Truist Financial Corporation and Sterling Capital Management LLC launched the Sterling Capital Diverse Multi-Manager Active ETF (DEIF) earlier this week. This unique, multi-manager ETF combines active management investment strategies architected by majority diverse-owned asset managers into a single, fully transparent investment vehicle.
“Many active managers tend to have structural factor exposure as a byproduct of their investment process (e.g., quality, momentum), which can provide a tailwind or headwind for relative performance at various points in time. Combining multiple strategies that typically have different factor exposures can help to reduce the impact of factor performance relative to the impact of stock selection,” said Brandon Carl, CFA®, Executive Director, Portfolio Manager. “The ultimate goal of this approach is to reduce the risk of the entire portfolio experiencing prolonged periods of significant underperformance in the event that a single manager’s style falls out of favor for an extended period of time.”
DEIF consists of three strategies — U.S. large-cap value, U.S. large-cap growth, and U.S. mid-cap core — each of which is actively managed by a diverse-owned investment sub-advisor. For DEIF, each sub-advisor submits its strategy to Sterling Capital for review and implementation within the overall fund portfolio.
DEIF’s sub-advisors and the respective active management strategies they provide to Sterling Capital are:
- Boston Common Asset Management, LLC — U.S. large-cap value strategy (portfolio manager: Geeta Aiyer, president, and founder)
- GQG Partners LLC — U.S. large-cap growth strategy (portfolio manager: Rajiv Jain, co-founder, chairman, and chief investment officer)
- EARNEST Partners, LLC — U.S. mid-cap core strategy (portfolio manager: Paul Viera, founder, and chief investment officer)
“The Sterling Capital Diverse Multi-Manager Active ETF combines the expertise of three asset management firms and increases access for individuals and institutions to invest using strategies from diverse-owned firms,” said Joseph M. Thompson, chief wealth officer at Truist Financial Corporation. “Creating a new opportunity to advance diversity, equity, and inclusion in the financial services industry is another way we fulfill our purpose to inspire and build better lives and communities.”
“Sterling Capital is excited to launch this new ETF into the market, and we’re thrilled to work with this trio of managers, each of whom has demonstrated a commitment to diversity, equity, and inclusion and to long-term investment performance,” said Alex McAlister, chief executive officer of Sterling Capital.
DEIF is the second ETF offered by Sterling Capital. The Sterling Capital Focus Equity ETF (LCG) launched last year.
More information and the prospectus are available at www.sterlingcapital.com/etf/deif.
Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. Formed by the historic merger of equals of BB&T and SunTrust, Truist has leading market share in many high-growth markets in the country. The company offers a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending; and wealth management. Headquartered in Charlotte, North Carolina, Truist is a top 10 U.S. commercial bank with total assets of $530 billion as of September 30, 2021. Truist Bank, Member FDIC. Learn more at Truist.com.
About Sterling Capital Management
Sterling Capital Management LLC is a registered investment advisor with over $86 billion in assets under management and assets under advisement* as of September 30, 2021. Founded in 1970, Sterling is an independently operated firm backed by Truist Financial Corporation. Headquartered in Charlotte, N.C., Sterling is comprised of 149 investment and client service professionals with offices in Raleigh, NC; Washington, DC; Virginia Beach, VA; Jupiter, FL; Philadelphia, PA; and San Francisco, CA. Sterling provides investment management services to a diverse group of clients, including corporate, public, health care, private clients, endowment, foundation, insurance, sub-advisory and managed investment pools. Learn more at www.sterlingcapital.com.