%, 3/30/40 | | | 217,431 | |
| | 110,000 | | | Vodafone Group PLC, 4.25%, 9/17/50 | | | 91,597 | |
| | | | | | | | 309,028 | |
| | | | | Total (Cost $41,533,457) | | | 40,345,058 | |
| | | | | | | | | |
Principal
Amount | | | | | Fair Value | |
| U.S. TREASURY BONDS & NOTES — 3.15% | | | | |
| | 1,357,800 | | | United States Treasury Bond, 2.00%, 11/15/41 | | | 997,559 | |
| | 211,700 | | | United States Treasury Bond, 2.50%, 2/15/45 | | | 161,587 | |
| | 304,800 | | | United States Treasury Bond, 2.00%, 8/15/51 | | | 196,012 | |
| | | | | Total (Cost $1,269,711) | | | 1,355,158 | |
| | | | | | | | | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 1.94% | | | | |
| | | | | | | | | |
| | 834,180 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(e) | | | 834,180 | |
| | | | | | | | | |
| | | | | Total Money Market Funds | | | | |
| | | | | (Cost $834,180) | | | 834,180 | |
| | | | | | | | | |
| Total Investments— 99.01% | | | | |
| (Cost $43,637,348) | | | 42,534,396 | |
| Other Assets in Excess of Liabilities— 0.99% | | | 427,415 | |
| NET ASSETS — 100.00% | | $ | 42,961,811 | |
| (a) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. The security may be resold in transactions exempt from registration, normally to qualified institutional buyers. 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, 2024. The maturity date reflected is the final maturity date. |
| (c) | Security is perpetual in nature and has no stated maturity date. |
| (d) | All or a portion of the securities are held in a separate collateral account at US Bank. The total value of securities held in a separate collateral account as of the year ended September 30, 2024 is $276,498, which represents 0.64% of net assets. |
| (e) | Represents the current yield as of report date. |
| | See accompanying notes to financial statements. | 33 |
Sterling Capital Quality Income Fund
Schedule of Investments
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| CORPORATE BONDS — 0.28% |
| | | REIT — 0.28% | | | | |
| $ | 250,000 | | | American Tower Trust #1, Series 2018-1, Class A, 3.65%, 3/23/28(a)(b) | | $ | 242,771 | |
| | | | | | | | | |
| | | | Total (Cost $250,000) | | | 242,771 | |
Principal
Amount | | | | | Fair Value | |
| ASSET BACKED SECURITIES — 11.65% |
| | 79,625 | | | GreatAmerica Leasing Receivables Funding LLC, Series 1 , Class A4, 0.55%, 12/15/26(a) | | | 79,079 | |
| | 195,171 | | | Enterprise Fleet Financing LLC, Series 21-1 , Class A3, 0.70%, 12/21/26(a) | | | 194,969 | |
| | 509,000 | | | Carvana Auto Receivables Trust, Series P2 , Class B, 1.27%, 3/10/27 | | | 486,213 | |
| | 600,000 | | | Carvana Auto Receivables Trust, Series P3 , Class B, 1.42%, 8/10/27 | | | 563,700 | |
| | 950,000 | | | Santander Drive Auto Receivables Trust, Series 3 , Class B, 5.61%, 7/17/28 | | | 962,248 | |
| | 1,250,000 | | | Avis Budget Rental Car Funding AESOP LLC, Series 4A , Class A, 5.49%, 6/20/29(a) | | | 1,285,351 | |
| | 544,000 | | | Enterprise Fleet Financing, Series 1 , Class A3, 5.42%, 10/22/29(a) | | | 554,780 | |
| | 54,119 | | | ARI Fleet Lease Trust, Series A , Class A3, 0.68%, 3/15/30(a) | | | 53,733 | |
| | 35,867 | | | United States Small Business Administration, Series 20D , Class 1, 4.36%, 4/01/30(b) | | | 35,476 | |
| | 994,000 | | | Hertz Vehicle Financing III LLC, Series 2A , Class A, 5.48%, 1/27/31(a) | | | 1,018,971 | |
| | 415,000 | | | Ford Credit Auto Owner Trust, Series 2 , Class A, 1.53%, 5/15/34(a) | | | 392,289 | |
| | 100,612 | | | Saxon Asset Securities Trust, Series 3 , Class M1, 5.87%, 12/26/34(c) | | | 96,932 | |
| | 480,000 | | | OneMain Financial Issuance Trust, Series 1A , Class A1, 1.55%, 6/16/36(a)(b) | | | 450,241 | |
| | 630,000 | | | OneMain Financial Issuance Trust, Series 2A , Class A, 3.14%, 10/14/36(a)(b) | | | 609,199 | |
| | 195,000 | | | OPG Trust, Series 2021-PORT , Class C, 6.04%, 10/15/36(a) | | | 192,502 | |
| | 232,466 | | | BX Trust, Series 2021-RISE , Class C, 6.66%, 11/15/36(a) | | | 228,979 | |
| | 932,061 | | | Wheels Fleet Lease Funding 1 LLC, Series 2A , Class A, 6.46%, 8/18/38(a) | | | 943,232 | |
| | 620,000 | | | Citibank Credit Card Issuance Trust, Series A3 , Class A3, 6.15%, 6/15/39(b) | | | 677,916 | |
| | 692,000 | | | MVW 2024-2 LLC, Series 2A , Class A, 4.43%, 3/20/42(a) | | | 689,704 | |
| | 210,288 | | | SoFi Professional Loan Program Trust, Series A , Class A2FX, 2.54%, 5/15/46(a)(b) | | | 200,083 | |
| | 252,000 | | | BANK5 Trust, Series 2024-5YR6 , Class A3, 6.23%, 5/15/57 | | | 268,110 | |
| | 240,000 | | | BANK5 Trust, Series 2024-5YR6 , Class AS, 6.79%, 5/15/57 | | | 256,151 | |
| | | | | Total (Cost $10,358,543) | | | 10,239,858 | |
Principal
Amount | | | | | Fair Value | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES — 16.32% |
| | 325,161 | | | FRESB Mortgage Trust, Series 2017-SB36, Class A10F, 2.88%, 7/25/27(b) | | | 315,152 | |
| | 85,000 | | | Benchmark Mortgage Trust, Series V6, Class A3, 5.93%, 3/15/29 | | | 89,242 | |
| | 323,000 | | | Benchmark Mortgage Trust, Series V6, Class AS, 6.38%, 3/15/29 | | | 339,204 | |
| | 140,000 | | | Freddie Mac Multifamily Structured Pass Through, Series K159, Class A2, 3.95%, 11/25/30(d) | | | 138,685 | |
Principal
Amount | | | | | Fair Value | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) |
| $ | 19,220 | | | CSFB Mortgage-Backed Pass-Through Certificates, Series 1, Class 2A1, 6.50%, 2/25/34 | | $ | 19,242 | |
| | 23,782 | | | CHL Mortgage Pass-Through Trust, Series 3, Class A4, 5.75%, 4/25/34 | | | 23,449 | |
| | 9,034 | | | Citigroup Mortgage Loan Trust, Inc., Series NCM2, Class 3CB2, 6.50%, 9/01/34 | | | 8,995 | |
| | 1,000,000 | | | Freddie Mac Multifamily Structured Pass Through, Series K1522, Class A2, 2.36%, 10/25/36 | | | 813,139 | |
| | 14 | | | Citicorp Residential Mortgage Trust, STEP, Series 2007- 2, Class A6, 6.77%, 6/25/37 | | | 14 | |
| | 250,708 | | | ELP Commercial Mortgage Trust, Series 2021-ELP, Class C, 6.53%, 11/15/38(a)(c) | | | 249,605 | |
| | 260,029 | | | BX Commercial Mortgage Trust, Series 2021-ACNT, Class C, 6.71%, 11/15/38(a)(c) | | | 258,241 | |
| | 232,582 | | | SMR Mortgage Trust, Series 2022-IND, Class A, 6.99%, 2/15/39(a) | | | 228,525 | |
| | 7,234 | | | GS Mortgage Securities Trust, Series 2010-C1, Class B, 5.15%, 8/10/43(a) | | | 7,210 | |
| | 98,905 | | | JP Morgan Chase Commercial Mortgage, Series C3, Class B, 5.01%, 2/15/46(a)(c) | | | 92,477 | |
| | 44,709 | | | COMM Mortgage Trust, 3.69%, 8/10/47 | | | 44,618 | |
| | 7,518 | | | GS Mortgage Securities Trust, 3.93%, 9/01/47 | | | 7,506 | |
| | 154,386 | | | COMM Mortgage Trust, Series 2014-CCRE20, Class A4, 3.59%, 11/10/47 | | | 154,133 | |
| | 600,000 | | | Wells Fargo Commercial Mortgage Trust, Series LC18, Class A5, 3.41%, 12/15/47 | | | 596,769 | |
| | 271,456 | | | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C19, Class A4, 3.53%, 12/15/47 | | | 270,753 | |
| | 500,000 | | | CSAIL Commercial Mortgage Trust, Series 2015-C3, Class A4, 3.72%, 8/15/48(b) | | | 493,963 | |
| | 644,000 | | | Wells Fargo Commercial Mortgage Trust, Series P2, Class A4, 3.81%, 12/15/48 | | | 636,829 | |
| | 500,000 | | | GS Mortgage Securities Trust, Series 2016-GS4, Class A4, 3.44%, 11/10/49(b) | | | 488,710 | |
| | 589,000 | | | CD Mortgage Trust, Series 2016-CD2, Class A4, 3.53%, 11/10/49(b) | | | 566,079 | |
| | 185,000 | | | JP Morgan Chase Commercial Mortgage, Series JP4, Class A4, 3.65%, 12/15/49(c) | | | 179,269 | |
| | 500,000 | | | Morgan Stanley Bank of America Merrill Lynch Trust, Series C32, Class A4, 3.72%, 12/15/49(b) | | | 489,334 | |
| | 50,000 | | | Wells Fargo Commercial Mortgage Trust, Series C37, Class A5, 3.79%, 12/15/49 | | | 49,129 | |
| | 700,000 | | | CD Mortgage Trust, Series 2017-CD3, Class A4, 3.63%, 2/10/50 | | | 664,047 | |
| | 250,000 | | | COMM Mortgage Trust, Series COR2, Class A3, 3.51%, 9/10/50(b) | | | 240,453 | |
| | 300,000 | | | Wells Fargo Commercial Mortgage Trust, Series C40, Class A4, 3.58%, 10/15/50 | | | 291,672 | |
| | 435,000 | | | Morgan Stanley Capital I Trust, Series H3, Class A5, 4.18%, 7/15/51 | | | 427,669 | |
| | 325,000 | | | BBCMS Mortgage Trust, Series C7, Class A5, 2.04%, 4/15/53 | | | 285,165 | |
| | 64,000 | | | GS Mortgage Securities Trust, Series GC47, Class A5, 2.38%, 5/12/53 | | | 56,848 | |
| | 220,800 | | | Wells Fargo Commercial Mortgage Trust, Series C56, Class A5, 2.45%, 6/15/53 | | | 196,065 | |
| | 589,492 | | | Benchmark Mortgage Trust, Series B18, Class A5, 1.93%, 7/15/53 | | | 505,347 | |
| | 659,333 | | | Morgan Stanley Capital I Trust, Series HR8, Class A4, 2.04%, 7/15/53 | | | 575,848 | |
| | 300,000 | | | Wells Fargo Commercial Mortgage Trust, Series C58, Class A4, 2.09%, 7/15/53 | | | 259,702 | |
| | 500,000 | | | Wells Fargo Commercial Mortgage Trust, Series C57, Class A4, 2.12%, 8/15/53 | | | 439,871 | |
| 34 | See accompanying notes to financial statements. | |
Sterling Capital Quality Income Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) |
| $ | 250,000 | | | BANK 2020-BNK29, Series BN29, Class A4, 2.00%, 11/15/53 | | $ | 210,636 | |
| | 500,000 | | | GS Mortgage Securities Trust, Series GSA2, Class A5, 2.01%, 12/12/53(b) | | | 425,485 | |
| | 1,250,000 | | | Benchmark Mortgage Trust, Series B21, Class A5, 1.98%, 12/17/53(b) | | | 1,072,643 | |
| | 100,000 | | | CFCRE Commercial Mortgage Trust, Series C7, Class A3, 3.84%, 12/10/54 | | | 97,774 | |
| | 80,000 | | | Benchmark Mortgage Trust, Series V2, Class AS, 6.54%, 5/15/55 | | | 83,682 | |
| | 209,000 | | | Benchmark 2024-V7 Mortgage Trust, Series V7, Class A3, 6.23%, 5/15/56 | | | 222,853 | |
| | 167,000 | | | Benchmark 2024-V7 Mortgage Trust, Series V7, Class AS, 6.53%, 5/15/56 | | | 176,597 | |
| | 220,000 | | | Benchmark Mortgage Trust, Series V5, Class A3, 5.81%, 1/10/57 | | | 230,267 | |
| | 75,000 | | | BBCMS Mortgage Trust, Series 5C25, Class A3, 5.95%, 3/15/57 | | | 78,903 | |
| | 51,000 | | | BBCMS Mortgage Trust 2024-5C25, Series 5C25, Class AS, 6.36%, 3/15/57 | | | 53,485 | |
| | 165,000 | | | BBCMS Mortgage Trust 2024-C26, Series C26, Class A5, 5.83%, 5/15/57 | | | 179,714 | |
| | 185,000 | | | BMO 2024-C9 Mortgage Trust, Series C9, Class A5, 5.76%, 7/15/57 | | | 200,089 | |
| | 156,000 | | | BMO Mortgage Trust, Series 2024-C9, Class AS, 6.13%, 7/15/57 | | | 166,270 | |
| | 153,910 | | | WFRBS Commercial Mortgage Trust, Series C23, Class A5, 3.92%, 10/15/57 | | | 153,366 | |
| | 500,000 | | | Citigroup Commercial Mortgage Trust, Series GC33, Class A4, 3.78%, 9/10/58 | | | 492,574 | |
| | | | | Total (Cost $15,436,684) | | | 14,347,297 | |
Principal
Amount | | | | | Fair Value | |
| COLLATERALIZED MORTGAGE OBLIGATIONS — 25.14% |
| | 241,081 | | | Fannie Mae, Series 2013-91, Class DV, 3.00%, 10/25/26 | | | 237,652 | |
| | 215,000 | | | Freddie Mac, Series 4097, Class CU, 1.50%, 8/15/27 | | | 204,328 | |
| | 483,903 | | | Freddie Mac, Series 4136, Class HZ, 3.50%, 11/15/27 | | | 477,621 | |
| | 357,421 | | | Ginnie Mae, Series 79, Class V, 2.80%, 3/16/29 | | | 343,104 | |
| | 170,481 | | | Freddie Mac, Series 219, –%, 3/01/32 | | | 153,537 | |
| | 52,349 | | | Freddie Mac, Series 2485, Class WG, 6.00%, 8/15/32 | | | 54,844 | |
| | 119,000 | | | Freddie Mac, Series 4160, Class HH, 2.50%, 12/15/32(b) | | | 112,067 | |
| | 126,484 | | | Fannie Mae, Series 2003-21, Class OW, 4.00%, 3/25/33 | | | 123,468 | |
| | 32,672 | | | Fannie Mae, Series 2003-19, Class AR, 5.50%, 3/25/33 | | | 33,888 | |
| | 122,121 | | | Freddie Mac, Series 2768, Class PC, 4.00%, 3/15/34 | | | 118,718 | |
| | 46,176 | | | Ginnie Mae, Series 2004-69, Class GC, 5.50%, 4/20/34 | | | 47,183 | |
| | 121,932 | | | Freddie Mac, Series 3042, Class PZ, 5.75%, 9/15/35 | | | 129,071 | |
| | 370,078 | | | Ginnie Mae, Series 2005-60, Class WZ, 5.50%, 9/20/35 | | | 380,635 | |
| | 871,696 | | | Freddie Mac, Series 236, –%, 4/01/36 | | | 721,525 | |
| | 161,377 | | | Ginnie Mae, Series 2007-57, Class ZA, 5.75%, 10/20/37 | | | 165,705 | |
| | 669,733 | | | Fannie Mae, Series 2008-2, Class PH, 5.50%, 2/25/38 | | | 686,900 | |
| | 71,851 | | | Freddie Mac, Series 3440, Class EM, 5.00%, 4/15/38 | | | 74,087 | |
| | 527,000 | | | Fannie Mae, Series 2009-28, Class HX, 5.00%, 5/25/39 | | | 532,243 | |
| | 102,918 | | | Freddie Mac, Series 3816, Class HM, 4.50%, 5/15/40 | | | 103,630 | |
| | 500,000 | | | Freddie Mac, Series 3714, Class PB, 4.75%, 8/15/40(b) | | | 504,131 | |
| | 1,000,000 | | | Ginnie Mae, Series 81, Class AL, 4.50%, 8/20/40 | | | 998,719 | |
| | 43,123 | | | Fannie Mae, Series 74, Class QM, 4.50%, 11/25/40 | | | 42,827 | |
| | 2,735 | | | Freddie Mac, Series 3803, Class PJ, 4.25%, 1/15/41 | | | 2,718 | |
| | 825,833 | | | Fannie Mae, Series 2010-150, Class YL, 4.00%, 1/25/41 | | | 768,392 | |
| | 200,000 | | | Freddie Mac, Series 3815, Class TB, 4.50%, 2/15/41 | | | 195,087 | |
| | 58,701 | | | Freddie Mac, Series 4215, Class LD, 2.00%, 7/15/41 | | | 56,562 | |
| | 990,000 | | | Freddie Mac, Series 3895, Class PW, 4.50%, 7/15/41 | | | 986,101 | |
| | 750,000 | | | Ginnie Mae, Series 2011-135, Class PG, 3.00%, 10/16/41 | | | 671,410 | |
| | 28,959 | | | Freddie Mac, Series 4293, Class MH, 3.00%, 12/15/41 | | | 28,089 | |
| | 767,396 | | | Fannie Mae, Series 2011-131, Class PB, 4.50%, 12/25/41 | | | 769,169 | |
Principal
Amount | | | | | Fair Value | |
| COLLATERALIZED MORTGAGE OBLIGATIONS — (continued) |
| $ | 270,973 | | | Freddie Mac, Series 4094, Class ME, 2.50%, 8/15/42 | | $ | 241,870 | |
| | 460,000 | | | Freddie Mac, Series 4088, Class CD, 3.00%, 8/15/42 | | | 387,972 | |
| | 628,000 | | | Freddie Mac, Series 4135, Class AY, 2.00%, 11/15/42 | | | 514,347 | |
| | 724,000 | | | Freddie Mac, Series 4125, Class JC, 2.50%, 11/15/42 | | | 582,031 | |
| | 108,682 | | | Freddie Mac, Series 4173, Class NB, 3.00%, 3/15/43 | | | 100,196 | |
| | 83,084 | | | Freddie Mac, Series 4352, Class ZX, 4.00%, 4/15/44 | | | 81,796 | |
| | 1,000,000 | | | Freddie Mac, Series 4507, Class GB, 3.00%, 9/15/45 | | | 891,276 | |
| | 1,648,351 | | | Fannie Mae, Series 2015-65, Class CZ, 3.50%, 9/25/45 | | | 1,459,474 | |
| | 108,778 | | | Fannie Mae, Series 2016-85, Class GA, 2.50%, 10/25/45 | | | 100,654 | |
| | 475,000 | | | Freddie Mac, Series 4650, Class JE, 3.00%, 7/15/46 | | | 418,736 | |
| | 524,681 | | | Ginnie Mae, Series 126, Class A, 2.50%, 11/16/46 | | | 498,844 | |
| | 712,000 | | | Ginnie Mae, Series 2017-75, Class DL, 3.00%, 3/20/47 | | | 568,903 | |
| | 1,495,000 | | | Fannie Mae, Series 2017-42, Class HL, 3.00%, 6/25/47 | | | 1,365,769 | |
| | 640,903 | | | Fannie Mae, Series 20, Class KL, 3.50%, 1/25/48 | | | 556,348 | |
| | 1,016,901 | | | Freddie Mac, Series 4795, Class JB, 4.00%, 5/15/48 | | | 978,658 | |
| | 830,000 | | | Ginnie Mae, Series 2019-6, Class JK, 3.50%, 1/20/49 | | | 751,899 | |
| | 778,867 | | | Freddie Mac, Series 4941, Class MB, 3.00%, 7/25/49 | | | 714,477 | |
| | 310,510 | | | Chase Home Lending Mortgage Trust, Series 2019-ATR2, Class A3, 3.50%, 7/25/49(a) | | | 285,784 | |
| | 662,399 | | | Fannie Mae, Series 2015-65, Class BL, 3.50%, 9/25/49 | | | 563,149 | |
| | 786,847 | | | Fannie Mae, Series 5, Class MG, 3.50%, 2/25/50 | | | 732,298 | |
| | 320,712 | | | Fannie Mae, Series 2020-10, Class Q, 3.00%, 3/25/50 | | | 278,085 | |
| | 365,348 | | | Freddie Mac, Series 5115, Class G, 2.50%, 9/25/50 | | | 302,825 | |
| | | | | Total (Cost $22,811,133) | | | 22,098,802 | |
Principal
Amount | | | | | Fair Value | |
| MORTGAGE-BACKED SECURITIES — 39.00% |
| | | | | Fannie Mae — 17.14% | | | | |
| | 82,272 | | | 3.00%, 1/01/31, Pool #BA6574 | | | 80,354 | |
| | 259,908 | | | 4.50%, 3/01/34, Pool #CA3294 | | | 262,607 | |
| | 232,439 | | | 2.50%, 11/01/35, Pool #CA7939 | | | 218,071 | |
| | 48,739 | | | 5.50%, 6/01/38, Pool #984277(b) | | | 50,117 | |
| | 26,594 | | | 5.50%, 8/01/38, Pool #995072 | | | 27,430 | |
| | 35,129 | | | 4.50%, 9/01/39, Pool #AC1830 | | | 35,519 | |
| | 34,220 | | | 4.50%, 10/01/40, Pool #AE4855 | | | 34,601 | |
| | 61,995 | | | 3.50%, 2/01/41, Pool #AH5646 | | | 59,322 | |
| | 100,443 | | | 4.00%, 3/01/41, Pool #AH4008 | | | 99,248 | |
| | 300,786 | | | 2.50%, 5/01/41, Pool #MA4334 | | | 271,184 | |
| | 27,219 | | | 4.50%, 6/01/41, Pool #AC9298 | | | 27,424 | |
| | 68,955 | | | 5.00%, 7/01/41, Pool #AI5595 | | | 70,987 | |
| | 117,078 | | | 4.00%, 9/01/41, Pool #AJ1717 | | | 115,684 | |
| | 553,396 | | | 6.00%, 8/01/43, Pool #MA5129 | | | 569,866 | |
| | 35,176 | | | 4.50%, 10/01/44, Pool #MA2066 | | | 35,264 | |
| | 103,771 | | | 4.00%, 12/01/44, Pool #MA2127 | | | 101,251 | |
| | 101,637 | | | 4.50%, 1/01/45, Pool #MA2158 | | | 101,890 | |
| | 122,979 | | | 3.50%, 3/01/45, Pool #AS4552 | | | 116,986 | |
| | 113,030 | | | 4.00%, 10/01/45, Pool #AL7487 | | | 110,286 | |
| | 766,329 | | | 3.00%, 10/01/46, Pool #BC4764 | | | 702,755 | |
| | 75,209 | | | 4.00%, 11/01/46, Pool #MA2808 | | | 73,267 | |
| | 99,167 | | | 3.00%, 2/01/47, Pool #BE2329 | | | 91,018 | |
| | 54,768 | | | 4.00%, 5/01/47, Pool #BE9598 | | | 53,167 | |
| | 47,456 | | | 4.50%, 11/01/47, Pool #BM3286 | | | 47,633 | |
| | 54,853 | | | 4.50%, 5/01/48, Pool #CA1711 | | | 54,509 | |
| | 1,370,650 | | | 3.50%, 6/01/50, Pool #CA6097 | | | 1,289,494 | |
| | 190,818 | | | 3.00%, 7/01/50, Pool #CA6422 | | | 173,600 | |
| | 190,489 | | | 3.00%, 7/01/50, Pool #CA6421 | | | 173,568 | |
| | 307,975 | | | 2.50%, 8/01/50, Pool #FM4055 | | | 269,477 | |
| | 460,139 | | | 2.50%, 8/01/50, Pool #FM4053 | | | 403,525 | |
| | 710,689 | | | 3.00%, 8/01/50, Pool #FS0973 | | | 651,975 | |
| | 890,474 | | | 3.50%, 9/01/50, Pool #FS5284 | | | 839,905 | |
| | 436,411 | | | 2.50%, 3/01/51, Pool #FM6523 | | | 380,445 | |
| | 305,566 | | | 3.00%, 5/01/51, Pool #FM7346 | | | 277,129 | |
| | 973,459 | | | 2.50%, 8/01/51, Pool #FM8438 | | | 851,601 | |
| | 1,149,759 | | | 4.00%, 8/01/51, Pool #FS1976 | | | 1,117,563 | |
| | See accompanying notes to financial statements. | 35 |
Sterling Capital Quality Income Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| MORTGAGE-BACKED SECURITIES — (continued) |
| | | | | Fannie Mae — (continued) | | | | |
| $ | 285,624 | | | 3.00%, 11/01/51, Pool #CB2170 | | $ | 257,188 | |
| | 739,011 | | | 3.50%, 2/01/52, Pool #MA4550 | | | 692,116 | |
| | 841,022 | | | 3.00%, 3/01/52, Pool #BV4143 | | | 768,577 | |
| | 626,537 | | | 3.50%, 4/01/52, Pool #FS1260 | | | 588,426 | |
| | 604,318 | | | 4.50%, 6/01/52, Pool #FS2157 | | | 601,101 | |
| | 464,747 | | | 5.00%, 11/01/52, Pool #CB5278 | | | 464,683 | |
| | 530,676 | | | 5.50%, 3/01/53, Pool #FS3925 | | | 540,525 | |
| | 1,279,505 | | | 6.00%, 6/01/53, Pool #FS6616 | | | 1,313,197 | |
| | | | | | | | 15,064,535 | |
| | | | | Freddie Mac — 21.33% | | | | |
| | 30,646 | | | 4.00%, 11/01/32, Pool #ZS8993 | | | 30,507 | |
| | 152,994 | | | 3.50%, 5/01/35, Pool #ZA2378 | | | 149,701 | |
| | 115,552 | | | 4.00%, 5/01/37, Pool #ZA2461 | | | 114,636 | |
| | 16,716 | | | 5.50%, 10/01/39, Pool #ZI9359 | | | 17,205 | |
| | 29,315 | | | 5.00%, 4/01/40, Pool #ZI9910 | | | 30,190 | |
| | 49,395 | | | 5.50%, 4/01/40, Pool #ZA1042 | | | 50,887 | |
| | 154,489 | | | 2.00%, 8/01/40, Pool #RB5076 | | | 135,865 | |
| | 20,767 | | | 5.00%, 8/01/40, Pool #ZA1056 | | | 21,387 | |
| | 53,351 | | | 4.00%, 11/01/40, Pool #ZJ0654 | | | 52,715 | |
| | 57,023 | | | 4.00%, 12/01/40, Pool #ZJ0811 | | | 56,344 | |
| | 136,510 | | | 3.50%, 8/01/42, Pool #ZL3508 | | | 130,284 | |
| | 557,901 | | | 6.00%, 2/01/43, Pool #RB5221 | | | 574,475 | |
| | 174,616 | | | 3.50%, 3/01/43, Pool #ZT1107 | | | 166,217 | |
| | 102,895 | | | 3.50%, 3/01/45, Pool #ZT1164 | | | 97,947 | |
| | 81,454 | | | 3.00%, 1/01/46, Pool #ZS4646 | | | 75,062 | |
| | 89,180 | | | 4.00%, 4/01/46, Pool #ZM1015 | | | 87,015 | |
| | 83,475 | | | 3.50%, 12/01/47, Pool #ZM5123 | | | 78,737 | |
| | 1,734,770 | | | 4.00%, 6/01/48, Pool #ZT0541 | | | 1,690,776 | |
| | 217,127 | | | 2.50%, 11/01/49, Pool #QA4396 | | | 189,494 | |
| | 580,663 | | | 2.50%, 7/01/51, Pool #QC4230 | | | 510,829 | |
| | 922,899 | | | 3.00%, 8/01/51, Pool #SD8162 | | | 831,278 | |
| | 1,464,561 | | | 2.50%, 9/01/51, Pool #RA5921 | | | 1,282,515 | |
| | 960,835 | | | 3.00%, 2/01/52, Pool #RA6664 | | | 868,112 | |
| | 407,465 | | | 3.00%, 2/01/52, Pool #SD8195 | | | 366,643 | |
| | 802,960 | | | 3.50%, 4/01/52, Pool #SD0957 | | | 752,914 | |
| | 680,468 | | | 4.50%, 6/01/52, Pool #SD1265 | | | 671,933 | |
| | 1,051,599 | | | 4.50%, 8/01/52, Pool #SD1515 | | | 1,035,362 | |
| | 711,802 | | | 5.00%, 10/01/52, Pool #SD1710 | | | 714,400 | |
| | 657,590 | | | 5.00%, 1/01/53, Pool #RA8382 | | | 657,450 | |
| | 882,043 | | | 5.50%, 2/01/53, Pool #QF8052 | | | 895,616 | |
| | 911,120 | | | 5.00%, 3/01/53, Pool #SD2390 | | | 915,254 | |
| | 1,129,266 | | | 4.50%, 5/01/53, Pool #SD2952 | | | 1,124,822 | |
| | 436,586 | | | 6.00%, 5/01/53, Pool #SD3072 | | | 448,503 | |
| | 946,455 | | | 5.00%, 6/01/53, Pool #SD3128 | | | 950,750 | |
| | 914,377 | | | 5.50%, 6/01/53, Pool #SD3136 | | | 932,797 | |
| | 1,247,628 | | | 6.00%, 7/01/53, Pool #SD3223 | | | 1,289,611 | |
| | 739,071 | | | 5.50%, 6/01/54, Pool #SD5479 | | | 750,875 | |
| | | | | | | | 18,749,108 | |
| | | | | Ginnie Mae II — 0.53% | | | | |
| | 6,585 | | | 4.00%, 12/20/40, Pool #755678 | | | 6,527 | |
| | 471,788 | | | 4.00%, 7/20/52, Pool #786280 | | | 457,126 | |
| | | | | | | | 463,653 | |
| | | | | Total (Cost $35,340,507) | | | 34,277,296 | |
Principal
Amount | | | | | Fair Value | |
| U.S. GOVERNMENT AGENCIES — 0.54% |
| | 550,000 | | | Federal Home Loan Banks, 1.90%, 10/07/31 | | | 475,898 | |
| | | | Total (Cost $472,081) | | | 475,898 | |
Principal
Amount | | | | | Fair Value | |
| U.S. TREASURY BONDS & NOTES — 3.87% |
| | 2,644,100 | | | United States Treasury Bond, 2.38%, 2/15/42 | | | 2,056,924 | |
Principal
Amount | | | | | Fair Value | |
| U.S. TREASURY BONDS & NOTES — (continued) |
| $ | 2,158,200 | | | United States Treasury Bond, 1.88%, 11/15/51(b) | | $ | 1,342,131 | |
| | | | | | | | |
| | | | Total (Cost $3,731,401) | | | 3,399,055 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 2.97% |
| | 2,612,069 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(e) | | | 2,612,069 | |
| | | | | | | | |
| | | | Total Money Market Funds | | | | |
| | | | (Cost $2,612,069) | | | 2,612,069 | |
| | | | | | | | |
| Total Investments— 99.77% | | | | |
| (Cost $91,012,418) | | | 87,693,046 | |
| Other Assets in Excess of Liabilities— 0.23% | | | 206,626 | |
| NET ASSETS — 100.00% | | $ | 87,899,672 | |
| (a) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. The security may be resold in transactions exempt from registration, normally to qualified institutional buyers. The Advisor, using Board approved procedures, has deemed these securities or a portion of these securities to be liquid. |
| (b) | All or a portion of the securities are held in a separate collateral account at US Bank. The total value of securities held in a separate collateral account as of the year ended September 30, 2024 is $5,813,415, which represents 6.6% of net assets. |
| (c) | The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2024. The maturity date reflected is the final maturity date. |
| (d) | 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. |
| (e) | Represents the current yield as of report date. |
| 36 | See accompanying notes to financial statements. | |
Sterling Capital North Carolina Intermediate Tax-Free Fund
Schedule of Investments
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| MUNICIPAL BONDS — 97.98% |
| | | | | North Carolina — 97.98% | | | | |
| $ | 575,000 | | | Brunswick County, NC, Enterprise Systems Revenue, Callable 2/1/33 @ 100, 5.00%,2/1/41 | | $ | 646,759 | |
| | 500,000 | | | Brunswick County, NC, Enterprise Systems Revenue, Callable 2/1/33 @ 100, 5.00%,2/1/42 | | | 560,200 | |
| | 2,000,000 | | | Brunswick, NC, 5.00%,8/1/25 | | | 2,037,856 | |
| | 1,025,000 | | | Buncombe County Metropolitan Sewerage District, Sewer Improvements Revenue, Callable 7/1/24 @ 100, 5.00%,7/1/39 | | | 1,026,187 | |
| | 1,475,000 | | | Buncombe County, NC, Advance Refunding Revenue Limited Obligation, Callable 6/1/25 @ 100, 5.00%,6/1/28 | | | 1,497,126 | |
| | 2,000,000 | | | Buncombe County, NC, Callable 6/1/34 @ 100, 5.00%,6/1/36 | | | 2,360,442 | |
| | 1,100,000 | | | Cabarrus County, NC, Refunding Revenue Bonds Series A, 5.00%,6/1/31 | | | 1,263,968 | |
| | 1,000,000 | | | Charlotte, NC, Charlotte Douglas International Airport Refunding Revenue, Callable 7/1/24 @ 100, 5.00%,7/1/31 | | | 1,001,451 | |
| | 1,695,000 | | | Charlotte, NC, Current Refunding G.O. Series A, 5.00%,6/1/29 | | | 1,894,544 | |
| | 2,000,000 | | | Charlotte, NC, Current Refunding G.O. Series A, Callable 6/1/29 @ 100, 5.00%,6/1/34 | | | 2,199,492 | |
| | 2,000,000 | | | Charlotte, NC, Public Facilities, Certification of Participation Series B, Callable 12/1/31 @ 100, 5.00%,12/1/32 | | | 2,303,513 | |
| | 2,275,000 | | | Charlotte, NC, Recreational Facilities Improvements Revenue, Callable 12/1/28 @ 100, 5.00%,12/1/33 | | | 2,471,372 | |
| | 1,520,000 | | | Charlotte, NC, Recreational Facilities Improvements Revenue, Callable 12/1/28 @ 100, 5.00%,12/1/34 | | | 1,645,560 | |
| | 2,055,000 | | | Charlotte, NC, Water & Sewer System Revenue, Refunding Revenue Bonds Series A, 5.00%,7/1/42 | | | 2,365,651 | |
| | 2,650,000 | | | Charlotte, NC, Water & Sewer System Revenue, Refunding Revenue Bonds Series A, Callable 7/1/32 @ 100, 5.00%,7/1/39 | | | 3,021,372 | |
| | 2,035,000 | | | Chatham County, NC, Refunding Revenue (County Guaranteed), 5.00%,12/1/28 | | | 2,123,986 | |
| | 2,100,000 | | | Concord, NC, Recreational Facility Improvements G.O., Callable 9/1/33 @ 100, 5.00%,9/1/34 | | | 2,486,125 | |
| | 1,150,000 | | | Currituck County, NC, Callable 4/1/33 @ 100, 5.00%,4/1/37 | | | 1,320,069 | |
| | 1,150,000 | | | Currituck County, NC, Callable 4/1/33 @ 100, 5.00%,4/1/36 | | | 1,325,166 | |
| | 1,000,000 | | | Currituck County, NC, Callable 4/1/33 @ 100, 5.00%,4/1/38 | | | 1,143,354 | |
| | 1,890,000 | | | Durham County, NC, Current Refunding G.O., 5.00%,6/1/29 | | | 2,113,389 | |
| | 1,225,000 | | | East Carolina University, University & College Improvements Revenue Series A, Callable 4/1/26 @ 100, 5.00%,10/1/27 | | | 1,264,772 | |
| | 1,000,000 | | | Elizabeth City State University, Board of Governors of NC, ADvance Refunding Revenue Bonds, Callable 4/1/29 @ 100 (AGM), 5.00%,4/1/40 | | | 1,049,123 | |
| | 1,690,000 | | | Fayetteville, NC, Puiblic Works Commission, Electric Light & Power Imrpovements Revenue, Callable 3/1/24 @ 100, 5.00%,3/1/29 | | | 1,826,498 | |
| | 2,000,000 | | | Greensboro, NC, Recreational Facility Improvements G.O. Series B, Callable 4/1/32 @ 100, 5.00%,4/1/40 | | | 2,258,387 | |
| | 1,500,000 | | | Guilford County, NC, 4.00%,3/1/40 | | | 1,583,219 | |
| | 1,675,000 | | | Guilford County, NC, Advance Refunding, G.O. Series A, Callable 2/1/26 @ 100, 5.00%,2/1/28 | | | 1,730,506 | |
| | 880,000 | | | Johnston County, NC, Water Utility Improvements Revenue Bonds, Callable 4/1/33 @ 100, 5.00%,4/1/39 | | | 1,005,352 | |
| | 1,000,000 | | | Macon County, NC, 5.00%,10/1/41 | | | 1,134,140 | |
Principal
Amount | | | | | Fair Value | |
| MUNICIPAL BONDS — (continued) |
| | | | | North Carolina — (continued) | | | | |
| $ | 1,195,000 | | | Monroe, NC, Advanced Refunding Revenue Bonds, Callable 3/1/26 @ 100, 5.00%,3/1/29 | | $ | 1,231,955 | |
| | 1,215,000 | | | North Carolina Agricultural & Technical State University, Refunding Revenue Series A, Callable 10/1/25 @ 100, 5.00%,10/1/34 | | | 1,234,739 | |
| | 1,000,000 | | | North Carolina Agricultural & Technical State University, Refunding Revenue Series A, 5.00%,10/1/52 | | | 1,082,582 | |
| | 500,000 | | | North Carolina Agricultural & Technical State University, Refunding Revenue Series A, 5.00%,10/1/48 | | | 544,359 | |
| | 500,000 | | | North Carolina Agricultural & Technical State University, Refunding Revenue Series A, 5.00%,10/1/43 | | | 551,672 | |
| | 1,000,000 | | | North Carolina Agricultural & Technical State University, Refunding Revenue Series A, Callable 10/1/25 @ 100, 5.00%,10/1/32 | | | 1,016,839 | |
| | 750,000 | | | North Carolina Capital Facilities Finance Agency, Meredith College Project, Refunding Revenue, 5.00%,6/1/25 | | | 757,571 | |
| | 1,045,000 | | | North Carolina Capital Facilities Finance Agency, The Arc of North Carolina Project, Refunding Revenue (Housing and Urban Development, Section 8), 5.00%,10/1/25 | | | 1,051,604 | |
| | 2,345,000 | | | North Carolina Capital Facilities Finance Agency, The Arc of North Carolina Project, Refunding Revenue (Housing and Urban Development, Section 8), Callable 10/1/27 @ 100, 5.00%,10/1/34 | | | 2,377,143 | |
| | 1,000,000 | | | North Carolina Central University, University & College Improvements, Revenue Bonds, Callable 4/1/29 @ 100, 5.00%,4/1/37 | | | 1,066,720 | |
| | 1,205,000 | | | North Carolina Central University, University & College Improvements, Revenue Bonds, Callable 4/1/29 @ 100, 5.00%,4/1/33 | | | 1,298,497 | |
| | 2,500,000 | | | North Carolina Medical Care Commission, 5.00%,2/1/51 | | | 2,564,895 | |
| | 2,000,000 | | | North Carolina Medical Care Commission, Advance Refunding Revenue Bonds, Vidant Health, Callable 6/1/25 @ 100, 5.00%,6/1/40 | | | 2,017,007 | |
| | 1,500,000 | | | North Carolina Medical Care Commission, Health, Hospital and Nursing Home Improvements, Revenue Bonds Series A, Callable 1/1/30 @ 100, 5.00%,7/1/32 | | | 1,634,248 | |
| | 1,040,000 | | | North Carolina Municipal Power Agency No 1, 5.00%,1/1/29 | | | 1,076,496 | |
| | 3,000,000 | | | North Carolina State, Advance Refunding Revenue Bonds Series B, Callable 5/1/27 @ 100, 5.00%,5/1/30(a) | | | 3,172,369 | |
| | 2,100,000 | | | North Carolina State, Advance Refunding Revenue Bonds Series B, Callable 5/1/27 @ 100, 5.00%,5/1/28 | | | 2,230,616 | |
| | 2,500,000 | | | North Carolina State, Build North Carolina Bonds, Highway Improvements Revenue Bonds Series A, Callable 5/1/29 @ 100, 5.00%,5/1/31 | | | 2,743,128 | |
| | 3,000,000 | | | North Carolina State, Highway Improvements Revenue Bonds Series N, Callable 3/1/31 @ 100, 4.00%,3/1/34 | | | 3,168,697 | |
| | 1,250,000 | | | North Carolina Turnpike Authority, Senior Lien, Advance Refunding Revenue (AGM), 5.00%,1/1/26 | | | 1,283,701 | |
| | 1,500,000 | | | North Carolina Turnpike Authority, Senior Lien, Advance Refunding Revenue (AGM), 5.00%,1/1/27 | | | 1,576,639 | |
| | 2,100,000 | | | North Carolina Turnpike Authority, Senior Lien, Advance Refunding Revenue, Callable 1/1/27 @ 100 (AGM), 5.00%,1/1/28 | | | 2,206,772 | |
| | 1,060,000 | | | Pitt County, NC, Advance Refunding Revenue Bonds Series B, Callable 10/1/26 @ 100, 5.00%,4/1/30 | | | 1,104,589 | |
| | 3,000,000 | | | Raleigh, NC, Combined Enterprise System Revenue, Current Refunding Revenue Bonds, Callable 9/1/33 @ 100, 5.00%,9/1/48 | | | 3,354,095 | |
| | 2,200,000 | | | Raleigh, NC, Refunding Notes G.O. Series A, Callable 4/1/33 @ 100, 5.00%,4/1/40 | | | 2,513,926 | |
| | See accompanying notes to financial statements. | 37 |
Sterling Capital North Carolina Intermediate Tax-Free Fund
Schedule of Investments (continued)
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| MUNICIPAL BONDS — (continued) |
| | | | | North Carolina — (continued) | | | | |
| $ | 1,025,000 | | | Raleigh, NC, Refunding Notes G.O. Series A, Callable 4/1/33 @ 100, 5.00%,4/1/36 | | $ | 1,196,127 | |
| | 2,000,000 | | | Raleigh, NC, Refunding Notes G.O. Series A, Callable 4/1/33 @ 100, 5.00%,4/1/35 | | | 2,344,250 | |
| | 1,985,000 | | | Sampson County, NC, Refunding Revenue, Callable 12/1/25 @ 100, 5.00%,12/1/26(a) | | | 2,035,252 | |
| | 1,025,000 | | | Surry County, NC, School Improvements, Revenue Bonds, Callable 6/1/29 @ 100, 4.00%,6/1/35 | | | 1,055,487 | |
| | 1,470,000 | | | Town of Apex, NC, Callable 2/1/33 @ 100, 5.00%,2/1/35(a) | | | 1,716,011 | |
| | 1,195,000 | | | Town of Fuquay-Varina NC, Multi-Utility Improvements G.O., 5.00%,8/1/31 | | | 1,381,947 | |
| | 1,425,000 | | | Town of Fuquay-Varina NC, Multi-Utility Improvements G.O., 5.00%,8/1/37 | | | 1,666,581 | |
| | 1,080,000 | | | Town of Garner NC, Public Improvements G.O., 5.00%,2/1/31 | | | 1,238,541 | |
| | 1,080,000 | | | Town of Garner NC, Public Improvements G.O., Callable 2/1/33 @ 100, 5.00%,2/1/34 | | | 1,268,921 | |
| | 1,010,000 | | | Town of Holly Springs, NC, Public Improvements Revenue, Callable 10/1/24 @ 100, 5.00%,10/1/27 | | | 1,011,580 | |
| | 870,000 | | | Town of Oak Island Combined Enterprise System, Advance Refunding Revenue (AGM), 5.00%,6/1/25 | | | 881,594 | |
| | 1,030,000 | | | Union County, NC, Public Improvements Bonds G.O., Callable 3/1/32 @ 100, 5.00%,3/1/34 | | | 1,193,506 | |
| | 1,720,000 | | | Union County, NC, School Improvements G.O., Callable 9/1/33 @ 100, 5.00%,9/1/42 | | | 1,956,519 | |
| | 1,500,000 | | | University of North Carolina at Chapel Hill, Current Refunding Revenue Bonds Series B, Callable 12/1/31 @ 100, 5.00%,12/1/36 | | | 1,717,098 | |
| | 1,100,000 | | | University of North Carolina at Wilmington, Current Refunding Revenue Bonds Series B, Callable 10/1/29 @ 100, 5.00%,10/1/34 | | | 1,209,021 | |
| | 410,000 | | | University of North Carolina System, Asheville/ Wilmington, Refunding Revenue (Assured Guaranty) Series C, Callable 10/30/23 @ 100, 5.25%,10/1/24 | | | 410,000 | |
| | 1,585,000 | | | Wake County, NC, Public Improvements, G.O. Series A, Callable 3/1/28 @ 100, 5.00%,3/1/30 | | | 1,716,448 | |
| | 1,725,000 | | | Wake County, NC, Refunding Revenue Bonds Series A, Callable 8/1/28 @ 100, 5.00%,8/1/32 | | | 1,869,369 | |
| | 350,000 | | | Watauga Public Facilities Corp., School Improvements Revenue Bonds, Callable 6/1/32 @ 100, 5.25%,6/1/40 | | | 396,941 | |
| | 325,000 | | | Watauga Public Facilities Corp., School Improvements Revenue Bonds, Callable 6/1/32 @ 100, 5.00%,6/1/35 | | | 371,455 | |
| | 400,000 | | | Watauga Public Facilities Corp., School Improvements Revenue Bonds, Callable 6/1/32 @ 100, 5.00%,6/1/36 | | | 455,232 | |
| | 375,000 | | | Watauga Public Facilities Corp., School Improvements Revenue Bonds, Callable 6/1/32 @ 100, 5.00%,6/1/37 | | | 425,437 | |
| | 375,000 | | | Watauga Public Facilities Corp., School Improvements Revenue Bonds, Callable 6/1/32 @ 100, 5.00%,6/1/38 | | | 423,723 | |
| | 650,000 | | | Watauga Public Facilities Corp., School Improvements Revenue Bonds, Callable 6/1/32 @ 100, 5.25%,6/1/42 | | | 729,000 | |
| | 2,060,000 | | | Wilmington, NC, Public Improvements G.O. Series A, 5.00%,5/1/31 | | | 2,376,489 | |
| | 1,365,000 | | | Winston-Salem, NC, Public Improvements G.O. Series B, Callable 6/1/33 @ 100, 5.00%,6/1/35 | | | 1,599,531 | |
| | 1,875,000 | | | Winston-Salem, NC, Water & Sewer System, Refunding Revenue Series A, Callable 6/1/24 @ 100, 5.00%,6/1/25(a) | | | 1,878,338 | |
| | | | | Total (Cost $124,554,242) | | | 126,044,836 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 0.88% |
| | | | | | | | | |
| | 1,127,964 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(b) | | | 1,127,964 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 0.88% - continued | |
| | | | | |
| | | | | Total Money Market Funds | | | | |
| | | | | (Cost $1,127,964) | | $ | 1,127,964 | |
| | | | | |
| Total Investments— 98.86% | | | | |
| (Cost $125,682,206) | | | 127,172,800 | |
| Other Assets in Excess of Liabilities— 1.14% | | | 1,464,724 | |
| NET ASSETS — 100.00% | | $ | 128,637,524 | |
| (a) | All or a portion of the securities are held in a separate collateral account at US Bank. The total value of securities held in a separate collateral account as of the year ended September 30, 2024 is $8,801,982, which represents 6.8% of net assets. |
| (b) | Represents the current yield as of report date. |
| AGM | Assured Guaranty Municipal Corp. |
| G.O. | General Obligation |
| 38 | See accompanying notes to financial statements. | |
Sterling Capital South Carolina Intermediate Tax-Free Fund
Schedule of Investments
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| MUNICIPAL BONDS — 95.12% |
| | | | | South Carolina — 95.12% | | | | |
| $ | 750,000 | | | Aiken County, SC, Consolidated School District, Special Obligation Bonds, School Improvements Revenue, Callable 6/1/29 @ 100, 4.00%,6/1/33 | | $ | 775,039 | |
| | 1,000,000 | | | Charleston, SC, Waterworks & Sewer System Revenue, Water Utility Improvements Revenue Bonds, Callable 1/1/30 @ 100, 5.00%,1/1/38 | | | 1,098,824 | |
| | 750,000 | | | Charleston, SC, Waterworks & Sewer System Revenue, Water Utility Improvements Revenue Bonds, Callable 7/1/32 @ 100, 5.00%,1/1/52(a) | | | 819,994 | |
| | 1,000,000 | | | Columbia, SC, Waterworks & Sewer System Revenue, Water & Sewer Utility Improvements Revenue, Callable 2/1/28 @ 100, 5.00%,2/1/48 | | | 1,084,115 | |
| | 1,000,000 | | | Columbia, SC, Waterworks & Sewer System Revenue, Water & Sewer Utility Improvements Revenue, Callable 2/1/33 @ 100, 5.25%,2/1/52 | | | 1,118,748 | |
| | 780,000 | | | Dorchester County School District No. 4, School Improvements G.O. Series A, Callable 9/1/33 @ 100 (SCSDE), 5.00%,3/1/43 | | | 874,765 | |
| | 500,000 | | | Florence County, SC, McLeod Regional Medical Center Project, Refunding Revenue, Callable 11/1/24 @ 100, 5.00%,11/1/33 | | | 500,618 | |
| | 830,000 | | | Florence, SC, Combined Waterworks & Sewerage System Revenue, Water Utility Improvements Revenue Bonds, Callable 9/1/33 @ 100, 5.00%,9/1/37 | | | 963,931 | |
| | 1,000,000 | | | Greenville Health System, Hospital System Board Series B, Callable 5/1/24 @ 100, 5.00%,5/1/31 | | | 1,000,569 | |
| | 1,000,000 | | | Greenwood County, SC, 5.00%,10/1/32 | | | 1,105,899 | |
| | 1,000,000 | | | Lancaster County, SC, School District, School Improvements G.O. Series A, Callable 3/1/27 @ 100 (SCSDE), 4.00%,3/1/30 | | | 1,023,734 | |
| | 600,000 | | | Lexington County, SC, School District No. 1, School Improvements G.O. Series B, Callable 2/1/29 @ 100 (SCSDE), 5.00%,2/1/31 | | | 658,363 | |
| | 1,000,000 | | | Lexington County, SC, School District No. 2, G.O. Series C, Callable 3/1/27 @ 100 (SCSDE), 5.00%,3/1/31 | | | 1,051,849 | |
| | 1,085,000 | | | Lugoff-Elgin Water Authority, Refunding Revenue Series B, Callable 7/1/26 @ 100, 5.00%,7/1/30(a) | | | 1,121,484 | |
| | 1,000,000 | | | Oconee County, SC, 5.00%,4/1/41 | | | 1,129,235 | |
| | 1,000,000 | | | Orangeburg County, SC, Correctional Facilities Improvements, Installment Purchase Revenue Bonds, Callable 12/1/27 @ 100, 5.00%,12/1/29 | | | 1,050,771 | |
| | 715,000 | | | Patriots Energy Group Financing Agency, 5.25%,2/1/54 | | | 786,191 | |
| | 1,000,000 | | | Richland County, DC, School District No. 2, Refunding Bonds, G.O. Series B, Callable 3/1/27 @ 100 (SCSDE), 4.00%,3/1/29 | | | 1,025,040 | |
| | 805,000 | | | Richland County, SC, School District No. 2, School Improvements G.O. Series A, Callable 3/1/32 @ 100 (SCSDE), 5.00%,3/1/36 | | | 922,560 | |
| | 625,000 | | | SCAGO Educational Facilities Corp. for Spartanburg School District No. 1, Refunding Revenue Series B, 5.00%,6/1/25 | | | 631,961 | |
| | 600,000 | | | SCAGO Educational Facilities Corp. for Sumter County School 17, Refunding Revenue, 5.00%,12/1/24 | | | 601,314 | |
| | 490,000 | | | SCAGO Educational Facilities Corp. for Sumter County School 17, Refunding Revenue, 5.00%,12/1/25 | | | 501,204 | |
| | 645,000 | | | South Carolina Jobs-Economic Development Authority, 5.00%,11/1/34 | | | 752,644 | |
| | 400,000 | | | South Carolina Jobs-Economic Development Authority, 5.00%,11/1/33(a) | | | 465,777 | |
| | 850,000 | | | South Carolina Jobs-Economic Development Authority, AnMed Health Project, Advanced Refunding Revenue Bonds, Callable 2/1/26 @ 100, 5.00%,2/1/29 | | | 871,541 | |
Principal
Amount | | | | | Fair Value | |
| MUNICIPAL BONDS — (continued) |
| | | | | South Carolina — (continued) | | | | |
| $ | 1,000,000 | | | South Carolina Jobs-Economic Development Authority, Wofford College Project, University & College Improvements Revenue, Callable 4/1/29 @ 100, 5.00%,4/1/44 | | $ | 1,044,319 | |
| | 750,000 | | | South Carolina Public Service Authority, Callable 12/1/32 @ 100, 5.25%,12/1/36 | | | 860,230 | |
| | 1,000,000 | | | South Carolina Transportation Infrastructure Bank, Advance Refunding Revenue Series A, Callable 10/1/27 @ 100 (AGM), 5.00%,10/1/38 | | | 1,052,314 | |
| | 1,000,000 | | | Spartanburg County School District No. 4, SC, School Improvements G.O. (SCSDE) Series A, Callable 3/1/32 @ 100 (SCSDE), 5.00%,3/1/40 | | | 1,116,637 | |
| | 1,000,000 | | | Spartanburg County School District No. 5, SC, School Improvements G.O., Callable 3/1/32 (SCSDE), 5.00%,3/1/37 | | | 1,141,889 | |
| | 750,000 | | | State of South Carolina, University & College Improvements G.O. Series A, Callable 4/1/32 @ 100, 5.00%,4/1/39 | | | 851,245 | |
| | | | | Total (Cost $27,585,215) | | | 28,002,804 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 4.00% |
| | | | | | | | |
| | 1,178,925 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(b) | | | 1,178,925 | |
| | | | | | | | |
| | | | Total Money Market Funds | | | | |
| | | | (Cost $1,178,925) | | | 1,178,925 | |
| | | | | | | | |
| Total Investments— 99.12% | | | | |
| (Cost $28,764,140) | | | 29,181,729 | |
| Other Assets in Excess of Liabilities— 0.88% | | | 259,460 | |
| NET ASSETS — 100.00% | | $ | 29,441,189 | |
| (a) | All or a portion of the securities are held in a separate collateral account at US Bank. The total value of securities held in a separate collateral account as of the year ended September 30, 2024 is $2,407,262, which represents 8.2% of net assets. |
| (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 |
| | See accompanying notes to financial statements. | 39 |
Sterling Capital Virginia Intermediate Tax-Free Fund
Schedule of Investments
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| MUNICIPAL BONDS — 100.68% | |
| | | | | Virginia — 100.68% | |
| $ | 1,000,000 | | | Albemarle County, VA, Economic Development Authority, Public Improvements Revenue, 5.00%,6/1/27 | | $ | 1,068,505 | |
| | 1,000,000 | | | Albemarle County, VA, School Improvements G.O., (State Aid Withholding), 5.00%,6/1/26 | | | 1,041,959 | |
| | 1,000,000 | | | Arlington County, VA, Public Improvements G.O. Series A, Callable 8/15/27 @ 100, 5.00%,8/15/29 | | | 1,069,564 | |
| | 1,000,000 | | | Arlington County, VA, Public Improvements G.O., Callable 8/15/27 @ 100, 5.00%,8/15/30 | | | 1,064,451 | |
| | 1,085,000 | | | Chesapeake Bay Bridge & Tunnel District, First Tier General Resolution, Highway Improvements, Revenue Bonds, Callable 7/1/26 @ 100 (AGM), 5.00%,7/1/41 | | | 1,110,973 | |
| | 1,375,000 | | | Chesapeake, VA, Chesapeake Expressway, Callable 7/15/34 @ 100, 5.00%,7/15/41 | | | 1,560,021 | |
| | 1,000,000 | | | Chesapeake, VA, Public Improvements, Refunding G.O. Series A, Callable 18/1/27 @ 100, 5.00%,8/1/30 | | | 1,064,585 | |
| | 1,000,000 | | | Chesterfield County, VA, School Improvements G.O. (State Aid Withholding) Series A, Callable 1/1/28 @ 100, 4.00%,1/1/31 | | | 1,045,771 | |
| | 1,000,000 | | | Chesterfield County, VA, School Improvements G.O. (State Aid Withholding), Callable 1/1/33 @ 100, 5.00%,1/1/39 | | | 1,141,344 | |
| | 1,000,000 | | | Chesterfield County, VA, School Improvements G.O. (State Aid Withholding), Callable 1/1/33 @ 100, 5.00%,1/1/40 | | | 1,134,839 | |
| | 1,145,000 | | | Culpeper County, VA, Economic Development Authority, Va Capital Projects, Refunding Revenue, Callable 6/1/24 @ 100, 4.00%,6/1/26 | | | 1,146,026 | |
| | 1,000,000 | | | Fairfax County, VA Sewer Revenue, 5.00%,7/15/54 | | | 1,111,046 | |
| | 1,145,000 | | | Fairfax County, VA, School Improvements G.O., Current Refunding Series A, Callable 4/1/30 @ 100, 5.00%,10/1/30(a) | | | 1,296,376 | |
| | 1,000,000 | | | Fredericksburg Economic Development Authority, Mary Washington Healthcare Obligation Group, Refunding Revenue, Callable 6/15/24 @ 100, 5.00%,6/15/26 | | | 1,000,591 | |
| | 1,000,000 | | | Leesburg, VA, Refunding G.O. (State Aid Withholding), Callable 1/15/25 @ 100, 5.00%,1/15/27 | | | 1,006,904 | |
| | 1,320,000 | | | Loudoun County Economic Development Authority, Loudoun County Public Improvements Projects, Revenue Bonds Series A, Callable 12/1/31 @ 100, 5.00%,12/1/36 | | | 1,496,693 | |
| | 1,000,000 | | | Loudoun County, VA, Miscellaneous Purposes Revenue G.O. (State Aid Withholding) Series A, 5.00%,12/1/29 | | | 1,127,262 | |
| | 1,000,000 | | | Manassas, VA, Public Improvements, Public Facilities G.O. (State Aid Withholding), Callable 7/1/29 @ 100, 4.00%,7/1/33 | | | 1,056,186 | |
| | 1,465,000 | | | Norfolk, VA, Callable 8/1/28 @ 100, 5.00%,8/1/47 | | | 1,605,674 | |
| | 1,135,000 | | | Norfolk, VA, Water Revenue, Callable 11/1/33 @ 100, 5.00%,11/1/44 | | | 1,275,516 | |
| | 1,000,000 | | | Norfolk, VA, Water Revenue, Callable 11/1/33 @ 100, 5.00%,11/1/40 | | | 1,143,418 | |
| | 1,375,000 | | | Rappahannock Regional Jail Authority, Refunding Revenue, Callable 10/1/25 @ 100, 5.00%,10/1/26 | | | 1,402,983 | |
| | 1,295,000 | | | Richmond, VA, Public Utility Advance Refunding Revenue Bonds, Callable 1/15/26 @ 100, 5.00%,1/15/27 | | | 1,334,910 | |
| | 1,265,000 | | | Roanoke, VA, School Improvements G.O., Callable 4/1/32 @ 100, 5.00%,4/1/34(a) | | | 1,466,089 | |
| | 1,000,000 | | | Salem, VA, School Improvements G.O., Current Refunding, 5.00%,5/1/28 | | | 1,088,420 | |
| | 1,000,000 | | | Spotsylvania County, VA, School Imporovements G.O., Callable 7/15/32 @ 100, 5.00%,1/15/38 | | | 1,144,357 | |
| | 1,000,000 | | | Spotsylvania County, VA, School Improvements G.O., Callable 7/15/32 @ 100, 5.00%,1/15/37 | | | 1,148,511 | |
| | 2,085,000 | | | Suffolk, VA, Callable 2/1/32 @ 100, 5.00%,2/1/43(a) | | | 2,315,124 | |
Principal
Amount | | | | | Fair Value | |
| MUNICIPAL BONDS — (continued) | |
| | | | | Virginia — (continued) |
| $ | 1,000,000 | | | Virginia Beach, VA, Storm Water Utility Revenue, Public Improvements Revenue Bonds Series A, Callable 11/15/30 @ 100, 5.00%,11/15/31 | | $ | 1,138,944 | |
| | 1,000,000 | | | Virginia College Building Authority, University & College Improvements Revenue Bonds (State Intercept) Series C, 5.00%,9/1/29 | | | 1,112,331 | |
| | 1,000,000 | | | Virginia College Building Authority, University & College Improvements Revenue Bonds, Callable 2/1/32 @ 100, 5.25%,2/1/41 | | | 1,130,445 | |
| | 1,215,000 | | | Virginia Commonwealth Transportation Board, Federal Highway Transportation Grant, Callable 9/15/26 @ 100, 5.00%,9/15/30 | | | 1,266,563 | |
| | 1,000,000 | | | Virginia Commonwealth Transportation Board, Federal Transportation Grant, Anticipation Advance Refunding Revenue, Callable 9/15/27 @ 100, 5.00%,9/15/31 | | | 1,062,149 | |
| | 1,000,000 | | | Virginia Housing Development Authority, Callable 4/1/26 @ 100, 3.00%,10/1/29 | | | 1,000,151 | |
| | 1,000,000 | | | Virginia Port Authority Commonwealth Port Fund, Airport & Marina Improvements Revenue Bonds Series A, 5.00%,7/1/41 | | | 1,131,662 | |
| | 1,000,000 | | | Virginia Public School Authority, School Improvements Revenue Bonds (State Aid Withholding), 5.00%,1/15/30 | | | 1,129,373 | |
| | 1,035,000 | | | Virginia Public School Authority, School Improvements Revenue Bonds (State Aid Withholding), 5.00%,8/15/30 | | | 1,178,825 | |
| | 1,000,000 | | | Winchester Economic Development Authority, Callable 1/1/34 @ 100, 5.00%,1/1/42 | | | 1,115,906 | |
| | | | | Total (Cost $45,066,090) | | | 45,734,447 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 0.61% |
| | 277,641 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(b) | | | 277,641 | |
| | | | | |
| | | | | Total Money Market Funds |
| | | | | (Cost $277,641) | | | 277,641 | |
| | | | | |
| Total Investments— 101.29% |
| (Cost $45,343,731) | | | 46,012,088 | |
| Liabilities in Excess of Other Assets — (1.29)% | | | (587,050 | ) |
| NET ASSETS — 100.00% | | $ | 45,425,038 | |
| (a) | All or a portion of the securities are held in a separate collateral account at US Bank. The total value of securities held in a separate collateral account as of the year ended September 30, 2024 is $3,872,835, which represents 8.5% of net assets. |
| (b) | Represents the current yield as of report date. |
| AGM | Assured Guaranty Municipal Corp. |
| G.O. | General Obligation |
| 40 | See accompanying notes to financial statements. | |
Sterling Capital West Virginia Intermediate Tax-Free Fund
Schedule of Investments
September 30, 2024
Principal
Amount | | | | | Fair Value | |
| MUNICIPAL BONDS — 96.20% | |
| | | | | West Virginia — 96.20% |
| $ | 1,000,000 | | | Berkeley County, Board of Education, School Improvements G.O. (West Virginia Board Commission), 4.00%,6/1/28 | | $ | 1,048,287 | |
| | 1,750,000 | | | Berkeley County, Board of Education, School Improvements G.O. (West Virginia Board Commission), Callable 6/1/33 @ 100, 4.00%,6/1/36(a) | | | 1,842,403 | |
| | 1,500,000 | | | Berkeley County, WV, Public Service Sewer District, Miscellaneous Purposes Revenue Series C, Callable 10/30/23 @ 100 (BAM), 4.50%,10/1/32 | | | 1,500,383 | |
| | 1,080,000 | | | Braxton County, WV, Board of Education, Public School, Advance Refunding G.O. (West Virigina Board Commission), Callable 5/1/26 @ 100, 5.00%,5/1/28(a) | | | 1,118,786 | |
| | 610,000 | | | Fairmont State University, 5.00%,6/1/26 | | | 630,282 | |
| | 1,860,000 | | | Marshall University, WV, University & College Improvements Revenue Bonds Series A (AGM), 5.00%,5/1/30 | | | 2,067,211 | |
| | 705,000 | | | Morgantown Utility Board, WV, Combined Water Utility Improvements Revenue Series B, Callable 6/1/28 @ 100, 5.00%,12/1/34 | | | 755,564 | |
| | 1,140,000 | | | Morgantown Utility Board, WV, Water Utility Improvements Revenue Bonds Series B, Callable 6/1/28 @ 100, 5.00%,12/1/36 | | | 1,216,271 | |
| | 1,075,000 | | | Ohio County, WV, Board of Education, School Improvements G.O. (West Virigina Board Commission), 3.00%,6/1/28 | | | 1,076,470 | |
| | 1,000,000 | | | Ohio County, WV, Board of Education, School Improvements G.O. (West Virigina Board Commission), 4.00%,6/1/29 | | | 1,047,486 | |
| | 1,275,000 | | | Ohio County, WV, Callable 6/1/34 @ 100, 5.25%,6/1/44 | | | 1,350,521 | |
| | 1,265,000 | | | School Building Authority of West Virginia, Lottery Capital Improvements Revenue Series A, Callable 7/1/24 @ 100, 5.00%,7/1/28 | | | 1,267,002 | |
| | 1,000,000 | | | State of West Virginia, Callable 6/1/29 @ 100, 5.00%,6/1/44 | | | 1,059,206 | |
| | 1,505,000 | | | State of West Virginia, Callable 6/1/31 @ 100, 5.00%,6/1/45 | | | 1,637,460 | |
| | 1,000,000 | | | State of West Virginia, Fuel Sales Tax Revenue, Group 1 Highway Improvements, G.O. Series S, Callable 6/1/29 @ 100, 5.00%,12/1/35 | | | 1,084,128 | |
| | 1,100,000 | | | State of West Virginia, Fuel Sales Tax Revenue, Group 2 Highway Improvements, G.O. Series S, Callable 6/1/29 @ 100, 5.00%,12/1/43 | | | 1,167,181 | |
| | 1,000,000 | | | Taylor County, WV, Board of Education, Callable 6/1/34 @ 100, 5.00%,6/1/35 | | | 1,170,539 | |
| | 1,000,000 | | | Taylor County, WV, Board of Education, Callable 6/1/34 @ 100, 5.00%,6/1/36 | | | 1,164,508 | |
| | 850,000 | | | West Virginia Commissioner of Highways, Callable 9/1/27 @ 100, 5.00%,9/1/28 | | | 905,917 | |
| | 500,000 | | | West Virginia Economic Development Authority, 3.38%,3/1/40 | | | 502,285 | |
| | 1,685,000 | | | West Virginia Economic Development Authority, Callable 11/25/24 @ 100, 5.00%,6/1/26 | | | 1,694,958 | |
| | 1,145,000 | | | West Virginia Economic Development Authority, Lottery Recreational Facilities Improvements Revenue Series A, Callable 7/1/27 @ 100, 5.00%,7/1/28 | | | 1,222,216 | |
| | 1,500,000 | | | West Virginia Economic Development Authority, Provident Group - Marshall Properties L.L.C, Current Refunding Revenue Bonds Series A-1, Callable 7/1/33 @ 100, 5.00%,7/1/37 | | | 1,653,726 | |
| | 1,015,000 | | | West Virginia Economic Development Authority, State Office Building 3, Public Improvements Revenue Series D, Callable 6/1/5 @ 100, 5.00%,6/1/26 | | | 1,029,272 | |
Principal
Amount | | | | | Fair Value | |
| MUNICIPAL BONDS — (continued) | |
| | | | | West Virginia — (continued) |
| $ | 1,470,000 | | | West Virginia Hospital Finance Authority, Charleston Area Medical Center Inc., Health, Hospital, Nursing Home Improvements, Refunding Revenue, Callable 9/1/29 @ 100, 5.00%,9/1/39 | | $ | 1,505,948 | |
| | 1,000,000 | | | West Virginia Hospital Finance Authority, Health Care Facilities Revenue Bonds Series A, Callable 6/1/33 @ 100, 5.00%,6/1/41 | | | 1,096,089 | |
| | 1,385,000 | | | West Virginia Hospital Finance Authority, United Health System Obligation, Health, Hospital, Nursing Home Improvements Refunding Revenue Bonds, 5.00%,6/1/26 | | | 1,433,340 | |
| | 1,070,000 | | | West Virginia Housing Development Fund, Revenue Bonds Series A, 3.25%,5/1/29 | | | 1,080,934 | |
| | 905,000 | | | West Virginia Housing Development Fund, Revenue Bonds Series A, 3.30%,11/1/29 | | | 916,599 | |
| | 1,980,000 | | | West Virginia Parkways Authority, Highway Improvements, Senior Lien Revenue Bonds, Callable 6/1/31 @ 100, 5.00%,6/1/47 | | | 2,126,894 | |
| | 1,105,000 | | | West Virginia Parkways Authority, Senior Turnpike Toll Revenue, Highway Improvements, Callable 6/1/28 @ 100, 5.00%,6/1/39 | | | 1,164,280 | |
| | 1,000,000 | | | West Virginia State School Building Authority, Lottery Revenue, School Improvements Revenue Series A, Callable 7/1/28 @ 100, 5.00%,7/1/29 | | | 1,090,784 | |
| | 1,160,000 | | | West Virginia University, University & College Improvements, University Projects Revenue Bonds Series A, Callable 10/1/24, 5.00%,10/1/44 | | | 1,160,000 | |
| | 1,685,000 | | | West Virginia University, University Projects, University & College Improvements Revenue Series A, Callable 10/1/31 @ 100, 5.00%,10/1/43 | | | 1,840,387 | |
| | 2,000,000 | | | West Virginia University, University Projects, University & College Improvements Revenue Series A, Callable 10/1/31 @ 100, 5.00%,10/1/44 | | | 2,178,748 | |
| | 1,050,000 | | | West Virginia Water Development Authority, Loan Program II, Refunding Revenue Series A-II, Callable 11/1/23 @ 100, 5.00%,11/1/26(a) | | | 1,051,582 | |
| | 1,100,000 | | | West Virginia Water Development Authority, West Virginia Infrastructure & Jobs, Current Refunding Revenue Bonds, Callable 10/1/26 @ 100, 5.00%,10/1/31 | | | 1,146,609 | |
| | 740,000 | | | West Virginia Water Development Authority, West Virigina Infrastructure & Jobs, Current Refunding Revenue Bonds, Callable 10/1/26 @ 100, 5.00%,10/1/30 | | | 771,796 | |
| | 1,500,000 | | | Wood County, WV, Board of Education, Callable 6/1/33 @ 100, 4.50%,6/1/34 | | | 1,648,848 | |
| | 1,000,000 | | | Wood County, WV, Board of Education, Callable 6/1/33 @ 100, 4.50%,6/1/35 | | | 1,090,698 | |
| | 1,550,000 | | | Wyoming County, WV, Board of Education, Callable 6/1/34 @ 100, 5.00%,6/1/35 | | | 1,783,378 | |
| | 1,000,000 | | | Wyoming County, WV, Board of Education, Callable 6/1/34 @ 100, 5.00%,6/1/36 | | | 1,143,765 | |
| | | | | Total (Cost $53,118,237) | | | 53,442,741 | |
| Shares | | | | | Fair Value | |
| MONEY MARKET FUNDS — 2.60% |
| | 1,441,678 | | | Federated Treasury Obligations Fund, Institutional Shares, 4.81%(b) | | | 1,441,678 | |
| | | | | | | | | |
| | | | | Total Money Market Funds |
| | | (Cost $1,441,678) | | | 1,441,678 | |
| | | | | | | | |
| Total Investments— 98.80% |
| (Cost $54,559,915) | | | 54,884,419 | |
| Other Assets in Excess of Liabilities— 1.20% | | | 668,835 | |
| NET ASSETS — 100.00% | | $ | 55,553,254 | |
| | See accompanying notes to financial statements. | 41 |
Sterling Capital West Virginia Intermediate Tax-Free Fund
Schedule of Investments (continued)
September 30, 2024
| (a) | All or a portion of the securities are held in a separate collateral account at US Bank. The total value of securities held in a separate collateral account as of the year ended September 30, 2024 is $3,879,820, which represents 7.0% of net assets. |
| (b) | Represents the current yield as of report date. |
| AGM | Assured Guaranty Municipal Corp. |
| BAM | Build America Mutual |
| G.O. | General Obligation |
| 42 | See accompanying notes to financial statements. | |
STERLING CAPITAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2024
| | | Sterling Capital Behavioral Large Cap Value Equity Fund | | | Sterling Capital Mid Value Fund | |
| Assets: |
| Investments at fair value (a) | | $ | 36,822,055 | | | $ | 48,452,984 | |
| Foreign currency, at value (b) | | | — | | | | — | |
| Receivable for capital shares issued | | | — | | | | 105 | |
| Receivable for investments sold | | | — | | | | 578,815 | |
| Interest and dividends receivable | | | 37,374 | | | | 12,800 | |
| Tax reclaims receivable | | | — | | | | — | |
| Prepaid and other expenses | | | 11,217 | | | | 34,755 | |
| Total Assets | | | 36,870,646 | | | | 49,079,459 | |
| Liabilities: |
| Payable for investments purchased | | | — | | | | 292,273 | |
| Payable for capital shares redeemed | | | 25,209 | | | | 22,547 | |
| Accrued expenses and other payables: |
| Investment advisory fees | | | 13,362 | | | | 23,689 | |
| Administration fees | | | 2,379 | | | | 3,314 | |
| Compliance service fees | | | 213 | | | | 268 | |
| Custodian fees | | | 241 | | | | 332 | |
| Distribution (12b-1) fees | | | 7,177 | | | | 4,460 | |
| Audit fees | | | 2,513 | | | | — | |
| Trustee fees | | | — | | | | — | |
| Other fees and liabilities | | | 2,005 | | | | 6,553 | |
| Total Liabilities | | | 53,099 | | | | 353,436 | |
| Net Assets | | $ | 36,817,547 | | | $ | 48,726,023 | |
| Net Assets consist of: |
| Capital | | $ | 41,667,587 | | | $ | 32,622,936 | |
| Total distributable earnings | | | (4,850,040 | ) | | | 16,103,087 | |
| Net Assets | | $ | 36,817,547 | | | $ | 48,726,023 | |
| Net Assets |
| Class A Shares | | $ | 34,158,045 | | | $ | 20,501,620 | |
| Class C Shares | | | 361,553 | | | | 349,005 | |
| Class Institutional Shares | | | 2,274,321 | | | | 27,359,424 | |
| Class R6 Shares | | | 23,628 | | | | 515,974 | |
| Total | | $ | 36,817,547 | | | $ | 48,726,023 | |
| Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value) |
| Class A Shares | | | 1,143,082 | | | | 1,271,942 | |
| Class C Shares | | | 12,614 | | | | 28,232 | |
| Class Institutional Shares | | | 75,514 | | | | 1,636,794 | |
| Class R6 Shares | | | 782 | | | | 30,791 | |
| Total | | | 1,231,992 | | | | 2,967,759 | |
| Net Asset Value |
| Class A Shares - redemption price per share* | | $ | 29.88 | | | $ | 16.12 | |
| Class C Shares - Offering price per share*,** | | $ | 28.66 | | | $ | 12.36 | |
| Class Institutional Shares * | | $ | 30.12 | | | $ | 16.72 | |
| Class R6 Shares* | | $ | 30.22 | | | $ | 16.76 | |
| Maximum Offering Price (100%/(100% - Maximum Sales Charge)) of net asset value adjusted to the nearest cent per share - Class A Shares* | | $ | 31.70 | | | $ | 17.10 | |
| (a) Investments at cost | | $ | 29,913,510 | | | $ | 36,200,293 | |
| (b) Foreign currency at cost | | $ | — | | | $ | — | |
| (a) | Foreign Currency at Cost |
| * | Class A, C and Institutional Class of the Sterling Capital Behavioral International Equity Fund have been adjusted in accordance with generally accepted accounting principles required at the year or period end. If these adjustments had not been made the net asset value per share would have been $10.64, $10.64 and $10.65, respectively. Additionally, if these adjustments had not been made the maximum offering price for Class A would have been $11.29. |
| ** | Redemption price per share varies by length of time shares are held. |
See accompanying notes to financial statements.
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 Mid Cap
Relative Value Fund | |
| $ | 109,091,907 | | | $ | 433,085,120 | | | $ | 1,891,891,797 | | | $ | 132,877,032 | | | $ | 40,512,971 | |
| | — | | | | — | | | | — | | | | 238,194 | | | | — | |
| | 24 | | | | 23,432 | | | | 306,500 | | | | — | | | | 500 | |
| | — | | | | — | | | | — | | | | — | | | | — | |
| | 146,290 | | | | 80,260 | | | | 2,463,819 | | | | 561,024 | | | | 22,326 | |
| | — | | | | — | | | | — | | | | 447,177 | | | | — | |
| | 17,459 | | | | 44,465 | | | | 62,764 | | | | 6,520 | | | | 14,335 | |
| | 109,255,680 | | | | 433,233,277 | | | | 1,894,724,880 | | | | 134,129,947 | | | | 40,550,132 | |
| | | | | | | | | | | | | | | | | | | |
| | — | | | | — | | | | — | | | | — | | | | — | |
| | 15,739 | | | | 163,189 | | | | 854,365 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
| | 47,248 | | | | 226,142 | | | | 838,324 | | | | 36,973 | | | | 20,298 | |
| | 7,356 | | | | 29,410 | | | | 130,472 | | | | 9,229 | | | | 2,841 | |
| | 459 | | | | 1,638 | | | | 6,929 | | | | 586 | | | | 242 | |
| | 600 | | | | 2,825 | | | | 13,689 | | | | — | | | | 281 | |
| | 1,369 | | | | 73,365 | | | | 153,901 | | | | 103 | | | | 56 | |
| | 10,611 | | | | 40,136 | | | | 173,293 | | | | 9,246 | | | | 3,772 | |
| | 606 | | | | 663 | | | | 1,819 | | | | — | | | | — | |
| | 14,390 | | | | 54,530 | | | | 285,937 | | | | 22,677 | | | | 4,352 | |
| | 98,378 | | | | 591,898 | | | | 2,458,729 | | | | 78,814 | | | | 31,842 | |
| $ | 109,157,302 | | | $ | 432,641,379 | | | $ | 1,892,266,151 | | | $ | 134,051,133 | | | $ | 40,518,290 | |
| | | | | | | | | | | | | | | | | | | |
| $ | 78,043,985 | | | $ | 187,906,710 | | | $ | 989,226,461 | | | $ | 111,446,416 | | | $ | 13,215,059 | |
| | 31,113,317 | | | | 244,734,669 | | | | 903,039,690 | | | | 22,604,717 | | | | 27,303,231 | |
| $ | 109,157,302 | | | $ | 432,641,379 | | | $ | 1,892,266,151 | | | $ | 134,051,133 | | | $ | 40,518,290 | |
| | | | | | | | | | | | | | | | | | | |
| $ | 6,564,303 | | | $ | 294,003,520 | | | $ | 464,806,661 | | | $ | 398,131 | | | $ | 265,474 | |
| | 51,461 | | | | 16,869,950 | | | | 72,747,713 | | | | 28,224 | | | | 2,844 | |
| | 6,280,792 | | | | 88,480,967 | | | | 1,238,943,221 | | | | 880,958 | | | | 40,249,972 | |
| | 96,260,746 | | | | 33,286,942 | | | | 115,768,556 | | | | 132,743,820 | | | | – | |
| $ | 109,157,302 | | | $ | 432,641,379 | | | $ | 1,892,266,151 | | | $ | 134,051,133 | | | $ | 40,518,290 | |
| | | | | | | | | | | | | | | | | | | |
| | 306,827 | | | | 10,655,223 | | | | 16,308,591 | | | | 37,451 | | | | 3,945 | |
| | 2,551 | | | | 912,988 | | | | 2,582,456 | | | | 2,655 | | | | 44 | |
| | 290,352 | | | | 2,904,497 | | | | 43,294,038 | | | | 82,799 | | | | 593,539 | |
| | 4,442,667 | | | | 1,092,606 | | | | 4,041,586 | | | | 12,466,144 | | | | | |
| | 5,042,397 | | | | 15,565,314 | | | | 66,226,671 | | | | 12,589,049 | | | | 597,528 | |
| | | | | | | | | | | | | | | | | | | |
| $ | 21.39 | | | $ | 27.59 | | | $ | 28.50 | | | $ | 10.63 | | | $ | 67.30 | |
| $ | 20.17 | | | $ | 18.48 | | | $ | 28.17 | | | $ | 10.63 | | | $ | 64.35 | |
| $ | 21.63 | | | $ | 30.46 | | | $ | 28.62 | | | $ | 10.63 | | | $ | 67.81 | |
| $ | 21.67 | | | $ | 30.47 | | | $ | 28.64 | | | $ | 10.65 | | | | | |
| | | | | | | | | | | | | | | | | | | |
| $ | 22.70 | | | $ | 29.27 | | | $ | 30.24 | | | $ | 11.27 | | | $ | 71.41 | |
| $ | 86,759,159 | | | $ | 251,029,308 | | | $ | 1,274,702,737 | | | $ | 111,886,815 | | | $ | 17,686,942 | |
| $ | — | | | $ | — | | | $ | — | | | $ | 236,988 | | | $ | — | |
STERLING CAPITAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2024
| | | Sterling Capital Real Estate Fund | | | Sterling Capital Small Cap Value Fund | |
| Assets: |
| Investments at fair value (a) | | $ | 75,601,851 | | | $ | 197,630,168 | |
| Cash at Broker | | | — | | | | — | |
| Receivable for capital shares issued | | | 7,605 | | | | 86,528 | |
| Receivable for investments sold | | | — | | | | — | |
| Interest and dividends receivable | | | 186,520 | | | | 222,185 | |
| Tax reclaims receivable | | | — | | | | — | |
| Receivable from Adviser | | | — | | | | — | |
| Prepaid and other expenses | | | 17,886 | | | | 34,435 | |
| Total Assets | | | 75,813,862 | | | | 197,973,316 | |
| Liabilities: | | | | | | | | |
| Distributions payable | | | — | | | | — | |
| Payable for investments purchased | | | — | | | | — | |
| Payable for capital shares redeemed | | | 2,960 | | | | 70,169 | |
| Accrued expenses and other payables: | | | | | | | | |
| Investment advisory fees | | | 35,968 | | | | 122,174 | |
| Administration fees | | | 5,216 | | | | 13,492 | |
| Compliance service fees | | | 321 | | | | 1,070 | |
| Custodian fees | | | 366 | | | | 3,939 | |
| Distribution (12b-1) fees | | | 203 | | | | 1,130 | |
| Audit fees | | | 6,103 | | | | 28,403 | |
| Transfer agent fees | | | — | | | | 820 | |
| Trustee fees | | | — | | | | 3,641 | |
| Other fees and liabilities | | | 8,913 | | | | 78,775 | |
| Total Liabilities | | | 60,050 | | | | 323,613 | |
| Net Assets | | $ | 75,753,812 | | | $ | 197,649,703 | |
| Net Assets consist of: | | | | | | | | |
| Capital | | $ | 37,535,863 | | | $ | 21,738,221 | |
| Total distributable earnings | | | 38,217,949 | | | | 175,911,482 | |
| Net Assets | | $ | 75,753,812 | | | $ | 197,649,703 | |
| Net Assets | | | | | | | | |
| Class A Shares | | $ | 623,069 | | | $ | 3,277,180 | |
| Class C Shares | | | 93,324 | | | | 559,142 | |
| Class Institutional Shares | | | 74,346,571 | | | | 187,448,110 | |
| Class R6 Shares | | | 690,848 | | | | 6,365,271 | |
| Total | | $ | 75,753,812 | | | $ | 197,649,703 | |
| Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value) | | |
| Class A Shares | | | 15,651 | | | | 68,748 | |
| Class C Shares | | | 2,372 | | | | 13,318 | |
| Class Institutional Shares | | | 1,861,602 | | | | 3,864,530 | |
| Class R6 Shares | | | 17,218 | | | | 130,573 | |
| Total | | | 1,896,843 | | | | 4,077,169 | |
| Net Asset Value | | | | | | | | |
| Class A Shares - redemption price per share | | $ | 39.81 | | | $ | 47.67 | |
| Class C Shares - Offering price per share* | | $ | 39.35 | | | $ | 41.98 | |
| Class Institutional Shares | | $ | 39.94 | | | $ | 48.50 | |
| Class R6 Shares | | $ | 40.12 | | | $ | 48.75 | |
| Maximum Offering Price (100%/(100% - Maximum Sales Charge)) of net asset value adjusted to the nearest cent per share - Class A Shares | | $ | 42.24 | | | $ | 50.58 | |
| (a) Investments at cost | | $ | 40,684,178 | | | $ | 57,222,377 | |
| (b) Foreign currency at cost | | $ | — | | | $ | — | |
| * | Redemption price per share varies by length of time shares are held. |
See accompanying notes to financial statements.
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 | |
| $ | 27,931,636 | | | $ | 45,348,191 | | | $ | 18,106,592 | | | $ | 1,496,744,733 | | | $ | 42,534,396 | |
| | 15,000 | | | | 20,000 | | | | — | | | | 1,500,000 | | | | 50,000 | |
| | — | | | | 23,172 | | | | — | | | | 1,223,293 | | | | 4 | |
| | — | | | | — | | | | — | | | | 7,974,639 | | | | — | |
| | 166,505 | | | | 388,062 | | | | 79,938 | | | | 10,458,819 | | | | 527,519 | |
| | — | | | | 2,667 | | | | — | | | | 13,350 | | | | 308 | |
| | — | | | | — | | | | — | | | | — | | | | 3,011 | |
| | 17,230 | | | | 17,134 | | | | 8,902 | | | | 43,956 | | | | 9,632 | |
| | 28,130,371 | | | | 45,799,226 | | | | 18,195,432 | | | | 1,517,958,790 | | | | 43,124,870 | |
| | | | | | | | | | | | | | | | | | | |
| | 6,219 | | | | 71,562 | | | | 781 | | | | 951,856 | | | | 57 | |
| | — | | | | — | | | | — | | | | — | | | | 149,535 | |
| | 7,564 | | | | 43,419 | | | | 2,209 | | | | 1,681,803 | | | | 19 | |
| | 1,145 | | | | 6,904 | | | | 1,959 | | | | 163,851 | | | | — | |
| | 1,945 | | | | 3,149 | | | | 1,274 | | | | 108,108 | | | | 2,880 | |
| | 202 | | | | 279 | | | | 147 | | | | 5,225 | | | | 257 | |
| | 109 | | | | 398 | | | | 103 | | | | 9,319 | | | | 327 | |
| | 1,044 | | | | 694 | | | | 585 | | | | 13,323 | | | | 79 | |
| | 2,307 | | | | 10,092 | | | | 1,342 | | | | 82,382 | | | | 2,018 | |
| | — | | | | — | | | | — | | | | — | | | | — | |
| | — | | | | 2,271 | | | | — | | | | — | | | | — | |
| | 10,451 | | | | 27,214 | | | | 4,105 | | | | 221,168 | | | | 7,887 | |
| | 30,986 | | | | 165,982 | | | | 12,505 | | | | 3,237,035 | | | | 163,059 | |
| $ | 28,099,385 | | | $ | 45,633,244 | | | $ | 18,182,927 | | | $ | 1,514,721,755 | | | $ | 42,961,811 | |
| | | | | | | | | | | | | | | | | | | |
| $ | 29,217,731 | | | $ | 57,769,367 | | | $ | 20,864,560 | | | $ | 1,638,258,213 | | | | 48,525,538 | |
| | (1,118,346 | ) | | | (12,136,123 | ) | | | (2,681,633 | ) | | | (123,536,458 | ) | | | (5,563,727 | ) |
| $ | 28,099,385 | | | $ | 45,633,244 | | | $ | 18,182,927 | | | $ | 1,514,721,755 | | | $ | 42,961,811 | |
| | | | | | | | | | | | | | | | | | | |
| $ | 5,114,122 | | | $ | 3,067,510 | | | $ | 2,505,496 | | | $ | 53,940,588 | | | $ | 405,463 | |
| | – | | | | 46,813 | | | | 87,961 | | | | 2,735,177 | | | | 815 | |
| | 22,985,263 | | | | 30,166,982 | | | | 15,589,470 | | | | 1,066,506,472 | | | | 481,358 | |
| | – | | | | 12,351,939 | | | | – | | | | 391,539,518 | | | | 42,074,175 | |
| $ | 28,099,385 | | | $ | 45,633,244 | | | $ | 18,182,927 | | | $ | 1,514,721,755 | | | $ | 42,961,811 | |
| | | | | | | | | | | | | | | | | | | |
| | 520,839 | | | | 364,166 | | | | 282,912 | | | | 5,653,197 | | | | 55,559 | |
| | | | | | 5,558 | | | | 9,952 | | | | 286,211 | | | | 112 | |
| | 2,340,396 | | | | 3,582,786 | | | | 1,759,340 | | | | 111,719,738 | | | | 66,039 | |
| | | | | | 1,466,222 | | | | | | | | 41,020,929 | | | | 5,765,972 | |
| | 2,861,235 | | | | 5,418,732 | | | | 2,052,204 | | | | 158,680,075 | | | | 5,887,682 | |
| | | | | | | | | | | | | | | | | | | |
| $ | 9.82 | | | $ | 8.42 | | | $ | 8.86 | | | $ | 9.54 | | | $ | 7.30 | |
| | | | | $ | 8.42 | | | $ | 8.84 | | | $ | 9.56 | | | $ | 7.28 | |
| $ | 9.82 | | | $ | 8.42 | | | $ | 8.86 | | | $ | 9.55 | | | $ | 7.29 | |
| | | | | $ | 8.42 | | | | | | | $ | 9.54 | | | $ | 7.30 | |
| | | | | | | | | | | | | | | | | | | |
| $ | 9.82 | | | $ | 8.59 | | | $ | 9.04 | | | $ | 9.74 | | | $ | 7.45 | |
| $ | 27,757,243 | | | $ | 44,766,623 | | | $ | 18,778,491 | | | $ | 1,488,428,728 | | | $ | 43,637,348 | |
| $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
STERLING CAPITAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2024
| | | 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 | | | Sterling Capital
West Virginia
Intermediate Tax-
Free Fund | |
| Assets: | | | | | | | | | | | | | | | |
| Investments at fair value (a) | | $ | 87,693,046 | | | $ | 127,172,800 | | | $ | 29,181,729 | | | $ | 46,012,088 | | | $ | 54,884,419 | |
| Cash at Broker | | | 80,000 | | | | — | | | | — | | | | — | | | | — | |
| Receivable for capital shares issued | | | 4 | | | | 339 | | | | — | | | | — | | | | — | |
| Interest and dividends receivable | | | 294,050 | | | | 1,779,814 | | | | 334,837 | | | | 518,393 | | | | 799,799 | |
| Prepaid and other expenses | | | 12,716 | | | | 10,402 | | | | 9,661 | | | | 10,730 | | | | 15,498 | |
| Total Assets | | | 88,079,816 | | | | 128,963,355 | | | | 29,526,227 | | | | 46,541,211 | | | | 55,699,716 | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | |
| Distributions payable | | | 123,845 | | | | 107,415 | | | | 19,647 | | | | 65,347 | | | | 69,541 | |
| Payable for investments purchased | | | — | | | | — | | | | — | | | | 1,000,000 | | | | — | |
| Payable for capital shares redeemed | | | 8,932 | | | | 130,770 | | | | 38,532 | | | | 12,369 | | | | 26,394 | |
| Accrued expenses and other payables: | | | | | | | | | | | | | | | | | | | | |
| Investment advisory fees | | | 21,158 | | | | 36,631 | | | | 8,423 | | | | 13,495 | | | | 15,909 | |
| Administration fees | | | 6,028 | | | | 9,136 | | | | 1,997 | | | | 3,368 | | | | 3,974 | |
| Compliance service fees | | | 408 | | | | 554 | | | | 195 | | | | 271 | | | | 318 | |
| Custodian fees | | | 603 | | | | 982 | | | | 220 | | | | 364 | | | | 5,231 | |
| Distribution (12b-1) fees | | | 7 | | | | 4,980 | | | | 1,275 | | | | 2,101 | | | | 4,169 | |
| Audit fees | | | 6,420 | | | | 11,721 | | | | 3,068 | | | | 6,110 | | | | 6,912 | |
| Trustee fees | | | — | | | | 39 | | | | 149 | | | | 685 | | | | 638 | |
| Other fees and liabilities | | | 12,743 | | | | 23,603 | | | | 11,532 | | | | 12,063 | | | | 13,376 | |
| Total Liabilities | | | 180,144 | | | | 325,831 | | | | 85,038 | | | | 1,116,173 | | | | 146,462 | |
| Net Assets | | $ | 87,899,672 | | | $ | 128,637,524 | | | $ | 29,441,189 | | | $ | 45,425,038 | | | $ | 55,553,254 | |
| Net Assets consist of: | | | | | | | | | | | | | | | | | | | | |
| Capital | | $ | 95,522,400 | | | $ | 133,517,613 | | | $ | 30,643,170 | | | $ | 47,308,105 | | | $ | 58,133,711 | |
| Total distributable earnings | | | (7,622,728 | ) | | | (4,880,089 | ) | | | (1,201,981 | ) | | | (1,883,067 | ) | | | (2,580,457 | ) |
| Net Assets | | $ | 87,899,672 | | | $ | 128,637,524 | | | $ | 29,441,189 | | | $ | 45,425,038 | | | $ | 55,553,254 | |
| Net Assets | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | $ | 31,535 | | | $ | 20,995,397 | | | $ | 5,816,432 | | | $ | 9,816,231 | | | $ | 20,407,382 | |
| Class C Shares | | | 403 | | | | 760,645 | | | | 100,487 | | | | 5,611 | | | | 1,842 | |
| Class Institutional Shares | | | 87,867,734 | | | | 106,881,482 | | | | 23,524,270 | | | | 35,603,196 | | | | 35,144,030 | |
| Total | | $ | 87,899,672 | | | $ | 128,637,524 | | | $ | 29,441,189 | | | $ | 45,425,038 | | | $ | 55,553,254 | |
| Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value) | | | | | |
| Class A Shares | | | 3,434 | | | | 2,055,917 | | | | 547,626 | | | | 877,208 | | | | 2,135,043 | |
| Class C Shares | | | 44 | | | | 74,539 | | | | 9,466 | | | | 502 | | | | 192 | |
| Class Institutional Shares | | | 9,559,007 | | | | 10,468,040 | | | | 2,230,122 | | | | 3,182,471 | | | | 3,673,348 | |
| Total | | | 9,562,485 | | | | 12,598,496 | | | | 2,787,214 | | | | 4,060,181 | | | | 5,808,583 | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | | |
| Class A Shares - redemption price per share | | $ | 9.18 | | | $ | 10.21 | | | $ | 10.62 | | | $ | 11.19 | | | $ | 9.56 | |
| Class C Shares - Offering price per share*,** | | $ | 9.18 | | | $ | 10.20 | | | $ | 10.62 | | | $ | 11.17 | | | $ | 9.57 | |
| Class Institutional Shares | | $ | 9.19 | | | $ | 10.21 | | | $ | 10.55 | | | $ | 11.19 | | | $ | 9.57 | |
| Maximum Offering Price (100%/(100% - Maximum Sales Charge)) of net asset value adjusted to the nearest cent per share - Class A Shares | | $ | 9.37 | | | $ | 10.42 | | | $ | 10.84 | | | $ | 11.42 | | | $ | 9.76 | |
| (a) Investments at cost | | $ | 91,012,418 | | | $ | 125,682,206 | | | $ | 28,764,140 | | | $ | 45,343,731 | | | $ | 54,559,915 | |
| (b) Foreign currency at cost | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| * | 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 $402.48, divided by unrounded shares of 43.850. |
See accompanying notes to financial statements.
STERLING CAPITAL FUNDS
STATEMENTS OF OPERATIONS
September 30, 2024
| | | Sterling Capital Behavioral Large
Cap Value Equity Fund | | | Sterling Capital Mid Value Fund | |
| Investment Income: | | | | | | | | |
| Interest income | | $ | 8,045 | | | $ | 35,748 | |
| Dividend income | | | 894,602 | | | | 691,899 | |
| Foreign tax withholding | | | (13 | ) | | | — | |
| Total investment income | | | 902,634 | | | | 727,647 | |
| Expenses: | | | | | | | | |
| Investment advisory fees (See Note 5) | | | 151,421 | | | | 287,724 | |
| Administration fees (See Note 5) | | | 32,174 | | | | 45,887 | |
| Distribution fees - Class A Shares (See Note 5) | | | 78,262 | | | | 49,331 | |
| Distribution fees - Class C Shares (See Note 5) | | | 3,212 | | | | 3,731 | |
| Compliance service fees (See Note 5) | | | 4,664 | | | | 4,969 | |
| Trustee fees | | | 5,914 | | | | 8,769 | |
| Audit fees | | | 2,574 | | | | 3,959 | |
| Custodian fees | | | 1,700 | | | | 2,420 | |
| Fund accounting fees (See Note 5) | | | 2,523 | | | | 3,604 | |
| Legal fees | | | 6,807 | | | | 9,696 | |
| Printing fees | | | 4,073 | | | | 5,861 | |
| Registration fees | | | 28,010 | | | | 22,350 | |
| Transfer agent fees (See Note 5) | | | 5,590 | | | | 8,052 | |
| Other fees | | | 16,147 | | | | 30,989 | |
| Total expenses before waivers | | | 343,071 | | | | 487,342 | |
| Less expenses waived by the Investment Advisor (See Note 5) | | | (9,166 | ) | | | (4,993 | ) |
| Net expenses | | | 333,905 | | | | 482,349 | |
| Net investment income (loss) | | | 568,729 | | | | 245,298 | |
| Net Realized and Unrealized Gain (Loss): | | | | | | | | |
| Net realized gain (loss) from: | | | | | | | | |
| Investments | | | 4,474,629 | | | | 4,824,649 | |
| Net realized loss on foreign currency translations | | | — | | | | — | |
| Change in unrealized appreciation/depreciation on: | | | | | | | | |
| Investments | | | 4,100,005 | | | | 3,880,913 | |
| Foreign currency | | | — | | | | — | |
| Net realized and change in unrealized gain on investments and in-kind redemptions | | | 8,574,634 | | | | 8,705,562 | |
| Net increase in net assets resulting from operations | | $ | 9,143,363 | | | $ | 8,950,860 | |
See accompanying notes to financial statements.
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 Mid Cap
Relative Value Fund | |
| $ | 57,210 | | | $ | 283,676 | | | $ | 1,446,368 | | | $ | 85,291 | | | $ | 56,704 | |
| | 2,401,086 | | | | 3,206,456 | | | | 43,897,491 | | | | 6,117,378 | | | | 651,510 | |
| | (7,190 | ) | | | (30,895 | ) | | | — | | | | (783,101 | ) | | | (4,031 | ) |
| | 2,451,106 | | | | 3,459,237 | | | | 45,343,859 | | | | 5,419,568 | | | | 704,183 | |
| | | | | | | | | | | | | | | | | | | |
| | 595,035 | | | | 2,834,682 | | | | 10,407,932 | | | | 514,700 | | | | 256,541 | |
| | 94,819 | | | | 417,606 | | | | 1,811,400 | | | | 123,099 | | | | 40,940 | |
| | 15,521 | | | | 708,411 | | | | 1,120,189 | | | | 946 | | | | 756 | |
| | 444 | | | | 196,613 | | | | 695,392 | | | | 260 | | | | 37 | |
| | 9,546 | | | | 24,245 | | | | 95,255 | | | | 24,395 | | | | 4,551 | |
| | 17,929 | | | | 84,880 | | | | 357,618 | | | | 23,269 | | | | 8,074 | |
| | 9,866 | | | | 40,554 | | | | 171,287 | | | | 10,031 | | | | 3,770 | |
| | 4,804 | | | | 22,012 | | | | 94,217 | | | | 30,927 | | | | 2,191 | |
| | 7,471 | | | | 32,686 | | | | 141,821 | | | | 9,629 | | | | 3,216 | |
| | 18,916 | | | | 89,103 | | | | 381,005 | | | | 26,351 | | | | 8,727 | |
| | 11,567 | | | | 53,107 | | | | 230,787 | | | | 12,003 | | | | 4,910 | |
| | 25,646 | | | | 43,785 | | | | 82,001 | | | | 10,659 | | | | 18,632 | |
| | 14,567 | | | | 72,387 | | | | 306,518 | | | | 21,213 | | | | 7,198 | |
| | 26,058 | | | | 260,632 | | | | 1,549,745 | | | | 39,880 | | | | 16,294 | |
| | 852,189 | | | | 4,880,703 | | | | 17,445,167 | | | | 847,362 | | | | 375,837 | |
| | (58,021 | ) | | | (33,558 | ) | | | (115,349 | ) | | | (72,473 | ) | | | — | |
| | 794,168 | | | | 4,847,145 | | | | 17,329,818 | | | | 774,889 | | | | 375,837 | |
| | 1,656,938 | | | | (1,387,908 | ) | | | 28,014,041 | | | | 4,644,679 | | | | 328,346 | |
| | | | | | | | | | | | | | | | | | | |
| | 8,671,154 | | | | 85,876,663 | | | | 331,191,387 | | | | 10,830,268 | | | | 5,917,871 | |
| | — | | | | — | | | | — | | | | (3,071 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | |
| | 14,256,533 | | | | 20,967,909 | | | | 50,609,934 | | | | 10,272,377 | | | | 3,148,935 | |
| | — | | | | — | | | | — | | | | 25,635 | | | | — | |
| | 22,927,687 | | | | 106,844,572 | | | | 381,801,321 | | | | 21,125,209 | | | | 9,066,806 | |
| $ | 24,584,625 | | | $ | 105,456,664 | | | $ | 409,815,362 | | | $ | 25,769,888 | | | $ | 9,395,152 | |
STERLING CAPITAL FUNDS
STATEMENTS OF OPERATIONS
September 30, 2024
| | | Sterling Capital Real Estate Fund | | | Sterling Capital Small Cap Value Fund | |
| Investment Income: | | | | | | |
| Interest income | | $ | 50,892 | | | $ | 139,658 | |
| Dividend income | | | 2,223,744 | | | | 3,610,202 | |
| Foreign tax withholding | | | — | | | | — | |
| Total investment income | | | 2,274,636 | | | | 3,749,860 | |
| Expenses: | | | | | | | | |
| Investment advisory fees (See Note 5) | | | 389,930 | | | | 1,806,102 | |
| Administration fees (See Note 5) | | | 64,757 | | | | 230,974 | |
| Distribution fees - Class A Shares (See Note 5) | | | 1,344 | | | | 7,280 | |
| Distribution fees - Class C Shares (See Note 5) | | | 1,083 | | | | 4,787 | |
| Compliance service fees (See Note 5) | | | 5,540 | | | | 15,729 | |
| Trustee fees | | | 12,640 | | | | 49,437 | |
| Audit fees | | | 6,127 | | | | 26,359 | |
| Custodian fees | | | 3,172 | | | | 14,751 | |
| Fund accounting fees (See Note 5) | | | 5,047 | | | | 18,142 | |
| Legal fees | | | 13,686 | | | | 47,583 | |
| Printing fees | | | 8,149 | | | | 34,596 | |
| Registration fees | | | 24,085 | | | | 29,288 | |
| Transfer agent fees (See Note 5) | | | 10,627 | | | | 41,716 | |
| Other fees | | | 42,289 | | | | 247,659 | |
| Total expenses before waivers | | | 588,476 | | | | 2,574,403 | |
| Less expenses waived by the Investment Advisor (See Note 5) | | | (508 | ) | | | (33,441 | ) |
| Net expenses | | | 587,968 | | | | 2,540,962 | |
| Net investment income | | | 1,686,668 | | | | 1,208,898 | |
| Net Realized and Unrealized Gain (Loss): | | | | | | | | |
| Net realized gain (loss) from: | | | | | | | | |
| Investments | | | 3,388,016 | | | | 63,895,993 | |
| Net realized gain from in-kind redemptions (See Note 4) | | | — | | | | 33,655,311 | |
| Change in unrealized appreciation/depreciation on: | | | | | | | | |
| Investments | | | 14,626,477 | | | | (38,596,522 | ) |
| Net realized and change in unrealized gain on investments and in-kind redemptions | | | 18,014,493 | | | | 58,954,782 | |
| Net increase in net assets resulting from operations | | $ | 19,701,161 | | | $ | 60,163,680 | |
See accompanying notes to financial statements.
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 | |
| $ | 1,607,368 | | | $ | 3,270,675 | | | $ | 544,532 | | | $ | 63,263,728 | | | $ | 2,027,662 | |
| | 16,443 | | | | 28,932 | | | | 804 | | | | 214,554 | | | | 0 | |
| | — | | | | — | | | | — | | | | 6 | | | | — | |
| | 1,623,811 | | | | 3,299,607 | | | | 545,336 | | | | 63,478,288 | | | | 2,027,662 | |
| | 60,547 | | | | 129,366 | | | | 54,989 | | | | 3,539,231 | | | | 98,409 | |
| | 29,008 | | | | 62,203 | | | | 16,434 | | | | 1,356,913 | | | | 37,630 | |
| | 16,541 | | | | 7,619 | | | | 6,429 | | | | 124,791 | | | | 844 | |
| | — | | | | 1,109 | | | | 1,019 | | | | 28,728 | | | | 24 | |
| | 19,202 | | | | 25,819 | | | | 14,040 | | | | 101,309 | | | | 35,531 | |
| | 5,542 | | | | 17,235 | | | | 3,103 | | | | 226,719 | | | | 6,189 | |
| | 2,513 | | | | 10,561 | | | | 1,394 | | | | 85,307 | | | | 2,321 | |
| | 1,440 | | | | 3,204 | | | | 831 | | | | 70,617 | | | | 2,087 | |
| | 2,270 | | | | 4,857 | | | | 1,288 | | | | 106,006 | | | | 2,938 | |
| | 6,258 | | | | 14,277 | | | | 3,565 | | | | 307,380 | | | | 8,719 | |
| | 3,113 | | | | 10,957 | | | | 1,812 | | | | 133,112 | | | | 3,090 | |
| | 28,031 | | | | 32,027 | | | | 10,702 | | | | 123,973 | | | | 15,777 | |
| | 4,743 | | | | 9,167 | | | | 2,746 | | | | 235,007 | | | | 7,239 | |
| | 10,160 | | | | 62,226 | | | | 9,039 | | | | 815,857 | | | | 14,925 | |
| | 189,368 | | | | 390,627 | | | | 127,391 | | | | 7,254,950 | | | | 235,723 | |
| | (60,758 | ) | | | (69,032 | ) | | | (32,708 | ) | | | (997,656 | ) | | | (92,129 | ) |
| | 128,610 | | | | 321,595 | | | | 94,683 | | | | 6,257,294 | | | | 143,594 | |
| | 1,495,201 | | | | 2,978,012 | | | | 450,653 | | | | 57,220,994 | | | | 1,884,068 | |
| | | | | | | | | | | | | | | | | | | |
| | 34,533 | | | | (640,244 | ) | | | (72,448 | ) | | | (32,443,663 | ) | | | (2,469,778 | ) |
| | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
| | 309,437 | | | | 2,813,495 | | | | 1,257,630 | | | | 136,519,817 | | | | 7,111,244 | |
| | 343,970 | | | | 2,173,251 | | | | 1,185,182 | | | | 104,076,154 | | | | 4,641,466 | |
| $ | 1,839,171 | | | $ | 5,151,263 | | | $ | 1,635,835 | | | $ | 161,297,148 | | | $ | 6,525,534 | |
STERLING CAPITAL FUNDS
STATEMENTS OF OPERATIONS
September 30, 2024
| | | 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 | | | Sterling Capital
West Virginia
Intermediate Tax-
Free Fund | |
| Investment Income: | | | | | | | | | | | | | | | |
| Interest income | | $ | 3,455,028 | | | $ | 4,044,660 | | | $ | 1,024,789 | | | $ | 1,565,151 | | | $ | 2,354,102 | |
| Dividend income | | | 6,535 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| Foreign tax withholding | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total investment income | | | 3,461,563 | | | | 4,044,660 | | | | 1,024,789 | | | | 1,565,151 | | | | 2,354,102 | |
| Expenses: | | | | | | | | | | | | | | | | | | | | |
| Investment advisory fees (See Note 5) | | | 307,489 | | | | 451,597 | | | | 108,272 | | | | 182,296 | | | | 240,969 | |
| Administration fees (See Note 5) | | | 84,119 | | | | 123,833 | | | | 29,639 | | | | 50,040 | | | | 66,200 | |
| Distribution fees - Class A Shares (See Note 5) | | | 74 | | | | 54,644 | | | | 15,217 | | | | 26,875 | | | | 47,911 | |
| Distribution fees - Class C Shares (See Note 5) | | | 27 | | | | 9,249 | | | | 2,327 | | | | 55 | | | | 18 | |
| Compliance service fees (See Note 5) | | | 39,431 | | | | 20,166 | | | | 8,352 | | | | 10,951 | | | | 13,535 | |
| Trustee fees | | | 16,226 | | | | 24,775 | | | | 6,184 | | | | 10,759 | | | | 14,667 | |
| Audit fees | | | 6,903 | | | | 11,906 | | | | 3,071 | | | | 5,971 | | | | 7,040 | |
| Custodian fees | | | 4,484 | | | | 6,416 | | | | 1,539 | | | | 2,411 | | | | 8,187 | |
| Fund accounting fees (See Note 5) | | | 6,568 | | | | 9,668 | | | | 2,316 | | | | 3,917 | | | | 5,194 | |
| Legal fees | | | 19,933 | | | | 26,218 | | | | 6,300 | | | | 10,425 | | | | 14,323 | |
| Printing fees | | | 8,432 | | | | 14,067 | | | | 3,641 | | | | 6,539 | | | | 8,208 | |
| Registration fees | | | 15,653 | | | | 18,759 | | | | 11,777 | | | | 15,247 | | | | 18,834 | |
| Transfer agent fees (See Note 5) | | | 14,835 | | | | 21,089 | | | | 5,025 | | | | 7,764 | | | | 11,693 | |
| Other fees | | | 21,629 | | | | 43,494 | | | | 14,029 | | | | 17,736 | | | | 24,220 | |
| Total expenses before waivers | | | 545,803 | | | | 835,881 | | | | 217,689 | | | | 350,986 | | | | 480,999 | |
| Less expenses waived by the Investment Advisor (See Note 5) | | | (40,944 | ) | | | — | | | | (3,304 | ) | | | 0 | | | | — | |
| Net expenses | | | 504,859 | | | | 835,881 | | | | 214,385 | | | | 350,986 | | | | 480,999 | |
| Net investment income | | | 2,956,704 | | | | 3,208,779 | | | | 810,404 | | | | 1,214,165 | | | | 1,873,103 | |
| Net Realized and Unrealized Gain (Loss): | | | | | | | | | | | | | | | | | | | | |
| Net realized gain (loss) from: | | | | | | | | | | | | | | | | | | | | |
| Investments | | | (1,114,890 | ) | | | (604,710 | ) | | | (462,910 | ) | | | (638,608 | ) | | | (465,941 | ) |
| Change in unrealized appreciation/depreciation on: | | | | | | | | | | | | | | | | | | | | |
| Investments | | | 7,427,434 | | | | 6,559,031 | | | | 1,881,016 | | | | 3,117,113 | | | | 4,013,370 | |
| Net realized and change in unrealized gain on investments and in-kind redemptions | | | 6,312,544 | | | | 5,954,321 | | | | 1,418,106 | | | | 2,478,505 | | | | 3,547,429 | |
| Net increase in net assets resulting from operations | | $ | 9,269,248 | | | $ | 9,163,100 | | | $ | 2,228,510 | | | $ | 3,692,670 | | | $ | 5,420,532 | |
See accompanying notes to financial statements.
STERLING CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
September 30, 2024
| | | Sterling Capital Behavioral Large Cap Value Equity Fund | |
| | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | |
| Increase (Decrease) in Net Assets due to: | | | | | | | | |
| Operations: | | | | | | | | |
| Net investment income (loss) | | $ | 568,729 | | | $ | 502,228 | |
| Net realized gain (loss) | | | 4,474,629 | | | | 616,669 | |
| Net change in unrealized appreciation | | | 4,100,005 | | | | 3,500,559 | |
| Net increase in net assets resulting from operations | | | 9,143,363 | | | | 4,619,456 | |
| Distributions to Shareholders: | | | | | | | | |
| Income distribution: | | | | | | | | |
| Class A Shares | | | (532,361 | ) | | | (500,061 | ) |
| Class C Shares | | | (3,400 | ) | | | (2,993 | ) |
| Class Institutional Shares | | | (35,457 | ) | | | (30,123 | ) |
| Class R6 Shares | | | (4,152 | ) | | | (7,382 | ) |
| Change in net assets from shareholder distributions | | | (575,370 | ) | | | (540,559 | ) |
| Capital Transactions: | | | | | | | | |
| Change in net assets from capital transactions (See Note 5) | | | (2,313,251 | ) | | | (1,401,553 | ) |
| Change in net assets | | | 6,254,742 | | | | 2,677,344 | |
| Net Assets: | | | | | | | | |
| Beginning of year | | | 30,562,805 | | | | 27,885,461 | |
| End of year | | $ | 36,817,547 | | | $ | 30,562,805 | |
See accompanying notes to financial statements.
| Sterling Capital Mid Value Fund | | | Sterling Capital Behavioral Small Cap Value Equity Fund | | | Sterling Capital Special Opportunities Fund | |
For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | |
| $ | 245,298 | | | $ | 263,752 | | | $ | 1,656,938 | | | $ | 2,208,306 | | | $ | (1,387,908 | ) | | $ | (1,463,081 | ) |
| | 4,824,649 | | | | 3,474,632 | | | | 8,671,154 | | | | (21,401 | ) | | | 85,876,663 | | | | 79,277,344 | |
| | 3,880,913 | | | | 2,593,820 | | | | 14,256,533 | | | | 8,721,068 | | | | 20,967,909 | | | | 5,111,423 | |
| | 8,950,860 | | | | 6,332,204 | | | | 24,584,625 | | | | 10,907,973 | | | | 105,456,664 | | | | 82,925,686 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | (1,334,512 | ) | | | (3,067,418 | ) | | | (113,676 | ) | | | (62,185 | ) | | | (48,470,651 | ) | | | (21,815,525 | ) |
| | (33,683 | ) | | | (101,527 | ) | | | (788 | ) | | | (89 | ) | | | (5,349,947 | ) | | | (3,031,376 | ) |
| | (2,020,317 | ) | | | (4,879,982 | ) | | | (118,903 | ) | | | (131,693 | ) | | | (14,997,857 | ) | | | (10,387,547 | ) |
| | (27,483 | ) | | | (79,347 | ) | | | (1,699,464 | ) | | | (1,655,217 | ) | | | (6,123,350 | ) | | | (3,204,690 | ) |
| | (3,415,995 | ) | | | (8,128,274 | ) | | | (1,932,831 | ) | | | (1,849,184 | ) | | | (74,941,805 | ) | | | (38,439,138 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | (2,352,914 | ) | | | 370,972 | | | | (3,748,600 | ) | | | 45,403,164 | | | | (62,095,281 | ) | | | (74,760,160 | ) |
| | 3,181,951 | | | | (1,425,098 | ) | | | 18,903,194 | | | | 54,461,953 | | | | (31,580,422 | ) | | | (30,273,612 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 45,544,072 | | | | 46,969,170 | | | | 90,254,108 | | | | 35,792,155 | | | | 464,221,801 | | | | 494,495,413 | |
| $ | 48,726,023 | | | $ | 45,544,072 | | | $ | 109,157,302 | | | $ | 90,254,108 | | | $ | 432,641,379 | | | $ | 464,221,801 | |
STERLING CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
September 30, 2024
| | | Sterling Capital Equity Income Fund | |
| | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | |
| Increase (Decrease) in Net Assets due to: | | | | | | |
| Operations: | | | | | | | | |
| Net investment income | | $ | 28,014,041 | | | $ | 31,286,309 | |
| Net realized gain | | | 331,191,387 | | | | 180,698,775 | |
| Net change in unrealized appreciation (depreciation) | | | 50,609,934 | | | | 49,418,026 | |
| Net increase in net assets resulting from operations | | | 409,815,362 | | | | 261,403,110 | |
| Distributions to Shareholders: | | | | | | | | |
| Income distribution: | | | | | | | | |
| Class A Shares | | | (40,781,730 | ) | | | (35,207,532 | ) |
| Class C Shares | | | (5,906,495 | ) | | | (4,998,216 | ) |
| Class Institutional Shares | | | (123,753,673 | ) | | | (124,192,935 | ) |
| Class R6 Shares | | | (9,828,898 | ) | | | (9,084,244 | ) |
| Change in net assets from shareholder distributions | | | (180,270,796 | ) | | | (173,482,927 | ) |
| Capital Transactions: | | | | | | | | |
| Change in net assets from capital transactions (See Note 5) | | | (218,317,462 | ) | | | (221,342,653 | ) |
| Change in net assets | | | 11,227,104 | | | | (133,422,470 | ) |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of year | | | 1,881,039,047 | | | | 2,014,461,517 | |
| End of year | | $ | 1,892,266,151 | | | $ | 1,881,039,047 | |
See accompanying notes to financial statements.
| Sterling Capital Behavioral International Equity Fund | | | Sterling Capital Mid Cap Relative Value Fund | | | Sterling Capital Real Estate Fund | |
For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | |
| $ | 4,644,679 | | | $ | 4,381,209 | | | $ | 328,346 | | | $ | 408,092 | | | $ | 1,686,668 | | | $ | 1,525,796 | |
| | 10,827,197 | | | | 5,416,870 | | | | 5,917,871 | | | | 3,980,908 | | | | 3,388,016 | | | | 4,123,735 | |
| | 10,298,012 | | | | 23,304,355 | | | | 3,148,935 | | | | 2,414,630 | | | | 14,626,477 | | | | (4,241,006 | ) |
| | 25,769,888 | | | | 33,102,434 | | | | 9,395,152 | | | | 6,803,630 | | | | 19,701,161 | | | | 1,408,525 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | (18,148 | ) | | | (11,319 | ) | | | (49,762 | ) | | | (64,334 | ) | | | (41,389 | ) | | | (54,431 | ) |
| | (972 | ) | | | (216 | ) | | | (399 | ) | | | (513 | ) | | | (7,917 | ) | | | (9,581 | ) |
| | (37,616 | ) | | | (17,962 | ) | | | (5,094,497 | ) | | | (7,178,386 | ) | | | (5,246,524 | ) | | | (6,079,027 | ) |
| | (6,014,545 | ) | | | (3,663,801 | ) | | | — | | | | — | | | | (39,860 | ) | | | (60,933 | ) |
| | (6,071,281 | ) | | | (3,693,298 | ) | | | (5,144,658 | ) | | | (7,243,233 | ) | | | (5,335,690 | ) | | | (6,203,972 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | (1,963,673 | ) | | | (11,455,991 | ) | | | (7,211,696 | ) | | | (1,519,703 | ) | | | (2,892,935 | ) | | | (5,609,321 | ) |
| | 17,734,934 | | | | 17,953,145 | | | | (2,961,202 | ) | | | (1,959,306 | ) | | | 11,472,536 | | | | (10,404,768 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 116,316,199 | | | | 98,363,054 | | | | 43,479,492 | | | | 45,438,798 | | | | 64,281,276 | | | | 74,686,044 | |
| $ | 134,051,133 | | | $ | 116,316,199 | | | $ | 40,518,290 | | | $ | 43,479,492 | | | $ | 75,753,812 | | | $ | 64,281,276 | |
STERLING CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
September 30, 2024
| | | Sterling Capital Small Cap Value Fund | |
| | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | |
| Increase (Decrease) in Net Assets due to: | | | | | | | | |
| Operations: | | | | | | | | |
| Net investment income | | $ | 1,208,898 | | | $ | 1,626,307 | |
| Net realized gain (loss) | | | 97,551,304 | | | | 88,086,506 | |
| Net change in unrealized appreciation (depreciation) | | | (38,596,522 | ) | | | (38,439,825 | ) |
| Net increase in net assets resulting from operations | | | 60,163,680 | | | | 51,272,988 | |
| Distributions to Shareholders: | | | | | | | | |
| Income distribution: | | | | | | | | |
| Class A Shares | | | (830,751 | ) | | | (561,313 | ) |
| Class C Shares | | | (135,464 | ) | | | (82,031 | ) |
| Class Institutional Shares | | | (77,402,735 | ) | | | (76,098,395 | ) |
| Class R6 Shares | | | (1,738,566 | ) | | | (1,534,096 | ) |
| Change in net assets from shareholder distributions | | | (80,107,516 | ) | | | (78,275,835 | ) |
| Capital Transactions: | | | | | | | | |
| Change in net assets from capital transactions (See Note 5) | | | (53,586,885 | ) | | | (58,556,692 | ) |
| Change in net assets | | | (73,530,721 | ) | | | (85,559,539 | ) |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of year | | | 271,180,424 | | | | 356,739,963 | |
| End of year | | $ | 197,649,703 | | | $ | 271,180,424 | |
See accompanying notes to financial statements.
| Sterling Capital Ultra Short Bond Fund | | | Sterling Capital Short Duration Bond Fund | | | Sterling Capital Intermediate U.S. Government Fund | |
For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | |
| $ | 1,495,201 | | | $ | 1,054,385 | | | $ | 2,978,012 | | | $ | 4,221,906 | | | $ | 450,653 | | | $ | 354,824 | |
| | 34,533 | | | | (36,397 | ) | | | (640,244 | ) | | | (2,227,527 | ) | | | (72,448 | ) | | | (96,205 | ) |
| | 309,437 | | | | 525,824 | | | | 2,813,495 | | | | 3,049,062 | | | | 1,257,630 | | | | (134,394 | ) |
| | 1,839,171 | | | | 1,543,812 | | | | 5,151,263 | | | | 5,043,441 | | | | 1,635,835 | | | | 124,225 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | (302,481 | ) | | | (262,277 | ) | | | (131,145 | ) | | | (96,932 | ) | | | (83,268 | ) | | | (68,040 | ) |
| | — | | | | — | | | | (3,817 | ) | | | (6,702 | ) | | | (2,511 | ) | | | (2,275 | ) |
| | (1,129,825 | ) | | | (875,649 | ) | | | (2,168,304 | ) | | | (3,325,550 | ) | | | (504,626 | ) | | | (377,519 | ) |
| | — | | | | — | | | | (600,489 | ) | | | (488,093 | ) | | | — | | | | — | |
| | (1,432,306 | ) | | | (1,137,926 | ) | | | (2,903,755 | ) | | | (3,917,277 | ) | | | (590,405 | ) | | | (447,834 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | (1,585,514 | ) | | | 1,517,221 | | | | (60,565,386 | ) | | | (1,643,630 | ) | | | 641,650 | | | | 105,182 | |
| | (1,178,649 | ) | | | 1,923,107 | | | | (58,317,878 | ) | | | (517,466 | ) | | | 1,687,080 | | | | (218,427 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 29,278,034 | | | | 27,354,927 | | | | 103,951,122 | | | | 104,468,588 | | | | 16,495,847 | | | | 16,714,274 | |
| $ | 28,099,385 | | | $ | 29,278,034 | | | $ | 45,633,244 | | | $ | 103,951,122 | | | $ | 18,182,927 | | | $ | 16,495,847 | |
STERLING CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
September 30, 2024
| | | Sterling Capital Total Return Bond Fund | |
| | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | |
| Increase (Decrease) in Net Assets due to: | | | | | | | | |
| Operations: | | | | | | | | |
| Net investment income | | $ | 57,220,994 | | | $ | 33,656,778 | |
| Net realized loss | | | (32,443,663 | ) | | | (40,413,781 | ) |
| Net change in unrealized appreciation (depreciation) | | | 136,519,817 | | | | 15,775,118 | |
| Net increase (decrease) in net assets resulting from operations | | | 161,297,148 | | | | 9,018,115 | |
| Distributions to Shareholders: | | | | | | | | |
| Income distribution: | | | | | | | | |
| Class A Shares | | | (1,885,739 | ) | | | (1,498,338 | ) |
| Class C Shares | | | (86,758 | ) | | | (73,772 | ) |
| Class Institutional Shares | | | (40,197,403 | ) | | | (24,379,270 | ) |
| Class R6 Shares | | | (15,067,709 | ) | | | (8,620,123 | ) |
| Change in net assets from shareholder distributions | | | (57,237,609 | ) | | | (34,571,503 | ) |
| Capital Transactions: | | | | | | | | |
| Change in net assets from capital transactions (See Note 5) | | | 402,146,207 | | | | (29,410,288 | ) |
| Change in net assets | | | 506,205,746 | | | | (54,963,676 | ) |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of year | | | 1,008,516,009 | | | | 1,063,479,685 | |
| End of year | | $ | 1,514,721,755 | | | $ | 1,008,516,009 | |
See accompanying notes to financial statements.
| Sterling Capital Long Duration Corporate Bond Fund | | | Sterling Capital Quality Income Fund | | | Sterling Capital North Carolina Intermediate Tax-Free Fund | |
For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | |
| $ | 1,884,068 | | | $ | 1,259,007 | | | $ | 2,956,704 | | | $ | 2,377,083 | | | $ | 3,208,779 | | | $ | 3,160,457 | |
| | (2,469,778 | ) | | | (1,369,799 | ) | | | (1,114,890 | ) | | | (284,289 | ) | | | (604,710 | ) | | | (1,664,313 | ) |
| | 7,111,244 | | | | 18,537 | | | | 7,427,434 | | | | (1,950,595 | ) | | | 6,559,031 | | | | 751,162 | |
| | 6,525,534 | | | | (92,255 | ) | | | 9,269,248 | | | | 142,199 | | | | 9,163,100 | | | | 2,247,306 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | (14,989 | ) | | | (17,085 | ) | | | (958 | ) | | | (880 | ) | | | (497,427 | ) | | | (469,880 | ) |
| | (92 | ) | | | (88 | ) | | | (69 | ) | | | (58 | ) | | | (14,093 | ) | | | (13,514 | ) |
| | (24,777 | ) | | | (16,776 | ) | | | (3,072,077 | ) | | | (2,499,050 | ) | | | (2,684,591 | ) | | | (2,677,063 | ) |
| | (1,845,809 | ) | | | (1,227,995 | ) | | | — | | | | — | | | | — | | | | — | |
| | (1,885,667 | ) | | | (1,261,944 | ) | | | (3,073,104 | ) | | | (2,499,988 | ) | | | (3,196,111 | ) | | | (3,160,457 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 7,144,131 | | | | 9,444,642 | | | | (6,336,438 | ) | | | 12,111,363 | | | | (11,566,398 | ) | | | (17,394,662 | ) |
| | 11,783,998 | | | | 8,090,443 | | | | (140,294 | ) | | | 9,753,574 | | | | (5,599,409 | ) | | | (18,307,813 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | 31,177,813 | | | | 23,087,370 | | | | 88,039,966 | | | | 78,286,392 | | | | 134,236,933 | | | | 152,544,746 | |
| $ | 42,961,811 | | | $ | 31,177,813 | | | $ | 87,899,672 | | | $ | 88,039,966 | | | $ | 128,637,524 | | | $ | 134,236,933 | |
STERLING CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
September 30, 2024
| | | Sterling Capital South Carolina Intermediate Tax-Free Fund | |
| | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | |
| Increase (Decrease) in Net Assets due to: | | | | | | | | |
| Operations: | | | | | | | | |
| Net investment income | | $ | 810,404 | | | $ | 788,893 | |
| Net realized loss | | | (462,910 | ) | | | (703,509 | ) |
| Net change in unrealized appreciation | | | 1,881,016 | | | | 460,221 | |
| Net increase in net assets resulting from operations | | | 2,228,510 | | | | 545,605 | |
| Distributions to Shareholders: | | | | | | | | |
| Income distribution: | | | | | | | | |
| Class A Shares | | | (147,188 | ) | | | (135,550 | ) |
| Class C Shares | | | (3,847 | ) | | | (3,836 | ) |
| Class Institutional Shares | | | (656,595 | ) | | | (649,506 | ) |
| Change in net assets from shareholder distributions | | | (807,630 | ) | | | (788,892 | ) |
| Capital Transactions: | | | | | | | | |
| Change in net assets from capital transactions (See Note 5) | | | (7,366,676 | ) | | | (6,079,786 | ) |
| Change in net assets | | | (5,945,796 | ) | | | (6,323,073 | ) |
| | | | | | | | | |
| Net Assets: | | | | | | | | |
| Beginning of year | | | 35,386,985 | | | | 41,710,058 | |
| End of year | | $ | 29,441,189 | | | $ | 35,386,985 | |
See accompanying notes to financial statements.
| Sterling Capital Virginia Intermediate Tax-Free Fund | | | Sterling Capital West Virginia Intermediate Tax-Free Fund | |
For the Year Ended September 30, 2024 | | | For the Year Ended September 30, 2023 | | | For the Year Ended September 30, 2024 | | | For the Year Ended September 30, 2023 | |
| $ | 1,214,165 | | | $ | 1,436,351 | | | $ | 1,873,103 | | | $ | 1,992,792 | |
| | (638,608 | ) | | | (714,687 | ) | | | (465,941 | ) | | | (1,503,912 | ) |
| | 3,117,113 | | | | 581,974 | | | | 4,013,370 | | | | 657,730 | |
| | 3,692,670 | | | | 1,303,638 | | | | 5,420,532 | | | | 1,146,610 | |
| | | | | | | | | | | | | | | |
| | (228,315 | ) | | | (229,106 | ) | | | (485,310 | ) | | | (471,650 | ) |
| | (82 | ) | | | (151 | ) | | | (35 | ) | | | (158 | ) |
| | (980,236 | ) | | | (1,207,094 | ) | | | (1,382,167 | ) | | | (1,520,984 | ) |
| | (1,208,633 | ) | | | (1,436,351 | ) | | | (1,867,512 | ) | | | (1,992,792 | ) |
| | | | | | | | | | | | | | | |
| | (19,331,760 | ) | | | (18,739,172 | ) | | | (27,790,397 | ) | | | (6,506,623 | ) |
| | (16,847,723 | ) | | | (18,871,885 | ) | | | (24,237,377 | ) | | | (7,352,805 | ) |
| | | | | | | | | | | | | | | |
| | 62,272,761 | | | | 81,144,646 | | | | 79,790,631 | | | | 87,143,436 | |
| $ | 45,425,038 | | | $ | 62,272,761 | | | $ | 55,553,254 | | | $ | 79,790,631 | |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, A SHARES
September 30, 2024
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
gain (loss) on
investments | | | Total from
investment
Activities | | | Net
investment
income | | | Net realized
gains on
investments | | | Return of
capital | | | Total from
distributions | |
| Sterling Capital Behavioral Large Cap Value Equity Fund | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 23.10 | | | | 0.45 | | | | 6.79 | | | | 7.24 | | | | (0.46 | ) | | | — | | | | — | | | | (0.46 | ) |
| Year Ended September 30, 2023 | | $ | 20.19 | | | | 0.37 | | | | 2.94 | | | | 3.31 | | | | (0.40 | ) | | | — | | | | — | | | | (0.40 | ) |
| 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 | ) |
| Sterling Capital Mid Value Fund | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 14.47 | | | | 0.06 | | | | 2.70 | | | | 2.76 | | | | (0.06 | ) | | | (1.05 | ) | | | — | | | | (1.11 | ) |
| Year Ended September 30, 2023 | | $ | 15.21 | | | | 0.06 | | | | 1.95 | | | | 2.01 | | | | (0.03 | ) | | | (2.72 | ) | | | — | | | | (2.75 | ) |
| 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 | ) |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 16.98 | | | | 0.27 | | | | 4.50 | | | | 4.77 | | | | (0.36 | ) | | | — | | | | — | | | | (0.36 | ) |
| Year Ended September 30, 2023 | | $ | 15.12 | | | | 0.26 | | | | 1.78 | | | | 2.04 | | | | (0.18 | ) | | | — | | | | — | | | | (0.18 | ) |
| 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 | ) |
| Sterling Capital Special Opportunities Fund | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 26.08 | | | | (0.10 | ) | | | 6.40 | | | | 6.30 | | | | — | | | | (4.79 | ) | | | — | | | | (4.79 | ) |
| Year Ended September 30, 2023 | | $ | 23.95 | | | | (0.09 | ) | | | 4.21 | | | | 4.12 | | | | — | | | | (1.99 | ) | | | — | | | | (1.99 | ) |
| 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 | ) |
| Sterling Capital Equity Income Fund | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 25.26 | | | | 0.35 | | | | 5.39 | | | | 5.74 | | | | (0.36 | ) | | | (2.14 | ) | | | — | | | | (2.50 | ) |
| Year Ended September 30, 2023 | | $ | 24.27 | | | | 0.35 | | | | 2.73 | | | | 3.08 | | | | (0.35 | ) | | | (1.74 | ) | | | — | | | | (2.09 | ) |
| 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 | ) |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
See accompanying Notes to the Financial Statements
| | | | | | | 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** | |
| $ | 29.88 | | | | 31.47 | % | | $ | 34,158 | | | | 1.00 | % | | | 1.68 | % | | | 1.03 | % | | | 99.00 | % |
| $ | 23.10 | | | | 16.42 | % | | $ | 28,454 | | | | 1.09 | % | | | 1.60 | % | | | 1.15 | % | | | 110.98 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 16.12 | | | | 19.90 | % | | $ | 20,502 | | | | 1.15 | % | | | 0.37 | % | | | 1.16 | % | | | 39.31 | % |
| $ | 14.47 | | | | 13.45 | % | | $ | 17,911 | | | | 1.16 | % | | | 0.40 | % | | | 1.18 | % | | | 19.99 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 21.39 | | | | 28.20 | % | | $ | 6,564 | | | | 1.09 | % | | | 1.38 | % | | | 1.09 | % | | | 74.00 | % |
| $ | 16.98 | | | | 13.50 | % | | $ | 5,695 | | | | 1.11 | % | | | 1.54 | % | | | 1.11 | % | | | 154.69 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 27.59 | | | | 27.05 | % | | $ | 294,004 | | | | 1.16 | % | | | (0.37 | )% | | | 1.16 | % | | | 41.68 | % |
| $ | 26.08 | | | | 17.96 | % | | $ | 269,413 | | | | 1.16 | % | | | (0.36 | )% | | | 1.16 | % | | | 31.19 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 28.50 | | | | 23.83 | % | | $ | 464,807 | | | | 1.08 | % | | | 1.32 | % | | | 1.08 | % | | | 41.82 | % |
| $ | 25.26 | | | | 12.55 | % | | $ | 418,725 | | | | 1.07 | % | | | 1.34 | % | | | 1.07 | % | | | 39.43 | % |
| $ | 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 | % |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, A SHARES
September 30, 2024
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
gain (loss) on
investments | | | Total from
investment
Activities | | | Net
investment
income | | | Net realized
gains on
investments | | | Total from
distributions | |
| Sterling Capital Behavioral International Equity Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 9.13 | | | | 0.30 | | | | 1.65 | | | | 1.95 | | | | (0.45 | ) | | | — | | | | (0.45 | ) |
| Year Ended September 30, 2023 | | $ | 7.09 | | | | 0.29 | | | | 1.99 | | | | 2.28 | | | | (0.24 | ) | | | — | | | | (0.24 | ) |
| 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 | ) |
| Sterling Capital Mid Cap Relative Value Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 60.94 | | | | 0.34 | | | | 13.28 | | | | 13.62 | | | | (0.25 | ) | | | (7.01 | ) | | | (7.26 | ) |
| Year Ended September 30, 2023 | | $ | 62.45 | | | | 0.40 | | | | 8.65 | | | | 9.05 | | | | (0.39 | ) | | | (10.17 | ) | | | (10.56 | ) |
| 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 | ) |
| Sterling Capital Real Estate Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 32.35 | | | | 0.78 | | | | 9.42 | | | | 10.20 | | | | (0.65 | ) | | | (2.09 | ) | | | (2.74 | ) |
| Year Ended September 30, 2023 | | $ | 34.86 | | | | 0.64 | | | | (0.25 | ) | | | 0.39 | | | | (0.67 | ) | | | (2.23 | ) | | | (2.90 | ) |
| 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 | ) |
| Sterling Capital Small Cap Value Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 52.17 | | | | 0.13 | | | | 11.70 | | | | 11.83 | | | | (0.13 | ) | | | (16.20 | ) | | | (16.33 | ) |
| Year Ended September 30, 2023 | | $ | 57.67 | | | | 0.16 | | | | 8.11 | | | | 8.27 | | | | (0.09 | ) | | | (13.68 | ) | | | (13.77 | ) |
| 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 | ) |
| Sterling Capital Ultra Short Bond Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 9.68 | | | | 0.47 | | | | 0.11 | | | | 0.58 | | | | (0.44 | ) | | | — | | | | (0.44 | ) |
| Year Ended September 30, 2023 | | $ | 9.55 | | | | 0.31 | | | | 0.16 | | | | 0.47 | | | | (0.34 | ) | | | — | | | | (0.34 | ) |
| 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 | ) |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
See accompanying Notes to the Financial Statements
| | | | | | | 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** | |
| $ | 10.63 | | | | 21.92 | % | | $ | 398 | | | | 0.91 | % | | | 3.09 | % | | | 0.91 | % | | | 77.83 | % |
| $ | 9.13 | | | | 32.53 | % | | $ | 369 | | | | 0.92 | % | | | 3.26 | % | | | 0.92 | % | | | 86.05 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 67.30 | | | | 24.07 | % | | $ | 265 | | | | 1.13 | % | | | 0.55 | % | | | 1.13 | % | | | 8.96 | % |
| $ | 60.94 | | | | 14.75 | % | | $ | 460 | | | | 1.12 | % | | | 0.65 | % | | | 1.12 | % | | | 4.89 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 39.81 | | | | 32.80 | % | | $ | 623 | | | | 1.11 | % | | | 2.25 | % | | | 1.11 | % | | | 4.90 | % |
| $ | 32.35 | | | | 0.70 | % | | $ | 543 | | | | 1.12 | % | | | 1.81 | % | | | 1.12 | % | | | 6.06 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 47.67 | | | | 28.51 | % | | $ | 3,277 | | | | 1.30 | % | | | 0.28 | % | | | 1.31 | % | | | 2.87 | % |
| $ | 52.17 | | | | 15.05 | % | | $ | 2,656 | | | | 1.28 | % | | | 0.29 | % | | | 1.30 | % | | | 0.77 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 9.82 | | | | 6.12 | % | | $ | 5,114 | | | | 0.63 | % | | | 4.84 | % | | | 0.81 | % | | | 50.87 | % |
| $ | 9.68 | | | | 4.97 | % | | $ | 5,756 | | | | 0.52 | % | | | 3.26 | % | | | 0.82 | % | | | 45.10 | % |
| $ | 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 | % |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, A SHARES
September 30, 2024
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
gain (loss) on
investments | | | Total from
investment
Activities | | | Net
investment
income | | | Net realized
gains on
investments | | | Total from
distributions | |
| Sterling Capital Short Duration Bond Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 8.14 | | | | 0.37 | | | | 0.27 | | | | 0.64 | | | | (0.36 | ) | | | — | | | | (0.36 | ) |
| Year Ended September 30, 2023 | | $ | 8.08 | | | | 0.25 | | | | 0.04 | | | | 0.29 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
| 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 | ) |
| Sterling Capital Intermediate U.S. Government Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 8.34 | | | | 0.21 | | | | 0.59 | | | | 0.80 | | | | (0.28 | ) | | | — | | | | (0.28 | ) |
| Year Ended September 30, 2023 | | $ | 8.51 | | | | 0.16 | | | | (0.12 | ) | | | 0.04 | | | | (0.21 | ) | | | — | | | | (0.21 | ) |
| 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 | ) |
| Sterling Capital Total Return Bond Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 8.87 | | | | 0.35 | | | | 0.67 | | | | 1.02 | | | | (0.35 | ) | | | — | | | | (0.35 | ) |
| Year Ended September 30, 2023 | | $ | 9.11 | | | | 0.28 | | | | (0.24 | ) | | | 0.04 | | | | (0.28 | ) | | | — | | | | (0.28 | ) |
| 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 | ) |
| Sterling Capital Long Duration Corporate Bond Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 6.45 | | | | 0.31 | | | | 0.85 | | | | 1.16 | | | | (0.31 | ) | | | — | | | | (0.31 | ) |
| Year Ended September 30, 2023 | | $ | 6.63 | | | | 0.28 | | | | (0.17 | ) | | | 0.11 | | | | (0.29 | ) | | | — | | | | (0.29 | ) |
| 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 | ) |
| Sterling Capital Quality Income Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 8.56 | | | | 0.27 | | | | 0.64 | | | | 0.91 | | | | (0.29 | ) | | | — | | | | (0.29 | ) |
| Year Ended September 30, 2023 | | $ | 8.78 | | | | 0.23 | | | | (0.21 | ) | | | 0.02 | | | | (0.24 | ) | | | — | | | | (0.24 | ) |
| 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 | ) |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
| (b) | Amount is less than $0.005. |
See accompanying Notes to the Financial Statements
| | | | | | | Ratios/Supplementary Data | |
Net asset
value, end of
year | | | Total Return
(excludes sales
charge) | | | Net assets, End
of year (000) | | | Ratio of net
expenses to
average net
assets | | | Ratio of net
investment
income to
average net
assets | | | Ratio of
expenses to
average net
assets * | | | Portfolio
turnover** | |
| $ | 8.42 | | | | 7.98 | % | | $ | 3,068 | | | | 0.76 | % | | | 4.43 | % | | | 0.83 | % | | | 67.85 | % |
| $ | 8.14 | | | | 3.62 | % | | $ | 3,228 | | | | 0.70 | % | | | 3.02 | % | | | 0.73 | % | | | 98.01 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 8.86 | | | | 9.72 | % | | $ | 2,505 | | | | 0.76 | % | | | 2.41 | % | | | 0.95 | % | | | 11.51 | % |
| $ | 8.34 | | | | 0.43 | % | | $ | 2,550 | | | | 0.75 | % | | | 1.89 | % | | | 0.94 | % | | | 7.91 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 9.54 | | | | 11.67 | % | | $ | 53,940 | | | | 0.71 | % | | | 3.78 | % | | | 0.75 | % | | | 63.02 | % |
| $ | 8.87 | | | | 0.41 | % | | $ | 46,772 | | | | 0.70 | % | | | 2.99 | % | | | 0.76 | % | | | 47.80 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 7.30 | | | | 18.30 | % | | $ | 405 | | | | 0.71 | % | | | 4.43 | % | | | 0.85 | % | | | 47.46 | % |
| $ | 6.45 | | | | 1.38 | % | | $ | 308 | | | | 0.70 | % | | | 4.09 | % | | | 0.89 | % | | | 26.27 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 9.18 | | | | 10.77 | % | | $ | 32 | | | | 0.82 | % | | | 3.11 | % | | | 0.87 | % | | | 25.02 | % |
| $ | 8.56 | | | | 0.18 | % | | $ | 32 | | | | 0.83 | % | | | 2.57 | % | | | 0.88 | % | | | 9.85 | % |
| $ | 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 | % |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, A SHARES
September 30, 2024
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
gain (loss) on
investments | | | Total from
investment
Activities | | | Net
investment
income | | | Net realized
gains on
investments | | | Total from
distributions | |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 9.75 | | | | 0.23 | | | | 0.46 | | | | 0.69 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
| Year Ended September 30, 2023 | | $ | 9.84 | | | | 0.20 | | | | (0.09 | ) | | | 0.11 | | | | (0.20 | ) | | | — | | | | (0.20 | ) |
| 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 | ) |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 10.16 | | | | 0.25 | | | | 0.46 | | | | 0.71 | | | | (0.25 | ) | | | — | | | | (0.25 | ) |
| Year Ended September 30, 2023 | | $ | 10.24 | | | | 0.20 | | | | (0.08 | ) | | | 0.12 | | | | (0.20 | ) | | | — | | | | (0.20 | ) |
| 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 | ) |
| Sterling Capital Virginia Intermediate Tax-Free Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 10.69 | | | | 0.24 | | | | 0.50 | | | | 0.74 | | | | (0.24 | ) | | | — | | | | (0.24 | ) |
| Year Ended September 30, 2023 | | $ | 10.77 | | | | 0.20 | | | | (0.08 | ) | | | 0.12 | | | | (0.20 | ) | | | — | | | | (0.20 | ) |
| 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 | ) |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 9.12 | | | | 0.24 | | | | 0.44 | | | | 0.68 | | | | (0.24 | ) | | | — | | | | (0.24 | ) |
| Year Ended September 30, 2023 | | $ | 9.22 | | | | 0.20 | | | | (0.10 | ) | | | 0.10 | | | | (0.20 | ) | | | — | | | | (0.20 | ) |
| 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 | ) |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
| (b) | Amount is less than $0.005. |
See accompanying Notes to the Financial Statements
| | | | | | | Ratios/Supplementary Data | |
Net asset
value, end of
year | | | Total Return
(excludes sales
charge) | | | Net assets, End
of year (000) | | | Ratio of net
expenses to
average net
assets | | | Ratio of net
investment
income to
average net
assets | | | Ratio of
expenses to
average net
assets * | | | Portfolio
turnover** | |
| $ | 10.21 | | | | 7.13 | % | | $ | 20,995 | | | | 0.85 | % | | | 2.29 | % | | | 0.85 | % | | | 20.34 | % |
| $ | 9.75 | | | | 1.08 | % | | $ | 22,320 | | | | 0.85 | % | | | 1.99 | % | | | 0.85 | % | | | 38.07 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 10.62 | | | | 7.09 | % | | $ | 5,816 | | | | 0.89 | % | | | 2.43 | % | | | 0.90 | % | | | 19.81 | % |
| $ | 10.16 | | | | 1.15 | % | | $ | 6,369 | | | | 0.87 | % | | | 1.92 | % | | | 0.88 | % | | | 32.34 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 11.19 | | | | 6.92 | % | | $ | 9,816 | | | | 0.87 | % | | | 2.14 | % | | | 0.87 | % | | | 20.54 | % |
| $ | 10.69 | | | | 1.05 | % | | $ | 11,272 | | | | 0.86 | % | | | 1.78 | % | | | 0.86 | % | | | 17.86 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 9.56 | | | | 7.51 | % | | $ | 20,407 | | | | 0.88 | % | | | 2.54 | % | | | 0.88 | % | | | 25.08 | % |
| $ | 9.12 | | | | 1.07 | % | | $ | 20,855 | | | | 0.86 | % | | | 2.14 | % | | | 0.86 | % | | | 37.11 | % |
| $ | 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 | % |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, C SHARES
September 30, 2024
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 gain (loss) on investments | | | Total from investment Activities | | | Net investment income | | | Net realized gains on investments | | | Return of capital | |
| Sterling Capital Behavioral Large Cap Value Equity Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 22.19 | | | | 0.24 | | | | 6.50 | | | | 6.74 | | | | (0.27 | ) | | | — | | | | — | |
| Year Ended September 30, 2023 | | $ | 19.41 | | | | 0.19 | | | | 2.83 | | | | 3.02 | | | | (0.24 | ) | | | — | | | | — | |
| Year Ended September 30, 2022 | | $ | 21.88 | | | | 0.21 | | | | (2.49 | ) | | | (2.28 | ) | | | (0.19 | ) | | | — | | | | — | |
| Year Ended September 30, 2021 | | $ | 16.17 | | | | (0.04 | ) | | | 5.92 | | | | 5.88 | | | | (0.03 | ) | | | — | | | | (0.14 | ) |
| Year Ended September 30, 2020 | | $ | 18.88 | | | | 0.21 | | | | (1.99 | ) | | | (1.78 | ) | | | (0.35 | ) | | | (0.58 | ) | | | — | |
| Sterling Capital Mid Value Fund | | | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 11.36 | | | | (0.04 | ) | | | 2.09 | | | | 2.05 | | | | — | | | | (1.05 | ) | | | — | |
| Year Ended September 30, 2023 | | $ | 12.52 | | | | (0.04 | ) | | | 1.60 | | | | 1.56 | | | | — | | | | (2.72 | ) | | | — | |
| Year Ended September 30, 2022 | | $ | 16.86 | | | | (0.11 | ) | | | (2.59 | ) | | | (2.70 | ) | | | — | | | | (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 | ) | | | — | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 16.10 | | | | 0.11 | | | | 4.26 | | | | 4.37 | | | | (0.30 | ) | | | — | | | | — | |
| Year Ended September 30, 2023 | | $ | 14.33 | | | | 0.13 | | | | 1.69 | | | | 1.82 | | | | (0.05 | ) | | | — | | | | — | |
| Year Ended September 30, 2022 | | $ | 18.46 | | | | 0.03 | | | | (2.34 | ) | | | (2.31 | ) | | | — | | | | (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 | ) | | | — | | | | — | |
| Sterling Capital Special Opportunities Fund | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 19.02 | | | | (0.20 | ) | | | 4.45 | | | | 4.25 | | | | — | | | | (4.79 | ) | | | — | |
| Year Ended September 30, 2023 | | $ | 18.09 | | | | (0.21 | ) | | | 3.13 | | | | 2.92 | | | | — | | | | (1.99 | ) | | | — | |
| Year Ended September 30, 2022 | | $ | 26.39 | | | | (0.27 | ) | | | (3.92 | ) | | | (4.19 | ) | | | — | | | | (4.11 | ) | | | — | |
| Year Ended September 30, 2021 | | $ | 19.67 | | | | (0.27 | ) | | | 7.32 | | | | 7.05 | | | | — | | | | (0.33 | ) | | | — | |
| Year Ended September 30, 2020 | | $ | 20.04 | | | | (0.15 | ) | | | 1.11 | | | | 0.96 | | | | — | | | | (1.33 | ) | | | — | |
| Sterling Capital Equity Income Fund | |
| Year Ended September 30, 2024 | | $ | 25.00 | | | | 0.15 | | | | 5.32 | | | | 5.47 | | | | (0.16 | ) | | | (2.14 | ) | | | — | |
| Year Ended September 30, 2023 | | $ | 24.04 | | | | 0.15 | | | | 2.70 | | | | 2.85 | | | | (0.15 | ) | | | (1.74 | ) | | | — | |
| Year Ended September 30, 2022 | | $ | 26.32 | | | | 0.15 | | | | (1.81 | ) | | | (1.66 | ) | | | (0.14 | ) | | | (0.48 | ) | | | — | |
| Year Ended September 30, 2021 | | $ | 19.83 | | | | 0.10 | | | | 6.47 | | | | 6.57 | | | | (0.08 | ) | | | — | | | | — | |
| Year Ended September 30, 2020 | | $ | 21.05 | | | | 0.21 | | | | (0.38 | ) | | | (0.17 | ) | | | (0.21 | ) | | | (0.84 | ) | | | — | |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
See accompanying Notes to the Financial Statements
| | | | | | | | | | Ratios/Supplementary Data | |
Total from distributions | | | 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** | |
| | (0.27 | ) | | $ | 28.66 | | | | 30.45 | % | | $ | 362 | | | | 1.75 | % | | | 0.93 | % | | | 1.78 | % | | | 99.00 | % |
| | (0.24 | ) | | $ | 22.19 | | | | 15.57 | % | | $ | 280 | | | | 1.84 | % | | | 0.85 | % | | | 1.90 | % | | | 110.98 | % |
| | (0.19 | ) | | $ | 19.41 | | | | (10.50 | )% | | $ | 248 | | | | 1.75 | % | | | 0.93 | % | | | 1.78 | % | | | 125.15 | % |
| | (0.17 | ) | | $ | 21.88 | | | | 36.56 | % | | $ | 304 | | | | 1.60 | % | | | (0.22 | )% | | | 1.79 | % | | | 122.64 | % |
| | (0.93 | ) | | $ | 16.17 | | | | (9.81 | )% | | $ | 567 | | | | 1.64 | % | | | 1.26 | % | | | 1.71 | % | | | 167.34 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1.05 | ) | | $ | 12.36 | | | | 18.96 | % | | $ | 349 | | | | 1.90 | % | | | (0.36 | )% | | | 1.91 | % | | | 39.31 | % |
| | (2.72 | ) | | $ | 11.36 | | | | 12.57 | % | | $ | 379 | | | | 1.91 | % | | | (0.35 | )% | | | 1.93 | % | | | 19.99 | % |
| | (1.64 | ) | | $ | 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 | % |
| | (1.23 | ) | | $ | 11.85 | | | | (6.46 | )% | | $ | 1,584 | | | | 1.88 | % | | | (0.61 | )% | | | 2.02 | % | | | 28.77 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (0.30 | ) | | $ | 20.17 | | | | 27.26 | % | | $ | 51 | | | | 1.83 | % | | | 0.58 | % | | | 1.84 | % | | | 74.00 | % |
| | (0.05 | ) | | $ | 16.10 | | | | 12.70 | % | | $ | 28 | | | | 1.86 | % | | | 0.79 | % | | | 1.86 | % | | | 154.69 | % |
| | (1.82 | ) | | $ | 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 | % |
| | (0.11 | ) | | $ | 11.28 | | | | (18.47 | )% | | $ | 100 | | | | 1.81 | % | | | 0.05 | % | | | 1.83 | % | | | 119.76 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (4.79 | ) | | $ | 18.48 | | | | 26.15 | % | | $ | 16,870 | | | | 1.91 | % | | | (1.12 | )% | | | 1.91 | % | | | 41.68 | % |
| | (1.99 | ) | | $ | 19.02 | | | | 17.07 | % | | $ | 22,619 | | | | 1.91 | % | | | (1.11 | )% | | | 1.91 | % | | | 31.19 | % |
| | (4.11 | ) | | $ | 18.09 | | | | (19.53 | )% | | $ | 29,566 | | | | 1.88 | % | | | (1.19 | )% | | | 1.88 | % | | | 28.06 | % |
| | (0.33 | ) | | $ | 26.39 | | | | 36.19 | % | | $ | 52,182 | | | | 1.86 | % | | | (1.11 | )% | | | 1.87 | % | | | 27.20 | % |
| | (1.33 | ) | | $ | 19.67 | | | | 4.73 | % | | $ | 60,777 | | | | 1.86 | % | | | (0.79 | )% | | | 1.86 | % | | | 17.50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (2.30 | ) | | $ | 28.17 | | | | 22.92 | % | | $ | 72,748 | | | | 1.83 | % | | | 0.57 | % | | | 1.83 | % | | | 41.82 | % |
| | (1.89 | ) | | $ | 25.00 | | | | 11.71 | % | | $ | 64,849 | | | | 1.82 | % | | | 0.60 | % | | | 1.82 | % | | | 39.43 | % |
| | (0.62 | ) | | $ | 24.04 | | | | (6.57 | )% | | $ | 64,899 | | | | 1.79 | % | | | 0.54 | % | | | 1.79 | % | | | 31.23 | % |
| | (0.08 | ) | | $ | 26.32 | | | | 33.15 | % | | $ | 81,338 | | | | 1.78 | % | | | 0.42 | % | | | 1.79 | % | | | 13.00 | % |
| | (1.05 | ) | | $ | 19.83 | | | | (0.85 | )% | | $ | 119,475 | | | | 1.77 | % | | | 1.04 | % | | | 1.78 | % | | | 33.60 | % |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, C SHARES
September 30, 2024
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 gain (loss) on investments | | | Total from investment Activities | | | Net investment income | | | Net realized gains on investments | | | Total from distributions | |
| Sterling Capital Behavioral International Equity Fund | | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 9.13 | | | | 0.25 | | | | 1.63 | | | | 1.87 | | | | (0.38 | ) | | | — | | | | (0.38 | ) |
| Year Ended September 30, 2023 | | $ | 7.01 | | | | 0.19 | | | | 2.01 | | | | 2.20 | | | | (0.08 | ) | | | — | | | | (0.08 | ) |
| 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 | ) |
| Sterling Capital Mid Cap Relative Value Fund | | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 58.68 | | | | (0.08 | ) | | | 12.76 | | | | 12.68 | | | | — | | | | (7.01 | ) | | | (7.01 | ) |
| Year Ended September 30, 2023 | | $ | 60.48 | | | | (0.01 | ) | | | 8.38 | | | | 8.37 | | | | — | | | | (10.17 | ) | | | (10.17 | ) |
| 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 | ) |
| Sterling Capital Real Estate Fund | | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 32.00 | | | | 0.52 | | | | 9.31 | | | | 9.83 | | | | (0.39 | ) | | | (2.09 | ) | | | (2.48 | ) |
| Year Ended September 30, 2023 | | $ | 34.53 | | | | 0.37 | | | | (0.25 | ) | | | 0.12 | | | | (0.42 | ) | | | (2.23 | ) | | | (2.65 | ) |
| 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 | ) |
| Sterling Capital Small Cap Value Fund | | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 47.89 | | | | (0.19 | ) | | | 10.48 | | | | 10.29 | | | | — | | | | (16.20 | ) | | | (16.20 | ) |
| Year Ended September 30, 2023 | | $ | 54.20 | | | | (0.22 | ) | | | 7.59 | | | | 7.37 | | | | — | | | | (13.68 | ) | | | (13.68 | ) |
| 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 | ) |
| Sterling Capital Short Duration Bond Fund | | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 8.14 | | | | 0.30 | | | | 0.27 | | | | 0.57 | | | | (0.29 | ) | | | — | | | | (0.29 | ) |
| Year Ended September 30, 2023 | | $ | 8.08 | | | | 0.18 | | | | 0.05 | | | | 0.23 | | | | (0.17 | ) | | | — | | | | (0.17 | ) |
| 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 | ) |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
See accompanying Notes to the Financial Statements
| | | | | | | 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** | |
| $ | 10.63 | | | | 21.06 | % | | $ | 28 | | | | 1.66 | % | | | 2.55 | % | | | 1.66 | % | | | 77.83 | % |
| $ | 9.13 | | | | 31.56 | % | | $ | 23 | | | | 1.66 | % | | | 2.25 | % | | | 1.66 | % | | | 86.05 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 64.35 | | | | 23.29 | % | | $ | 3 | | | | 1.88 | % | | | (0.14 | )% | | | 1.88 | % | | | 8.96 | % |
| $ | 58.68 | | | | 14.00 | % | | $ | 3 | | | | 1.77 | % | | | (0.01 | )% | | | 1.77 | % | | | 4.89 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 39.35 | | | | 31.81 | % | | $ | 93 | | | | 1.86 | % | | | 1.52 | % | | | 1.86 | % | | | 4.90 | % |
| $ | 32.00 | | | | (0.06 | )% | | $ | 112 | | | | 1.86 | % | | | 1.05 | % | | | 1.86 | % | | | 6.06 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 41.98 | | | | 27.56 | % | | $ | 559 | | | | 2.05 | % | | | (0.48 | )% | | | 2.06 | % | | | 2.87 | % |
| $ | 47.89 | | | | 14.18 | % | | $ | 458 | | | | 2.03 | % | | | (0.45 | )% | | | 2.05 | % | | | 0.77 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 8.42 | | | | 7.17 | % | | $ | 47 | | | | 1.51 | % | | | 3.63 | % | | | 1.59 | % | | | 67.85 | % |
| $ | 8.14 | | | | 2.84 | % | | $ | 280 | | | | 1.45 | % | | | 2.23 | % | | | 1.48 | % | | | 98.01 | % |
| $ | 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 | % |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, C SHARES
September 30, 2024
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 gain (loss) on investments | | | Total from investment Activities | | | Net investment income | | | Net realized gains on investments | | | Total from distributions | |
| Sterling Capital Intermediate U.S. Government Fund | | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 8.32 | | | | 0.14 | | | | 0.59 | | | | 0.73 | | | | (0.21 | ) | | | — | | | | (0.21 | ) |
| Year Ended September 30, 2023 | | $ | 8.49 | | | | 0.10 | | | | (0.12 | ) | | | (0.02 | ) | | | (0.15 | ) | | | — | | | | (0.15 | ) |
| 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 | ) |
| Sterling Capital Total Return Bond Fund | | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 8.89 | | | | 0.28 | | | | 0.67 | | | | 0.95 | | | | (0.28 | ) | | | — | | | | (0.28 | ) |
| Year Ended September 30, 2023 | | $ | 9.12 | | | | 0.21 | | | | (0.23 | ) | | | (0.02 | ) | | | (0.21 | ) | | | — | | | | (0.21 | ) |
| 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 | ) |
| Sterling Capital Long Duration Corporate Bond Fund | | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 6.44 | | | | 0.25 | | | | 0.84 | | | | 1.09 | | | | (0.25 | ) | | | — | | | | (0.25 | ) |
| Year Ended September 30, 2023 | | $ | 6.61 | | | | 0.23 | | | | (0.17 | ) | | | 0.06 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
| 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 | ) |
| Sterling Capital Quality Income Fund | | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 8.56 | | | | 0.22 | | | | 0.63 | | | | 0.85 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
| Year Ended September 30, 2023 | | $ | 8.78 | | | | 0.16 | | | | (0.20 | ) | | | (0.04 | ) | | | (0.18 | ) | | | — | | | | (0.18 | ) |
| 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 | ) |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
| (b) | Amount is less than $0.005. |
| (c) | Net Assets are below $1,000. |
See accompanying Notes to the Financial Statements
| | | | | | | 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** | |
| $ | 8.84 | | | | 8.92 | % | | $ | 88 | | | | 1.51 | % | | | 1.65 | % | | | 1.70 | % | | | 11.51 | % |
| $ | 8.32 | | | | (0.32 | )% | | $ | 123 | | | | 1.50 | % | | | 1.18 | % | | | 1.69 | % | | | 7.91 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 9.56 | | | | 10.83 | % | | $ | 2,735 | | | | 1.46 | % | | | 3.02 | % | | | 1.50 | % | | | 63.02 | % |
| $ | 8.89 | | | | (0.22 | )% | | $ | 2,903 | | | | 1.45 | % | | | 2.23 | % | | | 1.51 | % | | | 47.80 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 7.28 | | | | 17.26 | % | | $ | 1 | | | | 1.49 | % | | | 3.65 | % | | | 1.57 | % | | | 47.46 | % |
| $ | 6.44 | | | | 0.78 | % | | $ | 2 | | | | 1.45 | % | | | 3.36 | % | | | 1.61 | % | | | 26.27 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 9.18 | | | | 10.04 | % | | $ | — | (c) | | | 1.59 | % | | | 2.47 | % | | | 1.60 | % | | | 25.02 | % |
| $ | 8.56 | | | | (0.52 | )% | | $ | 3 | | | | 1.53 | % | | | 1.86 | % | | | 1.55 | % | | | 9.85 | % |
| $ | 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 | % |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, C SHARES
September 30, 2024
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 gain (loss) on investments | | | Total from investment Activities | | | Net investment income | | | Net realized gains on investments | | | Total from
distributions | |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 9.74 | | | | 0.15 | | | | 0.46 | | | | 0.61 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
| Year Ended September 30, 2023 | | $ | 9.83 | | | | 0.12 | | | | (0.08 | ) | | | 0.04 | | | | (0.13 | ) | | | — | | | | (0.13 | ) |
| 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 | ) |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 10.15 | | | | 0.17 | | | | 0.48 | | | | 0.65 | | | | (0.18 | ) | | | — | | | | (0.18 | ) |
| Year Ended September 30, 2023 | | $ | 10.24 | | | | 0.12 | | | | (0.09 | ) | | | 0.03 | | | | (0.12 | ) | | | — | | | | (0.12 | ) |
| 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 | ) |
| Sterling Capital Virginia Intermediate Tax-Free Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 10.67 | | | | 0.17 | | | | 0.50 | | | | 0.67 | | | | (0.17 | ) | | | — | | | | (0.17 | ) |
| Year Ended September 30, 2023 | | $ | 10.77 | | | | 0.11 | | | | (0.09 | ) | | | 0.02 | | | | (0.12 | ) | | | — | | | | (0.12 | ) |
| 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 | ) |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 9.14 | | | | 0.18 | | | | 0.43 | | | | 0.61 | | | | (0.18 | ) | | | — | | | | (0.18 | ) |
| Year Ended September 30, 2023 | | $ | 9.22 | | | | 0.13 | | | | (0.07 | ) | | | 0.06 | | | | (0.14 | ) | | | — | | | | (0.14 | ) |
| 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 | ) |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
| (b) | Amount is less than $0.005. |
See accompanying Notes to the Financial Statements
| | | | | | | Ratios/Supplementary Data | |
Net asset
value, end of
year | | | Total Return
(excludes sales
charge) | | | Net assets, End of year (000) | | | Ratio of net expenses to average net assets | | | Ratio of net investment
income to
average net
assets | | | Ratio of
expenses to
average net
assets * | | | Portfolio
turnover** | |
| $ | 10.20 | | | | 6.33 | % | | $ | 761 | | | | 1.60 | % | | | 1.52 | % | | | 1.60 | % | | | 20.34 | % |
| $ | 9.74 | | | | 0.32 | % | | $ | 966 | | | | 1.60 | % | | | 1.24 | % | | | 1.60 | % | | | 38.07 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 10.62 | | | | 6.39 | % | | $ | 100 | | | | 1.64 | % | | | 1.67 | % | | | 1.65 | % | | | 19.81 | % |
| $ | 10.15 | | | | 0.30 | % | | $ | 268 | | | | 1.62 | % | | | 1.17 | % | | | 1.63 | % | | | 32.34 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 11.17 | | | | 6.27 | % | | $ | 6 | | | | 1.62 | % | | | 1.51 | % | | | 1.62 | % | | | 20.54 | % |
| $ | 10.67 | | | | 0.13 | % | | $ | 5 | | | | 1.59 | % | | | 1.03 | % | | | 1.59 | % | | | 17.86 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 9.57 | | | | 6.77 | % | | $ | 2 | | | | 1.63 | % | | | 1.95 | % | | | 1.63 | % | | | 25.08 | % |
| $ | 9.14 | | | | 0.62 | % | | $ | 2 | | | | 1.57 | % | | | 1.34 | % | | | 1.57 | % | | | 37.11 | % |
| $ | 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 | % |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, INSTITUTIONAL SHARES
September 30, 2024
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
gain (loss) on
investments | | | Total from
investment
Activities | | | Net
investment
income | | | Net realized
gains on
investments | | | Return of
capital | |
| Sterling Capital Behavioral Large Cap Value Equity Fund | |
| Year Ended September 30, 2024 | | $ | 23.28 | | | | 0.52 | | | | 6.84 | �� | | | 7.36 | | | | (0.52 | ) | | | — | | | | — | |
| Year Ended September 30, 2023 | | $ | 20.34 | | | | 0.42 | | | | 2.98 | | | | 3.40 | | | | (0.46 | ) | | | — | | | | — | |
| Year Ended September 30, 2022 | | $ | 22.96 | | | | 0.46 | | | | (2.62 | ) | | | (2.16 | ) | | | (0.46 | ) | | | — | | | | — | |
| Year Ended September 30, 2021 | | $ | 16.83 | | | | 0.09 | | | | 6.24 | | | | 6.33 | | | | (0.04 | ) | | | — | | | | (0.16 | ) |
| Year Ended September 30, 2020 | | $ | 19.62 | | | | 0.41 | | | | (2.10 | ) | | | (1.69 | ) | | | (0.52 | ) | | | (0.58 | ) | | | — | |
| Sterling Capital Mid Value Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 14.97 | | | | 0.10 | | | | 2.80 | | | | 2.90 | | | | (0.10 | ) | | | (1.05 | ) | | | — | |
| Year Ended September 30, 2023 | | $ | 15.65 | | | | 0.10 | | | | 2.02 | | | | 2.12 | | | | (0.08 | ) | | | (2.72 | ) | | | — | |
| Year Ended September 30, 2022 | | $ | 20.51 | | | | 0.06 | | | | (3.27 | ) | | | (3.21 | ) | | | (0.01 | ) | | | (1.64 | ) | | | — | |
| Year Ended September 30, 2021 | | $ | 14.33 | | | | 0.03 | | | | 6.22 | | | | 6.25 | | | | (0.07 | ) | | | — | | | | — | |
| Year Ended September 30, 2020 | | $ | 16.46 | | | | 0.06 | | | | (0.81 | ) | | | (0.75 | ) | | | (0.25 | ) | | | (1.13 | ) | | | — | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | |
| Year Ended September 30, 2024 | | $ | 17.15 | | | | 0.32 | | | | 4.54 | | | | 4.86 | | | | (0.38 | ) | | | — | | | | — | |
| Year Ended September 30, 2023 | | $ | 15.29 | | | | 0.31 | | | | 1.81 | | | | 2.12 | | | | (0.26 | ) | | | — | | | | — | |
| Year Ended September 30, 2022 | | $ | 19.58 | | | | 0.22 | | | | (2.49 | ) | | | (2.27 | ) | | | (0.20 | ) | | | (1.82 | ) | | | — | |
| Year Ended September 30, 2021 | | $ | 11.95 | | | | 0.16 | | | | 7.60 | | | | 7.76 | | | | (0.13 | ) | | | — | | | | — | |
| Year Ended September 30, 2020 | | $ | 14.66 | | | | 0.13 | | | | (2.69 | ) | | | (2.56 | ) | | | (0.15 | ) | | | — | | | | — | |
| Sterling Capital Special Opportunities Fund | |
| Year Ended September 30, 2024 | | $ | 28.28 | | | | (0.03 | ) | | | 7.00 | | | | 6.97 | | | | — | | | | (4.79 | ) | | | — | |
| Year Ended September 30, 2023 | | $ | 25.75 | | | | (0.03 | ) | | | 4.55 | | | | 4.52 | | | | — | | | | (1.99 | ) | | | — | |
| Year Ended September 30, 2022 | | $ | 35.59 | | | | (0.06 | ) | | | (5.67 | ) | | | (5.73 | ) | | | — | | | | (4.11 | ) | | | — | |
| Year Ended September 30, 2021 | | $ | 26.20 | | | | (0.03 | ) | | | 9.79 | | | | 9.76 | | | | (0.04 | ) | | | (0.33 | ) | | | — | |
| Year Ended September 30, 2020 | | $ | 26.07 | | | | 0.06 | | | | 1.45 | | | | 1.51 | | | | (0.05 | ) | | | (1.33 | ) | | | — | |
| Sterling Capital Equity Income Fund | |
| Year Ended September 30, 2024 | | $ | 25.35 | | | | 0.42 | | | | 5.41 | | | | 5.83 | | | | (0.42 | ) | | | (2.14 | ) | | | — | |
| Year Ended September 30, 2023 | | $ | 24.35 | | | | 0.41 | | | | 2.74 | | | | 3.15 | | | | (0.41 | ) | | | (1.74 | ) | | | — | |
| Year Ended September 30, 2022 | | $ | 26.66 | | | | 0.42 | | | | (1.83 | ) | | | (1.41 | ) | | | (0.42 | ) | | | 0.48 | | | | — | |
| Year Ended September 30, 2021 | | $ | 20.10 | | | | 0.35 | | | | 6.56 | | | | 6.91 | | | | (0.35 | ) | | | — | | | | — | |
| Year Ended September 30, 2020 | | $ | 21.33 | | | | 0.41 | | | | (0.39 | ) | | | 0.02 | | | | (0.41 | ) | | | (0.84 | ) | | | — | |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
See accompanying Notes to the Financial Statements
| | | | | | | | | | Ratios/Supplementary Data | |
Total from
distributions | | | 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** | |
| | (0.52 | ) | | $ | 30.12 | | | | 31.80 | % | | $ | 2,274 | | | | 0.75 | % | | | 1.92 | % | | | 0.78 | % | | | 99.00 | % |
| | (0.46 | ) | | $ | 23.28 | | | | 16.74 | % | | $ | 1,499 | | | | 0.84 | % | | | 1.83 | % | | | 0.90 | % | | | 110.98 | % |
| | (0.46 | ) | | $ | 20.34 | | | | (9.62 | )% | | $ | 1,652 | | | | 0.75 | % | | | 1.94 | % | | | 0.78 | % | | | 125.15 | % |
| | (0.20 | ) | | $ | 22.96 | | | | 37.90 | % | | $ | 2,023 | | | | 0.64 | % | | | 0.42 | % | | | 0.78 | % | | | 122.64 | % |
| | (1.10 | ) | | $ | 16.83 | | | | (8.96 | )% | | $ | 1,949 | | | | 0.64 | % | | | 2.18 | % | | | 0.66 | % | | | 167.34 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1.15 | ) | | $ | 16.72 | | | | 20.17 | % | | $ | 27,359 | | | | 0.90 | % | | | 0.62 | % | | | 0.91 | % | | | 39.31 | % |
| | (2.80 | ) | | $ | 14.97 | | | | 13.77 | % | | $ | 26,900 | | | | 0.91 | % | | | 0.66 | % | | | 0.93 | % | | | 19.99 | % |
| | (1.65 | ) | | $ | 15.65 | | | | (17.30 | )% | | $ | 29,189 | | | | 0.88 | % | | | 0.33 | % | | | 0.88 | % | | | 29.05 | % |
| | (0.07 | ) | | $ | 20.51 | | | | 43.72 | % | | $ | 51,607 | | | | 0.87 | % | | | 0.17 | % | | | 0.89 | % | | | 34.00 | % |
| | (1.38 | ) | | $ | 14.33 | | | | (5.50 | )% | | $ | 36,835 | | | | 0.89 | % | | | 0.39 | % | | | 1.04 | % | | | 28.77 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (0.38 | ) | | $ | 21.63 | | | | 28.48 | % | | $ | 6,281 | | | | 0.84 | % | | | 1.63 | % | | | 0.84 | % | | | 74.00 | % |
| | (0.26 | ) | | $ | 17.15 | | | | 13.86 | % | | $ | 5,804 | | | | 0.85 | % | | | 1.79 | % | | | 0.85 | % | | | 154.69 | % |
| | (2.02 | ) | | $ | 15.29 | | | | (13.35 | )% | | $ | 9,788 | | | | 0.85 | % | | | 1.13 | % | | | 0.85 | % | | | 70.82 | % |
| | (0.13 | ) | | $ | 19.58 | | | | 65.21 | % | | $ | 14,639 | | | | 0.81 | % | | | 0.89 | % | | | 0.81 | % | | | 110.07 | % |
| | (0.15 | ) | | $ | 11.95 | | | | (17.64 | )% | | $ | 6,820 | | | | 0.80 | % | | | 0.97 | % | | | 0.84 | % | | | 119.76 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (4.79 | ) | | $ | 30.46 | | | | 27.36 | % | | $ | 88,481 | | | | 0.91 | % | | | (0.11 | )% | | | 0.91 | % | | | 41.68 | % |
| | (1.99 | ) | | $ | 28.28 | | | | 18.28 | % | | $ | 135,284 | | | | 0.91 | % | | | (0.11 | )% | | | 0.91 | % | | | 31.19 | % |
| | (4.11 | ) | | $ | 25.75 | | | | (18.74 | )% | | $ | 168,110 | | | | 0.89 | % | | | (0.19 | )% | | | 0.89 | % | | | 28.06 | % |
| | (0.37 | ) | | $ | 35.59 | | | | 37.55 | % | | $ | 216,341 | | | | 0.86 | % | | | (0.11 | )% | | | 0.87 | % | | | 27.20 | % |
| | (1.38 | ) | | $ | 26.20 | | | | 5.79 | % | | $ | 170,323 | | | | 0.86 | % | | | 0.22 | % | | | 0.86 | % | | | 17.50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (2.56 | ) | | $ | 28.62 | | | | 24.16 | % | | $ | 1,238,943 | | | | 0.83 | % | | | 1.57 | % | | | 0.83 | % | | | 41.82 | % |
| | (2.15 | ) | | $ | 25.35 | | | | 12.83 | % | | $ | 1,296,237 | | | | 0.82 | % | | | 1.59 | % | | | 0.82 | % | | | 39.43 | % |
| | (0.90 | ) | | $ | 24.35 | | | | (5.64 | )% | | $ | 1,468,388 | | | | 0.79 | % | | | 1.55 | % | | | 0.79 | % | | | 31.23 | % |
| | (0.35 | ) | | $ | 26.66 | | | | 34.47 | % | | $ | 1,622,233 | | | | 0.78 | % | | | 1.40 | % | | | 0.79 | % | | | 13.00 | % |
| | (1.25 | ) | | $ | 20.10 | | | | 0.15 | % | | $ | 1,057,722 | | | | 0.77 | % | | | 2.06 | % | | | 0.78 | % | | | 33.60 | % |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, INSTITUTIONAL SHARES
September 30, 2024
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
gain (loss) on
investments | | | Total from
investment
Activities | | | Net
investment
income | | | Net realized
gains on
investments | | | Total from
distributions | |
| Sterling Capital Behavioral International Equity Fund | |
| Year Ended September 30, 2024 | | $ | 9.14 | | | | 0.35 | | | | 1.61 | | | | 1.96 | | | | (0.47 | ) | | | — | | | | (0.47 | ) |
| Year Ended September 30, 2023 | | $ | 7.09 | | | | 0.31 | | | | 2.00 | | | | 2.31 | | | | (0.26 | ) | | | — | | | | (0.26 | ) |
| 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 | ) |
| Sterling Capital Mid Cap Relative Value Fund | |
| Year Ended September 30, 2024 | | $ | 61.43 | | | | 0.48 | | | | 13.41 | | | | 13.89 | | | | (0.50 | ) | | | (7.01 | ) | | | (7.51 | ) |
| Year Ended September 30, 2023 | | $ | 62.89 | | | | 0.56 | | | | 8.70 | | | | 9.26 | | | | (0.55 | ) | | | (10.17 | ) | | | (10.72 | ) |
| 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 | ) |
| Sterling Capital Real Estate Fund | |
| Year Ended September 30, 2024 | | $ | 32.44 | | | | 0.54 | | | | 9.46 | | | | 10.00 | | | | (0.74 | ) | | | (2.09 | ) | | | (2.83 | ) |
| Year Ended September 30, 2023 | | $ | 34.95 | | | | 0.73 | | | | (0.25 | ) | | | 0.48 | | | | (0.76 | ) | | | (2.23 | ) | | | (2.99 | ) |
| 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 | ) |
| Sterling Capital Small Cap Value Fund | |
| Year Ended September 30, 2024 | | $ | 52.79 | | | | 0.23 | | | | 11.91 | | | | 12.14 | | | | (0.23 | ) | | | (16.20 | ) | | | (16.43 | ) |
| Year Ended September 30, 2023 | | $ | 58.24 | | | | 0.28 | | | | 8.20 | | | | 8.48 | | | | (0.25 | ) | | | (13.68 | ) | | | (13.93 | ) |
| 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 | ) |
| Sterling Capital Ultra Short Bond Fund | |
| Year Ended September 30, 2024 | | $ | 9.68 | | | | 0.48 | | | | 0.13 | | | | 0.61 | | | | (0.47 | ) | | | — | | | | (0.47 | ) |
| Year Ended September 30, 2023 | | $ | 9.56 | | | | 0.34 | | | | 0.14 | | | | 0.48 | | | | (0.36 | ) | | | — | | | | (0.36 | ) |
| 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 | ) |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
See accompanying Notes to the Financial Statements
| | | | | | | Ratios/Supplementary Data | |
Net asset
value, end of
year | | | Total Return
(excludes sales
charge) | | | Net assets, End
of year (000) | | | Ratio of net
expenses to
average net
assets | | | Ratio of net
investment
income to
average net
assets | | | Ratio of
expenses to
average net
assets * | | | Portfolio
turnover** | |
| $ | 10.63 | | | | 22.09 | % | | $ | 882 | | | | 0.66 | % | | | 3.56 | % | | | 0.66 | % | | | 77.83 | % |
| $ | 9.14 | | | | 33.01 | % | | $ | 679 | | | | 0.68 | % | | | 3.53 | % | | | 0.68 | % | | | 86.05 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 67.81 | | | | 24.40 | % | | $ | 40,250 | | | | 0.88 | % | | | 0.77 | % | | | 0.88 | % | | | 8.96 | % |
| $ | 61.43 | | | | 15.03 | % | | $ | 43,016 | | | | 0.87 | % | | | 0.90 | % | | | 0.87 | % | | | 4.89 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 39.94 | | | | 33.15 | % | | $ | 74,347 | | | | 0.86 | % | | | 2.49 | % | | | 0.86 | % | | | 4.90 | % |
| $ | 32.44 | | | | 0.95 | % | | $ | 62,708 | | | | 0.87 | % | | | 2.06 | % | | | 0.87 | % | | | 6.06 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 48.50 | | | | 28.85 | % | | $ | 187,448 | | | | 1.05 | % | | | 0.50 | % | | | 1.06 | % | | | 2.87 | % |
| $ | 52.79 | | | | 15.31 | % | | $ | 261,706 | | | | 1.03 | % | | | 0.51 | % | | | 1.05 | % | | | 0.77 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 9.82 | | | | 6.39 | % | | $ | 22,985 | | | | 0.37 | % | | | 4.93 | % | | | 0.57 | % | | | 50.87 | % |
| $ | 9.68 | | | | 5.12 | % | | $ | 23,522 | | | | 0.27 | % | | | 3.51 | % | | | 0.57 | % | | | 45.10 | % |
| $ | 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 | % |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, INSTITUTIONAL SHARES
September 30, 2024
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
gain (loss) on
investments | | | Total from
investment
Activities | | | Net
investment
income | | | Net realized
gains on
investments | | | Total from
distributions | |
| Sterling Capital Short Duration Bond Fund | |
| Year Ended September 30, 2024 | | $ | 8.14 | | | | 0.38 | | | | 0.28 | | | | 0.66 | | | | (0.38 | ) | | | — | | | | (0.38 | ) |
| Year Ended September 30, 2023 | | $ | 8.08 | | | | 0.27 | | | | 0.04 | | | | 0.31 | | | | (0.25 | ) | | | — | | | | (0.25 | ) |
| 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 | ) |
| Sterling Capital Intermediate U.S. Government Fund | |
| Year Ended September 30, 2024 | | $ | 8.35 | | | | 0.23 | | | | 0.58 | | | | 0.81 | | | | (0.30 | ) | | | — | | | | (0.30 | ) |
| Year Ended September 30, 2023 | | $ | 8.51 | | | | 0.18 | | | | (0.11 | ) | | | 0.07 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
| 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 | ) |
| Sterling Capital Total Return Bond Fund | |
| Year Ended September 30, 2024 | | $ | 8.88 | | | | 0.37 | | | | 0.67 | | | | 1.04 | | | | (0.37 | ) | | | — | | | | (0.37 | ) |
| Year Ended September 30, 2023 | | $ | 9.11 | | | | 0.30 | | | | (0.22 | ) | | | 0.08 | | | | (0.31 | ) | | | — | | | | (0.31 | ) |
| 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 | ) |
| Sterling Capital Long Duration Corporate Bond Fund | |
| Year Ended September 30, 2024 | | $ | 6.45 | | | | 0.32 | | | | 0.84 | | | | 1.16 | | | | (0.32 | ) | | | — | | | | (0.32 | ) |
| Year Ended September 30, 2023 | | $ | 6.63 | | | | 0.30 | | | | (0.18 | ) | | | 0.12 | | | | (0.30 | ) | | | — | | | | (0.30 | ) |
| 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 | ) |
| Sterling Capital Quality Income Fund | |
| Year Ended September 30, 2024 | | $ | 8.57 | | | | 0.31 | | | | 0.62 | | | | 0.93 | | | | (0.31 | ) | | | — | | | | (0.31 | ) |
| Year Ended September 30, 2023 | | $ | 8.79 | | | | 0.25 | | | | (0.21 | ) | | | 0.04 | | | | (0.26 | ) | | | — | | | | (0.26 | ) |
| 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 | ) |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
| (b) | Amount is less than $0.005. |
See accompanying Notes to the Financial Statements
| | | | | | | Ratios/Supplementary Data | |
Net asset
value, end of
year | | | Total Return
(excludes sales
charge) | | | Net assets, End
of year (000) | | | Ratio of net
expenses to
average net
assets | | | Ratio of net
investment
income to
average net
assets | | | Ratio of
expenses to
average net
assets * | | | Portfolio
turnover** | |
| $ | 8.42 | | | | 8.24 | % | | $ | 30,167 | | | | 0.50 | % | | | 4.60 | % | | | 0.59 | % | | | 67.85 | % |
| $ | 8.14 | | | | 3.87 | % | | $ | 87,221 | | | | 0.45 | % | | | 3.30 | % | | | 0.48 | % | | | 98.01 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 8.86 | | | | 9.86 | % | | $ | 15,589 | | | | 0.51 | % | | | 2.69 | % | | | 0.70 | % | | | 11.51 | % |
| $ | 8.35 | | | | 0.80 | % | | $ | 13,823 | | | | 0.50 | % | | | 2.15 | % | | | 0.69 | % | | | 7.91 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 9.55 | | | | 11.94 | % | | $ | 1,066,501 | | | | 0.46 | % | | | 4.02 | % | | | 0.50 | % | | | 63.02 | % |
| $ | 8.88 | | | | 0.78 | % | | $ | 695,207 | | | | 0.45 | % | | | 3.24 | % | | | 0.51 | % | | | 47.80 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 7.29 | | | | 18.43 | % | | $ | 481 | | | | 0.47 | % | | | 4.68 | % | | | 0.59 | % | | | 47.46 | % |
| $ | 6.45 | | | | 1.64 | % | | $ | 436 | | | | 0.45 | % | | | 4.38 | % | | | 0.67 | % | | | 26.27 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 9.19 | | | | 11.04 | % | | $ | 87,868 | | | | 0.57 | % | | | 3.38 | % | | | 0.62 | % | | | 25.02 | % |
| $ | 8.57 | | | | 0.44 | % | | $ | 88,005 | | | | 0.58 | % | | | 2.83 | % | | | 0.62 | % | | | 9.85 | % |
| $ | 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 | % |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, INSTITUTIONAL SHARES
September 30, 2024
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
gain (loss) on
investments | | | Total from
investment
Activities | | | Net
investment
income | | | Net realized
gains on
investments | | | Total from
distributions | |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | |
| Year Ended September 30, 2024 | | $ | 9.75 | | | | 0.25 | | | | 0.47 | | | | 0.72 | | | | (0.26 | ) | | | — | | | | (0.26 | ) |
| Year Ended September 30, 2023 | | $ | 9.83 | | | | 0.23 | | | | (0.08 | ) | | | 0.15 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
| 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 | ) |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | |
| Year Ended September 30, 2024 | | $ | 10.09 | | | | 0.28 | | | | 0.46 | | | | 0.74 | | | | (0.28 | ) | | | — | | | | (0.28 | ) |
| Year Ended September 30, 2023 | | $ | 10.17 | | | | 0.23 | | | | (0.08 | ) | | | 0.15 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
| Year Ended September 30, 2022 | | $ | 11.32 | | | | 0.21 | | | | (1.15 | ) | | | (0.95 | ) | | | (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 | ) |
| Sterling Capital Virginia Intermediate Tax-Free Fund | |
| Year Ended September 30, 2024 | | $ | 10.69 | | | | 0.26 | | | | 0.50 | | | | 0.76 | | | | (0.26 | ) | | | — | | | | (0.26 | ) |
| Year Ended September 30, 2023 | | $ | 10.77 | | | | 0.22 | | | | (0.07 | ) | | | 0.15 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
| 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 | ) |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | |
| Year Ended September 30, 2024 | | $ | 9.14 | | | | 0.26 | | | | 0.43 | | | | 0.69 | | | | (0.26 | ) | | | — | | | | (0.26 | ) |
| Year Ended September 30, 2023 | | $ | 9.23 | | | | 0.23 | | | | (0.09 | ) | | | 0.14 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
| 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 | ) |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
| (b) | Amount is less than $0.005. |
See accompanying Notes to the Financial Statements
| | | | | | | Ratios/Supplementary Data | |
Net asset
value, end of
year | | | Total Return
(excludes sales
charge) | | | Net assets, End
of year (000) | | | Ratio of net
expenses to
average net
assets | | | Ratio of net
investment
income to
average net
assets | | | Ratio of
expenses to
average net
assets * | | | Portfolio
turnover** | |
| $ | 10.21 | | | | 7.39 | % | | $ | 106,881 | | | | 0.60 | % | | | 2.52 | % | | | 0.60 | % | | | 20.34 | % |
| $ | 9.75 | | | | 1.44 | % | | $ | 110,951 | | | | 0.60 | % | | | 2.24 | % | | | 0.60 | % | | | 38.07 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 10.55 | | | | 7.38 | % | | $ | 23,524 | | | | 0.64 | % | | | 2.68 | % | | | 0.65 | % | | | 19.81 | % |
| $ | 10.09 | | | | 1.40 | % | | $ | 28,750 | | | | 0.62 | % | | | 2.18 | % | | | 0.63 | % | | | 32.34 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 11.19 | | | | 7.19 | % | | $ | 35,603 | | | | 0.62 | % | | | 2.39 | % | | | 0.62 | % | | | 20.54 | % |
| $ | 10.69 | | | | 1.30 | % | | $ | 50,995 | | | | 0.61 | % | | | 2.03 | % | | | 0.61 | % | | | 17.86 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 9.57 | | | | 7.66 | % | | $ | 35,144 | | | | 0.63 | % | | | 2.80 | % | | | 0.63 | % | | | 25.08 | % |
| $ | 9.14 | | | | 1.43 | % | | $ | 58,934 | | | | 0.61 | % | | | 2.40 | % | | | 0.61 | % | | | 37.11 | % |
| $ | 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 | % |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, R6 SHARES
September 30, 2024
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
gain (loss) on
investments | | | Total from
investment
Activities | | | Net
investment
income | | | Net realized
gains on
investments | | | Return of
capital | |
| Sterling Capital Behavioral Large Cap Value Equity Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 23.37 | | | | 0.55 | | | | 6.86 | | | | 7.41 | | | | (0.56 | ) | | | — | | | | — | |
| Year Ended September 30, 2023 | | $ | 20.40 | | | | 0.46 | | | | 2.97 | | | | 3.43 | | | | (0.46 | ) | | | — | | | | — | |
| Year Ended September 30, 2022 | | $ | 22.99 | | | | 0.50 | | | | (2.63 | ) | | | (2.13 | ) | | | (0.46 | ) | | | — | | | | — | |
| Year Ended September 30, 2021 | | $ | 16.85 | | | | 0.09 | | | | 6.25 | | | | 6.34 | | | | (0.04 | ) | | | — | | | | (0.16 | ) |
| Year Ended September 30, 2020 | | $ | 19.62 | | | | 0.40 | | | | (2.07 | ) | | | (1.67 | ) | | | (0.52 | ) | | | (0.58 | ) | | | — | |
| Sterling Capital Mid Value Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 15.01 | | | | 0.11 | | | | 2.80 | | | | 2.91 | | | | (0.11 | ) | | | (1.05 | ) | | | — | |
| Year Ended September 30, 2023 | | $ | 15.68 | | | | 0.12 | | | | 2.01 | | | | 2.13 | | | | (0.08 | ) | | | (2.72 | ) | | | — | |
| Year Ended September 30, 2022 | | $ | 20.55 | | | | 0.08 | | | | (3.27 | ) | | | (3.19 | ) | | | (0.04 | ) | | | (1.64 | ) | | | — | |
| Year Ended September 30, 2021 | | $ | 14.35 | | | | 0.03 | | | | 6.25 | | | | 6.28 | | | | (0.08 | ) | | | — | | | | — | |
| Year Ended September 30, 2020 | | $ | 16.48 | | | | (0.02 | ) | | | (0.75 | ) | | | (0.77 | ) | | | (0.23 | ) | | | (1.13 | ) | | | — | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 17.17 | | | | 0.33 | | | | 4.56 | | | | 4.89 | | | | (0.39 | ) | | | — | | | | — | |
| Year Ended September 30, 2023 | | $ | 15.31 | | | | 0.32 | | | | 1.81 | | | | 2.13 | | | | (0.27 | ) | | | — | | | | — | |
| Year Ended September 30, 2022 | | $ | 19.60 | | | | 0.22 | | | | (2.48 | ) | | | (2.26 | ) | | | (0.21 | ) | | | (1.82 | ) | | | — | |
| Year Ended September 30, 2021 | | $ | 11.97 | | | | 0.17 | | | | 7.60 | | | | 7.77 | | | | (0.14 | ) | | | — | | | | — | |
| Year Ended September 30, 2020 | | $ | 14.67 | | | | 0.15 | | | | (2.70 | ) | | | (2.55 | ) | | | (0.15 | ) | | | — | | | | — | |
| Sterling Capital Special Opportunities Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 28.26 | | | | (0.01 | ) | | | 7.01 | | | | 7.00 | | | | — | | | | (4.79 | ) | | | — | |
| Year Ended September 30, 2023 | | $ | 25.71 | | | | (0.01 | ) | | | 4.55 | | | | 4.54 | | | | — | | | | (1.99 | ) | | | — | |
| Year Ended September 30, 2022 | | $ | 35.51 | | | | (0.04 | ) | | | (5.65 | ) | | | (5.69 | ) | | | — | | | | (4.11 | ) | | | — | |
| Year Ended September 30, 2021 | | $ | 26.22 | | | | (0.01 | ) | | | 9.78 | | | | 9.77 | | | | (0.15 | ) | | | (0.33 | ) | | | — | |
| Year Ended September 30, 2020 | | $ | 26.09 | | | | 0.09 | | | | 1.44 | | | | 1.53 | | | | (0.07 | ) | | | (1.33 | ) | | | — | |
| Sterling Capital Equity Income Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 25.36 | | | | 0.45 | | | | 5.42 | | | | 5.87 | | | | (0.45 | ) | | | (2.14 | ) | | | — | |
| Year Ended September 30, 2023 | | $ | 24.36 | | | | 0.45 | | | | 2.73 | | | | 3.18 | | | | (0.44 | ) | | | (1.74 | ) | | | — | |
| Year Ended September 30, 2022 | | $ | 26.67 | | | | 0.45 | | | | (1.83 | ) | | | (1.38 | ) | | | (0.45 | ) | | | (0.48 | ) | | | — | |
| Year Ended September 30, 2021 | | $ | 20.09 | | | | 0.37 | | | | 6.56 | | | | 6.93 | | | | (0.35 | ) | | | — | | | | — | |
| Year Ended September 30, 2020 | | $ | 21.34 | | | | 0.43 | | | | (0.40 | ) | | | 0.03 | | | | (0.44 | ) | | | (0.84 | ) | | | — | |
| Sterling Capital Behavioral International Equity Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 9.14 | | | | 0.36 | | | | 1.63 | | | | 1.99 | | | | (0.48 | ) | | | — | | | | — | |
| Year Ended September 30, 2023 | | $ | 7.10 | | | | 0.32 | | | | 1.99 | | | | 2.31 | | | | (0.27 | ) | | | — | | | | — | |
| Year Ended September 30, 2022 | | $ | 9.81 | | | | 0.39 | | | | (2.64 | ) | | | (2.25 | ) | | | (0.46 | ) | | | — | | | | — | |
| Year Ended September 30, 2021 | | $ | 8.14 | | | | 0.29 | | | | 1.62 | | | | 1.91 | | | | (0.24 | ) | | | — | | | | — | |
| Year Ended September 30, 2020 | | $ | 9.49 | | | | 0.27 | | | | (1.32 | ) | | | (1.05 | ) | | | (0.30 | ) | | | — | | | | — | |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
| (b) | Net Assets are below $1,000. |
See accompanying Notes to the Financial Statements
| | | | | | | | | | | | | Ratios/Supplementary Data | |
Total from
distributions | | | 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** | |
| | (0.56 | ) | | $ | 30.22 | | | | 31.90 | % | | $ | 24 | | | | 0.66 | % | | | 2.13 | % | | | 0.79 | % | | | 99.00 | % |
| | (0.46 | ) | | $ | 23.37 | | | | 16.84 | % | | $ | 330 | | | | 0.77 | % | | | 1.99 | % | | | 0.90 | % | | | 110.98 | % |
| | (0.46 | ) | | $ | 20.40 | | | | (9.48 | )% | | $ | 1 | | | | 0.59 | % | | | 2.09 | % | | | 0.59 | % | | | 125.15 | % |
| | (0.20 | ) | | $ | 22.99 | | | | 37.92 | % | | $ | 1 | | | | 0.58 | % | | | 0.43 | % | | | 0.63 | % | | | 122.64 | % |
| | (1.10 | ) | | $ | 16.85 | | | | (8.88 | )% | | $ | — | (b) | | | 0.59 | % | | | 2.19 | % | | | 0.64 | % | | | 167.34 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1.16 | ) | | $ | 16.76 | | | | 20.22 | % | | $ | 516 | | | | 0.81 | % | | | 0.70 | % | | | 0.91 | % | | | 39.31 | % |
| | (2.80 | ) | | $ | 15.01 | | | | 13.86 | % | | $ | 354 | | | | 0.82 | % | | | 0.80 | % | | | 0.93 | % | | | 19.99 | % |
| | (1.68 | ) | | $ | 15.68 | | | | (17.18 | )% | | $ | 117 | | | | 0.79 | % | | | 0.40 | % | | | 0.88 | % | | | 29.05 | % |
| | (0.08 | ) | | $ | 20.55 | | | | 43.85 | % | | $ | 402 | | | | 0.79 | % | | | 0.17 | % | | | 0.97 | % | | | 34.00 | % |
| | (1.36 | ) | | $ | 14.35 | | | | (5.56 | )% | | $ | 3,477 | | | | 0.54 | % | | | (0.06 | )% | | | 0.56 | % | | | 28.77 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (0.39 | ) | | $ | 21.67 | | | | 28.61 | % | | $ | 96,261 | | | | 0.78 | % | | | 1.69 | % | | | 0.83 | % | | | 74.00 | % |
| | (0.27 | ) | | $ | 17.17 | | | | 13.94 | % | | $ | 78,727 | | | | 0.79 | % | | | 1.88 | % | | | 0.85 | % | | | 154.69 | % |
| | (2.03 | ) | | $ | 15.31 | | | | (13.29 | )% | | $ | 20,331 | | | | 0.78 | % | | | 1.14 | % | | | 0.83 | % | | | 70.82 | % |
| | (0.14 | ) | | $ | 19.60 | | | | 65.36 | % | | $ | 83,819 | | | | 0.75 | % | | | 0.96 | % | | | 0.81 | % | | | 110.07 | % |
| | (0.15 | ) | | $ | 11.97 | | | | (17.63 | )% | | $ | 70,372 | | | | 0.74 | % | | | 1.11 | % | | | 0.82 | % | | | 119.76 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (4.79 | ) | | $ | 30.47 | | | | 27.50 | % | | $ | 33,287 | | | | 0.82 | % | | | (0.02 | )% | | | 0.90 | % | | | 41.68 | % |
| | (1.99 | ) | | $ | 28.26 | | | | 18.39 | % | | $ | 36,906 | | | | 0.82 | % | | | (0.02 | )% | | | 0.91 | % | | | 31.19 | % |
| | (4.11 | ) | | $ | 25.71 | | | | (18.66 | )% | | $ | 29,340 | | | | 0.80 | % | | | (0.11 | )% | | | 0.88 | % | | | 28.06 | % |
| | (0.48 | ) | | $ | 35.51 | | | | 37.67 | % | | $ | 44,452 | | | | 0.78 | % | | | (0.03 | )% | | | 0.87 | % | | | 27.20 | % |
| | (1.40 | ) | | $ | 26.22 | | | | 5.87 | % | | $ | 40,057 | | | | 0.78 | % | | | 0.38 | % | | | 0.86 | % | | | 17.50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (2.59 | ) | | $ | 28.64 | | | | 24.29 | % | | $ | 115,769 | | | | 0.72 | % | | | 1.68 | % | | | 0.83 | % | | | 41.82 | % |
| | (2.18 | ) | | $ | 25.36 | | | | 12.94 | % | | $ | 101,228 | | | | 0.72 | % | | | 1.73 | % | | | 0.82 | % | | | 39.43 | % |
| | (0.93 | ) | | $ | 24.36 | | | | (5.54 | )% | | $ | 69,408 | | | | 0.69 | % | | | 1.65 | % | | | 0.79 | % | | | 31.23 | % |
| | (0.35 | ) | | $ | 26.67 | | | | 34.61 | % | | $ | 70,388 | | | | 0.68 | % | | | 1.50 | % | | | 0.79 | % | | | 13.00 | % |
| | (1.28 | ) | | $ | 20.09 | | | | 0.21 | % | | $ | 56,277 | | | | 0.67 | % | | | 2.18 | % | | | 0.78 | % | | | 33.60 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (0.48 | ) | | $ | 10.65 | | | | 22.37 | % | | $ | 132,826 | | | | 0.60 | % | | | 3.61 | % | | | 0.66 | % | | | 77.83 | % |
| | (0.27 | ) | | $ | 9.14 | | | | 32.87 | % | | $ | 115,245 | | | | 0.62 | % | | | 3.60 | % | | | 0.67 | % | | | 86.05 | % |
| | (0.46 | ) | | $ | 7.10 | | | | (24.13 | )% | | $ | 97,525 | | | | 0.62 | % | | | 4.41 | % | | | 0.67 | % | | | 103.20 | % |
| | (0.24 | ) | | $ | 9.81 | | | | 23.70 | % | | $ | 85,736 | | | | 0.63 | % | | | 3.04 | % | | | 0.74 | % | | | 158.16 | % |
| | (0.30 | ) | | $ | 8.14 | | | | (11.49 | )% | | $ | 69,236 | | | | 0.63 | % | | | 3.10 | % | | | 0.83 | % | | | 164.02 | % |
STERLING CAPITAL FUNDS
FINANCIAL HIGHLIGHTS, R6 SHARES
September 30, 2024
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
gain (loss) on
investments | | | Total from
investment
Activities | | | Net
investment
income | | | Net realized
gains on
investments | | | Total from
distributions | |
| Sterling Capital Real Estate Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 32.58 | | | | 0.85 | | | | 9.55 | | | | 10.40 | | | | (0.77 | ) | | | (2.09 | ) | | | (2.86 | ) |
| Year Ended September 30, 2023 | | $ | 35.09 | | | | 0.80 | | | | (0.30 | ) | | | 0.50 | | | | (0.78 | ) | | | (2.23 | ) | | | (3.01 | ) |
| 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 | ) |
| For the Period Ended September 30, 2020(b) | | $ | 41.35 | | | | 0.36 | | | | (4.26 | ) | | | (3.90 | ) | | | (0.76 | ) | | | — | | | | (0.76 | ) |
| Sterling Capital Small Cap Value Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 52.98 | | | | 0.29 | | | | 11.95 | | | | 12.24 | | | | (0.27 | ) | | | (16.20 | ) | | | (16.47 | ) |
| Year Ended September 30, 2023 | | $ | 58.38 | | | | 0.36 | | | | 8.20 | | | | 8.56 | | | | (0.28 | ) | | | (13.68 | ) | | | (13.96 | ) |
| 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 | ) |
| For the Period Ended September 30, 2020(b) | | $ | 77.13 | | | | 0.49 | | | | (13.53 | ) | | | (13.04 | ) | | | — | | | | — | | | | — | |
| Sterling Capital Short Duration Bond Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 8.14 | | | | 0.40 | | | | 0.27 | | | | 0.67 | | | | (0.39 | ) | | | — | | | | (0.39 | ) |
| Year Ended September 30, 2023 | | $ | 8.08 | | | | 0.27 | | | | 0.06 | | | | 0.33 | | | | (0.26 | ) | | | — | | | | (0.26 | ) |
| Year Ended September 30, 2022 | | $ | 8.68 | | | | 0.11 | | | | (0.51 | ) | | | (0.40 | ) | | | (0.20 | ) | | | — | | | | (0.20 | ) |
| For the Period Ended September 30, 2021(b) | | $ | 8.78 | | | | 0.08 | | | | (0.04 | ) | | | 0.04 | | | | (0.14 | ) | | | — | | | | (0.14 | ) |
| Sterling Capital Total Return Bond Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 8.88 | | | | 0.38 | | | | 0.66 | | | | 1.04 | | | | (0.38 | ) | | | — | | | | (0.38 | ) |
| Year Ended September 30, 2023 | | $ | 9.11 | | | | 0.31 | | | | (0.22 | ) | | | 0.09 | | | | (0.32 | ) | | | — | | | | (0.32 | ) |
| 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 | ) |
| Sterling Capital Long Duration Corporate Bond Fund | | | | | | | | | | | | | |
| Year Ended September 30, 2024 | | $ | 6.45 | | | | 0.33 | | | | 0.85 | | | | 1.18 | | | | (0.33 | ) | | | — | | | | (0.33 | ) |
| Year Ended September 30, 2023 | | $ | 6.63 | | | | 0.31 | | | | (0.18 | ) | | | 0.13 | | | | (0.31 | ) | | | — | | | | (0.31 | ) |
| For the Period Ended September 30, 2022(b) | | $ | 9.16 | | | | 0.19 | | | | (2.52 | ) | | | (2.33 | ) | | | (0.20 | ) | | | — | | | | (0.20 | ) |
| (a) | Per share net investment income has been calculated using the average shares method. |
| * | 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. |
| (b) | Period from commencement of operations. |
| (c) | Not annualized for periods less than one year. |
| (d) | Net Assets are below $1,000. |
| (e) | Annualized for periods less than one year. |
| (f) | Amount is less than $0.005. |
See accompanying Notes to the Financial Statements
| | | | | | | Ratios/Supplementary Data | |
Net asset
value, end of
year | | | Total Return
(excludes sales
charge) | | | Net assets, End
of year (000) | | | Ratio of net
expenses to
average net
assets | | | Ratio of net
investment
income to
average net
assets | | | Ratio of
expenses to
average net
assets * | | | Portfolio
turnover** | |
| $ | 40.12 | | | | 33.25 | % | | $ | 691 | | | | 0.78 | % | | | 2.43 | % | | | 0.86 | % | | | 4.90 | % |
| $ | 32.58 | | | | 1.01 | % | | $ | 918 | | | | 0.80 | % | | | 2.25 | % | | | 0.87 | % | | | 6.06 | % |
| $ | 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 | )%(c) | | $ | — | (d) | | | 0.70 | %(e) | | | 1.47 | %(e) | | | 0.70 | %(e) | | | 19.58 | %(c) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 48.75 | | | | 29.00 | % | | $ | 6,365 | | | | 0.93 | % | | | 0.64 | % | | | 1.06 | % | | | 2.87 | % |
| $ | 52.98 | | | | 15.45 | % | | $ | 6,360 | | | | 0.93 | % | | | 0.66 | % | | | 1.05 | % | | | 0.77 | % |
| $ | 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 | )%(c) | | $ | 2,882 | | | | 0.87 | %(e) | | | 1.17 | %(e) | | | 1.09 | %(e) | | | 8.33 | %(c) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 8.42 | | | | 8.35 | % | | $ | 12,352 | | | | 0.41 | % | | | 4.78 | % | | | 0.58 | % | | | 67.85 | % |
| $ | 8.15 | | | | 4.09 | % | | $ | 13,222 | | | | 0.36 | % | | | 3.34 | % | | | 0.48 | % | | | 98.01 | % |
| $ | 8.08 | | | | (4.70 | )% | | $ | 17,460 | | | | 0.39 | % | | | 1.27 | % | | | 0.48 | % | | | 76.98 | % |
| $ | 8.68 | | | | 0.44 | %(c) | | $ | 29,565 | | | | 0.40 | %(e) | | | 1.52 | %(e) | | | 0.49 | %(e) | | | 39.26 | %(c) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 9.54 | | | | 11.95 | % | | $ | 391,538 | | | | 0.36 | % | | | 4.12 | % | | | 0.50 | % | | | 63.02 | % |
| $ | 8.88 | | | | 0.88 | % | | $ | 263,634 | | | | 0.35 | % | | | 3.36 | % | | | 0.51 | % | | | 47.80 | % |
| $ | 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 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 7.30 | | | | 18.71 | % | | $ | 42,074 | | | | 0.36 | % | | | 4.79 | % | | | 0.60 | % | | | 47.46 | % |
| $ | 6.45 | | | | 1.72 | % | | $ | 30,432 | | | | 0.36 | % | | | 4.46 | % | | | 0.66 | % | | | 26.27 | % |
| $ | 6.63 | | | | (25.75 | )%(c) | | $ | 22,553 | | | | 0.36 | %(e) | | | 3.81 | %(e) | | | 0.57 | %(e) | | | 161.62 | %(c) |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS
September 30, 2024
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 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, 2024, 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 Mid Cap Relative Value Fund, Sterling Capital Real Estate Fund and Sterling Capital Small Cap Value Fund have a maximum sales charge of 5.75% as a percentage of original purchase price. There is no initial sales charge on purchases of the Sterling Capital Ultra Short Bond Fund’s shares. Class A Shares of 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 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.
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
2. Fund Reorganizations:
On November 16, 2023, the Board of Trustees of the Trust (the “Board”) approved an Agreement and Plan of Reorganization which provided for the acquisition of all of the assets and the assumption of the liabilities of the Sterling Capital SMID Opportunities Fund in exchange for shares of the Sterling Capital Mid Value Fund. The purpose of the transaction was to enhance investment management efficiencies, offer greater market leverage and market presence, economies of scale, and greater opportunities for asset growth. The reorganization took place at close of business Friday, January 26, 2024. The acquisition was accomplished by a tax-free exchange of shares at close of business Friday, January 26, 2024. For financial reporting purposes, assets received and shares issued by the Sterling Capital Mid Value Fund were recorded at fair value; however, the cost basis of the investments received from the Sterling Capital SMID Opportunities Fund was carried forward to align ongoing reporting of the Sterling Capital Mid Value Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
| Acquired Fund | | Class | | | Shares
Redeemed | | | Acquiring
Fund | | | Class | | | Shares
Issued | | | Value | | | Conversion
Ratio | |
| Sterling Capital SMID Opportunities Fund | | A | | | | 219,891 | | | Sterling Capital Mid Value Fund | | | A | | | | 131,128 | | | $ | 1,940,673 | | | | 0.5963 | |
| | | C | | | | 18,261 | | | | | | C | | | | 12,995 | | | $ | 148,244 | | | | 0.7116 | |
| | | Institutional | | | | 91,327 | | | | | | Institutional | | | | 53,670 | | | $ | 822,351 | | | | 0.5876 | |
The net assets and net unrealized appreciation immediately before the acquisitions were as follows:
| Acquired Fund | | Shares
Outstanding | | | Net Assets | | | Unrealized Appreciation | |
| Sterling Capital SMID Opportunities Fund | | | 329,479 | | | $ | 2,911,268 | | | $ | 304,144 | |
| Acquiring Fund | | Shares
Outstanding | | | Net Assets | | | Unrealized Appreciation | |
| Sterling Capital Mid Value Fund | | | 3,135,700 | | | $ | 47,272,145 | | | $ | 10,608,971 | |
The shares outstanding, net assets and net unrealized appreciation immediately following the acquisition were as follows:
| Acquiring Fund | | Shares
Outstanding | | | Net Assets | | | Unrealized Appreciation | |
| Sterling Capital Mid Value Fund | | | 3,333,492 | | | $ | 50,183,413 | | | $ | 10,913,115 | |
Assuming the acquisition had been completed on October 1, 2023, the beginning of the reporting period for the Funds, the Sterling Capital SMID Opportunities Fund and the Sterling Capital Mid Value Fund pro-forma results of operations for the fiscal year ended September 30, 2024 are as follows:
| Sterling Capital Mid Value Fund | | | |
| Net investment income | | $ | 245,298 | |
| | | | | |
| Net realized and unrealized gain on investments | | $ | 9,031,278 | |
| | | | | |
| Net increase in net assets from operations | | $ | 9,280,281 | |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Sterling Capital SMID Opportunities Fund that have been included in the Sterling Capital Mid Value Fund’s statement of operations since January 29, 2024.Since the Sterling Capital SMID Opportunities Fund and the Sterling Capital Mid Value Fund sold and redeemed shares throughout the period, it is not practicable to provide pro-forma information on a per-share basis.
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
3. 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 fair valuation methodologies pursuant to Rule 2a-5 under the 1940 Act. The Fund’s Board has designated Sterling Capital as each Fund’s “Valuation Designee” pursuant to Rule 2a-5 to perform such fair value determinations. The Board oversees Sterling Capital in its role as the Valuation Designee and receives reports from Sterling Capital regarding its process and the valuation of each Fund’s investments to assist with such oversight.
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. During the year ended September 30, 2024, there were no significant changes to the Funds' valuation policies and procedures.
The summary of inputs used to determine the fair value of each Fund’s investments as of September 30, 2024 is as follows:
| | | Level 1- Quoted
Prices | | | Level 2- Other
Significant
Observable Inputs | | | Level 3-
Significant
Unobservable
Inputs | | | Total | |
| Assets: | | | | | | | | | | | | | | | | |
| Investments in Securities | | | | | | | | | | | | | | | | |
| Sterling Capital Behavioral Large Cap Value Equity Fund | | $ | 36,822,055 | (a) | | $ | — | | | $ | — | | | $ | 36,822,055 | |
| Sterling Capital Mid Value Fund | | | 48,452,984 | (a) | | | — | | | | 0 | (b) | | | 48,452,984 | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | 109,091,907 | (a) | | | — | | | | — | | | | 109,091,907 | |
| Sterling Capital Special Opportunities Fund | | | 433,085,120 | (a) | | | — | | | | — | | | | 433,085,120 | |
| Sterling Capital Equity Income Fund | | | 1,891,891,797 | (a) | | | — | | | | — | | | | 1,891,891,797 | |
| Sterling Capital Behavioral International Equity Fund | | | 132,877,032 | (a) | | | — | | | | — | | | | 132,877,032 | |
| Sterling Capital Mid Cap Relative Value Fund | | | 40,512,971 | (a) | | | — | | | | — | | | | 40,512,971 | |
| Sterling Capital Real Estate Fund | | | 75,601,851 | (a) | | | — | | | | — | | | | 75,601,851 | |
| Sterling Capital Small Cap Value Fund | | | 197,630,168 | (a) | | | — | | | | — | | | | 197,630,168 | |
| Sterling Capital Ultra Short Bond Fund | | | 258,007 | (c) | | | 27,673,629 | (a) | | | — | | | | 27,931,636 | |
| Sterling Capital Short Duration Bond Fund | | | 329,988 | (c) | | | 45,018,203 | (a) | | | — | | | | 45,348,191 | |
| Sterling Capital Intermediate U.S. Government Fund | | | 239,017 | (c) | | | 17,867,575 | (a) | | | — | | | | 18,106,592 | |
| Sterling Capital Total Return Bond Fund | | | 15,090,151 | (c) | | | 1,481,654,582 | (a) | | | — | | | | 1,496,744,733 | |
| Sterling Capital Long Duration Corporate Bond Fund | | | 834,180 | (c) | | | 41,700,216 | (a) | | | — | | | | 42,534,396 | |
| Sterling Capital Quality Income Fund | | | 2,612,069 | (c) | | | 85,080,977 | (a) | | | — | | | | 87,693,046 | |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | 1,127,963 | (c) | | | 126,044,837 | (a) | | | — | | | | 127,172,800 | |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | 1,178,925 | (c) | | | 28,002,804 | (a) | | | — | | | | 29,181,729 | |
| Sterling Capital Virginia Intermediate Tax-Free Fund | | | 277,641 | (c) | | | 45,734,447 | (a) | | | — | | | | 46,012,088 | |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | 1,441,678 | (c) | | | 53,442,741 | (a) | | | — | | | | 54,884,419 | |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| (a) | Industries, countries or security types are disclosed in the Schedule of Portfolio Investments. |
| (b) | Level 3 investments, if any, at the beginning and/or end of the year in relation to the net assets were not significant and accordingly, additional disclosures related to Level 3 assets for the year ending September 30, 2024 are not presented for the Fund. |
| (c) | 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, and Sterling Capital Equity Income 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.
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.
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
Forward Foreign Currency Exchange Contracts — All Funds, except 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 may 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). 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.
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
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— The FASB issued Accounting Standards Update (ASU), ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting in March 2020 and ASU 2021- 01 in January 2021 which provided further amendments and clarifications to Topic 848. These ASUs provide 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, through December 31, 2022. In December 2022, FASB issued ASU 2022-06 which defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. Management intends to rely upon the relief provided under Topic 848, which is not expected to have a material impact on the Fund’s financial statements.
4. 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, 2024 were as follows:
| | Purchases | | | Sales | |
| Sterling Capital Behavioral Large Cap Value Equity Fund | | $ | 33,410,919 | | | $ | 35,760,793 | |
| Sterling Capital Mid Value Fund | | | 18,661,501 | | | | 26,981,701 | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | 73,158,681 | | | | 77,027,090 | |
| Sterling Capital Special Opportunities Fund | | | 180,401,973 | | | | 308,192,041 | |
| Sterling Capital Equity Income Fund | | | 780,138,822 | | | | 1,158,786,030 | |
| Sterling Capital Behavioral International Equity Fund | | | 98,053,929 | | | | 100,963,516 | |
| Sterling Capital Mid Cap Relative Value Fund | | | 3,744,154 | | | | 14,663,357 | |
| Sterling Capital Real Estate Fund | | | 3,272,725 | | | | 9,214,229 | |
| Sterling Capital Small Cap Value Fund | | | 6,844,767 | | | | 89,560,122 | |
| Sterling Capital Ultra Short Bond Fund | | | 22,473,566 | | | | 10,427,113 | |
| Sterling Capital Short Duration Bond Fund | | | 38,785,947 | | | | 84,911,197 | |
| Sterling Capital Intermediate U.S. Government Fund | | | 438,962 | | | | 563,286 | |
| Sterling Capital Total Return Bond Fund | | | 537,101,616 | | | | 337,399,967 | |
| Sterling Capital Long Duration Corporate Bond Fund | | | 20,887,715 | | | | 14,034,239 | |
| Sterling Capital Quality Income Fund | | | 5,159,124 | | | | 8,097,781 | |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | 25,422,888 | | | | 29,718,504 | |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | 5,925,212 | | | | 13,575,782 | |
| Sterling Capital Virginia Intermediate Tax-Free Fund | | | 10,478,684 | | | | 27,962,990 | |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | 16,885,570 | | | | 43,528,757 | |
Purchases and sales of U.S. government securities (excluding securities maturing less than one year from acquisition) for the fiscal year ended September 30, 2024 were as follows:
| | Purchases | | | Sales | |
| Sterling Capital Ultra Short Bond Fund | | $ | 735,104 | | | $ | 787,693 | |
| Sterling Capital Short Duration Bond Fund | | | 5,007,189 | | | | 9,551,277 | |
| Sterling Capital Intermediate U.S. Government Fund | | | 3,446,811 | | | | 1,398,494 | |
| Sterling Capital Total Return Bond Fund | | | 768,734,758 | | | | 537,259,399 | |
| Sterling Capital Long Duration Corporate Bond Fund | | | 3,515,257 | | | | 3,950,158 | |
| Sterling Capital Quality Income Fund | | | 17,612,393 | | | | 13,688,813 | |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
During the fiscal year ended September 30, 2024, the Sterling Capital Small Cap Value Fund effected an in-kind redemption of its shares. The redemption in-kind occurred on June 7, 2024 and totaled $48,602,211.
5. 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, 2024:
| | | Prior to February 1, 2024 | | | Effective February 1, 2024 | |
| | | | | | | | Fee Rate | | | | | | | | Fee Rate | |
| | | | | | | | after | | | | | | | | after | |
| | | | Contractual | | | | Contractual | | | | Contractual | | | | Contractual | |
| | | Fee Rate | | | | Waiver | | | | Fee Rate | | | | Waiver | |
| 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 | %(1) | | | 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 | % |
| 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 | %(1) | | | 0.75 | % | | | 0.75 | % |
| Sterling Capital Ultra Short Bond Fund | | | 0.20 | % | | | 0.20 | % | | | 0.20 | % | | | 0.05 | %(2) |
| Sterling Capital Short Duration Bond Fund | | | 0.20 | % | | | 0.20 | % | | | 0.20 | % | | | 0.20 | % |
| Sterling Capital Intermediate U.S. Government Fund | | | 0.32 | % | | | 0.32 | % | | | 0.32 | % | | | 0.13 | %(3) |
| Sterling Capital Total Return Bond Fund | | | 0.25 | % | | | 0.25 | % | | | 0.25 | % | | | 0.25 | % |
| Sterling Capital Long Duration Corporate Bond Fund | | | 0.25 | % | | | 0.25 | % | | | 0.25 | % | | | 0.25 | % |
| Sterling Capital Quality Income Fund | | | 0.35 | % | | | 0.31 | %(4) | | | 0.35 | % | | | 0.30 | %(5) |
| 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 | %(1) | | | 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, 2023, the Adviser voluntarily waived and/or reimbursed certain expenses of the Funds. Voluntary waivers and reimbursements of expenses may be discontinued at any time. |
| (2) | The Fund’s Adviser has contractually agreed to limit the management fees paid by the Fund to 0.05% for the period from February 1, 2024 through January 31, 2025. |
| (3) | The Fund’s Adviser has contractually agreed to limit the management fees paid by the Fund to 0.13% for the period from February 1, 2024 through January 31, 2025. |
| (4) | The Adviser contractually agreed to limit the advisory fees paid by the Fund from February 1, 2023 through January 31, 2024. |
| (5) | The Fund’s Adviser has contractually agreed to limit the management fees paid by the Fund to 0.30% for the period from February 1, 2024 through January 31, 2025. |
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, 2023 through January 31, 2024 and February 1, 2024 through January 31, 2025 are as follows:
| | | Effective February 1, 2024 | |
| | | Class A | | | Class C | | | Institutional | | | Class R6 | |
| Sterling Capital Total Return Bond Fund | | | 0.71 | % | | | 1.46 | % | | | 0.46 | % | | | 0.46 | % |
| Sterling Capital Long Duration Corporate Bond Fund | | | 0.71 | % | | | 1.46 | % | | | 0.46 | % | | | 0.46 | % |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | Prior to February 1, 2024 | |
| | | Class A | | | Class C | | | Institutional | | | Class R6 | |
| Sterling Capital Ultra Short Bond Fund | | | 0.52 | % | | | - | % | | | 0.27 | % | | | - | % |
| Sterling Capital Short Duration Bond Fund | | | 0.68 | % | | | 1.43 | % | | | 0.43 | % | | | 0.43 | % |
| 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 | % |
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, 2024 through January 31, 2025:
| | Effective
February 1, 2024 |
| Sterling Capital Behavioral Large Cap Value Equity Fund | 0.08% |
| Sterling Capital Mid Value Fund | 0.09% |
| Sterling Capital Behavioral Small Cap Value Equity Fund | 0.07% |
| Sterling Capital Special Opportunities Fund | 0.10% |
| Sterling Capital Equity Income Fund | 0.11% |
| Sterling Capital Behavioral International Equity Fund | 0.06% |
| Sterling Capital Real Estate Fund | 0.09% |
| Sterling Capital Small Cap Value Fund | 0.13% |
| Sterling Capital Short Duration Bond Fund | 0.10% |
| Sterling Capital Total Return Bond Fund | 0.10% |
| Sterling Capital Long Duration Corporate Bond Fund | 0.10% |
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, 2023 through January 31, 2024:
| | Prior to
February 1, 2024 |
| Sterling Capital Behavioral Large Cap Value Equity Fund | 0.07% |
| Sterling Capital Mid Value Fund | 0.08% |
| Sterling Capital Behavioral Small Cap Value Equity Fund | 0.06% |
| Sterling Capital Special Opportunities Fund | 0.09% |
| Sterling Capital Equity Income Fund | 0.10% |
| Sterling Capital Behavioral International Equity Fund | 0.05% |
| Sterling Capital Real Estate Fund | 0.07% |
| 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% |
Sterling Capital serves as the administrator to the Funds pursuant to an administration agreement. For the period October 1, 2023 through August 24, 2024, the Funds paid 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. For the period August 24, 2024 through September 30, 2024, the Funds paid their portion of a fee to Sterling Capital for providing administration services based on the aggregate assets of the Funds, at a rate of 0.091% 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.” For the period September 30, 2023 through August 23, 2024, pursuant to a sub-administration agreement with Sterling Capital, Bank of New York Mellon served as the sub-administrator to the Funds subject to the general supervision of the Board and Sterling Capital. For these services, Bank of New York Mellon is entitled to a fee payable by Sterling Capital. For the period October 1, 2023 through August 23, 2024, Bank of New York Mellon also served as the Funds’ fund accountant and received compensation by the Funds for these services. For the period beginning August 24, 2024, pursuant to a sub-administration agreement with Sterling Capital, Ultimus Fund Solutions (“the Sub-Administrator”), served as the sub-administrator to the Funds subject to the general supervision of the Board and Sterling Capital. For these services, Ultimus Fund Solutions is entitled to a fee payable by Sterling Capital. Ultimus Fund Solutions also served 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.”
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
For the period October 1, 2023 through August 23, 2024, BNY Mellon Investment Servicing (US) Inc. served as the Funds’ transfer agent and received compensation by the Funds for these services. For the period beginning August 24, 2024, Ultimus Fund Solutions, LLC served 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, 2024, the Distributor received $277,555 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, 2024 were $134,441.
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.
6. Capital Transactions:
Transactions in Class A, Class C, Institutional and Class R6 Shares were:
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Behavioral Large Cap Value Equity Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 15,421 | | | | 424,065 | | | $ | 32,971 | | | | 733,762 | |
| Reinvested | | | 17,870 | | | | 499,769 | | | | 20,188 | | | | 462,091 | |
| Redeemed | | | (121,903 | ) | | | (3,202,335 | ) | | | (108,548 | ) | | | (2,527,759 | ) |
| Total | | | (88,612 | ) | | | (2,278,501 | ) | | | (55,389 | ) | | | (1,331,906 | ) |
| Sterling Capital Behavioral Large Cap Value Equity Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Issued | | | 142 | | | | 3,600 | | | | 163 | | | | 3,600 | |
| Reinvested | | | 126 | | | | 3,400 | | | | 136 | | | | 2,993 | |
| Redeemed | | | (260 | ) | | | (6,706 | ) | | | (455 | ) | | | (10,138 | ) |
| Total | | | 8 | | | | 294 | | | | (156 | ) | | | (3,545 | ) |
| Sterling Capital Behavioral Large Cap Value Equity Fund | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | |
| Issued | | | — | | | | – | | | | 18,624 | | | | 424,649 | |
| Reinvested | | | 150 | | | | 4,152 | | | | 313 | | | | 7,233 | |
| Redeemed | | | (13,489 | ) | | | (372,774 | ) | | | (4,844 | ) | | | (115,111 | ) |
| Total | | | (13,339 | ) | | | (368,622 | ) | | | 14,093 | | | | 316,771 | |
| Sterling Capital Behavioral Large Cap Value Equity Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 27,065 | | | | 748,006 | | | | 7,059 | | | | 163,309 | |
| Reinvested | | | 926 | | | | 26,148 | | | | 934 | | | | 21,558 | |
| Redeemed | | | (16,893 | ) | | | (440,576 | ) | | | (24,806 | ) | | | (567,740 | ) |
| Total | | | 11,098 | | | | 333,578 | | | | (16,813 | ) | | | (382,873 | ) |
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Mid Value Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 164,058 | | | | 2,770,160 | | | $ | 72,651 | | | | 1,034,837 | |
| Reinvested | | | 84,142 | | | | 1,227,629 | | | | 201,671 | | | | 2,891,666 | |
| Redeemed | | | (213,639 | ) | | | (3,246,717 | ) | | | (166,854 | ) | | | (2,474,158 | ) |
| Total | | | 34,561 | | | | 751,072 | | | | 107,468 | | | | 1,452,345 | |
| Sterling Capital Mid Value Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Issued | | | 15,763 | | | | 6,961 | | | | 6,130 | | | | 68,584 | |
| Reinvested | | | 3,007 | | | | 33,683 | | | | 8,974 | | | | 101,407 | |
| Redeemed | | | (23,866 | ) | | | (275,223 | ) | | | (19,541 | ) | | | (226,977 | ) |
| Total | | | (5,096 | ) | | | (234,579 | ) | | | (4,437 | ) | | | (56,986 | ) |
| Sterling Capital Mid Value Fund | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | |
| Issued | | | 5,721 | | | | 94,941 | | | | 20,796 | | | | 352,676 | |
| Reinvested | | | 1,447 | | | | 21,986 | | | | 3,942 | | | | 58,604 | |
| Redeemed | | | — | | | | – | | | | (8,553 | ) | | | (127,455 | ) |
| Total | | | 7,168 | | | | 116,927 | | | | 16,185 | | | | 283,825 | |
| Sterling Capital Mid Value Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 112,113 | | | | 1,261,230 | | | | 107,820 | | | | 1,639,360 | |
| Reinvested | | | 129,286 | | | | 1,957,960 | | | | 315,482 | | | | 4,680,585 | |
| Redeemed | | | (401,571 | ) | | | (6,205,524 | ) | | | (491,134 | ) | | | (7,628,157 | ) |
| Total | | | (160,172 | ) | | | (2,986,334 | ) | | | (67,832 | ) | | | (1,308,212 | ) |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 12,858 | | | | 252,829 | | | $ | 14,873 | | | | 250,506 | |
| Reinvested | | | 5,467 | | | | 110,500 | | | | 3,580 | | | | 60,271 | |
| Redeemed | | | (46,824 | ) | | | (912,593 | ) | | | (56,495 | ) | | | (954,837 | ) |
| Total | | | (28,499 | ) | | | (549,264 | ) | | | (38,042 | ) | | | (644,060 | ) |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Issued | | | 1,006 | | | | 18,481 | | | | — | | | | – | |
| Reinvested | | | 41 | | | | 788 | | | | 5 | | | | 88 | |
| Redeemed | | | (253 | ) | | | (4,520 | ) | | | (283 | ) | | | (4,531 | ) |
| Total | | | 794 | | | | 14,749 | | | | (278 | ) | | | (4,443 | ) |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | |
| Issued | | | — | | | | – | | | | 5,943,445 | | | | 97,000,000 | |
| Reinvested | | | 82,894 | | | | 1,699,465 | | | | 97,722 | | | | 1,655,217 | |
| Redeemed | | | (225,734 | ) | | | (3,972,912 | ) | | | (2,783,252 | ) | | | (47,294,125 | ) |
| Total | | | (142,840 | ) | | | (2,273,447 | ) | | | 3,257,915 | | | | 51,361,092 | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 7,449 | | | | 139,644 | | | | 270,026 | | | | 4,511,127 | |
| Reinvested | | | 5,592 | | | | 114,208 | | | | 7,506 | | | | 127,032 | |
| Redeemed | | | (61,184 | ) | | | (1,194,490 | ) | | | (579,029 | ) | | | (9,947,584 | ) |
| Total | | | (48,143 | ) | | | (940,638 | ) | | | (301,497 | ) | | | (5,309,425 | ) |
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Special Opportunities Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 470,234 | | | | 11,973,464 | | | $ | 353,053 | | | | 8,941,236 | |
| Reinvested | | | 1,923,756 | | | | 45,843,115 | | | | 861,988 | | | | 20,592,897 | |
| Redeemed | | | (2,068,763 | ) | | | (52,692,206 | ) | | | (2,055,258 | ) | | | (51,968,950 | ) |
| Total | | | 325,227 | | | | 5,124,373 | | | | (840,217 | ) | | | (22,434,817 | ) |
| Sterling Capital Special Opportunities Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Issued | | | 76,734 | | | | 1,343,322 | | | | 37,771 | | | | 696,384 | |
| Reinvested | | | 324,379 | | | | 5,206,279 | | | | 168,823 | | | | 2,961,163 | |
| Redeemed | | | (677,092 | ) | | | (11,663,345 | ) | | | (652,168 | ) | | | (12,051,902 | ) |
| Total | | | (275,979 | ) | | | (5,113,744 | ) | | | (445,574 | ) | | | (8,394,355 | ) |
| Sterling Capital Special Opportunities Fund | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | |
| Issued | | | 211,837 | | | | 5,834,420 | | | | 573,350 | | | | 15,460,935 | |
| Reinvested | | | 57,296 | | | | 1,502,885 | | | | 31,490 | | | | 813,070 | |
| Redeemed | | | (482,628 | ) | | | (13,522,546 | ) | | | (440,049 | ) | | | (11,996,873 | ) |
| Total | | | (213,495 | ) | | | (6,185,241 | ) | | | 164,791 | | | | 4,277,132 | |
| Sterling Capital Special Opportunities Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 272,505 | | | | 7,577,946 | | | | 534,469 | | | | 14,709,581 | |
| Reinvested | | | 504,040 | | | | 13,231,044 | | | | 333,115 | | | | 8,614,366 | |
| Redeemed | | | (2,655,787 | ) | | | (76,729,659 | ) | | | (2,612,726 | ) | | | (71,532,067 | ) |
| Total | | | (1,879,242 | ) | | | (55,920,669 | ) | | | (1,745,142 | ) | | | (48,208,120 | ) |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Equity Income Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 745,158 | | | | 19,829,713 | | | $ | 984,966 | | | | 25,427,867 | |
| Reinvested | | | 1,413,518 | | | | 36,614,050 | | | | 1,203,098 | | | | 31,261,542 | |
| Redeemed | | | (2,428,255 | ) | | | (64,825,268 | ) | | | (2,577,021 | ) | | | (66,440,114 | ) |
Total | | | (269,579 | ) | | | (8,381,505 | ) | | | (388,957 | ) | | | (9,750,705 | ) |
| Sterling Capital Equity Income Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Issued | | | 389,837 | | | | 10,334,003 | | | | 369,914 | | | | 9,458,771 | |
| Reinvested | | | 224,467 | | | | 5,718,914 | | | | 186,653 | | | | 4,803,829 | |
| Redeemed | | | (625,901 | ) | | | (16,466,056 | ) | | | (662,296 | ) | | | (16,869,133 | ) |
| Total | | | (11,597 | ) | | | (413,139 | ) | | | (105,729 | ) | | | (2,606,533 | ) |
| Sterling Capital Equity Income Fund | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | |
| Issued | | | 1,391,307 | | | | 37,355,864 | | | | 2,137,177 | | | | 56,196,619 | |
| Reinvested | | | 155,924 | | | | 4,064,202 | | | | 147,103 | | | | 3,836,686 | |
| Redeemed | | | (1,496,540 | ) | | | (40,126,615 | ) | | | (1,142,384 | ) | | | (29,650,021 | ) |
| Total | | | 50,691 | | | | 1,293,451 | | | | 1,141,896 | | | | 30,383,284 | |
| Sterling Capital Equity Income Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 6,098,512 | | | | 163,562,254 | | | | 8,533,860 | | | | 220,305,302 | |
| Reinvested | | | 3,798,065 | | | | 98,915,203 | | | | 3,768,314 | | | | 98,245,042 | |
| Redeemed | | | (17,738,953 | ) | | | (473,293,726 | ) | | | (21,471,513 | ) | | | (557,919,043 | ) |
| Total | | | (7,842,376 | ) | | | (210,816,269 | ) | | | (9,169,339 | ) | | | (239,368,699 | ) |
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Behavioral International Equity Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 4,751 | | | | 49,774 | | | $ | 5,754 | | | | 49,383 | |
| Reinvested | | | 1,728 | | | | 16,412 | | | | 1,170 | | | | 9,712 | |
| Redeemed | | | (9,455 | ) | | | (93,466 | ) | | | (9,896 | ) | | | (88,366 | ) |
| Total | | | (2,976 | ) | | | (27,280 | ) | | | (2,972 | ) | | | (29,271 | ) |
| Sterling Capital Behavioral International Equity Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Reinvested | | | 101 | | | | 967 | | | | 26 | | | | 215 | |
| Redeemed | | | 0 | | | | (2 | ) | | | (3,283 | ) | | | (27,340 | ) |
| Total | | | 101 | | | | 965 | | | | (3,257 | ) | | | (27,125 | ) |
| Sterling Capital Behavioral International Equity Fund | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | |
| Reinvested | | | 633,110 | | | | 6,014,544 | | | | 441,954 | | | | 3,663,801 | |
| Redeemed | | | (773,695 | ) | | | (8,030,948 | ) | | | (1,578,946 | ) | | | (15,110,526 | ) |
| Total | | | (140,585 | ) | | | (2,016,404 | ) | | | (1,136,992 | ) | | | (11,446,725 | ) |
| Sterling Capital Behavioral International Equity Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 5,317 | | | | 50,000 | | | | 4,057 | | | | 35,841 | |
| Reinvested | | | 3,964 | | | | 37,616 | | | | 2,167 | | | | 17,962 | |
| Redeemed | | | (821 | ) | | | (8,570 | ) | | | (885 | ) | | | (6,673 | ) |
| Total | | | 8,460 | | | | 79,046 | | | | 5,339 | | | | 47,130 | |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Mid Cap Relative Value Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 200 | | | | 12,603 | | | $ | 1,105 | | | | 70,897 | |
| Reinvested | | | 687 | | | | 40,550 | | | | 979 | | | | 59,122 | |
| Redeemed | | | (4,491 | ) | | | (274,029 | ) | | | (626 | ) | | | (38,144 | ) |
| Total | | | (3,604 | ) | | | (220,876 | ) | | | 1,458 | | | | 91,875 | |
| Sterling Capital Mid Cap Relative Value Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Issued | | | — | | | | — | | | | — | | | | — | |
| Reinvested | | | 7 | | | | 399 | | | | 9 | | | | 513 | |
| Redeemed | | | (20 | ) | | | (1,253 | ) | | | (2 | ) | | | (139 | ) |
| Total | | | (13 | ) | | | (854 | ) | | | 7 | | | | 374 | |
| Sterling Capital Mid Cap Relative Value Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 809 | | | | 51,412 | | | | 36,764 | | | | 2,346,775 | |
| Reinvested | | | 81,925 | | | | 4,882,970 | | | | 112,501 | | | | 6,851,053 | |
| Redeemed | | | (189,450 | ) | | | (11,924,348 | ) | | | (165,476 | ) | | | (10,809,780 | ) |
| Total | | | (106,716 | ) | | | (6,989,966 | ) | | | (16,211 | ) | | | (1,611,952 | ) |
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Real Estate Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 851 | | | | 31,089 | | | $ | 106 | | | | 3,607 | |
| Reinvested | | | 1,101 | | | | 38,781 | | | | 1,474 | | | | 51,152 | |
| Redeemed | | | (3,091 | ) | | | (99,720 | ) | | | (4,012 | ) | | | (143,637 | ) |
| Total | | | (1,139 | ) | | | (29,850 | ) | | | (2,432 | ) | | | (88,878 | ) |
| Sterling Capital Real Estate Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Issued | | | — | | | | — | | | | — | | | | — | |
| Reinvested | | | 229 | | | | 7,917 | | | | 277 | | | | 9,525 | |
| Redeemed | | | (1,358 | ) | | | (47,258 | ) | | | (398 | ) | | | (13,902 | ) |
| Total | | | (1,129 | ) | | | (39,341 | ) | | | (121 | ) | | | (4,377 | ) |
| Sterling Capital Real Estate Fund | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | |
| Issued | | | 6,164 | | | | 214,458 | | | | 137 | | | | 6,214 | |
| Reinvested | | | 38 | | | | 1,366 | | | | 30 | | | | 1,363 | |
| Redeemed | | | (17,161 | ) | | | (609,927 | ) | | | (7 | ) | | | (335 | ) |
| Total | | | (10,959 | ) | | | (394,103 | ) | | | 160 | | | | 7,242 | |
| Sterling Capital Real Estate Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 119,401 | | | | 4,186,096 | | | | 129,299 | | | | 5,914,197 | |
| Reinvested | | | 135,474 | | | | 4,791,707 | | | | 147,479 | | | | 6,869,233 | |
| Redeemed | | | (326,345 | ) | | | (11,407,444 | ) | | | (243,219 | ) | | | (10,740,629 | ) |
| Total | | | (71,470 | ) | | | (2,429,641 | ) | | | 33,559 | | | | 2,042,801 | |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Small Cap Value Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 19,961 | | | | 891,085 | | | $ | 8,883 | | | | 489,174 | |
| Reinvested | | | 20,057 | | | | 808,577 | | | | 10,750 | | | | 545,786 | |
| Redeemed | | | (22,189 | ) | | | (984,329 | ) | | | (11,449 | ) | | | (621,971 | ) |
| Total | | | 17,829 | | | | 715,333 | | | | 8,184 | | | | 412,989 | |
| Sterling Capital Small Cap Value Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Issued | | | 5,996 | | | | 224,700 | | | | 2,787 | | | | 139,061 | |
| Reinvested | | | 3,800 | | | | 135,236 | | | | 1,748 | | | | 81,839 | |
| Redeemed | | | (6,050 | ) | | | (239,963 | ) | | | (872 | ) | | | (40,199 | ) |
| Total | | | 3,746 | | | | 119,973 | | | | 3,663 | | | | 180,701 | |
| Sterling Capital Small Cap Value Fund | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | |
| Issued | | | 21,565 | | | | 943,491 | | | | 55,662 | | | | 3,411,842 | |
| Reinvested | | | 25,036 | | | | 1,032,698 | | | | 18,696 | | | | 964,477 | |
| Redeemed | | | (36,074 | ) | | | (1,749,432 | ) | | | (19,265 | ) | | | (1,044,595 | ) |
| Total | | | 10,527 | | | | 226,757 | | | | 55,093 | | | | 3,331,724 | |
| Sterling Capital Small Cap Value Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 544,768 | | | | 25,674,510 | | | | 330,448 | | | | 18,021,758 | |
| Reinvested | | | 1,828,329 | | | | 75,021,566 | | | | 1,365,585 | | | | 70,212,133 | |
| Redeemed | | | (3,465,641 | ) | | | (155,345,024 | ) | | | (2,751,679 | ) | | | (150,715,997 | ) |
| Total | | | (1,092,544 | ) | | | (54,648,948 | ) | | | (1,055,646 | ) | | | (62,482,106 | ) |
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Ultra Short Bond Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 949,777 | | | | 9,267,109 | | | $ | 1,013,004 | | | | 9,755,362 | |
| Reinvested | | | 22,567 | | | | 220,025 | | | | 20,764 | | | | 200,059 | |
| Redeemed | | | (1,046,050 | ) | | | (10,205,198 | ) | | | (1,181,554 | ) | | | (11,387,919 | ) |
| Total | | | (73,706 | ) | | | (718,064 | ) | | | (147,786 | ) | | | (1,432,498 | ) |
| Sterling Capital Ultra Short Bond Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 290,199 | | | | 2,822,671 | | | | 818,258 | | | | 7,864,700 | |
| Reinvested | | | 105,280 | | | | 1,026,733 | | | | 85,981 | | | | 829,040 | |
| Redeemed | | | (483,843 | ) | | | (4,716,854 | ) | | | (596,108 | ) | | | (5,744,021 | ) |
| Total | | | (88,364 | ) | | | (867,450 | ) | | | 308,131 | | | | 2,949,719 | |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Short Duration Bond Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 47,555 | | | | 393,338 | | | $ | 67,266 | | | | 546,358 | |
| Reinvested | | | 14,112 | | | | 116,931 | | | | 10,414 | | | | 84,865 | |
| Redeemed | | | (93,814 | ) | | | (774,096 | ) | | | (134,723 | ) | | | (1,097,421 | ) |
| Total | | | (32,147 | ) | | | (263,827 | ) | | | (57,043 | ) | | | (466,198 | ) |
| Sterling Capital Short Duration Bond Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Reinvested | | | 438 | | | | 3,619 | | | | 822 | | | | 6,701 | |
| Redeemed | | | (29,305 | ) | | | (240,816 | ) | | | (17,062 | ) | | | (138,656 | ) |
| Total | | | (28,867 | ) | | | (237,197 | ) | | | (16,240 | ) | | | (131,955 | ) |
| Sterling Capital Short Duration Bond Fund | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | |
| Issued | | | 164,782 | | | | 1,352,916 | | | | 241,027 | | | | 1,957,519 | |
| Reinvested | | | 4,130 | | | | 34,212 | | | | 3,306 | | | | 26,953 | |
| Redeemed | | | (326,021 | ) | | | (2,692,226 | ) | | | (781,086 | ) | | | (6,360,338 | ) |
| Total | | | (157,109 | ) | | | (1,305,098 | ) | | | (536,753 | ) | | | (4,375,866 | ) |
| Sterling Capital Short Duration Bond Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 904,663 | | | | 7,480,301 | | | | 6,299,295 | | | | 50,998,857 | |
| Reinvested | | | 213,217 | | | | 1,762,465 | | | | 363,359 | | | | 2,961,393 | |
| Redeemed | | | (8,249,355 | ) | | | (68,002,031 | ) | | | (6,214,972 | ) | | | (50,629,861 | ) |
| Total | | | (7,131,475 | ) | | | (58,759,265 | ) | | | 447,682 | | | | 3,330,389 | |
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Intermediate U.S. Government Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 27,266 | | | | 235,981 | | | $ | 3,927 | | | | 33,721 | |
| Reinvested | | | 8,567 | | | | 73,476 | | | | 7,160 | | | | 61,234 | |
| Redeemed | | | (58,654 | ) | | | (503,199 | ) | | | (43,903 | ) | | | (376,040 | ) |
| Total | | | (22,821 | ) | | | (193,742 | ) | | | (32,816 | ) | | | (281,085 | ) |
| Sterling Capital Intermediate U.S. Government Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Issued | | | 513 | | | | 4,443 | | | | 10,001 | | | | 86,513 | |
| Reinvested | | | 284 | | | | 2,433 | | | | 266 | | | | 2,275 | |
| Redeemed | | | (5,551 | ) | | | (47,080 | ) | | | (7,131 | ) | | | (61,821 | ) |
| Total | | | (4,754 | ) | | | (40,204 | ) | | | 3,136 | | | | 26,967 | |
| Sterling Capital Intermediate U.S. Government Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 218,735 | | | | 1,903,995 | | | | 10,714 | | | | 91,264 | |
| Reinvested | | | 58,369 | | | | 501,026 | | | | 43,893 | | | | 375,457 | |
| Redeemed | | | (173,988 | ) | | | (1,529,425 | ) | | | (12,519 | ) | | | (107,421 | ) |
| Total | | | 103,116 | | | | 875,596 | | | | 42,088 | | | | 359,300 | |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Total Return Bond Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 1,406,165 | | | | 12,904,126 | | | $ | 878,957 | | | | 8,107,142 | |
| Reinvested | | | 197,895 | | | | 1,822,054 | | | | 154,919 | | | | 1,425,366 | |
| Redeemed | | | (1,222,184 | ) | | | (11,165,579 | ) | | | (1,001,035 | ) | | | (9,209,698 | ) |
| Total | | | 381,876 | | | | 3,560,601 | | | | 32,841 | | | | 322,810 | |
| Sterling Capital Total Return Bond Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Issued | | | 103,040 | | | | 942,640 | | | | 25,171 | | | | 230,638 | |
| Reinvested | | | 9,003 | | | | 82,932 | | | | 7,292 | | | | 67,188 | |
| Redeemed | | | (152,457 | ) | | | (1,397,760 | ) | | | (87,824 | ) | | | (809,081 | ) |
| Total | | | (40,414 | ) | | | (372,188 | ) | | | (55,361 | ) | | | (511,255 | ) |
| Sterling Capital Total Return Bond Fund | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | |
| Issued | | | 20,352,157 | | | | 185,002,179 | | | | 16,189,324 | | | | 148,974,434 | |
| Reinvested | | | 1,482,912 | | | | 13,668,046 | | | | 783,248 | | | | 7,205,165 | |
| Redeemed | | | (10,516,188 | ) | | | (97,198,661 | ) | | | (12,545,363 | ) | | | (115,861,889 | ) |
| Total | | | 11,318,881 | | | | 101,471,564 | | | | 4,427,209 | | | | 40,317,710 | |
| Sterling Capital Total Return Bond Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 63,282,271 | | | | 571,300,698 | | | | 22,299,483 | | | | 204,623,107 | |
| Reinvested | | | 3,269,118 | | | | 30,127,041 | | | | 1,818,563 | | | | 16,745,047 | |
| Redeemed | | | (33,146,414 | ) | | | (303,941,509 | ) | | | (31,653,420 | ) | | | (290,907,707 | ) |
| Total | | | 33,404,975 | | | | 297,486,230 | | | | (7,535,374 | ) | | | (69,539,553 | ) |
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Long Duration Corporate Bond Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 6,514 | | | | 47,688 | | | $ | 2,295 | | | | 16,309 | |
| Reinvested | | | 2,055 | | | | 14,220 | | | | 2,324 | | | | 16,105 | |
| Redeemed | | | (692 | ) | | | (4,548 | ) | | | (22,668 | ) | | | (156,941 | ) |
| Total | | | 7,877 | | | | 57,360 | | | | (18,049 | ) | | | (124,527 | ) |
| Sterling Capital Long Duration Corporate Bond Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Reinvested | | | 13 | | | | 92 | | | | 13 | | | | 88 | |
| Redeemed | | | (280 | ) | | | (2,001 | ) | | | (12 | ) | | | (83 | ) |
| Total | | | (267 | ) | | | (1,909 | ) | | | 1 | | | | 5 | |
| Sterling Capital Long Duration Corporate Bond Fund | | | | | | | | | | | | | | | | |
| Class R6 Shares | | | | | | | | | | | | | | | | |
| Issued | | | 2,127,781 | | | | 14,681,187 | | | | 1,205,511 | | | | 8,413,006 | |
| Reinvested | | | 266,961 | | | | 1,845,856 | | | | 177,658 | | | | 1,227,995 | |
| Redeemed | | | (1,346,231 | ) | | | (9,415,704 | ) | | | (68,995 | ) | | | (497,450 | ) |
| Total | | | 1,048,511 | | | | 7,111,339 | | | | 1,314,174 | | | | 9,143,551 | |
| Sterling Capital Long Duration Corporate Bond Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 11,356 | | | | 70,000 | | | | 149,095 | | | | 1,096,226 | |
| Reinvested | | | 3,521 | | | | 24,317 | | | | 2,332 | | | | 16,181 | |
| Redeemed | | | (16,426 | ) | | | (116,976 | ) | | | (98,415 | ) | | | (686,794 | ) |
| Total | | | (1,549 | ) | | | (22,659 | ) | | | 53,012 | | | | 425,613 | |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Quality Income Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 298 | | | | 2,711 | | | $ | 13 | | | | 118 | |
| Reinvested | | | 107 | | | | 947 | | | | 100 | | | | 880 | |
| Redeemed | | | (677 | ) | | | (6,030 | ) | | | (51 | ) | | | (467 | ) |
| Total | | | (272 | ) | | | (2,372 | ) | | | 62 | | | | 531 | |
| Sterling Capital Quality Income Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Reinvested | | | 8 | | | | 69 | | | | 6 | | | | 57 | |
| Redeemed | | | (285 | ) | | | (2,593 | ) | | | (12 | ) | | | (107 | ) |
| Total | | | (277 | ) | | | (2,524 | ) | | | (6 | ) | | | (50 | ) |
| Sterling Capital Quality Income Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 1,364,755 | | | | 12,067,289 | | | | 1,883,270 | | | | 16,671,733 | |
| Reinvested | | | 170,938 | | | | 1,514,853 | | | | 143,396 | | | | 1,266,409 | |
| Redeemed | | | (2,247,173 | ) | | | (19,913,684 | ) | | | (656,768 | ) | | | (5,827,260 | ) |
| Total | | | (711,480 | ) | | | (6,331,542 | ) | | | 1,369,898 | | | | 12,110,882 | |
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 47,468 | | | | 481,791 | | | $ | 232,766 | | | | 2,364,985 | |
| Reinvested | | | 40,198 | | | | 406,019 | | | | 38,094 | | | | 383,788 | |
| Redeemed | | | (321,363 | ) | | | (3,238,027 | ) | | | (489,022 | ) | | | (4,993,925 | ) |
| Total | | | (233,697 | ) | | | (2,350,217 | ) | | | (218,162 | ) | | | (2,245,152 | ) |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Issued | | | 937 | | | | 9,160 | | | | 6,226 | | | | 63,000 | |
| Reinvested | | | 1,397 | | | | 14,093 | | | | 1,342 | | | | 13,514 | |
| Redeemed | | | (26,951 | ) | | | (272,546 | ) | | | (24,557 | ) | | | (248,991 | ) |
| Total | | | (24,617 | ) | | | (249,293 | ) | | | (16,989 | ) | | | (172,477 | ) |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 3,187,460 | | | | 32,157,337 | | | | 3,606,451 | | | | 36,449,589 | |
| Reinvested | | | 149,106 | | | | 1,505,563 | | | | 145,502 | | | | 1,465,451 | |
| Redeemed | | | (4,251,724 | ) | | | (42,629,788 | ) | | | (5,257,377 | ) | | | (52,892,072 | ) |
| Total | | | (915,158 | ) | | | (8,966,888 | ) | | | (1,505,424 | ) | | | (14,977,032 | ) |
| | | For the Year Ended | | | For the Year Ended | |
| | | September 30, 2024 | | | September 30, 2023 | |
| | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 19,675 | | | | 206,889 | | | $ | 42,487 | | | | 441,326 | |
| Reinvested | | | 12,305 | | | | 129,240 | | | | 11,378 | | | | 119,001 | |
| Redeemed | | | (111,499 | ) | | | (1,169,670 | ) | | | (115,609 | ) | | | (1,211,789 | ) |
| Total | | | (79,519 | ) | | | (833,541 | ) | | | (61,744 | ) | | | (651,462 | ) |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Issued | | | 2,237 | | | | 23,440 | | | | — | | | | – | |
| Reinvested | | | 361 | | | | 3,786 | | | | 288 | | | | 3,009 | |
| Redeemed | | | (19,542 | ) | | | (204,232 | ) | | | (7,130 | ) | | | (75,053 | ) |
| Total | | | (16,944 | ) | | | (177,006 | ) | | | (6,842 | ) | | | (72,044 | ) |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 351,516 | | | | 3,682,117 | | | | 893,718 | | | | 9,330,273 | |
| Reinvested | | | 38,404 | | | | 400,436 | | | | 31,624 | | | | 328,340 | |
| Redeemed | | | (1,010,017 | ) | | | (10,438,682 | ) | | | (1,448,154 | ) | | | (15,014,893 | ) |
| Total | | | (620,097 | ) | | | (6,356,129 | ) | | | (522,812 | ) | | | (5,356,280 | ) |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | For the Year Ended
September 30, 2024 | | For the Year Ended
September 30, 2023 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital Virginia Intermediate Tax-Free Fund | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 9,197 | | | | 102,797 | | | $ | 11,270 | | | | 125,094 | |
| Reinvested | | | 17,364 | | | | 192,056 | | | | 16,896 | | | | 186,447 | |
| Redeemed | | | (203,878 | ) | | | (2,249,417 | ) | | | (288,559 | ) | | | (3,170,891 | ) |
| Total | | | (177,317 | ) | | | (1,954,564 | ) | | | (260,393 | ) | | | (2,859,350 | ) |
| Sterling Capital Virginia Intermediate Tax-Free Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Issued | | | 0 | | | | – | | | | 494 | | | | 5,480 | |
| Reinvested | | | 7 | | | | 83 | | | | 13 | | | | 138 | |
| Redeemed | | | — | | | | – | | | | (1,509 | ) | | | (16,775 | ) |
| Total | | | 7 | | | | 83 | | | | (1,002 | ) | | | (11,157 | ) |
| Sterling Capital Virginia Intermediate Tax-Free Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 313,074 | | | | 3,478,545 | | | | 939,916 | | | | 10,401,968 | |
| Reinvested | | | 10,959 | | | | 121,226 | | | | 9,499 | | | | 104,824 | |
| Redeemed | | | (1,913,663 | ) | | | (20,977,050 | ) | | | (2,397,176 | ) | | | (26,375,457 | ) |
| Total | | | (1,589,630 | ) | | | (17,377,279 | ) | | | (1,447,761 | ) | | | (15,868,665 | ) |
| | | For the Year Ended
September 30, 2024 | | | For the Year Ended
September 30, 2023 | |
| | | Shares | | | Amount | | | Shares | | | Amount | |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
| Issued | | $ | 1,016,507 | | | | 9,554,498 | | | $ | 1,022,283 | | | | 9,682,418 | |
| Reinvested | | | 44,543 | | | | 420,513 | | | | 33,870 | | | | 317,681 | |
| Redeemed | | | (1,211,559 | ) | | | (11,414,326 | ) | | | (1,354,284 | ) | | | (12,726,839 | ) |
| Total | | | (150,509 | ) | | | (1,439,315 | ) | | | (298,131 | ) | | | (2,726,740 | ) |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
| Reinvested | | | 3 | | | | 35 | | | | 15 | | | | 140 | |
| Redeemed | | | — | | | | – | | | | (2,290 | ) | | | (21,706 | ) |
| Total | | | 3 | | | | 35 | | | | (2,275 | ) | | | (21,566 | ) |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | | | | | | | | | | | | | | |
| Institutional Class Shares | | | | | | | | | | | | | | | | |
| Issued | | | 565,024 | | | | 5,264,564 | | | | 629,358 | | | | 5,951,282 | |
| Reinvested | | | 20,650 | | | | 194,962 | | | | 22,627 | | | | 212,819 | |
| Redeemed | | | (3,363,585 | ) | | | (31,810,643 | ) | | | (1,057,078 | ) | | | (9,922,418 | ) |
| Total | | | (2,777,911 | ) | | | (26,351,117 | ) | | | (405,093 | ) | | | (3,758,317 | ) |
7. 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.
8. Focused Investment Risk:
Focused Investment Risk relates to 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.
9. 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, 2025. During the fiscal year ended September 30, 2024, each of the following Funds utilized its line of credit:
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | Average Interest Rate | | | Average Loan
Balance* | | | Number of Days
Outstanding | | | Interest Expense
Incurred | | | Maximum Amount
Borrowed | |
| Sterling Capital Behavioral International Equity Fund | | | 6.50 | % | | $ | 6,817,000 | | | | 1 | | | $ | 1,231 | | | $ | 6,817,000 | |
| Sterling Capital Small Cap Value Fund | | | 6.25 | % | | | 2,506,667 | | | | 6 | | | | 2,673 | | | | 9,621,000 | |
| Sterling Capital Total Return Bond Fund | | | 6.50 | % | | | 1,394,000 | | | | 1 | | | | 252 | | | | 1,394,000 | |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | 6.50 | % | | | 71,200 | | | | 5 | | | | 64 | | | | 102,000 | |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | 6.50 | % | | | 44,000 | | | | 1 | | | | 8 | | | | 44,000 | |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | 6.50 | % | | | 3,692,143 | | | | 7 | | | | 4,666 | | | | 8,567,000 | |
| * | 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. |
10. Fund Ownership:
As of September 30, 2024, certain third-parties and their affiliates possessed, on behalf of their underlying accounts, voting or investment power with respect to the following Funds in the following amounts: 88% of the Behavioral Small Cap Value Equity Fund, 99% of the Behavioral International Equity Fund, 44% of the Ultra Short Bond Fund and 81% of the Intermediate U.S. Government Fund. As a result, such entities may be deemed to be a “controlling person” of each of the above mentioned Funds under the 1940 Act.
11. 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.
At September 30, 2024, 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 | | $ | 11,748,272 | | | $ | — | |
| Sterling Capital Mid Value Fund | | | — | | | | — | |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | Amount With No Expiration | |
| | | Short-term
Losses | | | Long-term
Losses | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | $ | — | | | $ | — | |
| Sterling Capital Special Opportunities Fund | | | — | | | | — | |
| Sterling Capital Equity Income Fund | | | — | | | | — | |
| Sterling Capital Behavioral International Equity Fund | | | 2,101,239 | | | | — | |
| Sterling Capital Mid Cap Relative Value Fund | | | — | | | | — | |
| Sterling Capital Real Estate Fund | | | — | | | | — | |
| Sterling Capital Small Cap Value Fund | | | — | | | | — | |
| Sterling Capital Ultra Short Bond Fund | | | 76,951 | | | | 1,213,579 | |
| Sterling Capital Short Duration Bond Fund | | | 1,852,096 | | | | 11,169,529 | |
| Sterling Capital Intermediate U.S. Government Fund | | | 362,750 | | | | 1,195,484 | |
| Sterling Capital Total Return Bond Fund | | | 18,301,774 | | | | 95,856,814 | |
| Sterling Capital Long Duration Corporate Bond Fund | | | 1,226,623 | | | | 3,101,830 | |
| Sterling Capital Quality Income Fund | | | 1,846,436 | | | | 2,457,666 | |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | 3,139,298 | | | | 3,356,017 | |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | 214,651 | | | | 1,435,616 | |
| Sterling Capital Virginia Intermediate Tax-Free Fund | | | 856,260 | | | | 1,763,281 | |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | 259,848 | | | | 2,731,114 | |
Capital loss carryforwards utilized in the current year were as follows:
| | | Utilized
Capital Loss
Carryforwards | |
| Sterling Capital Behavioral Large Cap Value Equity Fund | | $ | 4,480,299 | |
| Sterling Capital Mid Value Fund | | | — | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | 20,176 | |
| Sterling Capital Special Opportunities Fund | | | — | |
| Sterling Capital Equity Income Fund | | | — | |
| Sterling Capital Behavioral International Equity Fund | | | 10,241,428 | |
| Sterling Capital Mid Cap Relative Value Fund | | | — | |
| Sterling Capital Real Estate Fund | | | — | |
| Sterling Capital Small Cap Value Fund | | | — | |
| Sterling Capital Ultra Short Bond Fund | | | 119,381 | |
| 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 | | | — | |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | — | |
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 | | $ | 501,619 | | | $ | (501,619 | ) |
| Sterling Capital Behavioral Small Cap Value Fund | | | 136,432 | | | | (136,432 | ) |
| Sterling Capital Special Opportunities Fund | | | 14,455,433 | | | | (14,455,433 | ) |
| Sterling Capital Equity Income Fund | | | 42,838,827 | | | | (42,838,827 | ) |
| Sterling Capital Mid Cap Relative Value Fund | | | 570,826 | | | | (570,826 | ) |
| Sterling Capital Real Estate Fund | | | 494,874 | | | | (494,874 | ) |
| Sterling Capital Small Cap Value Fund | | | 55,261,442 | | | | (55,261,442 | ) |
| Sterling Capital Ultra Short Bond Fund | | | (1 | ) | | | 1 | |
| Sterling Capital Short Duration Bond Fund | | | 1 | | | | (1 | ) |
| Sterling Capital Intermediate U.S. Government Fund | | | (129 | ) | | | 129 | |
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | Increase/ (Decrease)
Paid-in-Capital | | | Increase/ (Decrease)
Distributable Earnings | |
| Sterling Capital Total Return Bond Fund | | $ | (2 | ) | | $ | 2 | |
The tax character of distributions paid to shareholders during the fiscal year ended September 30, 2024 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 | | $ | 575,370 | | | $ | — | | | $ | 575,370 | | | $ | — | | | $ | 575,370 | |
| Sterling Capital Mid Value Fund | | | 710,032 | | | | 2,705,963 | | | | 3,415,995 | | | | — | | | | 3,415,995 | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | 1,932,831 | | | | — | | | | 1,932,831 | | | | — | | | | 1,932,831 | |
| Sterling Capital Special Opportunities Fund | | | — | | | | 74,941,805 | | | | 74,941,805 | | | | — | | | | 74,941,805 | |
| Sterling Capital Equity Income Fund | | | 31,980,988 | | | | 148,289,810 | | | | 180,270,798 | | | | — | | | | 180,270,798 | |
| Sterling Capital Behavioral International Equity Fund | | | 6,071,281 | | | | — | | | | 6,071,281 | | | | — | | | | 6,071,281 | |
| Sterling Capital Mid Cap Relative Value Fund | | | 397,363 | | | | 4,747,295 | | | | 5,144,658 | | | | — | | | | 5,144,658 | |
| Sterling Capital Real Estate Fund | | | 1,326,500 | | | | 4,009,190 | | | | 5,335,690 | | | | — | | | | 5,335,690 | |
| Sterling Capital Small Cap Value Fund | | | 1,414,792 | | | | 78,692,724 | | | | 80,107,516 | | | | — | | | | 80,107,516 | |
| Sterling Capital Ultra Short Bond Fund | | | 1,429,031 | | | | — | | | | 1,429,031 | | | | — | | | | 1,429,031 | |
| Sterling Capital Short Duration Bond Fund | | | 2,917,911 | | | | — | | | | 2,917,911 | | | | — | | | | 2,917,911 | |
| Sterling Capital Intermediate U.S. Government Fund | | | 590,430 | | | | — | | | | 590,430 | | | | — | | | | 590,430 | |
| Sterling Capital Total Return Bond Fund | | | 57,055,580 | | | | — | | | | 57,055,580 | | | | — | | | | 57,055,580 | |
| Sterling Capital Long Duration Corporate Bond Fund | | | 1,885,726 | | | | — | | | | 1,885,726 | | | | — | | | | 1,885,726 | |
| Sterling Capital Quality Income Fund | | | 3,067,259 | | | | — | | | | 3,067,259 | | | | — | | | | 3,067,259 | |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | 102,548 | | | | — | | | | 102,548 | | | | 3,092,595 | | | | 3,195,143 | |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | 34,441 | | | | — | | | | 34,441 | | | | 782,081 | | | | 816,522 | |
| Sterling Capital Virginia Intermediate Tax-Free Fund | | | 39,572 | | | | — | | | | 39,572 | | | | 1,194,827 | | | | 1,234,299 | |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | 52,473 | | | | — | | | | 52,473 | | | | 1,865,093 | | | | 1,917,566 | |
The tax character of distributions paid to shareholders during the fiscal year ended September 30, 2023 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 | | $ | 540,559 | | | $ | — | | | $ | 540,559 | | | $ | — | | | $ | 540,559 | |
| Sterling Capital Mid Value Fund | | | 189,120 | | | | 7,939,154 | | | | 8,128,274 | | | | — | | | | 8,128,274 | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | 1,849,184 | | | | — | | | | 1,849,184 | | | | — | | | | 1,849,184 | |
| Sterling Capital Special Opportunities Fund | | | — | | | | 38,439,138 | | | | 38,439,138 | | | | — | | | | 38,439,138 | |
| Sterling Capital Equity Income Fund | | | 55,370,491 | | | | 118,112,434 | | | | 173,482,925 | | | | — | | | | 173,482,925 | |
| Sterling Capital Behavioral International Equity Fund | | | 3,693,298 | | | | — | | | | 3,693,298 | | | | — | | | | 3,693,298 | |
| Sterling Capital Mid Cap Relative Value Fund | | | 407,967 | | | | 6,835,266 | | | | 7,243,233 | | | | — | | | | 7,243,233 | |
| Sterling Capital Real Estate Fund | | | 1,406,715 | | | | 4,797,257 | | | | 6,203,972 | | | | — | | | | 6,203,972 | |
| Sterling Capital Small Cap Value Fund | | | 1,558,523 | | | | 76,717,312 | | | | 78,275,835 | | | | — | | | | 78,275,835 | |
| Sterling Capital Ultra Short Bond Fund | | | 1,146,187 | | | | — | | | | 1,146,187 | | | | — | | | | 1,146,187 | |
| Sterling Capital Short Duration Bond Fund | | | 3,892,164 | | | | — | | | | 3,892,164 | | | | — | | | | 3,892,164 | |
| Sterling Capital Intermediate U.S. Government Fund | | | 447,781 | | | | — | | | | 447,781 | | | | — | | | | 447,781 | |
| Sterling Capital Total Return Bond Fund | | | 34,534,996 | | | | — | | | | 34,534,996 | | | | — | | | | 34,534,996 | |
| Sterling Capital Long Duration Corporate Bond Fund | | | 1,262,126 | | | | — | | | | 1,262,126 | | | | — | | | | 1,262,126 | |
| Sterling Capital Quality Income Fund | | | 2,462,726 | | | | — | | | | 2,462,726 | | | | — | | | | 2,462,726 | |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | 126,020 | | | | — | | | | 126,020 | | | | 3,039,971 | | | | 3,165,991 | |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | 61,348 | | | | — | | | | 61,348 | | | | 736,105 | | | | 797,453 | |
| Sterling Capital Virginia Intermediate Tax-Free Fund | | | 101,434 | | | | — | | | | 101,434 | | | | 1,344,024 | | | | 1,445,458 | |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | 66,372 | | | | — | | | | 66,372 | | | | 1,919,955 | | | | 1,986,327 | |
| * | 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. |
As of September 30, 2024, the components of distributable earnings (accumulated deficit) on a tax basis were as follows:
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
| | | 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 | | $ | 2,340 | | | $ | — | | | $ | 2,340 | | | $ | — | | | $ | (11,748,272 | ) | | $ | 6,895,892 | | | $ | (4,850,040 | ) |
| Sterling Capital Mid Value Fund | | | 397,210 | | | | 3,750,920 | | | | 4,148,130 | | | | — | | | | — | | | | 11,954,957 | | | | 16,103,087 | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | 1,979,157 | | | | 6,829,404 | | | | 8,808,561 | | | | — | | | | — | | | | 22,304,756 | | | | 31,113,317 | |
| Sterling Capital Special Opportunities Fund | | | — | | | | 65,977,970 | | | | 65,977,970 | | | | — | | | | (1,149,906 | ) | | | 179,906,605 | | | | 244,734,669 | |
| Sterling Capital Equity Income Fund | | | 17,209,218 | | | | 270,257,219 | | | | 287,466,437 | | | | — | | | | — | | | | 615,573,253 | | | | 903,039,690 | |
| Sterling Capital Behavioral International Equity Fund | | | 4,400,097 | | | | — | | | | 4,400,097 | | | | — | | | | (2,101,239 | ) | | | 20,305,859 | | | | 22,604,717 | |
| Sterling Capital Mid Cap Relative Value Fund | | | 213,849 | | | | 4,267,385 | | | | 4,481,234 | | | | — | | | | — | | | | 22,821,997 | | | | 27,303,231 | |
| Sterling Capital Real Estate Fund | | | 617,725 | | | | 2,671,626 | | | | 3,289,351 | | | | — | | | | — | | | | 34,928,598 | | | | 38,217,949 | |
| Sterling Capital Small Cap Value Fund | | | 750,808 | | | | 34,752,883 | | | | 35,503,691 | | | | — | | | | — | | | | 140,407,791 | | | | 175,911,482 | |
| Sterling Capital Ultra Short Bond Fund | | | 4,499 | | | | — | | | | 4,499 | | | | (6,219 | ) | | | (1,290,531 | ) | | | 173,904 | | | | (1,118,346 | ) |
| Sterling Capital Short Duration Bond Fund | | | 206,224 | | | | — | | | | 206,224 | | | | (71,562 | ) | | | (13,021,625 | ) | | | 750,840 | | | | (12,136,123 | ) |
| Sterling Capital Intermediate U.S. Government Fund | | | 62,831 | | | | — | | | | 62,831 | | | | (781 | ) | | | (1,558,234 | ) | | | (1,185,449 | ) | | | (2,681,633 | ) |
| Sterling Capital Total Return Bond Fund | | | 2,205,380 | | | | — | | | | 2,205,380 | | | | (951,856 | ) | | | (114,158,588 | ) | | | (10,631,394 | ) | | | (123,536,458 | ) |
| Sterling Capital Long Duration Corporate Bond Fund | | | 11,935 | | | | — | | | | 11,935 | | | | (57 | ) | | | (4,328,453 | ) | | | (1,247,152 | ) | | | (5,563,727 | ) |
| Sterling Capital Quality Income Fund | | | 125,778 | | | | — | | | | 125,778 | | | | (123,845 | ) | | | (4,304,102 | ) | | | (3,320,559 | ) | | | (7,622,728 | ) |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | 221,874 | | | | — | | | | 221,874 | | | | (107,415 | ) | | | (6,495,315 | ) | | | 1,500,767 | | | | (4,880,089 | ) |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | 48,296 | | | | — | | | | 48,296 | | | | (19,647 | ) | | | (1,650,267 | ) | | | 419,637 | | | | (1,201,981 | ) |
| Sterling Capital Virginia Intermediate Tax- Free Fund | | | 129,163 | | | | — | | | | 129,163 | | | | (65,347 | ) | | | (2,619,541 | ) | | | 672,658 | | | | (1,883,067 | ) |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | 152,121 | | | | — | | | | 152,121 | | | | (69,541 | ) | | | (2,990,962 | ) | | | 327,925 | | | | (2,580,457 | ) |
| * | The primary differences between book basis and tax basis unrealized appreciation (depreciation) were due to the deferral of losses on wash sales, Passive Foreign Investment Companies, the deferral of market discount and premium until time of sale, and real estate investment trust adjustments. |
As of September 30, 2024, 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 | | $ | 29,926,163 | | | $ | 7,067,183 | | | $ | (171,291 | ) | | $ | 6,895,892 | |
| Sterling Capital Mid Value Fund | | | 36,498,027 | | | | 14,221,036 | | | | (2,266,079 | ) | | | 11,954,957 | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | 86,787,151 | | | | 23,647,162 | | | | (1,342,406 | ) | | | 22,304,756 | |
| Sterling Capital Special Opportunities Fund | | | 253,178,515 | | | | 180,322,837 | | | | (416,232 | ) | | | 179,906,605 | |
| Sterling Capital Equity Income Fund | | | 1,276,318,544 | | | | 621,909,029 | | | | (6,335,776 | ) | | | 615,573,253 | |
| Sterling Capital Behavioral International Equity Fund | | | 112,580,480 | | | | 22,924,982 | | | | (2,628,430 | ) | | | 20,296,552 | |
| Sterling Capital Mid Cap Relative Value Fund | | | 17,690,974 | | | | 22,832,954 | | | | (10,957 | ) | | | 22,821,997 | |
| Sterling Capital Real Estate Fund | | | 40,673,253 | | | | 35,039,081 | | | | (110,483 | ) | | | 34,928,598 | |
| Sterling Capital Small Cap Value Fund | | | 57,222,377 | | | | 140,748,064 | | | | (340,273 | ) | | | 140,407,791 | |
| Sterling Capital Ultra Short Bond Fund | | | 27,757,732 | | | | 181,934 | | | | (8,030 | ) | | | 173,904 | |
| Sterling Capital Short Duration Bond Fund | | | 44,597,351 | | | | 882,931 | | | | (132,091 | ) | | | 750,840 | |
| Sterling Capital Intermediate U.S. Government Fund | | | 19,292,041 | | | | — | | | | (1,185,449 | ) | | | (1,185,449 | ) |
| Sterling Capital Total Return Bond Fund | | | 1,507,376,127 | | | | 23,143,951 | | | | (33,775,345 | ) | | | (10,631,394 | ) |
| Sterling Capital Long Duration Corporate Bond Fund | | | 43,781,548 | | | | 956,408 | | | | (2,203,560 | ) | | | (1,247,152 | ) |
| Sterling Capital Quality Income Fund | | | 91,013,605 | | | | 893,496 | | | | (4,214,055 | ) | | | (3,320,559 | ) |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | 125,672,033 | | | | 1,760,951 | | | | (260,184 | ) | | | 1,500,767 | |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | 28,762,092 | | | | 481,862 | | | | (62,225 | ) | | | 419,637 | |
| Sterling Capital Virginia Intermediate Tax-Free Fund | | | 45,339,430 | | | | 761,480 | | | | (88,822 | ) | | | 672,658 | |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | 54,556,494 | | | | 538,722 | | | | (210,797 | ) | | | 327,925 | |
12. Material Events:
Announced on February 2, 2024, and as previously disclosed in a supplement to the Funds’ Retail Prospectus and Institutional Prospectus filed on February 29, 2024, Guardian Capital Group Limited (“Guardian”) entered into a unit purchase agreement under which Guardian’s wholly-owned subsidiary, Guardian Capital, would acquire 100% of the ownership interests of Sterling Capital from Truist Financial Corporation (the “Acquisition”). The closing of the Acquisition (the “Closing”) occurred on July 2, 2024. Effective upon the Closing of the Acquisition, Sterling Capital is a wholly-owned subsidiary of Guardian Capital and an indirect, wholly-owned subsidiary of Guardian. In connection with the Closing, shareholders of each Fund approved a new investment advisory contract with Sterling Capital with substantially similar terms and identical advisory fees as the previous contract. Guardian has indicated that it plans to operate Sterling Capital as a standalone entity, led by the current team of management and senior professionals.
STERLING CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2024
13. Subsequent Events:
Management has evaluated the need for the disclosure and/or adjustments resulting from subsequent events through the date the financial statements were issued, and has noted no events other than those noted below that require recognition or disclosure in the financial statements.
On November 20, 2024, the Board of Trustees of Sterling Capital Funds approved the liquidation of the Sterling Capital Behavioral International Equity Fund. The liquidation is expected to occur on or about January 24, 2025.
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 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 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 (the “Funds”) as of September 30, 2024, 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 financial highlights for each of the five years in the period then ended, and the related notes (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, 2024, 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
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.
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, 2024, 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.
Cleveland, Ohio
November 27, 2024
STERLING CAPITAL FUNDS
SUPPLEMENTAL INFORMATION (UNAUDITED)
September 30, 2024
Notice to Shareholders
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, 2024, each Fund is reporting the following items with regard to distributions paid during the year.
| | | Long-Term
Capital Gains | | | 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 | % | | | 100 | % | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Sterling Capital Mid Value Fund | | | 3,128,326 | | | $ | 98.24 | % | | $ | 97.66 | % | | | — | | | | — | | | | — | | | | — | |
| Sterling Capital Behavioral Small Cap Value Equity Fund | | | 91,614 | | | | 67.79 | % | | | 59.73 | % | | | — | | | | — | | | | — | | | | — | |
| Sterling Capital Special Opportunities Fund | | | 90,667,516 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Sterling Capital Equity Income Fund | | | 188,567,961 | | | | 87.97 | % | | | 83.47 | % | | | — | | | | — | | | | — | | | | — | |
| Sterling Capital Behavioral International Equity Fund | | | — | | | | 95.96 | % | | | — | | | | — | | | | — | | | | 505,236 | | | | 6,122,589 | |
| Sterling Capital Mid Cap Relative Value Fund | | | 5,285,585 | | | | 100 | % | | | 100 | % | | | — | | | | — | | | | — | | | | — | |
| Sterling Capital Real Estate Fund | | | 4,294,641 | | | | 0.02 | % | | | — | | | | — | | | | — | | | | — | | | | — | |
| Sterling Capital Small Cap Value Fund | | | 99,672,028 | | | | 100 | % | | | 100 | % | | | — | | | | — | | | | — | | | | — | |
| Sterling Capital Ultra Short Bond Fund | | | — | | | | — | | | | — | | | | — | | | | 0.55 | % | | | — | | | | — | |
| Sterling Capital Short Duration Bond Fund | | | — | | | | — | | | | — | | | | — | | | | 0.99 | % | | | — | | | | — | |
| Sterling Capital Intermediate U.S. Government Fund | | | — | | | | — | | | | — | | | | — | | | | 25.83 | % | | | — | | | | — | |
| Sterling Capital Total Return Bond Fund | | | — | | | | — | | | | — | | | | — | | | | 11.44 | % | | | — | | | | — | |
| Sterling Capital Long Duration Corporate Bond Fund | | | — | | | | — | | | | — | | | | — | | | | 0.31 | % | | | — | | | | — | |
| Sterling Capital Quality Income Fund | | | — | | | | — | | | | — | | | | — | | | | 16.10 | % | | | — | | | | — | |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | | | — | | | | — | | | | — | | | | 96.79 | % | | | — | | | | — | | | | — | |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | | | — | | | | — | | | | — | | | | 95.78 | % | | | — | | | | — | | | | — | |
| Sterling Capital Virginia Intermediate Tax-Free Fund | | | — | | | | — | | | | — | | | | 96.79 | % | | | — | | | | — | | | | — | |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | | | — | | | | — | | | | — | | | | 97.26 | % | | | — | | | | — | | | | — | |
Other Information
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 100%-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 100%-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.
STERLING CAPITAL FUNDS
BOARD CONSIDERATION OF ADVISORY AGREEMENTS (UNAUDITED)
September 30, 2024
Continuation of Current Advisory Agreement
The Board of Trustees conducted meetings in August and November 2023 to consider the continuance of the investment advisory agreement between Sterling Capital Funds (the “Trust”) and Sterling Capital Management LLC (“Sterling Capital” or the “Adviser”), the investment adviser to each series of the Trust (collectively, the “Funds”), for a new term running through January 31, 2025. The above referenced agreement is referred to herein as the “Advisory Agreement.”
The Trustees reviewed extensive material in connection with their consideration of the Advisory Agreement, including data from an independent provider of mutual fund data (as assembled by the Trust’s administrator), which, where applicable, included comparisons with a peer group of comparable funds (based on average share class assets) for advisory fees, administrator fees, 12b-1 fees, and total fund expenses. The Trustees considered the contractual advisory fee levels for each Fund, as well as the fee waivers that Sterling Capital had agreed to implement for certain Funds. The Trustees noted that, as detailed below, Sterling Capital had agreed to reduce its contractual advisory fee rate for a number of Funds in recent years as part of the annual contract review process. The Board was assisted in its review by independent legal counsel, who provided a memorandum detailing the legal standards for review of the Advisory Agreement. The Board received detailed presentations from Sterling Capital, including analysis of each Fund’s investment process and performance, and conducted site visits to the Adviser's offices in Charlotte, Raleigh and Virginia Beach. The Board also received and considered information from Sterling Capital relating to its profitability in respect of each Fund, and from all Funds in the aggregate. As part of their deliberations, the Independent Trustees conducted private meetings with their independent legal counsel, outside the presence of Sterling Capital and other Fund management.
In their deliberations regarding the Advisory Agreement, the Trustees attributed different weights to various factors involved in an analysis of the Advisory Agreement, and in each case no factor alone was considered determinative. The Trustees determined that the arrangement between the Trust and the Adviser, as provided in the Advisory Agreement, was fair and reasonable and that the continuance of the Advisory Agreement was in the best interests of each applicable Fund and its shareholders.
The Trustees considered the following factors, among others, in reaching their conclusions.
Nature, Extent and Quality of Services Provided by the Adviser
The Trustees received and considered information regarding the nature, extent, and quality of the services provided by the Adviser to each Fund under the Advisory Agreement. The Trustees took into account information furnished throughout the year by the Adviser at Board meetings, as well as materials furnished by the Adviser specifically in connection with the annual review process. The Trustees conducted periodic meetings with representatives of each Fund’s portfolio management team over the course of the year, and received periodic “deep dive” attribution analyses regarding specific Funds. The Trustees considered the background and experience of the Adviser’s senior management and the expertise of investment personnel of the Adviser responsible for the day-to-day management of each Fund. The Trustees considered the overall reputation of the Adviser, and the capabilities and commitment of the Adviser to provide high quality services to each Fund.
The Trustees received information concerning the investment philosophy and investment processes applied or to be applied by the Adviser in managing each Fund as well as the Adviser’s Form ADV. The Trustees also considered information regarding the Adviser’s and the Funds’ regulatory compliance and compliance with the investment policies of the Funds. The Trustees evaluated the Adviser’s trading practices, and considered the procedures of the Adviser designed to fulfill the Adviser’s fiduciary duty to the Funds with respect to possible conflicts of interest, including the Adviser’s code of ethics (regulating, among other things, the personal trading of its officers and employees). Based on their review, the Trustees concluded that, with respect to the nature, extent, and quality of services provided or to be provided by the Adviser, the nature and extent of responsibilities was or was expected to be consistent with mutual fund industry norms, and the quality of the services provided or to be provided by the Adviser was or was expected to be satisfactory or better.
Investment Performance
The Trustees considered the performance results of each Fund over various periods in absolute terms and relative to each Fund’s benchmark and peer fund categories determined by an independent third-party data provider. In conducting their review, the Trustees focused particular attention on cases where a Fund’s longer-term performance compared unfavorably with its relevant peer categories. The Trustees noted that Sterling Capital had been proactive in identifying and replacing underperforming portfolio managers over time and taking other steps to address underperformance concerns with certain Funds.
STERLING CAPITAL FUNDS
BOARD CONSIDERATION OF ADVISORY AGREEMENTS (UNAUDITED) (Continued)
September 30, 2024
After reviewing the performance of each Fund and taking into consideration the management style, investment strategies, and prevailing market conditions during the prior year and for longer periods, the Trustees concluded that the performance of each Fund was acceptable or better or that, in cases where performance issues were encountered, Sterling Capital had taken appropriate steps to address the situation.
Cost of Services, Including the Profits Realized by the Adviser and Affiliates, and Other Benefits The Trustees considered peer group information with respect to the advisory fees charged by Sterling Capital to each of the Funds, taking into consideration both contractual and actual (i.e., after fee waivers) fee levels. The Trustees concluded that the advisory fees paid by the Funds fell within an acceptable range as compared to peer groups, and were fair and reasonable, particularly in light of the fee waivers and reductions described below under “Economies of Scale.”
As part of their review, the Trustees considered benefits to Sterling Capital aside from advisory fees. The Trustees reviewed administration fees received by Sterling Capital and considered the fallout benefits to Sterling Capital such as the research services available to Sterling Capital by reason of brokerage commissions generated by the Funds’ portfolio transactions. The Trustees also considered benefits to Sterling Capital’s affiliates, including brokerage commissions received by a Sterling Capital affiliate from time to time for executing certain trades on behalf of the Funds. With respect to these trades, the Trustees considered Sterling Capital’s assurances that such trades were both infrequent and effected in accordance with board approved procedures.
The Trustees also considered information from Sterling Capital regarding fees for accounts managed by Sterling Capital with investment objectives and strategies similar to those of comparable Funds where applicable. This included information about the differences in services necessary to manage the Funds as compared to separate accounts, including management of cash flows and the need to comply with extensive and complex restrictions set by applicable regulations or established in Fund disclosure documents. Based on this information, the Trustees concluded that the differences between the services that Sterling Capital provides to the Funds and those it provides to separate accounts substantially limit the probative value of fee comparisons to those other separate account clients.
The Trustees also considered the reasonableness of current and proposed advisory fees in the context of the profitability of the Adviser. In determining whether the advisory fees were fair and reasonable, the Trustees considered profitability information provided by the Adviser with respect to investment advisory services. With respect to such information, the Trustees recognized that such profitability data was generally unaudited and represented the Adviser’s own determination of its and its affiliates’ revenues from the contractual services provided or expected to be provided to the Funds, less estimated expenses of providing such services. Expenses include direct and indirect costs and were calculated using an allocation methodology developed by the Adviser. Based on their review, the Trustees concluded that the profitability of the Adviser as a result of its relationships with the Funds was acceptable.
Based on the foregoing, the Trustees concluded that the fees proposed under the Advisory Agreement were fair and reasonable, in light of the services and benefits provided or expected to be provided to each Fund.
STERLING CAPITAL FUNDS
BOARD CONSIDERATION OF ADVISORY AGREEMENTS (UNAUDITED) (Continued)
September 30, 2024
Economies of Scale
The Trustees also considered whether fee levels reflect economies of scale and whether economies of scale would be produced by the growth of the Funds’ assets. The Trustees considered that Sterling Capital had taken steps to reduce the expense ratios for a number of Funds as part of the 2023 contract review process. In particular, Sterling Capital agreed to limit its advisory fee rates for the period February 1, 2024 to January 31, 2025 for Sterling Capital Quality Income Fund, Sterling Capital Ultra Short Bond Fund and Sterling Capital Intermediate U.S. Government Bond Fund as part of the 2023 contract review process. In addition, Sterling Capital agreed to implement total expense caps for the period February 1, 2024 to January 31, 2025 for, each share class for Sterling Capital Total Return Bond Fund, and Sterling Capital Long Duration Corporate Bond Fund, and to waive and/or reimburse certain expenses with respect to Class R6 shares of certain Funds. As part of the 2020 contract review process, Sterling Capital agreed to reduce its contractual advisory fee rate for the following Funds: Sterling Capital Mid Value Fund, Sterling Capital Behavioral International Equity Fund, Sterling Capital Mid Cap Relative Value Fund, Sterling Capital Small Cap Value Fund, Sterling Capital Short Duration Bond Fund, and Sterling Capital Total Return Bond Fund. As part of the 2021 contract review process, Sterling Capital agreed to reduce its contractual advisory fee rate for the Sterling Capital Long Duration Corporate Bond Fund. The Trustees found that, taking into account these fee waivers and reductions, each Fund’s fee schedule represents an appropriate sharing between the Fund and Sterling Capital of such economies of scale as may exist at current asset levels.
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
Ultimus Fund Solutions, LLC
225 Pictoria Drive
Cincinnati, OH 45246
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Cohen & Company, Ltd.
1350 Euclid Avenue, Suite 800
Cleveland, OH 44115
| Item 8. | Changes in and Disagreements with Accountants for Open-End Management Investment Companies. |
Not applicable.
| Item 9. | Proxy Disclosures for Open-End Management Investment Companies. |
Not applicable.
| Item 10. | Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
Included under Item 7.
| Item 11. | Statement Regarding Basis for Approval of Investment Advisory Contract. |
Included under Item 7.
| Item 12. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable to Registrant.
| Item 13. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable to Registrant.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15. 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 16. Controls and Procedures
(a) The registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures as of a date within 90 days of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) 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 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to Registrant.
Item 18. Recovery of Erroneously Awarded Compensation.
(a) Not applicable.
(b) Not applicable.
Item 19. Exhibits.
(a)(1) The registrant’s Code of Ethics is attached hereto.
(a)(2) Not applicable.
(a)(3) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act are attached hereto.
(b) Certifications required by Rule 30a-2(b) under the Act 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.
STERLING CAPITAL FUNDS
| Date: | 11/29/2024 | | | |
| | | | | |
| | | | /s/ James T. Gillespie | |
| | | | James T. Gillespie, President | |
| | | | (Principal Executive Officer) | |
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.
| Date: | 11/29/2024 | | | |
| | | | | |
| | | | /s/ James T. Gillespie | |
| | | | James T. Gillespie, President | |
| | | | (Principal Executive Officer) | |
| Date: | 11/29/2024 | | | |
| | | | | |
| | | | /s/ Todd M. Miller | |
| | | | Todd M. Miller, Treasurer | |
| | | | (Principal Financial Officer) | |
