Sterling
Capital
Intermediate
U.S.
Government
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
—
2.0%
$
100,000
Avis
Budget
Rental
Car
Funding
AESOP,
LLC,
Series
2019-3A,
Class
A,
2.360%,
3/20/26(a)
.....................
$
98,191
183,000
Avis
Budget
Rental
Car
Funding
AESOP,
LLC,
Series
2024-1A,
Class
A,
5.360%,
6/20/30(a)
.....................
182,239
70,983
United
States
Small
Business
Administration,
Series
2015-20G,
Class
1,
2.880%,
7/1/35(b)
..............
65,347
Total
Asset
Backed
Securities
(Cost
$354,223)
.................
345,777
COLLATERALIZED
MORTGAGE
OBLIGATIONS
—
22.8%
31,010
Fannie
Mae,
Series
2003-44,
Class
Q,
3.500%,
6/25/33
.................
29,767
132,571
Fannie
Mae,
Series
2005-31,
Class
PB,
5.500%,
4/25/35
.................
133,547
130,240
Fannie
Mae,
Series
2012-150,
Class
KA,
1.750%,
1/25/43
.................
106,119
199,784
Fannie
Mae,
Series
2012-87,
Class
MB,
2.000%,
5/25/42
.................
179,273
74,416
Fannie
Mae,
Series
2013-44,
Class
DJ,
1.850%,
5/25/33
.................
67,405
134,339
Fannie
Mae,
Series
2016-24,
Class
CD,
1.750%,
2/25/46
.................
110,471
33,377
Fannie
Mae,
Series
2016-49,
Class
DA,
3.500%,
10/25/42
................
32,763
172,272
Fannie
Mae,
Series
2016-49,
Class
PA,
3.000%,
9/25/45
.................
157,707
221,631
Fannie
Mae,
Series
2016-88,
Class
PK,
2.500%,
3/25/46
.................
197,546
186,080
Fannie
Mae,
Series
2019-25,
Class
PD,
2.500%,
5/25/48
.................
162,021
143,497
Freddie
Mac,
Series
3787,
Class
LM,
4.000%,
1/15/31
.................
140,429
59,163
Freddie
Mac,
Series
4122,
Class
BC,
3.000%,
5/15/40
.................
54,851
78,033
Freddie
Mac,
Series
4151,
Class
PA,
2.000%,
1/15/33
.................
72,357
175,000
Freddie
Mac,
Series
4172,
Class
KB,
3.000%,
2/15/33
.................
157,217
158,559
Freddie
Mac,
Series
4173,
Class
NB,
3.000%,
3/15/43
.................
140,973
375,192
Freddie
Mac,
Series
4601,
Class
NJ,
1.900%,
9/15/45
.................
323,286
102,893
Freddie
Mac,
Series
4656,
Class
PA,
3.500%,
10/15/45
................
97,723
315,000
Freddie
Mac,
Series
4669,
Class
QY,
3.500%,
9/15/44
.................
296,256
166,541
Freddie
Mac,
Series
4863,
Class
AJ,
3.500%,
7/15/38
.................
157,638
205,989
Freddie
Mac,
Series
4942,
Class
NC,
2.500%,
10/25/49
................
175,065
129,329
Freddie
Mac,
Series
5380,
Class
A,
5.500%,
9/25/47
.................
127,342
Principal
Amount
Fair
Value
COLLATERALIZED
MORTGAGE
OBLIGATIONS
—
(continued)
$
161,995
Ginnie
Mae,
Series
2011-137,
Class
WA,
5.590%,
7/20/40(c)
...............
$
163,081
48,861
Ginnie
Mae,
Series
2013-133,
Class
PL,
3.500%,
2/16/37
.................
47,119
45,703
Ginnie
Mae,
Series
2015-162,
Class
EB,
2.500%,
9/20/44
.................
42,243
206,328
Ginnie
Mae,
Series
2022-137,
Class
PA,
4.000%,
5/20/52
.................
194,835
237,602
Ginnie
Mae,
Series
2023-181,
Class
AV,
5.500%,
2/20/33
.................
237,892
162,908
Ginnie
Mae,
Series
2023-79,
Class
DV,
5.500%,
5/20/34
.................
163,765
150,000
Ginnie
Mae,
Series
2023-81,
Class
AL,
4.500%,
8/20/40
.................
143,554
Total
Collateralized
Mortgage
Obligations
(Cost
$4,164,913)
................
3,912,245
COMMERCIAL
MORTGAGE-BACKED
SECURITIES
—
20.4%
150,000
BANK5
Trust,
Series
2024-5YR6,
Class
A3,
6.225%,
5/15/57
..............
155,044
100,000
BANK5
Trust,
Series
2024-5YR6,
Class
AS,
6.790%,
5/15/57(c)
............
104,216
136,114
Citigroup
Commercial
Mortgage
Trust,
Series
2015-GC29,
Class
A3,
2.935%,
4/10/48
.......................
133,755
372,406
Fannie
Mae-Aces,
Series
2015-M17,
Class
A2,
3.005%,
11/25/25(c)
...........
361,647
382,437
Fannie
Mae-Aces,
Series
2017-M7,
Class
A2,
2.961%,
2/25/27(c)
............
363,771
211,178
Fannie
Mae-Aces,
Series
2017-M8,
Class
A2,
3.061%,
5/25/27(c)
............
201,017
388,420
Fannie
Mae-Aces,
Series
2018-M10,
Class
A2,
3.469%,
7/25/28(c)
............
369,611
139,399
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates,
Series
K049,
Class
A2,
3.010%,
7/25/25
..............
136,101
210,000
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates,
Series
K060,
Class
A2,
3.300%,
10/25/26
.............
202,104
493,416
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates,
Series
K061,
Class
A2,
3.347%,
11/25/26(c)
...........
474,385
125,000
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates,
Series
K066,
Class
A2,
3.117%,
6/25/27
..............
118,938
160,000
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates,
Series
K069,
Class
A2,
3.187%,
9/25/27(c)
............
152,053
275,000
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates,
Series
K079,
Class
A2,
3.926%,
6/25/28
..............
265,837
Sterling
Capital
Intermediate
U.S.
Government
Fund
2
Schedule
of
Portfolio
Investments
—
(continued)
June
30,
2024
(Unaudited)
Continued
Principal
Amount
Fair
Value
COMMERCIAL
MORTGAGE-BACKED
SECURITIES
—
(continued)
$
168,550
JPMBB
Commercial
Mortgage
Securities
Trust,
Series
2014-C23,
Class
A5,
3.934%,
9/15/47
.................
$
167,795
41,816
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust,
Series
2014-C18,
Class
A4,
3.923%,
10/15/47
................
41,604
250,000
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust,
Series
2014-C19,
Class
A4,
3.526%,
12/15/47
................
247,761
Total
Commercial
Mortgage-Backed
Securities
(Cost
$3,668,576)
................
3,495,639
MORTGAGE-BACKED
SECURITIES
—
33.4%
Fannie
Mae
—
22.0%
157,815
4.000%,
12/1/33,
Pool
#MA1689
.......
152,737
219,493
4.500%,
3/1/34,
Pool
#CA3294
........
216,497
38,135
4.000%,
12/1/36,
Pool
#MA2856
.......
36,750
39,054
4.000%,
2/1/37,
Pool
#MA2914
........
37,627
359,068
1.500%,
12/1/40,
Pool
#MA4202
.......
291,803
136,386
6.000%,
9/1/43,
Pool
#MA5158
........
137,938
36,626
4.000%,
5/1/47,
Pool
#BE9598
........
34,230
104,681
3.500%,
12/1/47,
Pool
#CA0833
.......
94,754
47,776
5.000%,
8/1/48,
Pool
#CA2219
........
47,164
50,978
3.500%,
9/1/49,
Pool
#BJ9608
.........
45,785
55,728
3.500%,
10/1/49,
Pool
#CA4431
.......
49,984
85,759
3.000%,
3/1/50,
Pool
#FM2714
........
74,103
197,103
3.000%,
7/1/50,
Pool
#CA6422
........
169,784
193,235
3.000%,
7/1/50,
Pool
#CA6421
........
166,472
159,925
2.000%,
8/1/50,
Pool
#CA6799
........
127,411
177,866
2.500%,
8/1/50,
Pool
#CA6707
........
149,130
247,050
2.000%,
9/1/50,
Pool
#CA7019
........
196,363
282,758
2.500%,
9/1/50,
Pool
#BQ2883
........
233,697
132,750
2.500%,
9/1/50,
Pool
#BQ0538
........
109,689
350,018
2.000%,
10/1/50,
Pool
#CA7224
.......
277,556
275,098
2.500%,
10/1/50,
Pool
#FM4638
.......
227,235
257,185
2.500%,
10/1/50,
Pool
#FM4530
.......
212,878
179,931
4.000%,
7/1/52,
Pool
#FS2516
........
165,235
413,170
4.500%,
11/1/52,
Pool
#FS6858
........
390,736
137,442
5.000%,
11/1/52,
Pool
#CB5278
.......
133,200
3,778,758
Freddie
Mac
—
10.7%
91,327
4.000%,
12/1/35,
Pool
#ZA2401
.......
88,050
85,484
3.500%,
6/1/36,
Pool
#ZA2414
........
80,678
55,001
4.000%,
3/1/39,
Pool
#ZA6403
........
52,648
185,010
2.000%,
12/1/40,
Pool
#RB5090
.......
155,904
118,496
3.500%,
1/1/47,
Pool
#ZT0941
........
107,455
91,278
3.000%,
12/1/51,
Pool
#SD8184
.......
77,916
110,921
3.500%,
6/1/52,
Pool
#SD2670
........
99,343
173,980
4.500%,
6/1/52,
Pool
#SD1265
........
164,903
174,174
4.500%,
8/1/52,
Pool
#SD1515
........
164,730
259,473
5.000%,
9/1/52,
Pool
#RA7936
........
251,704
155,733
5.500%,
2/1/53,
Pool
#QF8052
........
154,151
Principal
Amount
Fair
Value
MORTGAGE-BACKED
SECURITIES
—
(continued)
Freddie
Mac
—
(continued)
$
187,213
5.000%,
3/1/53,
Pool
#SD2390
........
$
182,098
93,040
6.000%,
5/1/53,
Pool
#SD3072
........
93,673
160,230
6.000%,
7/1/53,
Pool
#SD3223
........
162,148
1,835,401
Ginnie
Mae
—
0.5%
100,089
4.000%,
7/20/52,
Pool
#786280
........
92,925
Ginnie
Mae
II
—
0.2%
25,692
5.000%,
11/20/38,
Pool
#4283
.........
24,694
Total
Mortgage-Backed
Securities
(Cost
$6,439,873)
................
5,731,778
MUNICIPAL
BONDS
—
0.5%
Wisconsin
—
0.5%
80,000
State
of
Wisconsin,
TXB,
Revenue
Bonds,
Pension
Funding,
Series
A,
(AGM),
5.700%,
5/1/26(b)
................
80,357
Total
Municipal
Bonds
(Cost
$81,929)
..................
80,357
U.S.
GOVERNMENT
AGENCIES
—
13.2%
Fannie
Mae
—
9.6%
1,000,000
6.250%,
5/15/29
...................
1,081,225
500,000
7.125%,
1/15/30
...................
566,300
1,647,525
Federal
Farm
Credit
Banks
Funding
Corp.
—
0.4%
86,000
2.400%,
3/24/36
...................
66,830
Federal
Home
Loan
Banks
—
3.2%
500,000
1.200%,
12/30/24
..................
489,648
60,000
1.900%,
10/7/31
...................
49,692
539,340
Total
U.S.
Government
Agencies
(Cost
$2,348,182)
................
2,253,695
U.S.
TREASURY
NOTES
—
7.0%
140,000
0.250%,
9/30/25(b)
...............
132,010
1,150,200
1.125%,
2/15/31
.................
941,682
150,000
2.750%,
8/15/32(b)
...............
133,705
Total
U.S.
Treasury
Notes
(Cost
$1,309,277)
................
1,207,397
Sterling
Capital
Intermediate
U.S.
Government
Fund
3
Schedule
of
Portfolio
Investments
—
(continued)
June
30,
2024
(Unaudited)
Continued
Shares
Fair
Value
MONEY
MARKET
FUND
—
0.2%
34,295
Federated
Treasury
Obligations
Fund,
Institutional
Shares,
5.17%(d)
.......
$
34,295
Total
Money
Market
Fund
(Cost
$34,295)
..................
34,295
Total
Investments
—
99.5%
(Cost
$18,401,268)
............................
17,061,183
Net
Other
Assets
(Liabilities)
—
0.5%
...............
80,252
NET
ASSETS
—
100.0%
.......................
$
17,141,435
(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)
All
or
a
portion
of
the
securities
are
held
in
a
separate
collateral
account
at
US
Bank.
(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
June
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
4
Sterling
Capital
Funds
Notes
to
Schedule
of
Portfolio
Investments
-
Sterling
Capital
Intermediate
U.S.
Government
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
Intermediate
U.S.
Government
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.
5
Sterling
Capital
Funds
Notes
to
Schedule
of
Portfolio
Investments
-
Sterling
Capital
Intermediate
U.S.
Government
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:
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
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
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
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.
Level
1-
Quoted
Prices
Level
2-
Other
Significant
Observable
Inputs
Level
3-
Significant
Unobservable
Inputs
Total
Assets:
Investments
in
Securities
Sterling
Capital
Intermediate
U.S.
Government
Fund
.......
$
34,295(a)
$
17,026,888(b)
$
—
$
17,061,183
(a)
Represents
money
market
funds
and/or
certain
preferred
stocks.
(b)
Industries,
countries
or
security
types
are
disclosed
in
the
Schedule
of
Portfolio
Investments.