Sterling Capital North Carolina Intermediate Tax Free Fund Cl A A · NASDAQ:BNCAX
Sterling Capital North Carolina Intermediate Tax Free Fund Cl A A — Sterling Capital Management — Q3 2021 Earnings Presentation
25 slides from Sterling Capital North Carolina Intermediate Tax Free Fund Cl A A's earnings presentation, Nov 30, 2021
Slide 1: 3rd Quarter 2021 Market Review: Focus Equity
3rd Quarter 2021 Market Review: Focus Equity
Slide 2: Sterling Capital Management LLC Risks & Disclosures
Sterling Capital Management LLC Risks & Disclosures This webcast is being recorded. The material presented in this presentation is as of 09.30.2021, unless otherwise stated. The opinions contained in this presentation reflect those of Sterling Capital Management LLC and are for general informa
Slide 3: Meet Your Speakers & Agenda
Meet Your Speakers & Agenda WebEx Agenda: Equity market and macro environment Focus Equity philosophy and process Focus Equity Q3.2021 performance, activity and positioning Q&A Colin R. Ducharme, CFA® Whitney L. Stewart, CFA® Executive Director Executive Director Co-PM Focus Equity Client Po
Slide 4: S&P 500 +0.58% in Q3.2021
S&P 500 +0.58% in Q3.2021 Source: Strategas Research. The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index. The views expressed represent the opinions of Sterling Capital Management. Any type of investing involves risk and there are
Slide 5: S&P 500 Index Corporate Earnings Continue to Beat Expectations
S&P 500 Index Corporate Earnings Continue to Beat Expectations Source: Deutsche Bank, Bloomberg Finance LP. The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index. The views expressed represent the opinions of Sterling Capital Managem
Slide 6: Will Higher Inflation Be Transitory?
Will Higher Inflation Be Transitory? Source: Strategas Research. The views expressed represent the opinions of Sterling Capital Management. Any type of investing involves risk and there are no guarantees that these methods will be successful. 6
Slide 7: The Market is Expecting First Rate Hike in Summer of 2022
The Market is Expecting First Rate Hike in Summer of 2022 OIS = Overnight Index Swaps. Source: The Daily Shot, Bloomberg. The views expressed represent the opinions of Sterling Capital Management. Any type of investing involves risk and there are no guarantees that these methods will be successful.
Slide 8: Historically, Equities Generate Strong Returns Around the First Federal Reserve Hike
Historically, Equities Generate Strong Returns Leading Up to and Three Years After the First Federal Reserve Hike Average returns based on Federal Reserve rate hike cycles in 1994, 1999, 2004, and 2015. For illustrative purposes only. Source: Credit Suisse. The volatility of an index varies greatly.
Slide 9: Mega-Cap and Financials Outperformed in Q3.2021
Mega-Cap and Financials Outperformed in Q3.2021 Source: Strategas Research. The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index. The views expressed represent the opinions of Sterling Capital Management. Any type of investing invol
Slide 10: “4M” Focus Equity Philosophy
“4M” Focus Equity Philosophy We Target Companies We Believe Can Generate Double Digit Returns With: Markets that are large and growing – where companies can visibly reinvest. Business Models that exhibit pillars of growth, financial stability, strong margins, and reasonable valuations. Managem
Slide 11: Equity Opportunities Group Philosophy of Investing
Equity Opportunities Group Philosophy of Investing Seek Capital Appreciation and Risk Reduction by Constructing Portfolios with Attractive Valuations (P/E), Robust Operating Growth (EPS Growth/Stability), High Profitability (ROE) and Strong Balance Sheets (Interest Coverage) Annualized Return of Top
Slide 12: Focus Equity Performance History
Focus Equity Performance History Sterling Focus Equity (Gross) Sterling Focus Equity (Net) Russell 1000® Growth Index 30.00 20.00 10.00 0.00 Since Performance QTR YTD 1 Year 3 Year 5 Year Inception* Sterling (Gross) 1.38% 11.55% 22.64% 22.99% 25.39% 23.44% Sterling (Net) 1.28% 11.12% 22.06% 22.65% 2
Slide 13: Risk vs. Reward
Risk vs. Reward Sterling Focus Equity Gross of Fees, Since Inception (12.31.2015) Up Market Down Market Summary Statistics vs. Russell 1000® Growth Index (of Monthly Returns) 102.63% Alpha 2.21 90.69% Beta 1.01 R Squared 0.85 Tracking Error 6.80 Standard Deviation 17.48 Information Ratio 0.39 Up Mar
Slide 14: Q3 Top Five Contributors/Bottom Five Detractors
Q3 Top Five Contributors/Bottom Five Detractors Since Performance QTR YTD 1 Year 3 Year 5 Year Inception* Sterling (Gross) 1.38% 11.55% 22.64% 22.99% 25.39% 23.44% Sterling (Net) 1.28% 11.12% 22.06% 22.65% 25.10% 23.16% Russell 1000® Growth 1.16% 14.30% 27.32% 22.00% 22.84% 20.81% Russell 3000® -0.1
Slide 15: Focus Equity Characteristics and Top Ten Holdings
Focus Equity Characteristics and Top Ten Holdings Sterling Focus Equity Portfolio Characteristics Top Ten Equity Holdings Sterling Index 1. Microsoft Corporation 9.2% 2. S&P Global, Inc. 9.1% Wtd. Average Market Cap $443.2B $824.0B 3. Mastercard Incorporated Class A 8.1% Wtd. Median Market Cap $66.1
Slide 16: Focus Equity is Built to Differ from the Benchmark
Focus Equity is Built to Differ from the Benchmark Sterling Focus Equity 50% Sterling Focus Equity 44.4% 45% 41.2% Russell 1000® Growth Index 40% 35% 30% 25% 22.3% 20% 18.4% 16.9% 15% 12.7% 9.1% 9.2% 10% 5.4% 5.9% 4.9% 5% 3.8% 2.5% 1.0% 1.7% 0.0% 0.0% 0.3% 0.0% 0.0% 0.0% 0.0% 0.2% 0.0% 0% Comm Consu
Slide 17: Fintech Landscape is Fragmented and Rapidly Expanding
Fintech Landscape is Fragmented and Rapidly Expanding Source: Cardknox. This material references cryptocurrencies, including bitcoin. Such references are not a recommendation, an offer, nor a solicitation, to buy or sell Bitcoin or other cryptocurrencies. Specific securities identified and described
Slide 18: Networks are Key Industry Players and Form Connective Tissue to Enable Transactions
Networks are Key Industry Players and Form Connective Tissue to Enable Transactions Source: Cardknox. Specific securities identified and described do not represent all of the securities purchased, sold or recommended to clients. There are no assurances that securities identified will be profitable i
Slide 19: Recent Research Observations
Recent Research Observations: Mastercard CEO Michael Miebach: “We're seeing continued strength in domestic spending and overall cross-border volumes are now back at 2019 levels, though there still remains significant room for growth in cross-border travel. We're continuing to execute against our str
Slide 20: Adyen (ADYEN)
Adyen (ADYEN) Focus Equity “4M” Framework and Four Pillars Focus Equity “4M” Framework Robust Growth in E-Commerce Market: Stifel Nicolaus estimates that global e-commerce sales will grow from $4.4T to $6.42 from 2021 to 2024, and will still only represent 21.4% of total global retail sales of $30
Slide 21: Focus Equity Summary
Focus Equity Summary Growth of $1 Million History of Attractive Risk-Adjusted Returns Gross and Net of Fees, Since Inception (12.31.2015) $4,000,000 Through a Variety of Market Environments Focus Equity Gross Focus Equity Net $3,500,000 $3,355,259 Russell 1000® Growth Russell 3000® $3,312,052 $3,0
Slide 22: Appendix
Appendix BB, steRLN
Slide 23: Important Information
Important Information Indices The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index. The S&P 500® Index is a readily available, carefully constructed, market-value-weighted benchmark of common stock performance. Currently, the S&P 50
Slide 24: Important Information
Important Information Disclosures Technical Terms: Earnings Per Share (EPS): a key metric used to determine the common shareholder’s portion of the company’s profit. EPS measures each common share’s profit allocation in relation to the company’s total profit. Price Earnings Ratio (P/E): the relation
Slide 25: Sterling Capital Management – Focus Equity Composite
Sterling Capital Management – Focus Equity Composite January 1, 2016 – December 31, 2020 Description: Consists of all discretionary separately managed Focus Equity portfolios. Sterling’s Focus Equity portfolio investments are flexible and may span growth and value, large- and small-capitalization co
Sterling Capital Management — Q3 2021 Earnings Presentation on 6ix