Morningstar Style Box
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Overall Morningstar Rating™

Morningstar Category:
Small Blend

Sterling Capital Stratton Small Cap Value Fund
Equity Funds

  • a Shares (STSNX)
    Inception: 11.16.2015
  • c Shares (STSOX)
    Inception: 11.16.2015
  • i Shares (STSCX)
    Inception: 04.12.1993

Fund Overview

Philosophy and Process

The Fund uses a value investment approach to invest primarily in common stock of small capitalization companies (those with market capitalizations that are below the market capitalization of the largest company in the Russell 2000® Index). We believe that undervalued companies with good earnings prospects have superior appreciation potential with reasonable levels of risk. Quantitatively, we focus on a stock's fundamental valuation relative to its peers. Qualitatively, we seek to identify business catalysts which will serve to drive future earnings growth, increase investor interest and expand valuation.

In addition to outperforming the broad market over longer periods of time, we believe that the Small Cap segment of the US equity market, given its less efficient nature, offers significant opportunity to add value through active portfolio management. A combination of a larger investment universe, less research coverage, and strong growth potential creates a favorable backdrop for investment in select under-followed and/or under-appreciated small companies.

Investment Considerations

Small company stocks are generally riskier than large company stocks due to greater volatility and less liquidity. Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time.

Fund Facts
Class A Shares Class C Shares Inst'l Shares
Ticker STSNX STSOX STSCX
Inception Date 11/16/2015 11/16/2015 04/12/1993
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 5.75% 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:



Performance

Average Annual Total Returns as of (09/30/2017)
Class A Shares Class C Shares Inst'l Shares
without sales charge with 5.75% sales charge without sales charge with 1.00% sales charge
3 Months 5.73% -0.35% 5.53% 4.53% 5.79%
YTD 8.00% 1.79% 7.41% 6.41% 8.21%
1 Year 20.43% 13.50% 19.55% 19.55% 20.73%
3 Years 9.77% 7.63% 9.26% 9.26% 9.93%
5 Years 13.97% 12.63% 13.65% 13.65% 14.07%
10 Years 7.97% 7.33% 7.82% 7.82% 8.01%
Since Inception 11.03% 10.76% 10.97% 10.97% 11.05%

The total expense ratios for Class A, C and Institutional Shares are 1.34%, 2.09%, and 1.09% respectively. 

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/.

Class A Shares and Class C Shares commenced operations on November 16, 2015. Because Class A Shares and Class C Shares do not have a full calendar year of performance, the historical performance shown is that of Institutional Shares. Class A Shares and 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 inception date for Institutional Shares was 4/12/1993.

The performance shown prior to November 16, 2015 is that of the Stratton Small Cap Value Fund (the "Predecessor Fund") which reorganized into the Sterling Capital Small Cap Value Fund Institutional Shares (the “Fund”).  Because the Fund had no investment operations prior to the closing of the reorganization, and based on the similarity of the Fund to the Predecessor Fund, the Predecessor Fund is treated as the survivor of the reorganization for accounting and performance reporting purposes.  The inception date of the Predecessor Fund is 4/12/1993.

Effective November 16, 2015, Sterling Capital Management changed the name of the Stratton Small Cap Value Fund to the Sterling Capital Stratton Small Cap Value Fund. The name was changed as a result of the Stratton Fund being reorganized into the Sterling Capital Funds.


Performance Summary

Characteristics

Top 10 Holdings
as of (09/30/2017)
NameValue
Take-Two Interactive Software, Inc.3.53%
PAREXEL International Corp.2.92%
Belden, Inc.2.91%
MasTec, Inc.2.78%
Thor Industries, Inc.2.77%
West Pharmaceutical Services, Inc.2.66%
Casey's General Stores, Inc.2.57%
ON Semiconductor Corp.2.52%
United Rentals, Inc.2.50%
PolyOne Corp.2.48%

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

Sector Breakdown
as of (09/30/2017)

Hover over slice to view more info.

Sector Breakdown
as of (09/30/2017)
Sector Fund
FINANCIALS 28.09%
INFORMATION TECHNOLOGY 18.71%
INDUSTRIALS 16.40%
Real Estate 9.42%
UTILITIES 7.99%
HEALTH CARE 5.58%
CONSUMER DISCRETIONARY 4.10%
MATERIALS 3.73%
CONSUMER STAPLES 2.57%
ENERGY 2.28%
Cash & Equivalents 1.13%

Allocations are based on the current weight to funds in the cited Sector. The composition of the fund's holdings is subject to change.

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
Sterling Capital Stratton Small Cap Value Fund 09/30/2017 $21,620.00 $19,933.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 07/31/2017 $20,409.00 $18,615.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2017 $20,570.00 $19,084.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2017 $20,436.00 $18,964.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 04/30/2017 $20,105.00 $18,323.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2017 $20,129.00 $18,912.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2017 $20,016.00 $18,838.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 01/31/2017 $20,328.00 $18,999.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2016 $20,047.00 $18,728.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2016 $19,980.00 $18,863.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 10/31/2016 $19,569.00 $18,115.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2016 $17,908.00 $16,536.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2016 $17,511.00 $15,992.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 07/31/2016 $17,994.00 $16,406.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2016 $17,616.00 $16,008.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2016 $16,732.00 $15,189.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 04/30/2016 $16,846.00 $15,143.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2016 $16,360.00 $14,870.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2016 $15,977.00 $14,562.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 01/31/2016 $14,826.00 $13,447.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2015 $14,765.00 $13,356.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2015 $15,952.00 $14,318.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 10/31/2015 $16,833.00 $15,115.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2015 $16,197.00 $14,697.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2015 $15,319.00 $13,918.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 07/31/2015 $15,694.00 $14,417.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2015 $16,570.00 $15,161.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2015 $16,948.00 $15,591.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 04/30/2015 $17,018.00 $15,571.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2015 $16,766.00 $15,443.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2015 $17,314.00 $15,780.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 01/31/2015 $16,975.00 $15,518.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2014 $16,640.00 $15,474.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2014 $16,164.00 $14,830.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 10/31/2014 $16,457.00 $15,062.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2014 $16,510.00 $15,133.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2014 $16,274.00 $14,144.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 07/31/2014 $17,115.00 $15,168.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2014 $16,325.00 $14,536.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2014 $17,243.00 $15,471.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 04/30/2014 $16,763.00 $14,816.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2014 $16,932.00 $15,111.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2014 $16,640.00 $14,723.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 01/31/2014 $16,833.00 $14,927.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2013 $15,834.00 $14,273.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2013 $16,142.00 $14,848.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 10/31/2013 $15,633.00 $14,573.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2013 $15,241.00 $14,026.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2013 $14,617.00 $13,584.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 07/31/2013 $13,888.00 $12,843.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2013 $13,606.00 $12,626.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2013 $14,427.00 $13,437.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 04/30/2013 $13,701.00 $12,677.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2013 $13,177.00 $12,309.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2013 $13,297.00 $12,321.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 01/31/2013 $12,606.00 $11,829.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2012 $12,367.00 $11,695.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2012 $11,593.00 $11,037.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 10/31/2012 $11,225.00 $10,591.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2012 $11,212.00 $10,559.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2012 $11,194.00 $10,693.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 07/31/2012 $10,834.00 $10,325.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2012 $10,608.00 $10,016.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2012 $10,553.00 $10,119.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 04/30/2012 $10,225.00 $9,654.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2012 $10,923.00 $10,282.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2012 $11,065.00 $10,433.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 01/31/2012 $10,804.00 $10,119.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2011 $10,072.00 $9,350.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2011 $10,529.00 $9,971.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 10/31/2011 $10,015.00 $9,206.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2011 $10,031.00 $9,224.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2011 $8,868.00 $8,062.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 07/31/2011 $9,993.00 $9,051.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2011 $10,808.00 $9,927.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2011 $10,909.00 $10,267.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 04/30/2011 $11,103.00 $10,526.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2011 $11,253.00 $10,718.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2011 $10,885.00 $10,546.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 01/31/2011 $10,672.00 $10,402.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2010 $10,175.00 $9,899.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2010 $10,037.00 $9,894.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 10/31/2010 $9,281.00 $9,135.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2010 $8,644.00 $8,576.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2010 $9,060.00 $8,908.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 07/31/2010 $7,895.00 $7,745.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2010 $8,306.00 $8,374.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2010 $7,915.00 $7,816.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 04/30/2010 $8,514.00 $8,564.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2010 $9,271.00 $9,354.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2010 $8,888.00 $8,743.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 01/31/2010 $8,318.00 $8,071.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2009 $8,031.00 $7,714.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2009 $8,166.00 $7,947.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 10/31/2009 $7,691.00 $7,387.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2009 $7,547.00 $7,159.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2009 $7,909.00 $7,669.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 07/31/2009 $7,482.00 $7,302.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2009 $7,197.00 $6,972.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2009 $6,617.00 $6,250.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 04/30/2009 $6,714.00 $6,269.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2009 $6,560.00 $6,137.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2009 $5,771.00 $5,296.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 01/31/2009 $5,476.00 $4,864.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2008 $6,248.00 $5,649.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2008 $6,928.00 $6,590.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 10/31/2008 $6,694.00 $6,209.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2008 $7,412.00 $7,022.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2008 $8,852.00 $8,775.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 07/31/2008 $9,661.00 $9,206.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2008 $9,489.00 $8,789.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 06/30/2008 $9,742.00 $8,360.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 04/30/2008 $10,217.00 $9,247.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2008 $8,898.00 $8,667.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 03/31/2008 $9,519.00 $8,942.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 01/31/2008 $8,886.00 $8,539.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2007 $8,977.00 $8,892.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 12/31/2007 $9,333.00 $9,272.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 10/31/2007 $9,474.00 $9,352.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2007 $10,149.00 $10,109.00 $0.00
Sterling Capital Stratton Small Cap Value Fund 09/30/2007 $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.

Statistics

Portfolio Statistics
as of (09/30/2017)
Alpha 1.86
Beta 0.83
R-Squared 91.27
Standard Deviation 17.43
Sharpe Ratio 0.44
Weighted Avg Market Cap. $5.1B
Portfolio Ratios
as of (09/30/2017)
P/E Ratio 22.89
P/B Ratio 2.29
Annual Turnover 7%

*The Funds composition is subject to change.
*Annual Turnover Ratio is 12 month rolling calculation.
*Alpha, Beta, R-Squared, Standard Deviation, and Sharpe Ratio are based on a 10-year calculation.
*Click for a glossary of terms

 

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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