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 — Q1 2021 Earnings Presentation
24 slides from Sterling Capital North Carolina Intermediate Tax Free Fund Cl A A's earnings presentation, May 13, 2021
Slide 1: 1st Quarter 2021 Market Review: Focus Equity
1st Quarter 2021 Market Review: Focus Equity WHAT MATTERS MOST TO YOU MATTERS MOST TO US.
Slide 2: Risks & Disclosures
Sterling Capital Management LLC Risks & Disclosures • This webcast is being recorded. • The material presented in this presentation is as of 03.31.2021, 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 Q1 2021 Performance, Activity and Positioning • Q&A Colin R. Ducharme, CFA® Jeremy M. Lopez, CFA® Whitney L. Stewart, CFA® Executive Director Director Executive Direct
Slide 4: Large Cap Stocks Up 6.2% in Q1 2021
Large Cap Stocks Up 6.2% in Q1 2021 So urce : Strate gas Rese arch. The vo latility o f an inde x varie s greatly. All indice s are unmanaged and inve stme nts canno t be made dire ctly in an inde x. The vie ws expresse d re prese nt the o pinio ns of Sterling Capital Manage me nt. Any type o f inve
Slide 5: Value Outperformed Growth in Q1 2021, Which Was a Reversal of 2020
Value Outperformed Growth in Q1 2021, Which Was a Reversal of 2020 So urce : JP Mo rgan Asset Manage ment Past performance is not indicative of future results. 5
Slide 6: Style and Sector Update Through April 30, 2021
Style and Sector Update Through April 30, 2021 The chart below provides total return for each index, equity sector, and/or fixed income category. The coloring suggests that green is outperforming, yellow is performing in-line, and red is underperforming. So urce : Be spo ke Inve stme nt Gro up. The
Slide 7: Why Focus Equity?
Why Focus Equity? History of Attractive Risk Adjusted Returns • Over five-year history of above benchmark cumulative Growth of $1 M illion performance and below average risk resulting in attractive upside and downside participation.* Gro ss and Net of Fees, Since Inception (12.31.2015) $3,300,000 Fo
Slide 8: "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 9: History Suggests the Four Pillars Increase Probabilities of Generating Excess Return
History Suggests the Four Pillars Increase Probabilities of Generating Excess Return The Equity Opportunities Group seeks capital appreciation and risk reduction by constructing portfolios with attractive valuations, operating growth, high profitability and strong balance sheets. Annualized Return o
Slide 10: Old Dominion (ODFL) Focus Equity 4M Framework and Pillars
Old Dominion (ODFL) Focus Equity 4M Framework and 4 Pillars Focus Equity 4M Framework Differentiated Growth & Profitability • Market: According to AT Kearney, the U.S. transportation market is sized at over $1T annually across all modes- trucking, rail, air, et al. Trucking is approx. $700 billion o
Slide 11: Focus Equity Performance History
Focus Equity Performance History *Ince ptio n date is 12 .31.2015. Data as o f 03.31.2021. Pe rformance is pre liminary and is annualize d for pe rio ds lo nge r thano ne ye ar. Net o f fees performance returns are prese nted net of the inve stme nt manage me nt fees and tradinge xpe nses. Gro ss of
Slide 12: Risk vs. Reward
Risk vs. Reward Sterling Focus Equity vs. Russell 1000® Growth Index Gross of Fees, Since Inception (12.31.2015) Summary Statistics Up Market Down Market (of Monthly Returns) Alpha 2.28 103.07% Beta 1.02 90.47% R Squared 0.84 Tracking Error 6.97 Standard Deviation 17.66 Information Ratio 0.39 Up Mar
Slide 13: Q1 Top Contributors/Bottom Detractors
Q4 Top 5 Contributors/Bottom 5 Detractors Q1 Top 5 Contributors: Q1 Bottom 5 Detractors: • Alphabet (+18%) • Coupa Software (-25%) • Old Dominion Freight Line (+23%) • Verisk Analytics (-20%) • S&P Global (+6%) • Kinsale Capital (-17%) • Microsoft (+6%) • Okta (-13%) • Brookfield Asset Management (+
Slide 14: Focus Equity Characteristics and Top Ten Holdings
Focus Equity Characteristics and Top Ten Holdings Portfolio Characteristics Top Ten Equity Holdings Sterling Index 1. Mastercard Incorporated Class A 9.4% 2. Microsoft Corporation 8.7% Wtd. Average Market Cap $369.9B $696.5B 3. S&P Global, Inc. 8.5% Wtd. Median Market Cap $60.4B $231.0B 4. CoStar Gr
Slide 15: Focus Equity is Built to Differ from the Benchmark
Focus Equity is Built to Differ from the Benchmark Sterling Focus Equity Sterling Focus Equity Russell 1000® Growth Index 50% 44.2% 45% 40.2% 40% 35% 30% 25% 21.9% 20% 17.5% 16.5% 15% 13.7% 11.9% 10.2% 10% 4.7% 5.2% 4.5% 4.7% 5% 1.9% 1.7% 0.8% 0.3% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0% Comm Ser
Slide 16: 1Q21 New Positions: Atlassian, Carvana, MarketAxess, ServiceNow, Shopify, Unity
1Q21 New Positions: Atlassian, Carvana, MarketAxess, ServiceNow, Shopify, Unity Platforming Real-Time 3D Innovation Enabling SMB E-Commerce So urce : Unity So urce : Shopify Digitizing Workflows Disrupting Large Fragmented Markets So urce : MarketAxess So urce : Carvana Spe cific se curities ide nti
Slide 17: Recent Research Observations: Let's Dig Deeper into SaaS Performance
Recent Research Observations: Let’s Dig Deeper into SaaS Performance • “Our broader sales environment continues to improve. We've seen increased activity and closure rates with some of our larger sales opportunities. I want to highlight that [industry analyst] IDC recently published six reports cove
Slide 18: Why Invest in Software and Accept Duration Risk?
Why Invest in Software and Accept Duration Risk? “It's incredibly rare for a business with a revenue run rate over $54 billion to be growing at more than 30% a year. It just doesn't happen very often.” – Amazon CEO Jeff Bezos “Emerging technologies such as containerization, virtualization and edge c
Slide 19: "Primary Cloud" Systems of Record Are Emerging Amid Technology Migration
“Primary Cloud” Systems of Record Are Emerging Amid Technology Migration So urce : Okta. Spe cific se curitie s ide ntifie d and describe d do no t re prese nt all o f the se curities purchase d, so ld o r re co mme nde d to clie nts. The re are no assurance s that securitie s ide ntifie d will be p
Slide 20: Focus Equity Has Leading App Exposure Across All Primary Clouds
Focus Equity Has Leading App Exposure Across All Primary Clouds So urce : Okta. Spe cific se curitie s ide ntifie d and describe d do no t re prese nt all o f the se curities purchase d, so ld o r re co mme nde d to clie nts. The re are no assurance s that securitie s ide ntifie d will be pro fitabl
Slide 21: Focus Equity Summary
Focus Equity Summary • History of Attractive Risk-Adjusted Returns Through a Variety of Market Environments • Diligent Portfolio Management that is Active, Flexible, and Tax-Efficient • Institutional Investment Platform features Consistent Team and Long-Term Focus Any type o f inve sting invo lve s
Slide 22: Q&A
Q&A Please click the “raise your hand” icon for questions 22
Slide 23: Disclosures
Disclosures Performance is compared to an index, however, the volatility of an index varies greatly. Indices are unmanaged and investments cannot be made directly in an index. The S&P 500® Index is a readily av ail able, carefully constructed, market-v alue-weighted benchmark of common stock perform
Slide 24: Sterling Capital Management – Focus Equity Composite
Sterling Capital Management – Focus Equity Composite January 1, 2016 – December 31, 2019 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 — Q1 2021 Earnings Presentation on 6ix