Sterling
Capital
Ultra
Short
Bond
Fund
1
Schedule
of
Portfolio
Investments
June
30,
2024
(Unaudited)
See
accompanying
Notes
to
the
Schedule
of
Portfolio
Investments.
Principal
Amount
Fair
Value
ASSET
BACKED
SECURITIES
—
27
.7
%
$
288,920
AmeriCredit
Automobile
Receivables
Trust
,
Series
2021-2,
Class
B
,
0.690
%
,
1/19/27
.......................
$
284,624
400,000
AmeriCredit
Automobile
Receivables
Trust
,
Series
2024-1,
Class
A2A
,
5.750
%
,
2/18/28
.................
400,309
300,000
ARI
Fleet
Lease
Trust
,
Series
2022-A,
Class
A3
,
3.430
%
,
1/15/31
(a)
........
294,483
475,000
Avis
Budget
Rental
Car
Funding
AESOP,
LLC
,
Series
2019-3A,
Class
A
,
2.360
%
,
3/20/26
(a)
.....................
466,409
23,184
Carmax
Auto
Owner
Trust
,
Series
2022-4,
Class
A2A
,
5.340
%
,
12/15/25
.......
23,179
280,303
Carmax
Auto
Owner
Trust
,
Series
2023-3,
Class
A2A
,
5.720
%
,
11/16/26
.......
280,285
198,673
CarMax
Auto
Owner
Trust
,
Series
2020-4,
Class
A4
,
0.630
%
,
6/15/26
..........
195,753
325,000
Carmax
Select
Receivables
Trust
,
Series
2024-A,
Class
A2A
,
5.780
%
,
9/15/27
..
325,009
4,105
Carvana
Auto
Receivables
Trust
,
Series
2021-P2,
Class
A3
,
0.490
%
,
3/10/26
...
4,097
121,509
Chesapeake
Funding
II,
LLC
,
Series
2021-
1A,
Class
A1
,
0.470
%
,
4/15/33
(a)
.....
119,997
436,012
Chesapeake
Funding
II,
LLC
,
Series
2024-
1A,
Class
A1
,
5.520
%
,
5/15/36
(a)
.....
435,823
64
Citicorp
Residential
Mortgage
Trust
,
STEP,
Series
2007-2,
Class
A6
,
4.543
%
,
6/25/37
.......................
64
37,030
Enterprise
Fleet
Financing,
LLC
,
Series
2021-2,
Class
A2
,
0.480
%
,
5/20/27
(a)
..
36,578
547,000
Enterprise
Fleet
Financing,
LLC
,
Series
2022-1,
Class
A3
,
3.270
%
,
1/20/28
(a)
..
532,785
139,300
Enterprise
Fleet
Financing,
LLC
,
Series
2022-2,
Class
A2
,
4.650
%
,
5/21/29
(a)
..
138,241
350,000
Ford
Credit
Auto
Owner
Trust
,
Series
2022-A,
Class
B
,
1.910
%
,
7/15/27
....
331,594
395,000
Ford
Credit
Auto
Owner
Trust
2020-
REV1
,
Series
2020-1,
Class
A
,
2.040
%
,
8/15/31
(a)
.....................
386,201
275,000
Ford
Credit
Auto
Owner
Trust
2020-
REV2
,
Series
2020-2,
Class
A
,
1.060
%
,
4/15/33
(a)
.....................
259,729
200,000
Ford
Credit
Floorplan
Master
Owner
Trust
A
,
Series
2024-1,
Class
A2
,
6.083
%
,
(Secured
Overnight
Financing
Rate
30
Day
Average
plus
0.75%)
,
4/15/29
(a)
(b)
200,103
150,000
GM
Financial
Consumer
Automobile
Receivables
Trust
,
Series
2021-1,
Class
A4
,
0.540
%
,
5/17/27
..............
147,470
350,000
GreatAmerica
Leasing
Receivables
Funding,
LLC
,
Series
2021-2,
Class
B
,
1.310
%
,
9/15/27
(a)
...............
330,451
249,051
GreatAmerica
Leasing
Receivables
Funding,
LLC
,
Series
2023-1,
Class
A2
,
5.350
%
,
2/16/26
(a)
...............
248,540
Principal
Amount
Fair
Value
ASSET
BACKED
SECURITIES
—
(continued)
$
550,000
Hertz
Vehicle
Financing,
LLC
,
Series
2021-1A,
Class
A
,
1.210
%
,
12/26/25
(a)
$
542,714
283,000
Mercedes-Benz
Auto
Lease
Trust
,
Series
2024-A,
Class
A2B
,
5.753
%
,
(Secured
Overnight
Financing
Rate
30
Day
Average
plus
0.42%)
,
2/16/27
(b)
.....
283,000
207,261
OneMain
Direct
Auto
Receivables
Trust
2019-1
,
Series
2019-1A,
Class
A
,
3.630
%
,
9/14/27
(a)
...............
204,318
164,863
OneMain
Direct
Auto
Receivables
Trust
2021-1
,
Series
2021-1A,
Class
A
,
0.870
%
,
7/14/28
(a)
...............
159,802
33,173
OneMain
Financial
Issuance
Trust
,
Series
2018-2A,
Class
A
,
3.570
%
,
3/14/33
(a)
.
33,095
100,000
OneMain
Financial
Issuance
Trust
2021-1
,
Series
2021-1A,
Class
A2
,
6.093
%
,
(Secured
Overnight
Financing
Rate
30
Day
Average
plus
0.76%)
,
6/16/36
(a)
(b)
99,793
450,000
OneMain
Financial
Issuance
Trust
2022-
3
,
Series
2022-3A,
Class
A
,
5.940
%
,
5/15/34
(a)
.....................
451,187
300,000
PFS
Financing
Corp.
,
Series
2024-C,
Class
A
,
6.133
%
,
(Secured
Overnight
Financing
Rate
30
Day
Average
plus
0.80%)
,
4/15/28
(a)
(b)
.............
300,270
300,000
Santander
Drive
Auto
Receivables
Trust
,
Series
2022-5,
Class
B
,
4.430
%
,
3/15/27
298,170
163,694
Santander
Drive
Auto
Receivables
Trust
,
Series
2023-5,
Class
A2
,
6.310
%
,
7/15/27
.......................
164,080
229,689
Santander
Drive
Auto
Receivables
Trust
,
Series
2024-1,
Class
A2
,
5.710
%
,
2/16/27
.......................
229,738
225,000
SBA
Tower
Trust
,
STEP,
Series
2014-2A,
Class
C
,
3.869
%
,
10/15/49
(a)
........
223,545
378,642
SMB
Private
Education
Loan
Trust
,
Series
2019-B,
Class
A2B
,
6.443
%
,
(TSFR1M
plus
1.11%)
,
6/15/37
(a)
(b)
..........
379,535
138,027
SMB
Private
Education
Loan
Trust
,
Series
2024-C,
Class
A1B
,
6.433
%
,
(Secured
Overnight
Financing
Rate
30
Day
Average
plus
1.10%)
,
6/17/52
(a)
(b)
...
138,133
300,000
Synchrony
Card
Funding,
LLC
,
Series
2022-A1,
Class
A
,
3.370
%
,
4/15/28
...
294,703
350,000
Wheels
Fleet
Lease
Funding
1,
LLC
,
Series
2024-1A,
Class
A2
,
6.162
%
,
(TSFR1M
plus
0.83%)
,
2/18/39
(a)
(b)
..........
350,333
367,548
World
Omni
Auto
Receivables
Trust
,
Series
2020-C,
Class
A4
,
0.610
%
,
10/15/26
..
362,108
79,644
World
Omni
Auto
Receivables
Trust
,
Series
2021-B,
Class
A3
,
0.420
%
,
6/15/26
...
78,352
131,750
World
Omni
Select
Auto
Trust
,
Series
2023-A,
Class
A2A
,
5.920
%
,
3/15/27
..
131,796
Total
Asset
Backed
Securities
(Cost
$
10,136,973
)
...............
10,166,396
Sterling
Capital
Ultra
Short
Bond
Fund
2
Schedule
of
Portfolio
Investments
—
(continued)
June
30,
2024
(Unaudited)
Continued
Principal
Amount
Fair
Value
COLLATERALIZED
MORTGAGE
OBLIGATIONS
—
2
.9
%
$
126,822
Fannie
Mae
,
Series
2011-140,
Class
BH
,
2.500
%
,
1/25/27
.................
$
123,857
401,991
Fannie
Mae
,
Series
2015-80,
Class
VM
,
3.000
%
,
8/25/34
.................
395,228
197,171
Freddie
Mac
,
Series
4213,
Class
GV
,
3.500
%
,
6/15/26
.................
194,905
202,284
Freddie
Mac
,
Series
4841,
Class
PV
,
4.500
%
,
11/15/29
................
200,589
166,655
Ginnie
Mae
,
Series
2013-144,
Class
GA
,
2.500
%
,
12/20/40
................
162,724
Total
Collateralized
Mortgage
Obligations
(Cost
$
1,077,200
)
................
1,077,303
COMMERCIAL
MORTGAGE-BACKED
SECURITIES
—
8
.2
%
162,227
BX
Commercial
Mortgage
Trust
,
Series
2021-ACNT,
Class
C
,
6.943
%
,
(TSFR1M
plus
1.61%)
,
11/15/38
(a)
(b)
.
159,896
101,000
BX
Commercial
Mortgage
Trust
,
Series
2021-CIP,
Class
B
,
6.714
%
,
(TSFR1M
plus
1.39%)
,
12/15/38
(a)
(b)
.........
99,675
100,000
Citigroup
Commercial
Mortgage
Trust
,
Series
2015-GC33,
Class
A4
,
3.778
%
,
9/10/58
.......................
96,861
400,000
CSAIL
Commercial
Mortgage
Trust
,
Series
2015-C3,
Class
A4
,
3.718
%
,
8/15/48
..
389,358
154,820
ELP
Commercial
Mortgage
Trust
,
Series
2021-ELP,
Class
C
,
6.763
%
,
(TSFR1M
plus
1.43%)
,
11/15/38
(a)
(b)
.........
152,698
165,000
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
,
Series
K052,
Class
A2
,
3.151
%
,
11/25/25
(c)
...........
160,579
168,550
JPMBB
Commercial
Mortgage
Securities
Trust
,
Series
2014-C23,
Class
A5
,
3.934
%
,
9/15/47
.................
167,795
350,000
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
,
Series
2016-C29,
Class
A4
,
3.325
%
,
5/15/49
.................
334,589
122,200
OPG
Trust
,
Series
2021-PORT,
Class
C
,
6.275
%
,
(TSFR1M
plus
0.95%)
,
10/15/36
(a)
(b)
..................
119,947
391,000
Wells
Fargo
Commercial
Mortgage
Trust
,
Series
2014-LC18,
Class
A5
,
3.405
%
,
12/15/47
.......................
385,915
350,000
Wells
Fargo
Commercial
Mortgage
Trust
,
Series
2015-P2,
Class
A4
,
3.809
%
,
12/15/48
.......................
340,565
325,000
WFRBS
Commercial
Mortgage
Trust
,
Series
2014-C22,
Class
A5
,
3.752
%
,
9/15/57
.......................
320,677
Principal
Amount
Fair
Value
COMMERCIAL
MORTGAGE-BACKED
SECURITIES
—
(continued)
$
300,000
WFRBS
Commercial
Mortgage
Trust
,
Series
2014-C23,
Class
A5
,
3.917
%
,
10/15/57
.......................
$
296,568
Total
Commercial
Mortgage-Backed
Securities
(Cost
$
3,006,311
)
................
3,025,123
CORPORATE
BONDS
—
32
.2
%
Aerospace
&
Defense
—
0
.6
%
250,000
Boeing
Co.
(The)
,
2.600
%
,
10/30/25
....
239,037
Airlines
—
0
.6
%
225,000
Delta
Air
Lines,
Inc./SkyMiles
IP,
Ltd.
,
4.500
%
,
10/20/25
(a)
..............
222,271
Automobiles
—
2
.1
%
230,000
Ford
Motor
Credit
Co.,
LLC
,
2.300
%
,
2/10/25
.......................
224,877
250,000
General
Motors
Financial
Co.,
Inc.
,
5.976
%
,
(SOFR
plus
0.62%)
,
10/15/24
(b)
....................
250,093
310,000
Hyundai
Capital
America
,
1.000
%
,
9/17/24
(a)
.....................
306,785
781,755
Banks
—
3
.3
%
250,000
BPCE
SA
,
4.625
%
,
7/11/24
(a)
........
249,819
325,000
Citigroup,
Inc.
,
6.044
%
,
(SOFR
plus
0.69%)
,
10/30/24
(d)
..............
325,001
250,000
Fifth
Third
Bank
NA
,
5.852
%
,
(SOFRINDX
plus
1.23%)
,
10/27/25
(e)
.
249,781
150,000
Macquarie
Group,
Ltd.
,
6.066
%
,
(SOFR
plus
0.71%)
,
10/14/25
(a)
(b)
.........
150,053
250,000
Manufacturers
&
Traders
Trust
Co.
,
2.900
%
,
2/6/25
..................
245,401
1,220,055
Beverages
—
0
.7
%
250,000
Constellation
Brands,
Inc.
,
4.750
%
,
11/15/24
.......................
249,067
Capital
Goods
—
0
.7
%
250,000
Keysight
Technologies,
Inc.
,
4.550
%
,
10/30/24
.......................
249,304
Commercial
Services
&
Supplies
—
0
.6
%
216,000
GFL
Environmental,
Inc.
,
5.125
%
,
12/15/26
(a)
.....................
213,570
Diversified
REITs
—
1
.0
%
108,000
Ladder
Capital
Finance
Holdings
LLLP/
Ladder
Capital
Finance
Corp.
,
5.250
%
,
10/1/25
(a)
.....................
107,071
Sterling
Capital
Ultra
Short
Bond
Fund
3
Schedule
of
Portfolio
Investments
—
(continued)
June
30,
2024
(Unaudited)
Continued
Principal
Amount
Fair
Value
CORPORATE
BONDS
—
(continued)
Diversified
REITs
—
(continued)
$
250,000
VICI
Properties
L.P./VICI
Note
Co.,
Inc.
,
3.500
%
,
2/15/25
(a)
...............
$
246,644
353,715
Electric
Utilities
—
4
.6
%
250,000
Dominion
Energy,
Inc.
,
STEP
,
3.071
%
,
8/15/24
.......................
249,010
303,000
DTE
Energy
Co.
,
STEP,
Series
C
,
2.529
%
,
10/1/24
.......................
300,217
300,000
Entergy
Louisiana,
LLC
,
0.950
%
,
10/1/24
296,535
250,000
FirstEnergy
Transmission,
LLC
,
4.350
%
,
1/15/25
(a)
.....................
247,662
280,000
Georgia
Power
Co.
,
Series
A
,
2.200
%
,
9/15/24
.......................
277,865
85,000
NextEra
Energy
Capital
Holdings,
Inc.
,
6.051
%
,
3/1/25
..................
85,162
250,000
Niagara
Mohawk
Power
Corp.
,
3.508
%
,
10/1/24
(a)
.....................
248,275
1,704,726
Energy
Equipment
&
Services
—
2
.4
%
158,000
DCP
Midstream
Operating
L.P.
,
5.375
%
,
7/15/25
.......................
157,415
220,000
Energy
Transfer
L.P.
,
5.750
%
,
4/1/25
....
219,345
175,000
NuStar
Logistics
L.P.
,
5.750
%
,
10/1/25
..
173,905
341,000
Penske
Truck
Leasing
Co.
L.P./PTL
Finance
Corp.
,
3.450
%
,
7/1/24
(a)
.....
341,000
891,665
Equity
Real
Estate
Investment
Trusts
(REITS)
—
0
.6
%
225,000
Starwood
Property
Trust,
Inc.
,
3.625
%
,
7/15/26
(a)
.....................
211,624
Financial
Services
—
7
.5
%
300,000
AerCap
Ireland
Capital
DAC/AerCap
Global
Aviation
Trust
,
1.650
%
,
10/29/24
(f)
.....................
295,947
250,000
Air
Lease
Corp.
,
MTN
,
2.300
%
,
2/1/25
(f)
244,613
250,000
Ares
Capital
Corp.
,
3.250
%
,
7/15/25
....
242,889
250,000
Ares
Capital
Corp.
,
4.250
%
,
3/1/25
.....
246,892
300,000
Avolon
Holdings
Funding,
Ltd.
,
5.500
%
,
1/15/26
(a)
.....................
297,610
250,000
Blackstone
Private
Credit
Fund
,
2.700
%
,
1/15/25
.......................
245,356
300,000
Blue
Owl
Capital
Corp.
,
3.750
%
,
7/22/25
.
292,451
270,000
BNP
Paribas
SA
,
3.375
%
,
1/9/25
(a)
.....
266,477
250,000
FS
KKR
Capital
Corp.
,
1.650
%
,
10/12/24
246,810
400,000
Morgan
Stanley
,
Series
I
,
0.864
%
,
(SOFR
plus
0.75%)
,
10/21/25
(e)
...........
393,809
2,772,854
Gas
Utilities
—
0
.7
%
271,000
Sempra
,
3.300
%
,
4/1/25
.............
266,171
Principal
Amount
Fair
Value
CORPORATE
BONDS
—
(continued)
Health
Care
Equipment
&
Services
—
0
.8
%
$
300,000
HCA,
Inc.
,
5.375
%
,
2/1/25
...........
$
298,973
Insurance
—
2
.0
%
250,000
CNO
Global
Funding
,
1.650
%
,
1/6/25
(a)
.
244,294
200,000
GA
Global
Funding
Trust
,
0.800
%
,
9/13/24
(a)
.....................
197,773
300,000
Nationwide
Mutual
Insurance
Co.
,
7.891
%
,
(LIBOR
USD
3-Month
plus
2.29%)
,
12/15/24
(a)
(d)
..................
300,255
742,322
Multi-Utilities
—
0
.3
%
107,000
Newmont
Corp./Newcrest
Finance
Pty,
Ltd.
,
5.300
%
,
3/15/26
(a)
...........
106,948
Oil,
Gas
&
Consumable
Fuels
—
0
.7
%
250,000
Hess
Corp.
,
3.500
%
,
7/15/24
..........
249,766
Semiconductors
&
Semiconductor
Equipment
—
0
.7
%
250,000
Microchip
Technology,
Inc.
,
0.983
%
,
9/1/24
........................
247,885
Software
—
1
.6
%
300,000
Hewlett
Packard
Enterprise
Co.
,
5.900
%
,
10/1/24
.......................
299,960
275,000
VMware,
LLC
,
1.000
%
,
8/15/24
.......
273,324
573,284
Telecommunication
Services
—
0
.3
%
93,751
Sprint
Spectrum
Co.,
LLC/Sprint
Spectrum
Co.
II,
LLC/Sprint
Spectrum
Co.
III,
LLC
,
4.738
%
,
3/20/25
(a)
...........
92,969
Tobacco
—
0
.4
%
145,000
BAT
Capital
Corp.
,
3.222
%
,
8/15/24
....
144,456
Total
Corporate
Bonds
(Cost
$
11,829,827
)
...............
11,832,417
U.S.
TREASURY
BILLS
—
27
.7
%
9,200,000
7/9/24
(g)
......................
9,189,348
1,000,000
8/6/24
(g)
......................
994,780
Total
U.S.
Treasury
Bills
(Cost
$
10,184,176
)
...............
10,184,128
Sterling
Capital
Ultra
Short
Bond
Fund
4
Schedule
of
Portfolio
Investments
—
(continued)
June
30,
2024
(Unaudited)
Continued
Shares
Fair
Value
MONEY
MARKET
FUND
—
2
.6
%
949,644
Federated
Treasury
Obligations
Fund
,
Institutional
Shares
,
5.17
%
(h)
.......
$
949,644
Total
Money
Market
Fund
(Cost
$
949,644
)
.................
949,644
Total
Investments
—
101
.3
%
(Cost
$
37,184,131
)
............................
37,235,011
Net
Other
Assets
(Liabilities)
—
(
1
.3
)
%
..............
(
495,758
)
NET
ASSETS
—
100.0%
.......................
$
36,739,253
(a)
Rule
144A,
Section
4(a)(2)
or
other
security
that
is
restricted
as
to
resale
to
qualified
institutional
investors.
The
Advisor,
using
Board
approved
procedures,
has
deemed
these
securities
or
a
portion
of
these
securities
to
be
liquid.
(b)
The
interest
rate
for
this
floating
rate
note,
which
will
change
periodically,
is
based
either
on
the
prime
rate
or
an
index
of
market
rates.
The
reflected
rate
is
in
effect
as
of
June
30,
2024.
The
maturity
date
reflected
is
the
final
maturity
date.
(c)
Represents
securities
purchased
on
a
when-issued
basis.
At
June
30,
2024,
total
cost
of
investments
purchased
on
a
when-issued
basis
was
$160,340.
(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
June
30,
2024.
The
maturity
date
reflected
is
the
final
maturity
date.
(e)
Security
is
a
fix-to-float
security,
which
carries
a
fixed
coupon
until
a
certain
date,
upon
which
it
switches
to
a
floating
rate.
Rate
shown
is
the
fixed
rate.
(f)
Represents
that
all
or
a
portion
of
the
security
was
pledged
as
collateral
for
securities
purchased
on
a
when-issued
basis.
(g)
Yield
to
maturity
at
time
of
purchase.
(h)
Represents
the
current
yield
as
of
report
date.
MTN
Medium
Term
Note
STEP
Step
Coupon
Bond
5
Sterling
Capital
Funds
Notes
to
Schedule
of
Portfolio
Investments
-
Sterling
Capital
Ultra
Short
Bond
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
Ultra
Short
Bond
Fund
(referred
to
as
a
“Fund”).
The
Fund
is
a
“diversified”
fund
as
defined
in
the
1940
Act.
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.
6
Sterling
Capital
Funds
Notes
to
Schedule
of
Portfolio
Investments
-
Sterling
Capital
Ultra
Short
Bond
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).
Foreign
Currency
Translation
—
The
accounting
records
of
the
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.
Such
fluctuations
are
included
with
the
net
realized
and
unrealized
gain
or
loss
from
investments
and
foreign
currencies.
Forward
Foreign
Currency
Exchange
Contracts
—
The
Fund
may
enter
into
forward
foreign
currency
exchange
contracts
(foreign
currency
exchange
risk)
in
connection
with
planned
purchases
or
sales
of
securities
or
to
hedge
the
U.S.
dollar
value
of
Funds
securities
denominated
in
a
particular
currency.
A
foreign
currency
exchange
contract
is
an
agreement
between
two
parties
to
buy
and
sell
a
currency
at
a
set
exchange
rate
on
a
future
date.
The
Fund
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
Fund’s
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
purposes
of
this
schedule
as
unrealized
gains
or
losses
until
the
contract
settlement
date.
When
the
contract
is
closed,
the
Fund
records
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
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
did
not
hold
any
mortgage
dollar
rolls
during
the
period.
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
Level
1-
Quoted
Prices
Level
2-
Other
Significant
Observable
Inputs
Level
3-
Significant
Unobservable
Inputs
Total
Assets:
Investments
in
Securities
Sterling
Capital
Ultra
Short
Bond
Fund
................
$
949,644
(a)
$
36,285,367
(b)
$
—
$
37,235,011
(a)
Represents
money
market
funds
and/or
certain
preferred
stocks.
(b)
Industries,
countries
or
security
types
are
disclosed
in
the
Schedule
of
Portfolio
Investments.
7
Sterling
Capital
Funds
Notes
to
Schedule
of
Portfolio
Investments
-
Sterling
Capital
Ultra
Short
Bond
Fund
—
(continued)
June
30,
2024
(Unaudited)
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.
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
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
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.