Firm Overview

Sterling Capital Management LLC is a registered investment adviser founded in 1970. An investment firm, Sterling is an independently operated subsidiary of BB&T Corporation, one of the nation's largest financial services holding companies. Sterling is headquartered in Charlotte, NC with offices in Raleigh, NC; Atlanta, GA; Washington, D.C.; San Francisco, CA; Richmond, VA; and Virginia Beach, VA. As of 12/31/2014, Sterling has over $47 billion in assets under management overseen by 105 investment and client service professionals.

Investment Objective

The Fund's management team utilizes fundamental analysis overlaid with top-down macroeconomic trends. They look for the best ideas that include companies with strong balance sheets that are reasonably valued and have shown market share/sales gains over time with a credible plan to continue such growth in the future. Valuation is key to the management of the Fund and the management team evaluates on the front end and buys basic businesses that are in demand all the time, have done well in past market downturns and where management has a vested interest in the value per share of the stock. The Fund represents a concentrated portfolio utilizing "best ideas" with typical number of holdings between 24 to 30 common stocks/ADRs.

Dividends matter to the management team and they only include companies that have raised their dividends for the last three consecutive years or for six of the last 10 years. They target stocks with dividend yields greater than 2%.

Investment Considerations

The Fund invests primarily in dividend-paying securities but also in convertible securities in search of yield. These securities may be undervalued not performing as anticipated and its value could be negatively affected by a rise in interest rates. The Fund may engage in writing covered call options. By selling covered call options, the Fund limits its opportunity to profit from an increase in the price of the underlying stock above the exercise price, but continues to bear the risk of a decline in the stock. While the Fund receives premiums for writing the call options, the price it realizes from the exercise of an option could be substantially below a stock's current market price.

Fund Facts

Class A Shares Class B Shares Class C Shares Inst'l Shares Class R Shares
Inception Date 06/30/2004 06/30/2004 06/30/2004 06/30/2004 06/30/2004
Investment Minimum $1,000.00 $1,000.00 $1,000.00 $1,000,000.00 $1,000.00
Subsequent Investment $0.00 $0.00 $0.00 NA NA
Max. Up Front Sales Charge 5.75% NA NA NA NA
Max. Deferred Sales Charge NA 5.00% 1.00% NA NA