NPORT-EX 2 SN10SCStrattonMidCapVal.htm

 

Sterling Capital Stratton Mid Cap Value Fund

Schedule of Portfolio Investments

June 30, 2020 (Unaudited)

 

  

Shares      Fair Value 
COMMON STOCKS — 94.7%     
     Auto Components — 1.4%     
 16,540   Magna International, Inc.  $736,526 
     Banks — 6.2%     
 18,700   East West Bancorp, Inc.   677,688 
 8,100   First Republic Bank   858,519 
 67,700   Huntington Bancshares, Inc.   611,670 
 47,700   KeyCorp.   580,986 
 12,100   Wintrust Financial Corp.   527,802 
         3,256,665 
     Capital Markets — 2.1%     
 7,200   Ameriprise Financial, Inc.   1,080,288 
     Chemicals — 1.6%     
 15,700   Westlake Chemical Corp.   842,305 
     Communications Equipment — 1.5%     
 14,500   Ciena Corp.(a)   785,320 
     Construction & Engineering — 1.2%     
 13,900   MasTec, Inc.(a)   623,693 
     Containers & Packaging — 5.1%     
 12,200   Avery Dennison Corp.   1,391,898 
 29,100   Berry Global Group, Inc.(a)   1,289,712 
         2,681,610 
     Electronic Equipment, Instruments & Components — 3.9%     
 10,500   Arrow Electronics, Inc.(a)   721,245 
 11,600   CDW Corp.   1,347,688 
         2,068,933 
     Entertainment — 4.4%     
 15,200   Activision Blizzard, Inc.   1,153,680 
 8,300   Take-Two Interactive Software, Inc.(a)   1,158,431 
         2,312,111 
     Equity Real Estate Investment Trusts (REITS) — 14.8%     
 19,600   Americold Realty Trust   711,480 
 17,200   CyrusOne, Inc.   1,251,300 
 8,100   Digital Realty Trust, Inc.   1,151,091 
 9,700   EastGroup Properties, Inc.   1,150,517 
 21,500   Highwoods Properties, Inc.   802,595 
 39,000   Hudson Pacific Properties, Inc.   981,240 
 11,300   Mid-America Apartment Communities, Inc.   1,295,771 
 12,200   Ryman Hospitality Properties, Inc.   422,120 
         7,766,114 
     Food & Staples Retailing — 3.2%     
 6,900   Casey’s General Stores, Inc.   1,031,688 
 21,300   Performance Food Group Co.(a)   620,682 
         1,652,370 
     Food Products — 1.8%     
 15,100   Lamb Weston Holdings, Inc.   965,343 
           
     Gas Utilities — 4.8%     
 21,800   Southwest Gas Holdings, Inc.   1,505,290 
 31,000   UGI Corp.   985,800 
         2,491,090 
     Health Care Equipment & Supplies — 3.9%     
 3,400   Becton Dickinson & Co.   813,518 

 

Shares      Fair Value 
COMMON STOCKS — (continued)    
     Health Care Equipment & Supplies — (continued)     
 10,400   Zimmer Biomet Holdings, Inc.  $1,241,344 
         2,054,862 
     Household Durables — 1.7%     
 25,700   PulteGroup, Inc.   874,571 
     Industrial Conglomerates — 1.9%     
 8,400   Carlisle Cos., Inc.   1,005,228 
     Insurance — 6.4%     
 8,300   American Financial Group, Inc.   526,718 
 22,300   First American Financial Corp.   1,070,846 
 12,200   Globe Life, Inc.   905,606 
 8,300   Hanover Insurance Group, Inc. (The)   841,039 
         3,344,209 
     IT Services — 5.0%     
 6,800   CACI International, Inc., Class A(a)   1,474,784 
 12,000   Fiserv, Inc.(a)   1,171,440 
         2,646,224 
     Life Sciences Tools & Services — 9.4%     
 10,300   ICON PLC(a)   1,735,138 
 5,710   Medpace Holdings, Inc.(a)   531,144 
 14,300   PerkinElmer, Inc.   1,402,687 
 3,500   Thermo Fisher Scientific, Inc.   1,268,190 
         4,937,159 
     Machinery — 2.0%     
 14,300   Oshkosh Corp.   1,024,166 
     Oil, Gas & Consumable Fuels — 3.8%     
 46,700   Cabot Oil & Gas Corp.   802,306 
 16,300   Phillips 66   1,171,970 
         1,974,276 
     Semiconductors & Semiconductor Equipment — 2.7%     
 10,900   Skyworks Solutions, Inc.   1,393,674 
     Software — 1.5%     
 10,200   PTC, Inc.(a)   793,458 
     Trading Companies & Distributors — 4.4%     
 35,300   HD Supply Holdings, Inc.(a)   1,223,145 
 7,100   United Rentals, Inc.(a)   1,058,184 
         2,281,329 
     Total Common Stocks     
     (Cost $33,482,484)   49,591,524 
           
EXCHANGE TRADED FUND — 2.0%     
 14,000   iShares Russell Mid-Cap Value ETF   1,071,420 
     Total Exchange Traded Fund     
     (Cost $949,037)   1,071,420 

 

See accompanying Notes to the Schedule of Portfolio Investments.

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Sterling Capital Stratton Mid Cap Value Fund

Schedule of Portfolio Investments — (continued)

June 30, 2020 (Unaudited)

 

 

Shares     Fair Value 
MONEY MARKET FUND — 3.3%    
1,712,106  Federated Treasury Obligations Fund, Institutional Shares, 0.10%(b)  $1,712,106 
   Total Money Market Fund     
   (Cost $1,712,106)   1,712,106 
Total Investments — 100.0%     
(Cost $36,143,627)   52,375,050 
Net Other Assets (Liabilities) — 0.0%   20,736 
NET ASSETS — 100.0%  $52,395,786 

 

 

(a)Represents non-income producing security.

(b)Represents the current yield as of report date.

 

ETF — Exchange Traded Fund

 

Continued

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Sterling Capital Funds

Notes to Schedule of Portfolio Investments - Sterling Capital Stratton Mid Cap Value Fund

June 30, 2020 (Unaudited)

 

 

1.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 Mid Cap Value 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 amounts of income and expenses 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.

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Sterling Capital Funds

Notes to Schedule of Portfolio Investments - Sterling Capital Stratton Mid Cap Value 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 Mid Cap Value Fund  $52,375,050(a)  $—   $—   $52,375,050 

 

 

(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.

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