NPORT-EX 2 SN20SCStrattonRealEstate.htm

Sterling Capital Stratton Real Estate Fund

Schedule of Portfolio Investments

June 30, 2020 (Unaudited)

Shares			Fair Value
COMMON STOCKS — 98.9%
		Diversified — 1.0%
	74,000	Alexander & Baldwin, Inc.	$	902,060
		Health Care — 9.1%
	52,500	Healthcare Trust of America, Inc., Class A		1,392,300
	109,000	Medical Properties Trust, Inc.		2,049,200
	59,500	Ventas, Inc.		2,178,890
	45,000	Welltower, Inc.		2,328,750
				7,949,140
		Hotel & Resort — 2.7%
	55,500	MGM Growth Properties, LLC, Class A		1,510,155
	25,000	Ryman Hospitality Properties, Inc.		865,000
				2,375,155
		Industrial — 16.5%
	68,000	Americold Realty Trust		2,468,400
	62,000	Duke Realty Corp.		2,194,180
	16,300	EastGroup Properties, Inc.		1,933,343
	68,000	First Industrial Realty Trust, Inc.		2,613,920
	12,000	Innovative Industrial Properties, Inc.		1,056,240
	45,275	Prologis, Inc.		4,225,516
				14,491,599
		Office — 8.8%
	20,000	Alexandria Real Estate Equities, Inc.		3,245,000
	36,500	Cousins Properties, Inc.		1,088,795
	37,000	Highwoods Properties, Inc.		1,381,210
	78,000	Hudson Pacific Properties, Inc.		1,962,480
				7,677,485
		Residential — 12.7%
	46,000	American Campus Communities, Inc.		1,608,160
	10,800	Essex Property Trust, Inc.		2,475,036
	99,000	Invitation Homes, Inc.		2,725,470
	19,500	Mid-America Apartment Communities, Inc.		2,236,065
	56,000	UDR, Inc.		2,093,280
				11,138,011

Shares			Fair Value
COMMON STOCKS — (continued)
		Retail — 8.3%
	48,000	Getty Realty Corp.	$	1,424,640
	150,000	Kite Realty Group Trust		1,731,000
	43,400	National Retail Properties, Inc.		1,539,832
	132,000	Retail Opportunity Investments Corp.		1,495,560
	144,000	Retail Properties of America, Inc., Class A		1,054,080
				7,245,112
		Specialized — 39.8%
	33,000	American Tower Corp.		8,531,820
	37,300	Crown Castle International Corp.		6,242,155
	68,000	CubeSmart		1,835,320
	24,200	CyrusOne, Inc.		1,760,550
	27,900	Digital Realty Trust, Inc.		3,964,869
	9,200	Equinix, Inc.		6,461,160
	19,500	Life Storage, Inc.		1,851,525
	46,000	PotlatchDeltic Corp.		1,749,380
	8,100	SBA Communications Corp.		2,413,152
				34,809,931
		Total Common Stocks
		(Cost $57,405,242)		86,588,493

MONEY MARKET FUND — 0.8%
	671,665	Federated Treasury Obligations Fund, Institutional Shares, 0.10%(a)		671,665
		Total Money Market Fund
		(Cost $671,665)		671,665
Total Investments — 99.7%
(Cost $58,076,907)				87,260,158
Net Other Assets (Liabilities) — 0.3%				248,777
NET ASSETS — 100.0%.			$	87,508,935

(a)

Represents the current yield as of report date.

See accompanying Notes to the Schedule of Portfolio Investments.

Sterling Capital Funds

Notes to Schedule of Portfolio Investments - Sterling Capital Stratton Real Estate Fund

June 30, 2020 (Unaudited)

Organization:

Sterling Capital Funds (the “Trust”) commenced operations on October 5, 1992 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end investment company established as a Massachusetts business trust.

The Trust offers shares of Sterling Capital Stratton Real Estate Fund (referred to as the “Fund”), among other series of the Trust.

The Fund is a “diversified” fund as defined in the 1940 Act.

2.	Significant Accounting Policies:

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services-Investment Companies. The following is a summary of significant accounting policies followed by the Fund. The policies are in conformity with United States generally accepted accounting principles (“U.S. GAAP”).The preparation of this schedule requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the schedule and the reported amount of income and expense for the reporting period. Actual results could differ from those estimates.

Securities Valuation — Investments of the Fund in securities traded on a national securities exchange or in the over-the-counter market are valued at the closing price on the principal exchange or market (including the NASDAQ Closing Price for securities traded on NASDAQ), typically 4:00 PM ET or, absent such a price, by reference to the latest available bid prices in the principal market in which such securities are normally traded. The Fund may also use an independent pricing service approved by the Board of Trustees (the “Board”) to value certain securities, including the use of electronic and matrix techniques. Investments in open-end investment companies are valued at their respective net asset values as reported by such companies. Investments in closed-end investment companies and exchange-traded funds are valued at their market values based upon the latest available sale price or, absent such a price, by reference to the latest available bid prices in the principal market in which such securities are normally traded. The differences between cost and fair value of investments are reflected as either unrealized appreciation or depreciation. Securities for which market quotations are not readily available or deemed unreliable (e.g., an approved pricing service does not provide a price, a furnished price is in error, certain stale prices, or an event occurs that materially affects the furnished price) will be fair valued in accordance with procedures established in good faith under the general supervision of the Board.

Fair Value Measurements — The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:

● Level 1 – quoted prices in active markets for identical securities

● Level 2 – based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

● Level 3 – based on significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. During the period ended June 30, 2020, there were no significant changes to the valuation policies and procedures.

Sterling Capital Funds

Notes to Schedule of Portfolio Investments - Sterling Capital Stratton Real Estate Fund — (continued)

June 30, 2020 (Unaudited)

The summary of inputs used to determine the fair value of the Fund’s investments as of June 30, 2020 is as follows:

	Level 1– Quoted Prices			Level 2– Other Significant Observable Inputs		Level 3– Significant Unobservable Inputs		Total
Assets:
Investments in Securities
Sterling Capital Stratton Real Estate Fund	$	87,260,158	(a)	$	—	$	—	$	87,260,158

(a)

Industries, countries or security types are disclosed in the Schedule of Portfolio Investments.

Cash and Cash Equivalents — The Fund considers liquid assets deposited with a bank, and certain short term debt instruments with original maturities of three months or less to be cash equivalents. These investments represent amounts held with financial institutions that are readily accessible to pay Fund expenses or investments. The Fund may invest its excess cash in the Federated Treasury Obligations Fund or a similar money market fund or other short-term investment.

Risks Associated with Foreign Securities and Currencies — Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of domestic issuers. Such risks include future political and economic developments and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments which could adversely affect investments in those countries. Certain foreign investments may also be subject to foreign withholding taxes.

When-Issued and Forward Commitments — The Fund may purchase securities on a “when-issued” basis. The Fund records when-issued securities on the trade date and pledge assets with a value at least equal to the purchase commitment for payment of the securities purchased. The value of the securities underlying when-issued to purchase securities, and any subsequent fluctuation in their value, is taken into account when determining the net asset value of the Fund commencing with the date the Fund agrees to purchase the securities. The Fund does not accrue interest or dividends on “when-issued” securities until the underlying securities are received.