Sterling
Capital
North
Carolina
Intermediate
Tax-Free
Fund
1
Schedule
of
Portfolio
Investments
June
30,
2024
(Unaudited)
See
accompanying
Notes
to
the
Schedule
of
Portfolio
Investments.
Principal
Amount
Fair
Value
MUNICIPAL
BONDS
—
98
.0
%
North
Carolina
—
98
.0
%
$
575,000
Brunswick
County
,
NC,
Combined
Enterprise
System
Revenue
Bonds
,
Callable
2/1/33
@
100
,
5.000
%
,
2/1/41
.
$
639,314
500,000
Brunswick
County
,
NC,
Combined
Enterprise
System
Revenue
Bonds
,
Callable
2/1/33
@
100
,
5.000
%
,
2/1/42
.
553,815
2,000,000
Brunswick
County,
NC
,
School
Improvements
G.O.
,
5.000
%
,
8/1/25
...
2,038,180
2,000,000
Buncombe
County
,
School
Improvements
Revenue
Bonds,
Series
B
,
Callable
6/1/34
@
100
,
5.000
%
,
6/1/36
.......
2,326,360
1,025,000
Buncombe
County
Metropolitan
Sewerage
District
,
Sewer
Improvements
Revenue
,
Callable
7/29/24
@
100
,
5.000
%
,
7/1/39
1,025,933
1,475,000
Buncombe
County
,
NC,
Advance
Refunding
Revenue
Limited
Obligation
,
Callable
6/1/25
@
100
,
5.000
%
,
6/1/28
.
1,494,101
1,100,000
Cabarrus
County
,
NC,
Refunding
Revenue
Bonds,
Series
A
,
5.000
%
,
6/1/31
.....
1,238,919
1,000,000
Charlotte
,
NC,
Charlotte
Douglas
International
Airport
Refunding
Revenue
,
Callable
7/29/24
@
100
,
5.000
%
,
7/1/31
..................
1,001,030
1,695,000
Charlotte
,
NC,
Current
Refunding
G.O.,
Series
A
,
5.000
%
,
6/1/29
...........
1,853,974
2,000,000
Charlotte
,
NC,
Current
Refunding
G.O.,
Series
A
,
Callable
6/1/29
@
100
,
5.000
%
,
6/1/34
..................
2,181,780
2,000,000
Charlotte
,
NC,
Public
Facilities,
Certificate
of
Participation,
Series
B
,
Callable
12/1/31
@
100
,
5.000
%
,
12/1/32
.....
2,264,340
2,275,000
Charlotte
,
NC,
Recreational
Facilities
Improvements
Revenue
,
Callable
12/1/28
@
100
,
5.000
%
,
12/1/33
...........
2,452,177
1,520,000
Charlotte
,
NC,
Recreational
Facilities
Improvements
Revenue
,
Callable
12/1/28
@
100
,
5.000
%
,
12/1/34
...........
1,634,927
1,190,000
Charlotte,
NC,
Water
&
Sewer
System
Revenue
,
Current
Refunding
Revenue
Bonds
,
5.000
%
,
7/1/26
............
1,232,543
2,650,000
Charlotte,
NC,
Water
&
Sewer
System
Revenue
,
Refunding
Revenue
Bonds,
Series
A
,
Callable
7/1/32
@
100
,
5.000
%
,
7/1/39
..................
2,991,771
2,035,000
Chatham
County
,
NC,
Refunding
Revenue
(County
Guaranteed)
,
5.000
%
,
12/1/28
.
2,107,222
2,100,000
Concord
,
NC,
Recreational
Facility
Improvements
G.O.
,
Callable
9/1/33
@
100
,
5.000
%
,
9/1/34
..............
2,443,644
1,150,000
Currituck
County
,
NC,
School
Improvements
Revenue
Bonds
,
Callable
4/1/33
@
100
,
5.000
%
,
4/1/36
.......
1,304,054
Principal
Amount
Fair
Value
MUNICIPAL
BONDS
—
(continued)
North
Carolina
—
(continued)
$
1,150,000
Currituck
County
,
NC,
School
Improvements
Revenue
Bonds
,
Callable
4/1/33
@
100
,
5.000
%
,
4/1/37
.......
$
1,299,891
1,000,000
Currituck
County
,
NC,
School
Improvements
Revenue
Bonds
,
Callable
4/1/33
@
100
,
5.000
%
,
4/1/38
.......
1,123,590
1,890,000
Durham
County
,
NC,
Current
Refunding
G.O.
,
5.000
%
,
6/1/29
..............
2,068,170
1,225,000
East
Carolina
University
,
University
&
College
Improvements
Revenue,
Series
A
,
Callable
4/1/26
@
100
,
5.000
%
,
10/1/27
.......................
1,255,674
1,000,000
Elizabeth
City
State
University
,
Board
of
Governors
of
NC,
Advance
Refunding
Revenue
Bonds
,
Callable
4/1/29
@
100
(AGM)
,
5.000
%
,
4/1/40
............
1,040,440
1,690,000
Fayetteville
,
NC,
Public
Works
Commission,
Multi-Utility
Improvements
Revenue
,
Callable
3/1/28
@
100
,
5.000
%
,
3/1/29
..................
1,797,298
2,000,000
Greensboro
,
NC,
Recreational
Facility
Improvements
G.O.,
Series
B
,
Callable
4/1/32
@
100
,
5.000
%
,
4/1/40
.......
2,234,620
1,675,000
Guilford
County
,
NC,
Advance
Refunding,
G.O.,
Series
A
,
Callable
2/1/26
@
100
,
5.000
%
,
2/1/28
..................
1,719,538
1,500,000
Guilford
County,
NC
,
School
Improvements
G.O.
,
Callable
3/1/34
@
100
,
4.000
%
,
3/1/40
..............
1,558,110
880,000
Johnston
County
,
NC,
Water
Utility
Improvements
Revenue
Bonds
,
Callable
4/1/33
@
100
,
5.000
%
,
4/1/39
.......
993,370
1,000,000
Mecklenburg
County,
NC
,
Advance
Refunding
G.O.,
Series
A
,
5.000
%
,
12/1/25
.......................
1,025,610
1,195,000
Monroe
,
NC,
Advance
Refunding
Revenue
Bonds
,
Callable
3/1/26
@
100
,
5.000
%
,
3/1/29
........................
1,224,660
1,000,000
North
Carolina
Agricultural
&
Technical
State
University
,
Series
A,
Refunding
Revenue
,
Callable
10/1/25
@
100
,
5.000
%
,
10/1/32
.................
1,013,160
1,215,000
North
Carolina
Agricultural
&
Technical
State
University
,
Series
A,
Refunding
Revenue
,
Callable
10/1/25
@
100
,
5.000
%
,
10/1/34
.................
1,230,102
500,000
North
Carolina
Agricultural
&
Technical
State
University
,
University
&
College
Improvements
Revenue
Bonds
,
Callable
10/1/33
@
100
,
5.000
%
,
10/1/43
.....
544,190
500,000
North
Carolina
Agricultural
&
Technical
State
University
,
University
&
College
Improvements
Revenue
Bonds
,
Callable
10/1/33
@
100
,
5.000
%
,
10/1/48
.....
535,965
Sterling
Capital
North
Carolina
Intermediate
Tax-Free
Fund
2
Schedule
of
Portfolio
Investments
—
(continued)
June
30,
2024
(Unaudited)
Continued
Principal
Amount
Fair
Value
MUNICIPAL
BONDS
—
(continued)
North
Carolina
—
(continued)
$
1,000,000
North
Carolina
Agricultural
&
Technical
State
University
,
University
&
College
Improvements
Revenue
Bonds
,
Callable
10/1/33
@
100
,
5.000
%
,
10/1/52
.....
$
1,066,240
750,000
North
Carolina
Capital
Facilities
Finance
Agency
,
Meredith
College
Project,
Refunding
Revenue
,
5.000
%
,
6/1/25
...
757,313
1,045,000
North
Carolina
Capital
Facilities
Finance
Agency
,
The
Arc
of
North
Carolina
Project,
Refunding
Revenue
(Housing
and
Urban
Development,
Section
8)
,
5.000
%
,
10/1/25
.................
1,050,267
1,750,000
North
Carolina
Capital
Facilities
Finance
Agency
,
The
Arc
of
North
Carolina
Project,
Refunding
Revenue
,
Callable
10/1/27
@
100
(Housing
and
Urban
Development,
Section
8)
,
5.000
%
,
10/1/34
.......................
1,758,715
1,205,000
North
Carolina
Central
University
,
University
&
College
Improvements,
Revenue
Bonds
,
Callable
4/1/29
@
100
,
5.000
%
,
4/1/33
..................
1,278,445
1,000,000
North
Carolina
Central
University
,
University
&
College
Improvements,
Revenue
Bonds
,
Callable
4/1/29
@
100
,
5.000
%
,
4/1/37
..................
1,053,780
2,000,000
North
Carolina
Medical
Care
Commission
,
Advance
Refunding
Revenue
Bonds,
Vidant
Health
,
Callable
6/1/25
@
100
,
5.000
%
,
6/1/40
..................
2,014,920
2,500,000
North
Carolina
Medical
Care
Commission
,
Health
Care
Facilities
Revenue
Bonds,
Series
B
,
5.000
%
,
2/1/51
(a)
.........
2,550,975
1,500,000
North
Carolina
Medical
Care
Commission
,
Health,
Hospital
and
Nursinghome
Improvements,
Revenue
Bonds,
Series
A
,
Callable
1/1/30
@
100
,
5.000
%
,
7/1/32
.
1,609,830
1,040,000
North
Carolina
Municipal
Power
Agency
No.
1
,
Advance
Refunding
Revenue
Bonds,
Series
A
,
Callable
7/1/26
@
100
,
5.000
%
,
1/1/29
..................
1,068,371
2,100,000
North
Carolina
State
,
Advance
Refunding
Revenue
Bonds,
Series
B
,
Callable
5/1/27
@
100
,
5.000
%
,
5/1/28
.......
2,202,018
3,000,000
North
Carolina
State
,
Advance
Refunding
Revenue
Bonds,
Series
B
,
Callable
5/1/27
@
100
,
5.000
%
,
5/1/30
(b)
.....
3,144,180
2,500,000
North
Carolina
State
,
Build
North
Carolina
Bonds,
Highway
Improvements
Revenue
Bonds,
Series
A
,
Callable
5/1/29
@
100
,
5.000
%
,
5/1/31
..................
2,706,050
3,000,000
North
Carolina
State
,
Highway
Improvements
Revenue
Bonds,
Series
N
,
Callable
3/1/31
@
100
,
4.000
%
,
3/1/34
.
3,119,700
Principal
Amount
Fair
Value
MUNICIPAL
BONDS
—
(continued)
North
Carolina
—
(continued)
$
1,250,000
North
Carolina
Turnpike
Authority
,
Senior
Lien,
Advance
Refunding
Revenue
(AGM)
,
5.000
%
,
1/1/26
............
$
1,277,962
1,500,000
North
Carolina
Turnpike
Authority
,
Senior
Lien,
Advance
Refunding
Revenue
(AGM)
,
5.000
%
,
1/1/27
............
1,557,060
2,100,000
North
Carolina
Turnpike
Authority
,
Senior
Lien,
Advance
Refunding
Revenue
,
Callable
1/1/27
@
100
(AGM)
,
5.000
%
,
1/1/28
........................
2,181,648
1,060,000
Pitt
County
,
NC,
Advance
Refunding
Revenue
Bonds,
Series
B
,
Callable
10/1/26
@
100
,
5.000
%
,
4/1/30
......
1,093,793
2,000,000
Raleigh
,
NC,
Refunding
Notes
G.O.,
Series
A
,
Callable
4/1/33
@
100
,
5.000
%
,
4/1/35
........................
2,306,480
1,025,000
Raleigh
,
NC,
Refunding
Notes
G.O.,
Series
A
,
Callable
4/1/33
@
100
,
5.000
%
,
4/1/36
........................
1,179,078
2,200,000
Raleigh
,
NC,
Refunding
Notes
G.O.,
Series
A
,
Callable
4/1/33
@
100
,
5.000
%
,
4/1/40
........................
2,479,774
3,000,000
Raleigh,
NC,
Combined
Enterprise
System
Revenue
,
Current
Refunding
Revenue
Bonds
,
Callable
9/1/33
@
100
,
5.000
%
,
9/1/48
........................
3,300,600
1,985,000
Sampson
County
,
NC,
Refunding
Revenue
,
Callable
12/1/25
@
100
,
5.000
%
,
12/1/26
(b)
.....................
2,024,700
1,025,000
Surry
County
,
NC,
School
Improvements,
Revenue
Bonds
,
Callable
6/1/29
@
100
,
4.000
%
,
6/1/35
..................
1,040,693
720,000
Surry
County
,
NC,
School
Improvements,
Revenue
Bonds
,
Callable
6/1/29
@
100
,
5.000
%
,
6/1/30
..................
779,983
1,470,000
Town
of
Apex
NC
,
Public
Improvements
G.O.,
Series
B
,
Callable
2/1/33
@
100
,
5.000
%
,
2/1/35
(b)
................
1,690,544
1,195,000
Town
of
Fuquay-Varina
NC
,
Multi-Utility
Improvements
G.O.
,
5.000
%
,
8/1/31
...
1,351,688
1,425,000
Town
of
Fuquay-Varina
NC
,
Multi-Utility
Improvements
G.O.
,
Callable
8/1/33
@
100
,
5.000
%
,
8/1/37
..............
1,637,439
1,080,000
Town
of
Garner
NC
,
Public
Improvements
G.O.
,
5.000
%
,
2/1/31
..............
1,213,639
1,080,000
Town
of
Garner
NC
,
Public
Improvements
G.O.
,
Callable
2/1/33
@
100
,
5.000
%
,
2/1/34
........................
1,246,925
1,010,000
Town
of
Holly
Springs
,
NC,
Public
Improvements
Revenue
,
Callable
10/1/24
@
100
,
5.000
%
,
10/1/27
...........
1,012,939
870,000
Town
of
Oak
Island
,
NC,
Combined
Enterprise
System,
Advance
Refunding
Revenue
(AGM)
,
5.000
%
,
6/1/25
.....
882,180
Sterling
Capital
North
Carolina
Intermediate
Tax-Free
Fund
3
Schedule
of
Portfolio
Investments
—
(continued)
June
30,
2024
(Unaudited)
Continued
Principal
Amount
Fair
Value
MUNICIPAL
BONDS
—
(continued)
North
Carolina
—
(continued)
$
1,030,000
Union
County
,
NC,
Public
Improvements
Bonds
G.O.
,
Callable
3/1/32
@
100
,
5.000
%
,
3/1/34
..................
$
1,174,035
1,720,000
Union
County
,
School
Improvements
G.O.
,
Callable
9/1/33
@
100
,
5.000
%
,
9/1/42
.
1,929,960
1,500,000
University
of
North
Carolina
at
Chapel
Hill
,
Current
Refunding
Revenue
Bonds,
Series
B
,
Callable
12/1/31
@
100
,
5.000
%
,
12/1/36
.................
1,710,060
1,100,000
University
of
North
Carolina
at
Wilmington
,
Current
Refunding
Revenue
Bonds,
Series
B
,
Callable
10/1/29
@
100
,
5.000
%
,
10/1/34
.............
1,197,790
410,000
University
of
North
Carolina
System
,
Asheville/Wilmington,
Refunding
Revenue,
Series
C
,
Callable
7/29/24
@
100
(Assured
Guaranty)
,
5.250
%
,
10/1/24
.......................
410,381
1,585,000
Wake
County
,
NC,
Public
Improvements,
G.O.,
Series
A
,
Callable
3/1/28
@
100
,
5.000
%
,
3/1/30
..................
1,694,539
1,725,000
Wake
County
,
NC,
Refunding
Revenue
Bonds,
Series
A
,
Callable
8/1/28
@
100
,
5.000
%
,
8/1/32
..................
1,854,030
325,000
Watauga
Public
Facilities
Corp.
,
School
Improvements
Revenue
Bonds
,
Callable
6/1/32
@
100
,
5.000
%
,
6/1/35
.......
365,463
400,000
Watauga
Public
Facilities
Corp.
,
School
Improvements
Revenue
Bonds
,
Callable
6/1/32
@
100
,
5.000
%
,
6/1/36
.......
448,600
375,000
Watauga
Public
Facilities
Corp.
,
School
Improvements
Revenue
Bonds
,
Callable
6/1/32
@
100
,
5.000
%
,
6/1/37
.......
419,318
375,000
Watauga
Public
Facilities
Corp.
,
School
Improvements
Revenue
Bonds
,
Callable
6/1/32
@
100
,
5.000
%
,
6/1/38
.......
417,120
350,000
Watauga
Public
Facilities
Corp.
,
School
Improvements
Revenue
Bonds
,
Callable
6/1/32
@
100
,
5.250
%
,
6/1/40
.......
391,454
650,000
Watauga
Public
Facilities
Corp.
,
School
Improvements
Revenue
Bonds
,
Callable
6/1/32
@
100
,
5.250
%
,
6/1/42
.......
721,643
2,060,000
Wilmington,
NC
,
Public
Improvements
G.O.,
Series
A
,
5.000
%
,
5/1/31
.......
2,328,068
1,875,000
Winston-Salem
,
NC,
Water
&
Sewer
System,
Refunding
Revenue,
Series
A
,
Callable
7/29/24
@
100
,
5.000
%
,
6/1/25
(b)
......................
1,877,438
1,365,000
Winston-Salem,
NC
,
Public
Improvements
G.O.,
Series
B
,
Callable
6/1/33
@
100
,
5.000
%
,
6/1/35
..................
1,576,316
Total
Municipal
Bonds
(Cost
$
123,964,416
)
..............
123,602,616
Shares
Fair
Value
MONEY
MARKET
FUND
—
0
.9
%
1,171,746
Federated
Treasury
Obligations
Fund
,
Institutional
Shares
,
5.17
%
(c)
.......
$
1,171,746
Total
Money
Market
Fund
(Cost
$
1,171,746
)
................
1,171,746
Total
Investments
—
98
.9
%
(Cost
$
125,136,162
)
...........................
124,774,362
Net
Other
Assets
(Liabilities)
—
1
.1
%
...............
1,387,612
NET
ASSETS
—
100.0%
.......................
$
126,161,974
(a)
The
interest
rate
for
this
variable
rate
note,
which
will
change
periodically,
is
based
either
on
the
prime
rate
or
an
index
of
market
rates.
The
reflected
rate
is
in
effect
as
of
June
30,
2024.
The
maturity
date
reflected
is
the
final
maturity
date.
(b)
All
or
a
portion
of
the
securities
are
held
in
a
separate
collateral
account
at
US
Bank.
(c)
Represents
the
current
yield
as
of
report
date.
AGM
Assured
Guaranty
Municipal
Corp.
G.O.
General
Obligation
4
Sterling
Capital
Funds
Notes
to
Schedule
of
Portfolio
Investments
-
Sterling
Capital
North
Carolina
Intermediate
Tax-Free
Fund
June
30,
2024
(Unaudited)
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
North
Carolina
Intermediate
Tax-Free
Fund
(referred
to
as
a
“Fund”).
The
Fund
is
a
“non-diversified”
fund,
as
defined
in
the
1940
Act,
which
means
it
may
invest
in
the
securities
of
a
limited
number
of
issuers.
2.
Significant
Accounting
Policies:
The
Fund
is
an
investment
company
and
accordingly
follows
the
investment
company
accounting
and
reporting
guidance
of
the
Financial
Accounting
Standards
Board
(“FASB”)
Accounting
Standard
Codification
Topic
946
Financial
Services-
Investment
Companies.
The
following
is
a
summary
of
significant
accounting
policies
followed
by
the
Fund.
The
policies
are
in
conformity
with
United
States
generally
accepted
accounting
principles
(“U.S.
GAAP”).
The
preparation
of
this
schedule
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
schedule
and
the
reported
amount
of
income
and
expense
for
the
reporting
period.
Actual
result
could
differ
from
those
estimates.
Securities
Valuation
—
Investments
of
the
Fund
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
Fund
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
or
deemed
unreliable
(e.g.,
an
approved
pricing
service
does
not
provide
a
price,
a
furnished
price
is
in
error,
certain
stale
prices,
or
an
event
occurs
that
materially
affects
the
furnished
price)
will
be
fair
valued
in
accordance
with
procedures
established
in
good
faith
under
the
general
supervision
of
the
Board.
Fair
Value
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
period
ended
June
30,
2024
,
there
were
no
significant
changes
to
the
valuation
policies
and
procedures.
5
Sterling
Capital
Funds
Notes
to
Schedule
of
Portfolio
Investments
-
Sterling
Capital
North
Carolina
Intermediate
Tax-Free
Fund
—
(continued)
June
30,
2024
(Unaudited)
The
summary
of
inputs
used
to
determine
the
fair
value
of
the
Fund’s
investments
as
of
June
30,
2024
is
as
follows:
Cash
and
Cash
Equivalents
—
The
Fund
considers
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
Fund
may
invest
its
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
Fund
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).
Mortgage
Dollar
Rolls
—
The
Fund
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
Fund
accounts
for
mortgage
dollar
roll
transactions
as
purchases
and
sales.
The
Fund
does
not
hold
any
mortgage
dollar
rolls
during
the
period.
When-Issued
—
The
Fund
may
purchase
securities
on
a
“when-issued”
basis.
The
Fund
records
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
to
purchase
securities,
and
any
subsequent
fluctuation
in
their
value,
is
taken
into
account
when
determining
the
net
asset
value
of
the
Fund
commencing
with
the
date
the
Fund
agrees
to
purchase
the
securities.
The
Fund
does
not
accrue
interest
or
dividends
on
“when-issued”
securities
until
the
underlying
securities
are
received.
3.
Concentration
of
Credit
Risk:
The
Fund
invests
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.
Level
1-
Quoted
Prices
Level
2-
Other
Significant
Observable
Inputs
Level
3-
Significant
Unobservable
Inputs
Total
Assets:
Investments
in
Securities
Sterling
Capital
North
Carolina
Intermediate
Tax-Free
Fund
.
$
1,171,746
(a)
$
123,602,616
(b)
$
—
$
124,774,362
(a)
Represents
money
market
funds
and/or
certain
preferred
stocks.
(b)
Industries,
countries
or
security
types
are
disclosed
in
the
Schedule
of
Portfolio
Investments.