Sterling Capital Multi-Strategy Income ETF (SCMC)

Overview

SCMC is focused on achieving competitive total returns and generating current income primarily by investing in a diverse range of bonds and debt obligations. The fund adopts a broad investment strategy that encompasses various types of debt instruments, allowing it to navigate through different markets and economic conditions. This approach includes investments in both government and corporate debts, as well as unique securities and instruments such as mortgage- and asset-backed securities, loans, municipal bonds, insurance-linked securities, Yankee bonds, hybrid securities, and various types of notes.

Actively managed, the fund maintains flexibility in its investment choices, which may include bonds of any credit quality issued by companies and governments from both the United States and international markets. The fund's investment guidelines specify no limits on currency denomination, enabling the inclusion of securities from developed and emerging markets alike. Furthermore, SCMC has the capacity to invest in Exchange-Traded Funds (ETFs) and other investment companies, including those affiliated with SCMC. A distinct aspect of the fund's strategy is its ability to invest in debt securities across all maturities. Additionally, SCMC may utilize derivatives such as futures, forwards, swaps, and options, which serve the dual purpose of hedging non-USD assets as well as expressing strategic views on currency movements.

Products and Services

• Government Debt: Investments in bonds issued by federal, state, and local governments that provide safety and stability to a portfolio.
• Corporate Debt: Bonds and notes from corporations that offer higher yield potential, reflecting varying levels of credit risk across different industries.
• Fixed and Floating Rate Bonds: Debt securities with interest payments that can be either fixed to a set rate or floating based on market interest rates, catering to various investor preferences.
• Mortgage- and Asset-Backed Securities: Investments backed by mortgages or other assets that typically provide regular income and diversification benefits.
• Loans: Direct lending opportunities which may offer attractive yields compared to traditional bonds.
• Municipal Bonds (Munis): Debt securities issued by local governments that often come with tax benefits, appealing to investors seeking income with lower tax implications.
• Insurance-Linked Securities: Innovative securities linked to insurance risks, providing investors with unique return streams uncorrelated to traditional financial markets.
• Yankee Bonds: US dollar-denominated bonds issued by foreign entities, offering exposure to international issuers while mitigating currency risk.
• Hybrid Securities: Investments that combine features of both equity and debt securities, providing potentially higher returns with varying risk profiles.
• ETFs and Other Investment Companies: The fund invests in Exchange-Traded Funds and affiliated investment companies to gain exposure to a broader market or specific sectors.
• Derivatives: Financial instruments used for hedging and strategic planning, including futures, forwards, swaps, and options, which can help manage currency exposure and enhance returns.