Investment Objective
The Fund seeks to maximize total return.
Fee Table
The following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.
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Shareholder Fees
(fees paid directly from your investment)
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Institutional
Shares
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Maximum Sales Charge (load) on Purchases (as a % of offering price)
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None
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Maximum Deferred Sales Charge (load) (as a % of the lesser of the cost of your shares or their net asset value at the time of redemption)
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None
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Redemption Fee
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None
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Annual Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your investment)
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Institutional
Shares
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Management Fees
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0.35%
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Distribution and Service (12b-1) Fees
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0.00%
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Other Expenses
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0.27%
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Total Annual Fund Operating Expenses
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0.62%
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Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes, that your investment has a 5% return each year and that the Funds operating expenses remain the same.
Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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1
Year
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3
Years
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5
Years
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10
Years
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Institutional Shares
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$
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63
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$
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199
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$
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346
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$
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774
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the Funds
portfolio turnover rate was 73.74% of the average value of its portfolio.
Strategy, Risks and Performance
Principal Strategy
To pursue its investment objective, the
Fund will invest, under normal circumstances, at least 80% of its net assets plus borrowings for investment purposes in a diversified portfolio of corporate debt securities, including corporate bonds, notes and debentures. The Fund may invest in
(i) bonds issued or guaranteed by the U.S. government or its agencies and instrumentalities; (ii) preferred stock; and (iii) debt securities that are sold in private placement transactions between their issuers and their purchasers
and that are neither listed on an exchange or traded over the counter. The Fund may invest up to 20% of its total assets in bonds that are below investment grade, which are commonly referred to as high yield or junk bonds.
The Fund may invest up to 10% of its total assets in securities denominated in foreign currencies. The remainder of the Funds corporate debt securities will typically be issued by U.S. companies and be investment grade (
i.e.
, rated at
the time of purchase in one of the four highest rating categories by a nationally recognized statistical rating organization, or determined by the portfolio manager to be of comparable quality).
In managing the portfolio, the portfolio manager uses a top down investment management approach focusing on interest rate risk, 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 managers
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
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Summary Prospectus
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1 of 4
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Sterling Capital Corporate Fund
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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. The Funds average duration is expected to be between 4.5
and 8.5 years.
The portfolio manager may consider selling a security owned by the Fund to reduce exposure to a particular sector, if the portfolio
manager sees a deterioration in the underlying fundamentals of an issuer or if the actions of the issuer violate the investment thesis of owning the security, when the portfolio managers finds other attractive securities that the portfolio manager
believes are less expensive and offer relatively greater income or growth potential, and in response to macro level adjustments to duration and yield curve contributions.
The Fund may invest in certain types of derivative instruments for hedging and investment purposes. Although the Fund may invest in derivatives of any kind, the Fund currently expects to invest in futures contracts
and forward foreign currency contracts to gain efficient investment exposures as an alternative to cash investments or to hedge against portfolio exposures, and credit default swaps and interest rate swaps to gain indirect exposure to interest
rates, issuers, or currencies, or to hedge against portfolio exposures.
Principal Risks
All investments carry a certain amount of risk and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or
guaranteed by any bank and is not insured by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. You may lose money by investing in the Fund. Below are all of the principal risks of investing in the Fund.
Interest Rate Risk:
The possibility that the value of the Funds investments will decline due to an increase in interest rates. Interest rate risk is
generally high for longer-term bonds and low for shorter-term bonds.
Credit Risk:
The possibility that an issuer cannot make timely interest and
principal payments on its debt securities such as bonds. The lower a securitys rating, the greater its credit risk.
Income Risk:
The
possibility that the Funds income will decline due to a decrease in interest rates. Income risk is generally high for shorter-term bonds and low for longer term bonds.
Counterparty Risk:
The possibility that a counterparty to a contract will default or otherwise become unable to honor a financial obligation.
Liquidity Risk:
The possibility that certain securities may be difficult or impossible to sell at the time and the price that would normally prevail in the market. The seller may have to lower the price,
sell other securities instead or forego an investment opportunity, any of which could have a negative effect on Fund management or performance.
Estimated Maturity Risk:
The possibility that an underlying security holder will exercise its right to pay principal on an obligation earlier or later than
expected. This may happen when there is a rise or fall in
interest rates. These events may shorten or lengthen the duration (
i.e.
, interest rate sensitivity) and potentially reduce the value of these securities.
Prepayment/Call Risk:
When mortgages and other obligations are prepaid and when securities are called, the Fund may have to reinvest in securities with a
lower yield or fail to recover additional amounts (i.e., premiums) paid for securities with higher interest rates, resulting in an unexpected capital loss. Call risk is the possibility that, during periods of declining interest rates, a bond issuer
will call or repay higher-yielding bonds before their stated maturity date. In both cases, investors receive their principal back and are typically forced to reinvest it in bonds that pay lower interest rates.
High-Yield/High-Risk Debt Securities:
High-yield/high-risk debt securities are securities that are rated below investment grade by the primary rating
agencies. These securities are considered speculative and involve greater risk of loss than investment grade debt securities.
U.S. Government
Securities Risk:
The Fund invests in securities issued or guaranteed by the U.S. government or its agencies (such as Fannie Mae or Freddie Mac securities). Although U.S. government securities issued directly by the U.S. government are guaranteed
by the U.S. Treasury, other U.S. government securities issued by an agency or instrumentality of the U.S. government may not be. No assurance can be given that the U.S. government would provide financial support to its agencies and instrumentalities
if not required to do so by law.
Foreign Investment Risk:
Foreign securities involve risks not typically associated with investing in U.S.
securities. Foreign securities may be adversely affected by various factors, including currency fluctuations and social, economic or political instability. These risks are particularly pronounced for emerging markets.
Derivatives Risk:
The possibility that the Fund will suffer a loss from its use of derivatives. The primary risk with many derivatives is that they can
amplify a gain or loss, potentially earning or losing substantially more money than the actual cost of the derivative instrument. It is possible that the Funds liquid assets may be insufficient to support its obligations under its derivatives
positions. The Funds use of derivatives such as futures transactions and swap transactions involves other risks, such as the credit risk relating to the other party to a derivative contract (which is greater for swaps and other
over-the-counter traded derivatives), the risk of difficulties in pricing and valuation, the risk that changes in the value of a derivative may not correlate perfectly with relevant assets, rates or indices, and the risk of losing more than the
initial margin required to initiate derivatives positions. There is also the risk that the Fund may be unable to terminate or sell a derivatives position at an advantageous time or price.
For more information about the Funds risks, please see the Additional Investment Strategies and Risks section in this Prospectus.
Performance
The following bar chart and table provide some indication of the risks of investing in the Fund.
The bar chart shows the annual total return for the Fund. The table shows how the Funds average annual returns for 1 year and since the Funds inception compared with those of a broad measure of market performance. The Funds past
performance
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Summary Prospectus
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2 of 4
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Sterling Capital Corporate Fund
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(before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
Updated performance information is available at no cost by visiting
www.sterlingcapitalfunds.com or by calling 1-800-228-1872.
Institutional Shares Annual Total Return for
year ended 12/31
(1)
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Best quarter:
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4.11%
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09/30/12
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Worst quarter:
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1.35%
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12/31/12
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Average Annual Total Returns
as of December 31, 2012
(1)
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1
Year
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Since
Inception
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Institutional Shares
(1)
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(2/1/13
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Return Before Taxes
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10.67%
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8.58%
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Return After Taxes on Distributions
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8.95%
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7.04%
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Return After Taxes on Distributions and Sale of Fund Shares
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6.95%
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6.42%
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Barclays Capital U.S. Corporate Index
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(6/30/11
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(reflects no deductions for fees, expenses, or taxes)
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9.82%
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9.84%
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(1)
Performance of Institutional
Shares is based on the performance of Class S Shares of the Fund which were redesignated as Institutional Shares as of February 1, 2013.
After-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investors tax situation and may differ from those
shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
Management
Investment Adviser
Sterling Capital Management LLC (Sterling Capital)
Portfolio Managers
Mark Montgomery, CFA
Managing Director of Sterling Capital and
Senior Fixed Income Portfolio Manager
Since June 2011
Richard T. LaCoff
Managing Director of Sterling Capital and Senior Fixed Income Portfolio Manager
Since June 2011
Purchase and Sale of Fund Shares
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Account Type
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Minimum
Initial
Investment*
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Minimum
Subsequent
Investment
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Regular Account
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$
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1,000,000
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$
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0
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* Investors and employees Sterling Capital purchasing shares through Branch Banking and Trust Company, its affiliates or other
financial service providers or intermediaries approved by the Fund are not subject to a minimum initial investment requirement.
You may buy
Institutional Shares of the Fund through procedures established by the Fund in connection with the requirements of fiduciary, advisory, agency, custodial and other similar accounts maintained by or on behalf of customers of Branch Banking and Trust
Company or one of its affiliates or other financial service providers or intermediaries approved by the Fund. These parties are responsible for transmitting orders by close of business. Consult your investment representative or institution for
specific information. Institutional Shares also are available for purchase at www.sterlingcapitalfunds.com.
Tax Information
The Fund normally distributes its net investment income and net realized capital gains, if any, to shareholders. These distributions are generally taxable to you as
ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for
the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit
your financial intermediarys Web site for more information.
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Summary Prospectus
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3 of 4
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Sterling Capital Corporate Fund
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CORP-I-02/13
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Summary Prospectus
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4 of 4
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Sterling Capital Corporate Fund
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