Short Duration Bond Fund

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Short Duration Bond Fund A Shares (BSGAX)

C Shares (BBSCX)

I Shares (BBSGX)

PUT YOUR MONEY TO WORK In today's low interest rate environment, the Sterling Capital Short Duration Fund offers investors an opportunity for enhanced yield and potential return on their short term investments. QTR

YTD

1 Year

3 Years

5 Years

10 Years1

Since Inception

A Shares with 2.00% Sales Charge

-2.46%

-2.46%

-1.55%

0.15%

0.43%

1.47%

3.28%

A Shares without Sales Charge

-0.42%

-0.42%

0.49%

0.82%

0.83%

1.67%

3.36%

Institutional Shares

-0.36%

-0.36%

0.74%

1.07%

1.09%

1.92%

3.61%

ICE BofA ML U.S. Corp/Govt 1-3Y Index

-0.19%

-0.19%

0.28%

0.68%

0.78%

1.57%

3.85%

Lipper Short Median

-0.24%

-0.24%

0.75%

0.94%

0.88%

2.02%

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Fund Performance As of 03.31.2018

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end and information on other share classes, please visit www.sterlingcapitalfunds.com. The 30-Day SEC Yield is as follows: A-Shares 2.30% with waivers, 2.20% without waivers and Institutional Shares 2.59% with waivers and 2.49% without waivers. Total Expense Ratio: A Shares (BSGAX) Net 0.70% and Gross 0.80%, Institutional Shares (BBSGX) Gross 0.55% and Net 0.45%. The Adviser has contractually agreed to limit certain fees from February 1, 2018 through January 31, 2019. Performance would have been lower without limitations in effect. Inception date for the Institutional Shares is 11.30.1992.

STEADY RETURNS

% of Rolling Periods with a Positive Return

By moving out beyond the very shortest maturities, but without taking on the interest rate risk of a traditional bond fund, the Short Duration fund may provide an opportunity for attractive returns while limiting downside risk due to rising interest rates.

100% 80% 60% 40% 20%

SEEKS CONSISTENT, RELIABLE PERFORMANCE

0% Rolling 3-Month

Rolling 6-Month

Rolling 12-Month

Our time-tested approach is based on a disciplined process that focuses on risk management and has a track record of consistent long-term performance.

As of 03.31.2018. Source: Morningstar Direct. Based on quarterly returns.

Fads come and go in fixed income investing. Our approach is anything but – the Sterling Short Duration Fund has had a consistent track record of performance versus our Lipper universe.

3-Year as of 03.31.2018

Summary Statistics Inst’l Shares

Portfolio Return

1.07%

ICE BofA ML U.S. Corp/Govt 1-3Y Index 0.68%

Category Average 0.91%

Standard Deviation

0.79

0.69

0.92

Sharpe Ratio

0.58

0.12

0.34

Information Ratio

0.99

--

0.44

ACCESS TO EXPERIENCED PROFESSIONALS

Source: Morningstar. Morningstar Short-Term Bond Category

The Fund is co-managed by Mark Montgomery, CFA® and Richard LaCoff who have investment experience since 1990 and 1991, respectively. Mark and Rick are supported by a veteran team of 25 investment professionals with an average of 19 years investing experience (as of 03.31.2018).

Lipper Short Investment Grade Category (Based on Total Return) As of 03.31.2018

Some of the world’s largest institutional investors have trusted Sterling Capital Management with their short-term investments for multiple decades. The Short Duration Bond Fund gives investors access to the expertise and experience the team has developed by navigating through several market cycles.

1 Year

3 Years

5 Years

10 Years2

Lipper Ranking / Number of Funds in Category

164 / 325

120 / 282

85 / 244

96 / 161

Lipper Percentile

3rd (51%) 2nd (43%)

2nd (35%)

3rd (60%)

Morningstar Short-Term Bond Category (Based on Risk-Adjusted Returns) As of 03.31.2018

Overall Rating

3 Years

5 Years

10 Years

Institutional Shares Morningstar Rating™









455

455

393

255

Number In Category

888.228.1872 | www.sterlingcapitalfunds.com

Short Duration Bond Fund A Shares (BSGAX)

C Shares (BBSCX)

I Shares (BBSGX)

A MULTI-FACETED APPROACH The Fund offers investors exposure to a broad spectrum of fixed income asset classes. Our multi-faceted approach starts with a top-down view of the macroeconomic environment. This allows us to develop investment “themes” which provide the basis for decisions on duration, yield curve positioning, and sector allocation. Our sector specialists then perform detailed analyses aiming to select securities that will outperform in our projected environment. The ability to utilize these different levers provides the Fund with the potential to generate positive excess returns in any type of investing climate.

RISK MANAGEMENT –A KEY CONTRIBUTOR TO SUCCESSFUL FIXED INCOME INVESTING Fixed income investors face an asymmetric risk profile, with limited upside and significant downside potential. Therefore, we believe in quantifying the risk of any investment prior to assessing its potential return. We then analyze this risk on a stand-alone basis and within the context of the portfolio. We are firm believers that, when it comes to risk, “if you cannot measure it, you cannot manage it.”

RISK CONSIDERATIONS The fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise, bond prices will generally decline. The fund may invest in more aggressive investments such as foreign securities which may expose the fund to currency and exchange rate fluctuations; mortgage-backed and asset backed securities sensitive to interest rates and high yield debt (also know as junk bonds) all of which may cause greater volatility and less liquidity. The fund invests in securities issued or guaranteed by the U.S. government and its agencies. These guarantees do not apply to the fund. Investments in municipal obligations may be subject to more risk. The fund may trade securities actively, which could increase its transaction costs thereby lowering its performance.

Lipper rankings are based on total return, including the reinvestment of dividends and capital gains but do not include sales charges for the periods indicated. Rankings shown are for Class I Shares and may be lower for Class A Shares due to higher fees and expenses. Mutual funds are assigned a rank within a universe of funds, relative to a peer group and similar in investment objective as determined by Lipper. The lower the number rank, the better the fund performed compared to other funds in the classification group. Lipper also calculate a percentile measure for each fund ranging from 1% (best) to 100% (worst). The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 3659 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. © 2018 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. 1 Includes previous management team. Technical Terms: Standard Deviation: A statistical measurement showing how widely the returns varied over a certain period of time. When a fund has a high standard deviation, it may imply greater volatility. Sharpe Ratio: The measurement of a fund’s excess return due to sound investment decisions or excess risk. . Information Ratio: a measure of riskadjusted performance; the average excess return over the benchmark relative to the variability of that excess return. SEC Yield is an annualization of the fund’s total net investment income per share for the 30-day period ended on the last day of the month. The opinions contained in the preceding commentary reflect those of Sterling Capital Management LLC, and not those of BB&T Corporation or its executives. The stated opinions are for general information only and are not meant to be predictions or an offer of individual or personalized investment advice. This information and these opinions are subject to change without notice. Any type of investing involves risk and there are no guarantees. Sterling Capital Management LLC does not assume liability for any loss which may result from the reliance by any person upon such information or opinions.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus, with this and other information about the fund, please call (888) 228-1872 or visit our web site at www.sterlingcapitalfunds.com. Read the prospectus carefully before investing. Sterling Capital Management LLC, a separate subsidiary of BB&T Corporation, serves as investment adviser to the Sterling Capital Funds and is paid a fee for its services. Shares of the Sterling Capital Funds are not deposits or obligations of, or guaranteed or endorsed by, Branch Banking and Trust Company or its affiliates. The Funds are not insured by the FDIC or any other government agency. The Funds are distributed by Sterling Capital Distributors LLC, which is not affiliated with Branch Banking and Trust Company or its affiliates. Not a deposit • Not FDIC insured • May lose value • Not guaranteed by the bank • Not insured by any government agency

888.228.1872 | www.sterlingcapitalfunds.com