CHARLOTTE, N.C., March 17, 2025 /PRNewswire/ -- Sterling Capital Management LLC (Sterling Capital) is pleased to announce the launch of the Sterling Capital Enhanced Core Bond ETF (BATS: SCEC). The Enhanced Core Bond ETF is the first fixed income exchanged-traded fund launched by Sterling Capital since the firm launched its active ETF platform in 2020. It is also the first product launched by Sterling Capital since its acquisition by Guardian Capital Group Limited last year.
The Enhanced Core Bond ETF is a team-driven, actively-managed fixed income ETF benchmarked to the Bloomberg U.S. Aggregate Bond Index. The Sterling Capital Fixed Income team utilizes a multi-faceted, collaborative approach with a strong emphasis on risk allocation and management. The 35-member fixed income investment team has an average of 23 years' investment experience with an average of 14 years' tenure at the firm. The collective team's performance underpins multiple composite track records with over two decades of competitive risk-adjusted returns. The ETF has strong leadership through the firm's fixed income CIO, sector heads, trading, and quantitative analytics leaders and their groups. The firm encourages specific discussions directly with our investment and client strategy teammate for more information on our philosophy and process.
"We are excited to introduce our new Enhanced Core Bond ETF, an actively-managed ETF that leverages our long-term experience optimizing risk to provide investors a more efficient core bond exposure," said Mark Montgomery, CFA®, Chief Investment Officer and Head of Fixed Income for Sterling Capital.
"This launch is directly attributable to the support of our parent company, Guardian Capital Group Limited. When we joined Guardian's organization in 2024, it was with the intent of creating more opportunities for Sterling to expand our client and asset base, enhance our capabilities, and broaden our product offerings — all of which are present in this new ETF for Sterling," said Scott Haenni, CEO of Sterling Capital.
"This is another important milestone in the continued growth of our business," said Barry Gordon, CEO of Guardian Capital U.S. Asset Management. "We look forward to a potential strong showing for this ETF. It represents the beginning of continued expansion for us in the growing active ETF market, which we view as an exciting opportunity."
The Enhanced Core Bond ETF provides a new option for investors to access Sterling Capital's fixed income platform, which manages over $50 billion in assets under management1. The firm's fixed income team offers a team-managed, multi-faceted approach with a strong emphasis on risk management. The 35-member fixed income investment team has an average of 23 years' investment experience with an average of 14 years' tenure at the firm2. The Sterling Capital's fixed income product offering includes taxable and municipal strategies across the duration and risk spectrum, with vehicles including mutual funds, institutional and retail separately managed accounts, and other collective fund options.
1Information is as of 02.28.2025. 2Information is as of 03.17.2025.
About the Fund
The Sterling Capital Enhanced Core Bond ETF is an actively-managed ETF that seeks a high level of current income and a competitive total return. It seeks to provide total return through a combination of income and capital appreciation by investing in a diversified portfolio of fixed income securities. The ETF implements an "enhanced core" strategy by allocating capital in a diverse fixed income sector allocation, utilizing investment-grade and high-yield bonds, security structure and selection, and duration and curve positioning to achieve its performance objectives.
About Sterling Capital
Sterling Capital Management LLC, founded in 1970, is an indirect, wholly-owned subsidiary of Guardian Capital Group Limited. Headquartered in Charlotte, Sterling Capital provides investment advisory services through mutual funds, separately managed accounts, model portfolios, and other commingled vehicles offered through a variety of intermediary and managed account platforms. Sterling Capital's five distinct investment teams provide a full complement of fixed income, concentrated active equity, and multi-asset solutions. Learn more at sterlingcapital.com.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Sterling Capital Active ETFs. This and other important information about the Fund(s) is contained in the prospectus, which can be obtained at www.sterlingcapital.com/ETF or by calling 888.637.7798. The prospectus should be read carefully before investing. The Sterling Capital Active ETFs are distributed by Northern Lights Distributors, LLC, member FINRA / SIPC. Sterling Capital Management LLC and Guardian Capital Group Limited are not affiliated with Northern Lights Distributors, LLC.
Important Risks
Investing involves risk including loss of principal. Investment return and principal value of an investment will fluctuate, and an investor's shares, when redeemed, may be worth more or less than their original cost. ETFs are subject to investment advisory and other expenses, which will be indirectly paid by the Fund(s). ETFs are subject to issuer risks and other risks specific to the Fund(s). There is no guarantee the Fund(s) will meet their investment objectives.
The Sterling Capital Enhanced Core Bond ETF is new and has a limited history of operations.
Diversification does not ensure a profit or guarantee against loss.
The Fund may invest in high yield securities, also known as "junk bonds." High yield securities provide greater income and opportunity for gain but entail greater risk of loss of principal.
Fixed income investments are affected by a number of risks, including fluctuation in interest rates, credit risk, and prepayment risk. In general, as prevailing interest rates rise, fixed income prices will fall.
Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund(s). Brokerage commissions will reduce returns. The Fund(s) may face more risks than if it were diversified broadly over numerous industries or sectors.
All investments carry a certain amount of risk, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank and is not insured by the Federal Deposit Insurance Corporation ("FDIC") or any other government agency. You may lose money by investing in the Fund.
This press release contains forward-looking statements with respect to SCM and its products and services, including its business operations and strategy and financial performance and condition. Although management believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, including interest rates, business competition, changes in government regulations or in tax laws, and other factors discussed in materials filed with applicable securities regulatory authorities from time to time.
Any forward-looking statements included in this press release are provided as of the date of this press release and should not be relied upon as representing SCM's views as of any date subsequent to the date of this press release. SCM undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Technical Terms: Investment-grade bonds are those bonds which carry a lower credit risk, relative to other bonds, as measured by the three major credit rating agencies: Standard & Poor's (BBB- or higher); Moody's (Baa3 or higher); and Fitch (BBB- or higher). High-yield bonds are those bonds which carry a higher credit risk, relative to other bonds, as measured by the three major credit rating agencies: Standard & Poor's (below BBB-); Moody's (below Baa3); and Fitch (below BBB-).
The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and USD-denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.
The Chartered Financial Analyst® (CFA®) charter is a graduate-level investment credential awarded by the CFA Institute — the largest global association of investment professionals. To earn the CFA charter, candidates must: 1) pass three sequential, six-hour examinations; 2) have at least four years of qualified professional investment experience; 3) join CFA Institute as members; and 4) commit to abide by, and annually reaffirm, their adherence to the CFA Institute Code of Ethics and Standards of Professional Conduct.
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SOURCE Sterling Capital Management LLC
