Sterling Capital Stratton Real Estate Fund Ranks at Top of Morningstar Peers
Apr 25, 2017, 08:00 ET
CHARLOTTE, N.C., April 25, 2017 /PRNewswire/ -- Sterling Capital Management LLC (Sterling) announced today the Sterling Capital Stratton Real Estate mutual fund has ranked near the top of its peers in its respective Morningstar Real Estate Category based on risk-adjusted returns for the three-, five- and 10-year trailing periods as of March 31, 2017. The fund (STMDX) has an overall five-star rating and finished in the top quintile for the last three, five and 10 years.
In response to the fund's success, Andrew T. DiZio, CFA®, lead portfolio manager, said, "Our Morningstar rating reflects the effectiveness of our differentiated REIT investment philosophy and process, focused on finding attractive relative values throughout the market capitalization spectrum. We view real estate assets as providing an attractive combination of capital appreciation and current income. As real estate continues to evolve as an asset class, we believe investors should re-examine the diversification benefits of a dedicated investment."
Associate Portfolio Manager Shawn M. Gallagher, CFA®, added, "With the support of the entire Sterling Capital organization, we look forward to helping investors of all sizes gain exposure to commercial property through REITs."
Following is the Sterling Capital Stratton Real Estate Fund Morningstar Ratings and Rankings as of March 31, 2017:
| Morningstar Real Estate Category Based on risk-adjusted returns as of March 31, 2017 |
Overall Rating |
1 Year |
3 Years |
5 Years |
10 Years |
||
| Institutional Shares Morningstar Rating™ |
* * * * * |
-- |
* * * * |
* * * * |
* * * * * |
||
| Morningstar Ranking / Number of Funds In Category |
234 |
71 / 262 |
27 / 234 |
20 / 205 |
9 / 137 |
||
| Morningstar Quartile (Percentile) |
2nd (27%) |
1st (12%) |
1st (10%) |
1st (6%) |
|||
Morningstar rankings are based on total return, including the reinvestment of dividends and capital gains but do not include sales charges for the periods indicated. Rankings shown are for Class I shares and may be lower for Class A shares due to higher fees and expenses. Mutual funds are assigned a rank within a universe of funds, relative to a peer group and similar in investment objective as determined by Morningstar. The lower the number rank, the better the fund performed compared to other funds in the classification group. Morningstar also calculates a percentile measure for each fund ranging from 1 percent (best) to 100 percent (worst).
The Morningstar RatingTM 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 percent of products in each product category receive five stars, the next 22.5 percent receive four stars, the next 35 percent receive three stars, the next 22.5 percent receive two stars, and the bottom 10 percent receive one 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-percent, three-year rating for 36-59 months of total returns, 60-percent, five-year rating/40-percent, three-year rating for 60-119 months of total returns, and 50-percent, 10-year rating/30-percent, five-year rating/20-percent, 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.
©2016 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Mutual Fund investing involves risk including the possible loss of principal. Investments made in mid-capitalization companies may be more volatile and less liquid than large-capitalization companies. The fund will invest in Real Estate Investment Trusts (REITs), which may be negatively affected by conditions in the real estate industry such as declining property values due to unanticipated economic developments. The fund may invest in debt securities, which may fall in value if interest rates rise. The fund may also invest in foreign securities, which may cause greater volatility and less liquidity due to currency fluctuations, political instability and other economic factors.
Sterling Capital Management LLC
Sterling Capital Management, LLC, is a registered investment advisor founded in 1970, with $51 billion in assets under management as of Dec. 31, 2016. Sterling is an independently operated subsidiary of BB&T Corporation, one of the nation's largest financial services holding companies. Headquartered in Charlotte, N.C., Sterling is comprised of more than 130 professionals in San Francisco, Calif; Atlanta, Ga.; Washington, D.C.; Raleigh, N.C.; Philadelphia, Pa.; and Richmond and Virginia Beach, Va. Sterling provides investment management services to a diverse group of clients, including corporate, public, health care, private clients, endowment, foundation, insurance, subadvisory and managed investment pools.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the fund, please call 888-228-1872 or visit our website at SterlingCapitalFunds.com. 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. Shares of the Sterling Capital Funds are not deposits or obligations of, or guaranteed or endorsed by Branch Banking and Trust Company or its affiliates. The funds are not insured by the FDIC or any other government agency. The funds are distributed by Sterling Capital Distributors LLC, which is not affiliated with Branch Banking and Trust Company or its affiliates.
SOURCE Sterling Capital Management LLC