Sterling Capital Management provides investment advisory services to a range of clients from individuals to businesses and investment companies. With billions in assets under management (AUM), the firm has headquarters in Charlotte, North Carolina, and branch offices in Raleigh, North Carolina; Virginia Beach, Virginia; King of Prussia, Pennsylvania; and San Francisco.
Sterling Capital Management Background
Sterling Capital Management began operations in 1970. Today, it exists as a subsidiary of Desjardins Global Asset Management Inc. The firm ranks No. 1 on our list of the top financial advisors in Charlotte, and also appears on our list of the top advisors in North Carolina.
Sterling Capital Management Client Types and Minimum Account Sizes
Sterling Capital Management serves individuals, high-net-worth individuals, trusts, estates, banking or thrift institutions, affiliated and non-affiliated investment companies (including mutual funds), investment advisors, pension and profit-sharing plans, charitable organizations, corporations, other business entities, insurance companies, state and municipal government entities, churches, affiliated and non-affiliated wrap programs and managed investment pools (e.g., a hedge fund).
Account minimums vary, depending on factors such as the asset classes your portfolio invests in. There is a $100,000 minimum for the firm's managed account platforms and a $250,000 minimum for direct indexing services. Fixed income strageties require between $250,000 and $500,000, while minimums for institutional asset management start at $10 million.
Services Offered by Sterling Capital Management
Sterling Capital Management provides a broad range of investment management and advisory services for individuals, institutions, retirement plans and other organizations. The firm primarily offers discretionary portfolio management through separately managed accounts, wrap programs and model portfolios across fixed-income, equity and multi-asset strategies. Sterling also provides outsourced chief investment officer (OCIO) services, retirement plan consulting and management, direct indexing and tax-management solutions, as well as financial planning services.
Depending on a client's needs, financial planning may cover areas such as retirement planning, investment strategy, tax planning, risk management, estate planning and other long-term financial goals.
Sterling Capital Management Investment Philosophy
Sterling may invest across several different asset classes including equity and fixed income. A portfolio's asset allocations would ultimately be based on factors such as the client's risk tolerance and investing goals.
Sterling uses fixed income, equity and multi-asset investmetn strategies. The firm may use fundamental, quantitative, qualitative, behavioral, cyclical and technical analysis, as well as top-down macro analysis and bottom-up security selection. Its strategies may include ultra-short, short, intermediate, core, long duration, high yield, municipal, dividend-focused, growth, value, core, factor-based, thematic, real estate and small- and mid-cap relative value approaches.
Fees Under Sterling Capital Management
Sterling Capital Management primarily charges asset-based advisory fees that are calculated as a percentage of assets under management (AUM), with rates generally declining as account size increases. Fee schedules vary by investment strategy and client type.
Sterling's wrap program fees generally range from 0.30% to 0.60%, while model program fees range from 0.20% to 0.50%. Fees are negotiable in some cases and are typically billed monthly or quarterly, usually in arrears.
Institutional separate accounts typically pay between 0.08% and 1% annually, depending on the strategy and asset level, while separately managed fixed-income accounts generally carry a 0.20% annual fee. Family office and Foundation clients pay tiered fees ranging from 0.25% to 1%, and OCIO (outsourced chief investment officer) services are billed on a declining schedule starting at 0.25% of assets.
Clients may also incur separate brokerage, custodial, fund and transaction-related expenses.
What to Watch Out For
Sterling Capital Management had no disclosures of its own to report in its last SEC filings. However, two disclosures related to the firm's parent company were listed. For the latest details, you can review the firm’s Form ADV on the SEC’s official website.
The firm may invest client assets in affiliated funds and pooled vehicles, which creates a conflict of interest because the firm receives fees from those products. While Sterling reduces certain advisory fees tied to affiliated fund investments, it may still benefit from higher assets under management and support for its affiliated products.
Opening an Account With Sterling Capital Management
To contact Sterling, visit its website to set up an appointment at one of its locations nearest you. You can also call its Charlotte, North Carolina headquarters at (704) 927-4175.
All information is accurate as of the writing of this article.
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