Morningstar Style Box
High
Med.
Low
Ltd. Mod. Ext. 

Ultra Short Bond Fund
Fixed Income Funds

  • a Shares (BUSRX)
    Inception: 12.03.2012
  • i Shares (BUSIX)
    Inception: 12.03.2012

Fund Overview

Philosophy and Process

To pursue its investment objective, the Fund invests, under normal circumstances, at least 80% of its net assets plus borrowings for investment purposes in fixed income securities (bonds). The Fund will maintain an average duration of 18 months or less and the average maturity is expected to be between zero and 24 months.

In managing the portfolio, the portfolio manager uses a "top down" investment management approach focusing on allocation among sectors, credit risk, and individual securities selection. The portfolio manager focuses on macro trends in the economy to establish a duration target that reflects the outlook for the future direction of interest rates. For yield curve management, in addition to the trend in interest rates, other factors such as future inflation expectations, supply factors, and future interest rate expectations are considered. Sector weightings are driven by a combination of the portfolio manager's macro view on interest rates and volatility as well as relative spread analysis. Utilizing fundamental analysis the portfolio manager then selects individual securities consistent with the target by looking for the best relative values within particular sectors. The analysis includes an attempt to understand the structure and embedded features of potential securities. Features that are analyzed include puts, calls, sinking fund requirements, prepayment and extension risk, and individual company financial data for potential corporate holdings. Scenario analysis is the primary tool employed for these assessments.

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; mortgage-backed and asset-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. The Fund invests in securities issued or guaranteed by the U.S. government or its agencies. These guarantees do not apply to the fund. Investments in municipal obligations may be subject to more risk depending on economic, political and other conditions within the state and municipality. The Fund may trade securities actively, which could increase its transaction costs thereby lowering its performance.

Fund Facts
Class A Shares Inst'l Shares
Ticker BUSRX BUSIX
Inception Date 12/03/2012 12/03/2012
Investment Minimum $1,000.00 $1,000,000.00
Subsequent Investment Minimum* $0.00 $0.00
Max. Up Front Sales Charge 0.50% N/A
Max. Deferred Sales Charge N/A 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 (09/30/2017)
Class A Shares Inst'l Shares
without sales charge with 0.50% sales charge
3 Months 0.32% -0.19% 0.39%
YTD 0.99% 0.47% 1.18%
1 Year 1.00% 0.49% 1.36%
3 Years 0.75% 0.58% 1.00%
Since Inception 0.54% 0.43% 0.79%

The gross expense ratios for Class A and I Shares are 0.80% and 0.55%, respectively. The net expense ratios for Class A and I Shares are 0.70% and 0.45%, respectively. The Fund’s Adviser has contractually agreed to limit the management fees paid by the Fund to 0.10% 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 Ultra Short Bond 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 is 12/03/2012. The performance shown reflects the reinvestment of all dividend and capital gains distributions.


Performance Summary

Characteristics

Quality Breakdown¹
as of (06/30/2017)

Hover over slice to view more info.

Quality Breakdown¹
as of (06/30/2017)
Name Value
AAA 21.3%
AA 10.6%
A 40.3%
BBB 25.2%
BB 1.7%
B 0.9%

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 (09/30/2017)
Name Value
[Cash] 1.9
0-1 Yr. 69.4 %
1-2 Yrs. 24.6 %
2-3 Yrs. 4.1 %
Number of Holdings 138
Average Life 0.87 Years
Effective Duration 0.73 Years
CouponCurveDuration 0.73 Years
Yield to Maturity 1.95
Portfolio Composition
as of (09/30/2017)
Composition Fund Index
Corporate 71.50% 0.00%
   Financial Institutions 36.90% 0.00%
   Industrial 31.10% 0.00%
   Utility 3.50% 0.00%
Government Related 1.90% 0.00%
   Agency 1.00% 0.00%
   Local Authority 0.90% 0.00%
Securitized 24.70% 0.00%
   ABS 21.40% 0.00%
   CMBS 3.30% 0.00%
Treasury 0.00% 100.00%
   Treasury 0.00% 100.00%
Cash & Equivalents 1.90% 0.00%
   Cash & Equivalents 1.90% 0.00%
TOTAL 100% 100%
Top 10 Holdings
as of (09/30/2017)
NameValue
Aetna, Inc.1.51%
Carmax Auto Owner Trust, Series 2014-2, Class C1.31%
Daimler Finance North America, LLC1.31%
Capital Auto Receivables Asset Trust, Ser 2015-4, Cl B1.31%
Morgan Stanley1.31%
Citigroup, Inc.1.31%
Santander Drive Auto Receivables Trst, Ser 2016-2, Cl B1.31%
Avis Bdgt Rent Car Fnding AESOP, LLC, Ser 2012-3A, Cl A1.31%
Countrywide Asset-Backed Certificates1.27%
Avis Budget Rent Car Fund Aesop, LLC, Ser 2014-1A, Cl A1.18%

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 (09/30/2017)

Hover over line chart to view data points.

Growth of 10k
as of (09/30/2017)
Date Portfolio Benchmark 1 Benchmark 2
Ultra Short Bond Fund 09/30/2017 $10,262.00 $10,126.00 $0.00
Ultra Short Bond Fund 07/31/2017 $10,251.00 $10,117.00 $0.00
Ultra Short Bond Fund 06/30/2017 $10,240.00 $10,109.00 $0.00
Ultra Short Bond Fund 06/30/2017 $10,229.00 $10,101.00 $0.00
Ultra Short Bond Fund 04/30/2017 $10,218.00 $10,094.00 $0.00
Ultra Short Bond Fund 03/31/2017 $10,207.00 $10,087.00 $0.00
Ultra Short Bond Fund 03/31/2017 $10,195.00 $10,082.00 $0.00
Ultra Short Bond Fund 01/31/2017 $10,183.00 $10,077.00 $0.00
Ultra Short Bond Fund 12/31/2016 $10,173.00 $10,073.00 $0.00
Ultra Short Bond Fund 12/31/2016 $10,162.00 $10,068.00 $0.00
Ultra Short Bond Fund 10/31/2016 $10,162.00 $10,064.00 $0.00
Ultra Short Bond Fund 09/30/2016 $10,161.00 $10,061.00 $0.00
Ultra Short Bond Fund 09/30/2016 $10,161.00 $10,057.00 $0.00
Ultra Short Bond Fund 07/31/2016 $10,149.00 $10,054.00 $0.00
Ultra Short Bond Fund 06/30/2016 $10,136.00 $10,046.00 $0.00
Ultra Short Bond Fund 06/30/2016 $10,147.00 $10,050.00 $0.00
Ultra Short Bond Fund 04/30/2016 $10,122.00 $10,043.00 $0.00
Ultra Short Bond Fund 03/31/2016 $10,118.00 $10,039.00 $0.00
Ultra Short Bond Fund 03/31/2016 $10,093.00 $10,036.00 $0.00
Ultra Short Bond Fund 01/31/2016 $10,079.00 $10,033.00 $0.00
Ultra Short Bond Fund 12/31/2015 $10,076.00 $10,030.00 $0.00
Ultra Short Bond Fund 12/31/2015 $10,054.00 $10,028.00 $0.00
Ultra Short Bond Fund 10/31/2015 $10,062.00 $10,026.00 $0.00
Ultra Short Bond Fund 09/30/2015 $10,060.00 $10,025.00 $0.00
Ultra Short Bond Fund 09/30/2015 $10,061.00 $10,024.00 $0.00
Ultra Short Bond Fund 07/31/2015 $10,051.00 $10,023.00 $0.00
Ultra Short Bond Fund 06/30/2015 $10,053.00 $10,022.00 $0.00
Ultra Short Bond Fund 06/30/2015 $10,054.00 $10,021.00 $0.00
Ultra Short Bond Fund 04/30/2015 $10,065.00 $10,021.00 $0.00
Ultra Short Bond Fund 03/31/2015 $10,057.00 $10,020.00 $0.00
Ultra Short Bond Fund 03/31/2015 $10,049.00 $10,019.00 $0.00
Ultra Short Bond Fund 01/31/2015 $10,050.00 $10,019.00 $0.00
Ultra Short Bond Fund 12/31/2014 $10,052.00 $10,018.00 $0.00
Ultra Short Bond Fund 12/31/2014 $10,035.00 $10,018.00 $0.00
Ultra Short Bond Fund 10/31/2014 $10,047.00 $10,017.00 $0.00
Ultra Short Bond Fund 09/30/2014 $10,041.00 $10,017.00 $0.00
Ultra Short Bond Fund 09/30/2014 $10,036.00 $10,016.00 $0.00
Ultra Short Bond Fund 07/31/2014 $10,042.00 $10,016.00 $0.00
Ultra Short Bond Fund 06/30/2014 $10,037.00 $10,015.00 $0.00
Ultra Short Bond Fund 06/30/2014 $10,042.00 $10,015.00 $0.00
Ultra Short Bond Fund 04/30/2014 $10,047.00 $10,014.00 $0.00
Ultra Short Bond Fund 03/31/2014 $10,042.00 $10,014.00 $0.00
Ultra Short Bond Fund 03/31/2014 $10,036.00 $10,013.00 $0.00
Ultra Short Bond Fund 01/31/2014 $10,042.00 $10,012.00 $0.00
Ultra Short Bond Fund 12/31/2013 $10,023.00 $10,011.00 $0.00
Ultra Short Bond Fund 12/31/2013 $10,037.00 $10,012.00 $0.00
Ultra Short Bond Fund 10/31/2013 $10,025.00 $10,011.00 $0.00
Ultra Short Bond Fund 09/30/2013 $10,019.00 $10,010.00 $0.00
Ultra Short Bond Fund 09/30/2013 $10,015.00 $10,009.00 $0.00
Ultra Short Bond Fund 07/31/2013 $10,002.00 $10,009.00 $0.00
Ultra Short Bond Fund 06/30/2013 $10,008.00 $10,008.00 $0.00
Ultra Short Bond Fund 06/30/2013 $9,994.00 $10,007.00 $0.00
Ultra Short Bond Fund 04/30/2013 $10,011.00 $10,006.00 $0.00
Ultra Short Bond Fund 03/31/2013 $10,017.00 $10,005.00 $0.00
Ultra Short Bond Fund 03/31/2013 $10,013.00 $10,004.00 $0.00
Ultra Short Bond Fund 01/31/2013 $10,009.00 $10,003.00 $0.00
Ultra Short Bond Fund 12/31/2012 $10,006.00 $10,002.00 $0.00
Ultra Short Bond Fund 12/31/2012 $9,992.00 $10,001.00 $0.00
Ultra Short Bond Fund 10/31/2012 $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 09/30/2017. It includes the reinvestment of dividends and capital gains.

Holdings

File Date
Quarterly Holdings Report - September 09/30/2016
Monthly Holdings Report - February 02/27/2015
Monthly Holdings Report - January 01/30/2015
Monthly Holdings Report - December 12/31/2014
Monthly Holdings Report - November 11/28/2014
Monthly Holdings Report - October 10/31/2014

 


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