Investment Objective
The Fund seeks to provide current income and competitive 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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0.20%
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Distribution and Service (12b-1) Fees
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0.00%
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Other Expenses
(1)
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0.28%
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Total Annual Fund Operating Expenses
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0.48%
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(1)
Because the Fund is new, the
amount shown for “Other Expenses” is based on estimated amounts for the current fiscal year.
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
$10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes, that your investment has a 5% return each year and that the Fund’s operating expenses remain the
same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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1
Year
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3
Years
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Institutional Shares
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$
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49
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$
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154
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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 Fund’s performance.
A portfolio turnover rate for the Fund is not shown because the Fund has not yet completed its first fiscal year of operations.
Strategy, Risks and Performance
Principal Strategy
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 invests primarily in the following types of fixed income securities: (i) securities issued or
guaranteed by the U.S. government or its agencies and instrumentalities, some of which may be subject to repurchase agreements; (ii) corporate debt securities, including bonds, notes and debentures, issued by U.S. companies that are 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 are determined by the portfolio manager to be of comparable quality); (iii) investment grade
asset-backed securities; (iv) investment grade mortgage-backed securities, including collateralized mortgage obligations; and (v) municipal securities; (vi) U.S. dollar-denominated foreign and emerging market securities; and
(vii) variable and floating rate instruments. Additionally, the Fund will invest in convertible securities, including convertible bonds and preferred stocks, and cash equivalents. The Fund may invest up to 10% of its total assets in bonds that
are below investment grade, which are commonly referred to as “high yield” or “junk” bonds. The Fund will maintain an average duration of 18 months or less. The Fund is generally structured to target a dollar-weighted average
maturity of between zero and 24 months, although the Fund may invest in individual securities of any weighted average maturity.
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Summary Prospectus
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1 of 4
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Sterling Capital Ultra Short Bond Fund
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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.
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.
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 Fund’s 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 security’s rating, the greater its credit risk.
Income Risk:
The possibility that the Fund’s 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.
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.
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.
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.
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.
Municipal Securities Risk:
Municipal obligations are issued by or on behalf of states, territories and possessions of the United States and their political
subdivisions, agencies and instrumentalities and the District of Columbia to obtain funds for various public purposes. Municipal obligations are subject to more credit risk than U.S. government securities that are supported by the full faith and
credit of the United States. The ability of municipalities to meet their obligations will depend on the availability of tax and other revenues, economic, political and other conditions within the state and municipality, and the underlying fiscal
condition of the state and municipality. As with other fixed income securities, municipal securities also expose their holders to market risk because their values typically change as interest rates fluctuate. Municipal obligations are issued by or
on behalf of states, territories and possessions of the United States and their political subdivisions, agencies and instrumentalities and the District of Columbia to obtain funds for various public purposes. Municipal obligations are subject to
more credit risk than U.S. government securities that are supported by the full faith and credit of the United States. The ability of municipalities to meet their obligations will depend on the availability of tax and other revenues, economic,
political and other conditions within the state and municipality, and the underlying fiscal condition of the state and municipality. As with other fixed income securities, municipal securities also expose their holders to market risk because their
values typically change as interest rates fluctuate.
Mortgage-Backed and Asset-Backed Securities Risk:
Mortgage-backed and other asset-backed
securities may be particularly sensitive to changes in prevailing interest rates. Rising interest rates tend to extend the duration of mortgage-backed securities, making them more sensitive to changes in interest rates, and may reduce the market
value of the securities. Mortgage-backed securities are also subject to pre-payment risk. Due to their often complicated structures, various mortgage-backed and asset-backed securities may be difficult to value and may constitute illiquid
securities. Furthermore, debtors may be entitled to the protection of a number of state and federal consumer protection credit laws with respect to
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Summary Prospectus
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2 of 4
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Sterling Capital Ultra Short Bond Fund
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these securities, which may give the debtor the right to avoid or reduce payment.
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.
Management Risk:
The possibility that a strategy used by the Fund’s portfolio manager may fail to produce the intended result.
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.
Active Trading Risk:
The Fund may trade securities actively, which could increase its
transaction costs (thereby lowering its performance) and may increase the amount of taxes that a shareholder pays, by increasing the amount of the Fund’s realized capital gains and increasing the proportion of the fund’s realized capital
gains that are short-term capital gains.
For more information about the Fund’s risks, please see the “Additional Investment Strategies and
Risks” section in this Prospectus.
Performance
Performance information gives some indication of the risks of investing in the Fund by comparing the Fund’s performance with a broad measure of market performance. The Fund’s past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in the future. Performance information has not been presented because the Fund has not been in existence for a full calendar year as of the date of this prospectus.
Updated performance information is available at no cost by visiting www.sterlingcapitalfunds.com or by calling 1-800-228-1872.
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 November 2012
Richard T. LaCoff
Managing Director of Sterling Capital and Senior Fixed Income Portfolio Manager
Since November 2012
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 purchasing shares through Branch Banking and Trust Company, its affiliates or other financial service providers or
intermediaries approved by the Fund and employees of Sterling Capital and trustees of the Sterling Capital Funds 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 intermediary’s Web site for more information.
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Summary Prospectus
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3 of 4
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Sterling Capital Ultra Short Bond Fund
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USB-I-02/13
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Summary Prospectus
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4 of 4
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Sterling Capital Ultra Short Bond Fund
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Skinvisible (QB) (USOTC:SKVI)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Skinvisible (QB) (USOTC:SKVI)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
