Sterling Capital Funds has launched the Sterling Capital Diversified Income Fund. Formerly known as the Sterling Capital Strategic Allocation Conservative Fund, the fund is part of a lineup of 22 mutual funds offering investors access to virtually every asset class and sector.
Focusing on income and capital appreciation by allocating capital across a diverse mix of income-generating asset classes and strategies, the Diversified Income Fund represents a unique addition to the Sterling Capital lineup as well as to the investment marketplace as a whole. The renamed mutual fund is a solutions-based strategy, which may allow investors to achieve income and proper diversification in one fund rather than allocating to multiple investments. The Diversified Income Fund seeks to gain a competitive advantage in the marketplace by utilising an open architecture approach that enables portfolio managers to pinpoint seasoned management teams across all asset classes.
In order to achieve its stated objectives, portfolio managers Shane A Burke and Will G Gholston, CFA, have expanded the opportunity set beyond traditional equity and fixed income investments to include nontraditional investments. Investments such as insurance-linked securities and option strategies offer opportunities for additional income, diversification, and return.
"With rates remaining near long-term historical lows, we recognise the increasing challenge in satisfying investors' income needs," says Burke, who is based in Raleigh, NC. "Leveraging our experience and expertise in the areas of asset allocation, manager selection, and portfolio construction, we believe we have identified a complementary mix of strategies that can provide a steady stream of income with moderate volatility."
The strategy employs a global approach to asset allocation, and uses a cost-effective blend of active and passive management to achieve its objectives. The fund will be structured as a "fund-of-funds," which will allow capital to be efficiently allocated and rebalanced as needed.
In addition to generating current income, the fund is also expected to generate capital appreciation over the course of a complete market cycle.
"We seek to provide a combination of current income and capital appreciation that meets or exceeds our shareholders' long-term total return objectives," says Gholston. "An analysis of historical performance illustrates that an income-oriented approach to investing has consistently delivered attractive total returns on both an absolute and risk-adjusted basis."
The fund will offer Class A, C and Institutional shares.