Morningstar Style Box
High
Med.
Low
Ltd. Mod. Ext. 
Overall Morningstar Rating™

Morningstar Category:
Intermediate-Term Bond

Securitized Opportunities Fund
Fixed Income Funds

  • a Shares (SCSSX)
    Inception: 02.01.2013
  • c Shares (SCSTX)
    Inception: 02.01.2013
  • i Shares (SCSPX)
    Inception: 02.01.2013

Fund Overview

Philosophy and Process

In managing the fund, the portfolio management team employs a multi-faceted approach to generate excess return and uses a combination of top-down and bottom-up analysis, quantitative vs. qualitative analysis and fundamentals vs. valuation. There is a strong emphasis on risk management and an adherence to certain core investment beliefs:

  • "If you cannot measure it; you cannot manage it."
  • Avoid unintended exposures
  • Average duration around 2 to 5 years with focus on high quality and risk management
  • Participate in longer term trends - don't buy on short-term trends or try to time what is going on in the market
  • Attempts to achieve risk-adjusted performance over time

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise the value of bond prices will decline. The Fund may invest in more aggressive investments such as foreign securities which may expose the fund to currency and exchange rate fluctuations; derivatives (futures and swaps); mortgage backed securities sensitive to interest rates and high yield debt (also known as junk bonds) all of which may cause greater volatility and less liquidity. Derivatives may be more sensitive to changes in market conditions and may amplify risks.

Fund Facts
Class A Shares Class C Shares Inst'l Shares
Ticker SCSSX SCSTX SCSPX
Inception Date 02/01/2013 02/01/2013 02/01/2013
Investment Minimum $1,000.00 $1,000.00 $1,000,000.00
Subsequent Investment Minimum* $0.00 $0.00 $0.00
Max. Up Front Sales Charge 2.00% N/A N/A
Max. Deferred Sales Charge N/A 1.00% N/A

*If subsequent investments are made as part of an AIP, the minimum is $25.

Management



The investment team supporting the fund includes 24 investment professionals.

Performance

Average Annual Total Returns as of (03/31/2017)
Class A Shares Class C Shares Inst'l Shares
without sales charge with 2.00% sales charge without sales charge with 1.00% sales charge
3 Months 0.61% -1.39% 0.43% -0.58% 0.77%
YTD 0.61% -1.39% 0.43% -0.58% 0.77%
1 Year 1.19% -0.79% 0.54% 0.54% 1.55%
3 Years 2.63% 1.94% 1.91% 1.91% 2.95%
5 Years 2.20% 1.78% 1.60% 1.60% 2.45%
Since Inception 2.69% 2.33% 2.17% 2.17% 2.91%
View more archived data

The gross expense ratios for Class A, C and I Shares are 0.86%, 1.61% and 0.61%, respectively. The net expense ratios for Class A, C and I Shares are 0.82%, 1.57% and 0.57%, respectively. The Fund’s Adviser has contractually agreed to limit the management fees paid by the Fund to 0.31% for the period from February 1, 2016 through January 31, 2017. This contractual limitation may be terminated during this period only by the Fund’s Board of Trustees, and will automatically terminate upon termination of the Investment Advisory Agreement between the Fund and Sterling Capital Management LLC (“Sterling Capital”).

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com/funds/performance-summary/.

The performance of the Securitized Opportunities Fund reflects the deduction of fees for value-added services associated with a mutual fund, such as investment management and fund accounting fees. The inception date for Class A Shares, Class C Shares, and Institutional Shares is 2/1/2013.  The inception date for Class S Shares is 6/30/11. Performance for Class A Shares, Class C Shares and Institutional Shares for periods prior to inception on February 1, 2013 is based on performance of Class S Shares of the Fund which were re-designated as Institutional Shares as of February 1, 2013.  Class A Shares, Class C Shares and Institutional Shares of the Fund would have substantially similar performance because the Shares are invested in the same portfolio of securities and the performance would differ only to the extent that the Classes have different expenses. The performance shown reflects the reinvestment of all dividend and capital gains distributions.


Performance Summary

Characteristics

Quality Breakdown¹
as of (03/31/2017)

Hover over slice to view more info.

Quality Breakdown¹
as of (03/31/2017)
Name Value
AAA 70.1%
AA 8.8%
A 8.4%
BBB 4.9%
BB 2.8%
B 1.8%
Below B 0.2%
Not Rated 1.1%
Government 2.1%

¹ Credit quality ratings using Moody's rating symbols reflect the credit quality of the underlying bonds in the fund portfolio and not of the Fund itself. Moody's assigns a range of ratings from Aaa being the highest quality to C being the lowest rated class of bonds. Securities not rated by Moody's may be rated by S&P, Fitch or if no agency rating is available, the Fund will assign a rating of not rated. Bond quality ratings are subject to change.

Effective Duration Breakdown
as of (03/31/2017)
Name Value
[Cash] 1.3
0-1 Yr. 20.8 %
1-2 Yrs. 2.5 %
2-3 Yrs. 5.2 %
3-5 Yrs. 33.2 %
5-10 Yrs. 30.9 %
10+ Yrs. 6.1 %
Number of Holdings 139
Average Life 6.37 Years
Effective Duration 4.55 Years
CouponCurveDuration 4.64 Years
Portfolio Composition
as of (03/31/2017)
Composition Fund Index
Corporate 0.80% 0.00%
   Industrial 0.80% 0.00%
Securitized 95.80% 100.00%
   ABS 22.10% 0.00%
   ARM 0.00% 0.60%
   CMBS 22.80% 0.00%
   CMO 20.80% 0.00%
   MBS 0.10% 0.00%
   MBS Passthrough 30.00% 99.40%
Treasury 2.10% 0.00%
   Treasury 2.10% 0.00%
Cash & Equivalents 1.30% 0.00%
   Cash & Equivalents 1.30% 0.00%
TOTAL 100% 100%
Top 10 Holdings
as of (03/31/2017)
NameValue
Wells Fargo Commercial Mortgage Trst, Ser 2010-C1, Cl B1.95%
Freddie Mac REMICS, Series 2525, Class AM1.80%
FHLMC , Pool# Q400481.54%
Encore Credit Receivables Trust, Series 2005-4, Cl M21.49%
FHLMC, Pool #C914581.44%
GNMA, Series 2012-16, Class GC1.43%
Citibank Credit Card Issuance Trust1.40%
FNMA, Pool #AT38681.36%
FNMA, Pool #MA21271.35%
Freddie Mac Remics1.34%

Current and future portfolio holdings are subject to change and risk.Based on
Market Value of securities.

Current and future portfolio holdings are subject to change and risk.

Growth of 10k
as of (03/31/2017)

Hover over line chart to view data points.

Growth of 10k
as of (03/31/2017)
Date Portfolio Benchmark 1 Benchmark 2
Securitized Opportunities Fund 03/31/2017 $11,648.00 $11,489.00 $0.00
Securitized Opportunities Fund 01/31/2017 $11,647.00 $11,486.00 $0.00
Securitized Opportunities Fund 12/31/2016 $11,600.00 $11,431.00 $0.00
Securitized Opportunities Fund 12/31/2016 $11,576.00 $11,435.00 $0.00
Securitized Opportunities Fund 10/31/2016 $11,589.00 $11,435.00 $0.00
Securitized Opportunities Fund 09/30/2016 $11,741.00 $11,634.00 $0.00
Securitized Opportunities Fund 09/30/2016 $11,775.00 $11,665.00 $0.00
Securitized Opportunities Fund 07/31/2016 $11,740.00 $11,633.00 $0.00
Securitized Opportunities Fund 06/30/2016 $11,694.00 $11,596.00 $0.00
Securitized Opportunities Fund 06/30/2016 $11,728.00 $11,620.00 $0.00
Securitized Opportunities Fund 04/30/2016 $11,567.00 $11,502.00 $0.00
Securitized Opportunities Fund 03/31/2016 $11,555.00 $11,487.00 $0.00
Securitized Opportunities Fund 03/31/2016 $11,509.00 $11,469.00 $0.00
Securitized Opportunities Fund 01/31/2016 $11,464.00 $11,435.00 $0.00
Securitized Opportunities Fund 12/31/2015 $11,430.00 $11,393.00 $0.00
Securitized Opportunities Fund 12/31/2015 $11,305.00 $11,247.00 $0.00
Securitized Opportunities Fund 10/31/2015 $11,340.00 $11,250.00 $0.00
Securitized Opportunities Fund 09/30/2015 $11,366.00 $11,258.00 $0.00
Securitized Opportunities Fund 09/30/2015 $11,352.00 $11,266.00 $0.00
Securitized Opportunities Fund 07/31/2015 $11,299.00 $11,193.00 $0.00
Securitized Opportunities Fund 06/30/2015 $11,299.00 $11,183.00 $0.00
Securitized Opportunities Fund 06/30/2015 $11,254.00 $11,113.00 $0.00
Securitized Opportunities Fund 04/30/2015 $11,322.00 $11,199.00 $0.00
Securitized Opportunities Fund 03/31/2015 $11,310.00 $11,201.00 $0.00
Securitized Opportunities Fund 03/31/2015 $11,320.00 $11,197.00 $0.00
Securitized Opportunities Fund 01/31/2015 $11,264.00 $11,155.00 $0.00
Securitized Opportunities Fund 12/31/2014 $11,318.00 $11,173.00 $0.00
Securitized Opportunities Fund 12/31/2014 $11,159.00 $11,079.00 $0.00
Securitized Opportunities Fund 10/31/2014 $11,156.00 $11,062.00 $0.00
Securitized Opportunities Fund 09/30/2014 $11,086.00 $10,990.00 $0.00
Securitized Opportunities Fund 09/30/2014 $10,994.00 $10,885.00 $0.00
Securitized Opportunities Fund 07/31/2014 $11,024.00 $10,903.00 $0.00
Securitized Opportunities Fund 06/30/2014 $10,943.00 $10,801.00 $0.00
Securitized Opportunities Fund 06/30/2014 $10,972.00 $10,865.00 $0.00
Securitized Opportunities Fund 04/30/2014 $10,946.00 $10,837.00 $0.00
Securitized Opportunities Fund 03/31/2014 $10,844.00 $10,708.00 $0.00
Securitized Opportunities Fund 03/31/2014 $10,775.00 $10,610.00 $0.00
Securitized Opportunities Fund 01/31/2014 $10,784.00 $10,644.00 $0.00
Securitized Opportunities Fund 12/31/2013 $10,737.00 $10,608.00 $0.00
Securitized Opportunities Fund 12/31/2013 $10,582.00 $10,444.00 $0.00
Securitized Opportunities Fund 10/31/2013 $10,654.00 $10,494.00 $0.00
Securitized Opportunities Fund 09/30/2013 $10,634.00 $10,488.00 $0.00
Securitized Opportunities Fund 09/30/2013 $10,671.00 $10,559.00 $0.00
Securitized Opportunities Fund 07/31/2013 $10,520.00 $10,342.00 $0.00
Securitized Opportunities Fund 06/30/2013 $10,557.00 $10,372.00 $0.00
Securitized Opportunities Fund 06/30/2013 $10,541.00 $10,381.00 $0.00
Securitized Opportunities Fund 04/30/2013 $10,716.00 $10,482.00 $0.00
Securitized Opportunities Fund 03/31/2013 $10,787.00 $10,589.00 $0.00
Securitized Opportunities Fund 03/31/2013 $10,869.00 $10,645.00 $0.00
Securitized Opportunities Fund 01/31/2013 $10,770.00 $10,577.00 $0.00
Securitized Opportunities Fund 12/31/2012 $10,742.00 $10,541.00 $0.00
Securitized Opportunities Fund 12/31/2012 $10,784.00 $10,594.00 $0.00
Securitized Opportunities Fund 10/31/2012 $10,775.00 $10,580.00 $0.00
Securitized Opportunities Fund 09/30/2012 $10,755.00 $10,598.00 $0.00
Securitized Opportunities Fund 09/30/2012 $10,756.00 $10,616.00 $0.00
Securitized Opportunities Fund 07/31/2012 $10,694.00 $10,594.00 $0.00
Securitized Opportunities Fund 06/30/2012 $10,655.00 $10,582.00 $0.00
Securitized Opportunities Fund 06/30/2012 $10,566.00 $10,497.00 $0.00
Securitized Opportunities Fund 04/30/2012 $10,525.00 $10,485.00 $0.00
Securitized Opportunities Fund 03/31/2012 $10,513.00 $10,452.00 $0.00
Securitized Opportunities Fund 03/31/2012 $10,449.00 $10,385.00 $0.00
Securitized Opportunities Fund 01/31/2012 $10,435.00 $10,378.00 $0.00
Securitized Opportunities Fund 12/31/2011 $10,391.00 $10,368.00 $0.00
Securitized Opportunities Fund 12/31/2011 $10,328.00 $10,326.00 $0.00
Securitized Opportunities Fund 10/31/2011 $10,238.00 $10,254.00 $0.00
Securitized Opportunities Fund 09/30/2011 $10,226.00 $10,236.00 $0.00
Securitized Opportunities Fund 09/30/2011 $10,184.00 $10,236.00 $0.00
Securitized Opportunities Fund 07/31/2011 $10,185.00 $10,219.00 $0.00
Securitized Opportunities Fund 06/30/2011 $10,074.00 $10,093.00 $0.00
Securitized Opportunities Fund 06/30/2011 $10,000.00 $10,000.00 $0.00
View more archived data

The Growth of $10,000 chart is hypothetical based upon the performance of A Shares at NAV for the period ended 03/31/2017. It includes the reinvestment of dividends and capital gains.

Distribution

Monthly Dividend Distribution
as of (04/30/2017)
Month Class A Shares Class C Shares Inst'l Shares
April 2017 $0.0205 / share $0.0144 / share $0.0226 / share
March 2017 $0.0206 / share $0.0143 / share $0.0227 / share
February 2017 $0.0200 / share $0.0145 / share $0.0220 / share
January 2017 $0.0194 / share $0.0131 / share $0.0216 / share
December 2016 $0.0196 / share $0.0132 / share $0.0217 / share
November 2016 $0.0201 / share $0.0140 / share $0.0222 / share
October 2016 $0.0204 / share $0.0140 / share $0.0225 / share
September 2016 $0.0199 / share $0.0136 / share $0.0220 / share
August 2016 $0.0196 / share $0.0131 / share $0.0217 / share
July 2016 $0.0196 / share $0.0132 / share $0.0218 / share
June 2016 $0.0203 / share $0.0141 / share $0.0224 / share
May 2016 $0.0199 / share $0.0135 / share $0.0220 / share
30-Day SEC Yield
as of (03/31/2017)
Fund Class 30-Day SEC Yield
Without Waivers With Waivers
Class A 0.02% 0.02%
Class C 0.02% 0.02%
Class I 0.03% 0.03%

SEC Yield is an annualization of the Fund's total net investment income per share for the 30-day period ended on the last day of the month.

The Adviser has contractually agreed to limit the management fees paid by the fund to 0.31% for the period from February 1, 2015 through January 31, 2016. Performance would have been lower without limitations in effect.

Past performance does not guarantee future results.

 

© 2017 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.


Sterling Capital Funds are:

Not a deposit - Not FDIC insured - Not guaranteed by the bank - Not insured by any government agency - May lose value

An investor should consider a fund's investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the Sterling Capital Funds can be found in the Funds' prospectus. To obtain a prospectus, please call 1 (888) 228-1872 or click here. Please read the prospectus carefully before investing.

Sterling Capital Management LLC, a separate subsidiary of BB&T Corporation, serves as investment adviser to the Sterling Capital Funds and is paid a fee for its services as described in the prospectus. The Funds are distributed by Sterling Capital Distributors LLC, which is not affiliated with Branch Banking and Trust Company or its affiliates. The Funds are not insured by the FDIC or any other government agency