LCG Profile
Sterling Capital Focus Equity ETF is an actively managed exchange-traded fund (ETF) that aims to surpass the performance of the Russell 1000 Growth Index by concentrating its portfolio on a select group of 15 to 30 stocks. The fund's strategy is driven by a bottom-up fundamental investment approach, focusing on individual companies that exhibit sustainable competitive advantages, strong reinvestment potential, and experienced management teams. The adviser carefully selects these stocks based on detailed analysis, seeking to identify businesses with the potential for long-term growth and value creation.
The fund maintains a concentrated portfolio, allowing it to focus on its best investment ideas and capitalize on opportunities in high-conviction stocks. By investing in a limited number of companies, Sterling Capital Focus Equity ETF seeks to achieve significant returns by holding positions in businesses that the adviser believes are poised for substantial growth. This approach also allows the fund to conduct in-depth research and maintain a deep understanding of each investment, further enhancing the potential for outperformance.
In line with its investment strategy, the fund typically allocates at least 80% of its net assets, plus any borrowing for investment purposes, to equity securities. This substantial commitment to equities reflects the funds belief in the long-term growth potential of the companies it selects. The non-diversified nature of the fund means that it is more heavily weighted in certain stocks, which could lead to higher volatility, but also offers the potential for greater rewards if the advisers stock selections perform well.
The fund is designed for investors who seek an active management approach and are comfortable with a concentrated, non-diversified portfolio. By focusing on a small number of high-quality growth stocks, Sterling Capital Focus Equity ETF aims to deliver strong returns over time. However, this approach also carries higher risks, including the potential for significant fluctuations in value, depending on the performance of the selected stocks. Investors in the fund should have a long-term investment horizon and be prepared for periods of volatility as part of the pursuit of growth.
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