e485bpos
AS FILED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION ON JULY 28, 2010
File No. 033-45671
File No. 811-06557
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
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REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
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POST-EFFECTIVE AMENDMENT NO. 82
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REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
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AMENDMENT NO. 84
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RIDGEWORTH FUNDS (formerly, STI Classic Funds)
(Exact Name of Registrant as Specified in Charter)
155 Federal Street, Suite 700
Boston, Massachusetts 02110
(Address of Principal Executive Offices, Zip Code)
Registrants Telephone Number, including Area Code: 1-888-784-3863
Julia R. Short, President
RidgeWorth Funds
50 Hurt Plaza
Suite 1400
Atlanta, GA 30303
(Name and Address of Agent for Service)
Copies to:
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Richard W. Grant, Esquire
Morgan, Lewis & Bockius LLP
1701 Market Street
Philadelphia, PA 19103
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W. John McGuire, Esquire
Morgan, Lewis & Bockius LLP
1111 Pennsylvania Avenue, NW
Washington, DC 20004
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It is proposed that this filing become effective (check appropriate box):
o Immediately upon filing pursuant to paragraph (b)
þ On July 29, 2010 pursuant to paragraph (b)
o 60 days after filing pursuant to paragraph (a)(1)
o On [date] pursuant to paragraph (a)(1)
o 75 days after filing pursuant to paragraph (a)(2)
o On [date] pursuant to paragraph (a)(2) of Rule 485
If appropriate, check the following box:
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this post-effective amendment designates a new effective date for a previously filed post-
effective amendment. |
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ALLOCATION STRATEGIES A, C, & I SHARES PROSPECTUS
August 1, 2010
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Class A
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Class C
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Class I
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Shares
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Shares
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Shares
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Investment Adviser: RidgeWorth
Investments®
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Aggressive Growth Allocation Strategy
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SLAAX
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CLVLX
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CVMGX
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Conservative Allocation Strategy
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SVCAX
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SCCLX
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SCCTX
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Growth Allocation Strategy
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SGIAX
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SGILX
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CLVGX
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Moderate Allocation Strategy
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SVMAX
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SVGLX
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CLVBX
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The Securities and Exchange Commission has not approved or
disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal
offense.
RidgeWorth
Investments®
is the trade name of RidgeWorth Capital Management, Inc.
About
This Prospectus
RidgeWorth Funds is a mutual fund family that offers shares in
separate investment portfolios that have individual investment
goals and strategies. RidgeWorth Funds is an open-end management
investment company (commonly known as a mutual fund) established
under Massachusetts law as a Massachusetts business trust.
RidgeWorth Funds is required to comply with the Investment
Company Act of 1940 as well as other federal securities laws
that are applicable to all mutual funds. This prospectus gives
you important information about the A Shares, C Shares
and I Shares of each Allocation Strategy (Funds)
that you should know before investing. Each Fund invests in a
combination of other underlying funds. Please read this
prospectus and keep it for future reference.
A Shares, C Shares and I Shares have different
expenses and other characteristics, allowing you to choose the
class that best suits your needs. You should consider the amount
you want to invest, how long you plan to invest, and whether you
plan to make additional investments.
A Shares
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$2,000 minimum initial investment
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C Shares
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Contingent deferred sales charge
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$5,000 minimum initial investment
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I Shares are offered exclusively to financial
institutions and intermediaries for their own accounts or for
the accounts of their customers.
This prospectus has been arranged into different sections so
that you can easily review this important information. For
detailed information about each Fund, please see:
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1
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Aggressive Growth
Allocation Strategy
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5
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Conservative Allocation
Strategy
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10
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Growth Allocation Strategy
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15
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Moderate Allocation
Strategy
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20
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More Information About
Risk
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26
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More Information About
Indices
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27
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More Information About
Fund Investments
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27
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Information About
Portfolio Holdings
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27
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Management
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28
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Purchasing, Selling and
Exchanging Fund Shares
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36
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Market Timing Policies
and Procedures
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37
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Distribution of Fund
Shares
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38
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Dividends and
Distributions
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39
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Taxes
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40
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Financial Highlights
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Inside
Back Cover
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Privacy Policy
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Back
Cover
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How to Obtain More
Information
About RidgeWorth Funds
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August 1,
2010
AGGRESSIVE GROWTH
ALLOCATION STRATEGY
Summary
Section
A Shares, C
Shares and I Shares
Investment
Objective
The Aggressive Growth Allocation Strategy (the Fund)
seeks high capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 32
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
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A Shares
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C Shares
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I Shares
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Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
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5.75%
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None
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None
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Maximum Deferred Sales Charge (load) (as a % of net asset value)
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None
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1.00%
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None
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Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
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A Shares
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C Shares
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I Shares
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Management Fees
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0.10%
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0.10%
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0.10%
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Distribution (12b-1) Fees
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0.30%
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1.00%
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None
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Other Expenses
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0.23%
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0.23%
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0.23%
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Acquired Fund Fees and Expenses
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0.91%
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0.91%
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0.91%
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Total Annual Fund Operating Expenses
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1.54%
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2.24%
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1.24%
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Fee Waivers and/or Expense
Reimbursements(1)
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(0.13)%
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(0.13)%
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(0.13)%
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Total Annual Fund Operating Expenses After Fee Waivers and/or
Expense Reimbursements
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1.41%
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2.11%
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1.11%
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(1) |
The Adviser has contractually agreed to waive fees and
reimburse expenses until at least August 1, 2011 in order
to keep Total Annual Fund Operating Expenses (excluding, as
applicable, taxes, brokerage commissions, substitute dividend
expenses on securities sold short, extraordinary expenses and
acquired fund fees and expenses) from exceeding 0.50%, 1.20% and
0.20% for the A, C and I Shares, respectively. This agreement
shall terminate upon the termination of the Investment Advisory
Agreement between RidgeWorth Funds and the Adviser, or it may be
terminated upon written notice to the Adviser by RidgeWorth
Funds.
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Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
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1 Year
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3 Years
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5 Years
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10 Years
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A Shares
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$
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710
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$
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1,021
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$
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1,355
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$
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2,294
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C Shares
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$
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314
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$
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688
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$
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1,188
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$
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2,565
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I Shares
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$
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113
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$
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381
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$
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668
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$
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1,489
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You would pay the following expenses if you did not redeem
your shares:
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1 Year
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3 Years
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5 Years
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10 Years
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A Shares
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$
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710
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$
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1,021
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$
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1,355
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$
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2,294
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C Shares
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$
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214
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$
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688
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$
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1,188
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$
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2,565
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I Shares
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$
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113
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$
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381
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$
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668
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$
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1,489
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Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 23% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
assets in RidgeWorth Equity Funds and exchange traded funds
(ETFs) that invest in equities (together,
Underlying Funds). The Funds remaining assets
may be invested in RidgeWorth Money Market Funds, securities
issued by the U.S. Government, its agencies or
instrumentalities, repurchase agreements and short-term paper.
AGGRESSIVE GROWTH
ALLOCATION STRATEGY
The Fund may invest in an Underlying Fund that:
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invests in common stocks of real estate investment trusts
(REITs) and companies principally engaged in the
real estate industry.
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invests in common stocks and other equity securities of
U.S. and non U.S. companies. The Underlying Fund may
invest in companies of any size and in both developed and
emerging markets.
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is a 130/30 fund. A 130/30 fund is a fund that invests
approximately 130 percent of its assets in long positions,
either directly or indirectly through derivatives, while
approximately 30 percent of its assets are sold short,
either directly or indirectly through derivatives. The proceeds
from the short strategies may be used to purchase all or a
portion of the additional 30 percent of the long positions.
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invests in inflation-protected public obligations of the
U.S. Treasury, commonly known as TIPS, which
are securities issued by the U.S. Treasury that are
designed to provide inflation protection to investors.
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In selecting a diversified portfolio of Underlying Funds, the
Adviser analyzes many factors, including the Underlying
Funds investment objectives, total return, volatility and
expenses.
The table below shows how the Adviser currently expects to
allocate the Fund among asset classes. The table also shows the
sectors within those asset classes to which the Fund will
currently have exposure.
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Investment Range
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(Percentage of the
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Aggressive Growth
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Allocation
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Asset Class
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Strategys Assets)
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Underlying Equity Funds
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80-100
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U.S. Equities
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International Equities
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Emerging Market Equities
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(All Capitalizations)
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Underlying Money Market Funds
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0-20
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%
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Principal
Investment Risks
The value of an investment in the Fund is based primarily on the
performance of the Underlying Funds and the allocation of the
Funds assets among them. The Advisers asset
allocation decisions may not anticipate market trends
successfully. The risks of the Fund will directly correspond to
the risks of the Underlying Funds in which it invests. These
risks will vary depending upon how the assets are allocated
among the Underlying Funds. The risks associated with investing
in the Underlying Funds are described in this section.
Equity Risk: Stock prices may fall over short or
extended periods of time. The value of the Funds
securities may fluctuate drastically from day to day.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization companies may be
less flexible in evolving markets or unable to implement change
as quickly as smaller capitalization companies.
Smaller Company Risk: Small and mid-cap stocks tend
to perform differently from other segments of the equity market
or the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
Style Risk (Value): A value investing style may be
out of favor in the marketplace. The potential value of a
security as perceived by an Underlying Funds investment
subadviser may never be realized by the market.
Style Risk (Growth): Growth stocks typically are
sensitive to market movements because their market prices tend
to reflect future expectations. When it appears those
expectations will not be met, the prices of growth stocks
typically fall.
Real Estate Risk: An investment in the Fund may be
subject to many of the same risks as a direct investment in real
estate and the real estate owned by the companies in which it
invests. These risks include changes in economic conditions,
interest rates, credit risk, property values, property tax
increases, overbuilding and increased competition, increasing
vacancies or declining rents, environmental contamination,
zoning and natural disasters.
Because the Fund concentrates its investments in the real estate
industry, the Funds performance will be closely linked to
the performance of the real estate markets.
Foreign Investment Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal
AGGRESSIVE GROWTH
ALLOCATION STRATEGY
developments. These risks are increased for investments in
emerging markets.
Exchange Traded Fund Risk: The risk of owning
shares of an ETF generally reflects the risk of owning the
underlying securities the ETF is designed to track. Liquidity in
an ETF could result in more volatility than ownership of the
underlying portfolio of securities. In addition, because of ETF
expenses, compared to owning the underlying securities directly,
it may be more costly to own an ETF.
Short Sales Risk: If the price of a stock goes up
after a short sale, the Fund will lose money because it will
have to pay more to replace the borrowed stock than it received
when it sold the stock short. The amount of loss on a short sale
is theoretically unlimited, as there is no maximum attainable
price of the shorted security.
Leverage Risk: The Funds short sales
effectively leverage the Underlying Funds assets. It is
possible that the Underlying Fund may lose money on both long
and short positions at the same time. The Underlying Funds
assets that are used as collateral to secure the short sales may
decrease in value while the short positions are outstanding,
which may force the Underlying Fund to use its other assets to
increase the collateral. Leverage also creates interest expenses
that may decrease the Funds overall returns.
Interest Rate Risk: Debt securities will generally
lose value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations.
Treasury inflation protected securities (TIPS) can
also exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Derivatives Risk: Because the Fund may invest in
derivatives, the Fund is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
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Best Quarter
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Worst Quarter
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16.09%
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-21.29%
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(6/30/09)
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(12/31/08)
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The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -6.45%.
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This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
AGGRESSIVE GROWTH
ALLOCATION STRATEGY
shown for only the I Shares. After-tax returns for other classes
will vary.
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1 Year
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5 Year
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10 Years
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A Shares Returns Before Taxes
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21.63%
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-0.07%
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1.47%
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C Shares Returns Before Taxes
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27.42%
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0.49%
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1.79%
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I Shares Returns Before Taxes
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29.52%
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1.44%
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2.27%
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I Shares Returns After Taxes on Distributions
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29.15%
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-0.39%
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0.91%
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I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
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19.44%
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0.86%
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1.55%
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S&P 500 Index (reflects no deductions for fees, expenses or
taxes)
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26.46%
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0.42%
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-0.95%
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Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser
RidgeWorth Investments is the Funds investment adviser.
Portfolio
Management
Mr. Alan Gayle, Managing Director of the Adviser, has
managed the Fund since its inception in December 1992.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Funds
offer I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of
the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
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Class
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Dollar Amount
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A Shares
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$2,000
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C Shares
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$5,000 ($2,000 for IRA or other tax qualified accounts)
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I Shares
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None
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Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
CONSERVATIVE
ALLOCATION STRATEGY
Summary
Section
A Shares, C
Shares and I Shares
Investment
Objective
The Conservative Allocation Strategy (the Fund)
seeks high capital appreciation and current income.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 32
of the Funds prospectus and Rights of Accumulation on page
84 of the Funds Statement of Additional Information.
Shareholder
Fees
(fees paid directly from your
investment)
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|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
0.10%
|
|
|
|
0.10%
|
|
|
|
0.10%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.43%
|
|
|
|
0.43%
|
|
|
|
0.43%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.51%
|
|
|
|
0.51%
|
|
|
|
0.51%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.34%
|
|
|
|
2.04%
|
|
|
|
1.04%
|
|
Fee Waivers and/or Expense
Reimbursements(1)
|
|
|
(0.33)%
|
|
|
|
(0.33)%
|
|
|
|
(0.33)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waivers and/or
Expense Reimbursements
|
|
|
1.01%
|
|
|
|
1.71%
|
|
|
|
0.71%
|
|
|
|
(1) |
The Adviser has contractually agreed to waive fees and
reimburse expenses until at least August 1, 2011 in order
to keep Total Annual Fund Operating Expenses (excluding, as
applicable, taxes, brokerage commissions, substitute dividend
expenses on securities sold short, extraordinary expenses and
acquired fund fees and expenses) from exceeding 0.50%, 1.20% and
0.20% for the A, C and I Shares, respectively. This agreement
shall terminate upon the termination of the Investment Advisory
Agreement between RidgeWorth Funds and the Adviser, or it may be
terminated upon written notice to the Adviser by RidgeWorth
Funds.
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
573
|
|
|
$
|
848
|
|
|
$
|
1,144
|
|
|
$
|
1,984
|
|
C Shares
|
|
$
|
274
|
|
|
$
|
608
|
|
|
$
|
1,068
|
|
|
$
|
2,343
|
|
I Shares
|
|
$
|
73
|
|
|
$
|
298
|
|
|
$
|
542
|
|
|
$
|
1,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
573
|
|
|
$
|
848
|
|
|
$
|
1,144
|
|
|
$
|
1,984
|
|
C Shares
|
|
$
|
174
|
|
|
$
|
608
|
|
|
$
|
1,068
|
|
|
$
|
2,343
|
|
I Shares
|
|
$
|
73
|
|
|
$
|
298
|
|
|
$
|
542
|
|
|
$
|
1,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 29% of
the average value of its portfolio.
Principal
Investment Strategies
The Fund invests pursuant to an asset allocation strategy in a
combination of RidgeWorth Fixed Income Funds and exchange traded
funds (ETFs) that invest in bonds (together,
Underlying Fixed Income Funds), and to a lesser
extent, RidgeWorth Equity Funds and ETFs that invest in equities
(together, Underlying Equity Funds). The Fund
invests primarily in Underlying Fixed Income Funds, but may
invest up to 40% of the Funds assets in Underlying Equity
Funds. The Funds remaining assets may be invested in
CONSERVATIVE
ALLOCATION STRATEGY
RidgeWorth Money Market Funds, securities issued by the
U.S. Government, its agencies or instrumentalities,
repurchase agreements and short-term paper.
The Fund may invest in an Underlying Fund that:
|
|
|
invests in debt instruments, including mortgage- and
asset-backed instruments, common stocks and other equity
securities of U.S. and non U.S. companies including
those in both developed and emerging markets.
|
|
|
invests in bank loans and other below investment grade
instruments.
|
|
|
invests in inflation-protected public obligations of the
U.S. Treasury, commonly known as TIPS, which
are securities issued by the U.S. Treasury that are
designed to provide inflation protection to investors.
|
In selecting a diversified portfolio of Underlying Fixed Income
Funds and Underlying Equity Funds (together, Underlying
Funds), the Adviser analyzes many factors, including the
Underlying Funds investment objectives, total return,
volatility and expenses.
The table below shows how the Adviser currently expects to
allocate the Fund among asset classes. The table also shows the
sectors within those asset classes to which the Fund will
currently have exposure.
|
|
|
|
|
|
|
Investment Range
|
|
|
(Percentage of the
|
|
|
Conservative Allocation
|
Asset Class
|
|
Strategys Assets)
|
|
|
Underlying Fixed Income Funds
|
|
|
60-80
|
%
|
U.S. Investment Grade Bonds
|
|
|
|
|
U.S. High Yield Bonds
|
|
|
|
|
U.S. Floating Rate Securities (including Bank Loans)
|
|
|
|
|
International Bonds
|
|
|
|
|
Emerging Market Bonds
|
|
|
|
|
|
|
Underlying Equity Funds
|
|
|
20-40
|
%
|
U.S. Equities
|
|
|
|
|
International Equities
|
|
|
|
|
Emerging Market Equities
|
|
|
|
|
(All Capitalizations)
|
|
|
|
|
|
|
Underlying Money Market Funds
|
|
|
0-20
|
%
|
|
|
|
|
|
|
|
The Fund holds Underlying Funds that buy and sell securities
frequently, which may result in higher transaction costs and
lower performance, and will be more likely to generate
short-term capital gains (which are generally taxed at ordinary
income tax rates).
Principal
Investment Risks
The value of an investment in the Fund is based primarily on the
performance of the Underlying Funds and the allocation of the
Funds assets among them. The Advisers asset
allocation decisions may not anticipate market trends
successfully. The risks of the Fund will directly correspond to
the risks of the Underlying Funds in which it invests. These
risks will vary depending upon how the assets are allocated
among the Underlying Funds. The risks associated with investing
in the Underlying Funds are described in this section.
Credit Risk: Debt securities are subject to the risk
that an issuer will fail to make timely payments of interest or
principal, or go bankrupt, reducing the Funds return. The
lower the rating of a debt security, the higher its credit risk.
Equity Risk: Stock prices may fall over short or
extended periods of time. The value of the Funds
securities may fluctuate drastically from day to day.
Below Investment Grade Securities Risk: Below
investment grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan.
These requirements may limit the eligible pool of potential bank
loan holders by placing conditions or restrictions on sales and
purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may negatively impact the liquidity of loans. Difficulty in
selling a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which
CONSERVATIVE
ALLOCATION STRATEGY
may require the Fund to replace a particular loan with a
lower-yielding security. There may be less extensive public
information available with respect to loans than for rated,
registered or exchange listed securities. The Fund may assume
the credit risk of the administrative agent in addition to the
borrower, and investments in loan assignments may involve the
risks of being a lender.
Mortgage and Asset Backed Security Risk: Mortgage-
and asset-backed securities are debt instruments that are
secured by interests in pools of mortgage loans or other
financial assets. The value of these securities will be
influenced by the factors affecting the assets underlying such
securities including difficult or frozen credit markets, swings
in interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case
securities backed by loans made to borrowers with
sub-prime
credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates resulting in unexpected capital loss.
Interest Rate Risk: Debt securities will generally
lose value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization companies may be
less flexible in evolving markets or unable to implement change
as quickly as smaller capitalization companies.
Smaller Company Risk: Small and mid-cap stocks can
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of larger companies.
Style Risk (Value): A value investing style may be
out of favor in the marketplace. The potential value of a
security as perceived by an Underlying Funds investment
subadviser may never be realized by the market.
Style Risk (Growth): Growth stocks typically are
sensitive to market movements because their market prices tend
to reflect future expectations. When it appears those
expectations will not be met, the prices of growth stocks
typically fall.
Foreign Investment Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments.
These risks are increased for investments in emerging markets.
Exchange Traded Fund Risk: The risk of owning
shares of an ETF generally reflects the risk of owning the
underlying securities the ETF is designed to track. Liquidity in
an ETF could result in more volatility than ownership of the
underlying portfolio of securities. In addition, because of ETF
expenses, compared to owning the underlying securities directly,
it may be more costly to own an ETF.
Derivatives Risk: Because the Fund may invest in
derivatives, the Fund is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
CONSERVATIVE
ALLOCATION STRATEGY
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. I Shares
commenced operations on November 6, 2003, A Shares
commenced operations on November 11, 2003 and C Shares
commenced operations on April 3, 2005. Performance between
March 11, 2003 and the commencement of operations of A
Shares, C Shares and I Shares is that of the B Shares of the
Fund, which converted into A Shares of the Fund on
July 16, 2010, and has not been adjusted to reflect A
Share, C Share or I Share expenses. If it had been performance
for the C Shares would have been lower.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
7.57%
|
|
-2.53%
|
(9/30/09)
|
|
(9/30/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was 1.20%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are shown
for only the I Shares. After-tax returns for other classes will
vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
5 Year
|
|
Inception*
|
|
|
A Shares Returns Before Taxes
|
|
|
10.29%
|
|
|
|
3.53%
|
|
|
|
4.88%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
14.05%
|
|
|
|
3.91%
|
|
|
|
4.57%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
16.18%
|
|
|
|
4.86%
|
|
|
|
5.93%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
15.01%
|
|
|
|
3.34%
|
|
|
|
4.60%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
10.55%
|
|
|
|
3.32%
|
|
|
|
4.37%
|
|
|
|
Hybrid 30/70 Blend of the following benchmarks (reflects no
deductions for fees, expenses or taxes)
|
|
|
12.20%
|
|
|
|
3.85%
|
|
|
|
5.38%
|
|
|
|
S&P 500 Index (reflects no deductions for fees, expenses or
taxes)
|
|
|
26.46%
|
|
|
|
0.42%
|
|
|
|
6.31%
|
|
|
|
Barclays Capital U.S. Aggregate Bond Index (reflects no
deduction for fees, expenses or taxes)
|
|
|
5.93%
|
|
|
|
4.97%
|
|
|
|
4.65%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since inception of the B Shares on March 11, 2003.
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser
RidgeWorth Investments is the Funds investment adviser.
Portfolio
Management
Mr. Alan Gayle, Managing Director of the Adviser, has
managed the Fund since its inception in March 2003.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Funds
offer I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of
the Fund.
CONSERVATIVE
ALLOCATION STRATEGY
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
GROWTH ALLOCATION
STRATEGY
Summary
Section
A Shares, C
Shares and I Shares
Investment
Objective
The Growth Allocation Strategy (the Fund) seeks
long-term capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 32 of
the Funds prospectus and Rights of Accumulation on page 84
of the Funds Statement of Additional Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
0.10%
|
|
|
|
0.10%
|
|
|
|
0.10%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.14%
|
|
|
|
0.14%
|
|
|
|
0.14%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.78%
|
|
|
|
0.78%
|
|
|
|
0.78%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.32%
|
|
|
|
2.02%
|
|
|
|
1.02%
|
|
Fee Waivers and/or Expense
Reimbursements(1)
|
|
|
(0.04)%
|
|
|
|
(0.04)%
|
|
|
|
(0.04)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waivers and/or
Expense Reimbursements
|
|
|
1.28%
|
|
|
|
1.98%
|
|
|
|
0.98%
|
|
|
|
(1) |
The Adviser has contractually agreed to waive fees and
reimburse expenses until at least August 1, 2011 in order
to keep Total Annual Fund Operating Expenses (excluding, as
applicable, taxes, brokerage commissions, substitute dividend
expenses on securities sold short, extraordinary expenses and
acquired fund fees and expenses) from exceeding 0.50%, 1.20% and
0.20% for the A, C and I Shares, respectively. This agreement
shall terminate upon the termination of the Investment Advisory
Agreement between RidgeWorth Funds and the Adviser, or it may be
terminated upon written notice to the Adviser by RidgeWorth
Funds.
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
698
|
|
|
$
|
966
|
|
|
$
|
1,253
|
|
|
$
|
2,070
|
|
C Shares
|
|
$
|
301
|
|
|
$
|
630
|
|
|
$
|
1,084
|
|
|
$
|
2,345
|
|
I Shares
|
|
$
|
100
|
|
|
$
|
321
|
|
|
$
|
559
|
|
|
$
|
1,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
698
|
|
|
$
|
966
|
|
|
$
|
1,253
|
|
|
$
|
2,070
|
|
C Shares
|
|
$
|
201
|
|
|
$
|
630
|
|
|
$
|
1,084
|
|
|
$
|
2,345
|
|
I Shares
|
|
$
|
100
|
|
|
$
|
321
|
|
|
$
|
559
|
|
|
$
|
1,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 21% of
the average value of its portfolio.
Principal
Investment Strategies
The Fund invests pursuant to an asset allocation strategy in a
combination of RidgeWorth Equity Funds and exchange traded funds
(ETFs) that invest in equities (together,
Underlying Equity Funds), and, to a lesser extent,
RidgeWorth Fixed Income Funds and ETFs that invest in bonds
(together, Underlying Fixed Income Funds). The Fund
invests between 60% and 80% of its assets in Underlying Equity
Funds and up to 40% in Underlying Fixed Income Funds (together,
Underlying Funds). The Funds remaining assets
may
GROWTH ALLOCATION
STRATEGY
be invested in shares of RidgeWorth Money Market Funds,
securities issued by the U.S. Government, its agencies or
instrumentalities, repurchase agreements and short-term paper.
The Fund may invest in an Underlying Fund that:
|
|
|
invests in common stocks of real estate investment trusts
(REITs) and companies principally engaged in the
real estate industry.
|
|
|
invests in common stocks, other equity securities and debt
instruments, including mortgage- and asset-backed instruments,
of U.S. and non U.S. companies. The Underlying Fund
may invest in companies of any size and in both developed and
emerging markets.
|
|
|
is a 130/30 fund. A 130/30 fund is a fund that invests
approximately 130 percent of its assets in long positions,
either directly or indirectly through derivatives, while
approximately 30 percent of its assets are sold short,
either directly or indirectly through derivatives. The proceeds
from the short strategies may be used to purchase all or a
portion of the additional 30 percent of the long positions.
|
|
|
invests in bank loans and other below investment grade
instruments.
|
|
|
invests in inflation-protected public obligations of the
U.S. Treasury, commonly known as TIPS, which
are securities issued by the U.S. Treasury that are
designed to provide inflation protection to investors.
|
In selecting a diversified portfolio of Underlying Funds, the
Adviser analyzes many factors, including the Underlying
Funds investment objectives, total returns, volatility and
expenses. The table below shows how the Adviser currently
expects to allocate the Fund among asset classes. The table also
shows the sectors within those asset classes to which the Fund
will currently have exposure.
|
|
|
|
|
|
|
Investment Range
|
|
|
(Percentage of the
|
|
|
Growth Allocation
|
Asset Class
|
|
Strategys Assets)
|
|
|
Underlying Equity Funds
|
|
|
60-80
|
%
|
U.S. Equities
|
|
|
|
|
International Equities
|
|
|
|
|
Emerging Market Equities
|
|
|
|
|
(All Capitalizations)
|
|
|
|
|
|
|
Underlying Fixed Income Funds
|
|
|
20-40
|
%
|
U.S. Investment Grade Bonds
|
|
|
|
|
U.S. High Yield Bonds
|
|
|
|
|
U.S. Floating Rate Securities
(including Bank Loans)
|
|
|
|
|
International Bonds
|
|
|
|
|
Emerging Market Bonds
|
|
|
|
|
|
|
Underlying Money Market Funds
|
|
|
0-20
|
%
|
|
|
|
|
|
|
|
The Fund holds Underlying Funds that buy and sell securities
frequently, which may result in higher transaction costs and
lower performance, and will be more likely to generate
short-term capital gains (which are generally taxed at ordinary
income tax rates).
Principal
Investment Risks
The value of an investment in the Fund is based primarily on the
performance of the Underlying Funds and the allocation of the
Funds assets among them. The Advisers asset
allocation decisions may not anticipate market trends
successfully. The risks of the Fund will directly correspond to
the risks of the Underlying Funds in which it invests. These
risks will vary depending upon how the assets are allocated
among the Underlying Funds. The risks associated with investing
in the Underlying Funds are described in this section.
Equity Risk: Stock prices may fall over short or
extended periods of time. The value the Funds securities
may fluctuate drastically from day to day.
Credit Risk: Debt securities are subject to the risk
that an issuer will fail to make timely payments of interest or
principal, or go bankrupt, reducing the Funds return. The
lower the rating of a debt security, the higher its credit risk.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization companies may be
less flexible in evolving markets or
GROWTH ALLOCATION
STRATEGY
unable to implement change as quickly as smaller capitalization
companies.
Smaller Company Risk: Small and mid-cap stocks can
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of larger companies.
Style Risk (Value): A value investing style may be
out of favor in the marketplace. The potential value of a
security as perceived by an Underlying Funds investment
subadviser may never be realized by the market.
Style Risk (Growth): Growth stocks typically are
sensitive to market movements because their market prices tend
to reflect future expectations. When it appears those
expectations will not be met, the prices of growth stocks
typically fall.
Real Estate Risk: An investment in the Fund may be
subject to many of the same risks as a direct investment in real
estate and the real estate owned by the companies in which it
invests. These risks include changes in economic conditions,
interest rates, credit risk, property values, property tax
increases, overbuilding and increased competition, increasing
vacancies or declining rents, environmental contamination,
zoning and natural disasters.
Because the Fund concentrates its investments in the real estate
industry, the Funds performance will be closely linked to
the performance of the real estate markets.
Foreign Investment Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments.
These risks are increased for investments in emerging markets.
Short Sales Risk: If the price of a stock goes up
after a short sale, the Fund will lose money because it will
have to pay more to replace the borrowed stock than it received
when it sold the stock short. The amount of loss on a short sale
is theoretically unlimited, as there is no maximum attainable
price of the shorted security.
Leverage Risk: The Funds short sales
effectively leverage the Underlying Funds assets. It is
possible that the Underlying Fund may lose money on both long
and short positions at the same time. The Underlying Funds
assets that are used as collateral to secure the short sales may
decrease in value while the short positions are outstanding,
which may force the Underlying Fund to use its other assets to
increase the collateral. Leverage also creates interest expenses
that may decrease the Funds overall returns.
Below Investment Grade Securities Risk: Below
investment grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan.
These requirements may limit the eligible pool of potential bank
loan holders by placing conditions or restrictions on sales and
purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may negatively impact the liquidity of loans. Difficulty in
selling a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which may require the Fund to
replace a particular loan with a lower-yielding security. There
may be less extensive public information available with respect
to loans than for rated, registered or exchange listed
securities. The Fund may assume the credit risk of the
administrative agent in addition to the borrower, and
investments in loan assignments may involve the risks of being a
lender.
Mortgage and Asset Backed Security Risk: Mortgage-
and asset-backed securities are debt instruments that are
secured by interests in pools of mortgage loans or other
financial assets. The value of these securities will be
influenced by the factors affecting the assets underlying such
securities including difficult or frozen credit markets, swings
in interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case
securities backed by loans made to borrowers with
sub-prime
credit metrics.
GROWTH ALLOCATION
STRATEGY
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates resulting in unexpected capital loss.
Interest Rate Risk: Debt securities will generally
lose value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Exchange Traded Fund Risk: The risk of owning
shares of an ETF generally reflects the risk of owning the
underlying securities the ETF is designed to track. Liquidity in
an ETF could result in more volatility than ownership of the
underlying portfolio of securities. In addition, because of ETF
expenses, compared to owning the underlying securities directly,
it may be more costly to own an ETF.
Derivatives Risk: Because the Fund may invest in
derivatives, the Fund is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. A Shares
commenced operations on November 5, 2003 and C Shares
commenced operations on April 5, 2005. Performance prior to
the commencement of operations of each respective class, is that
of I Shares of the Fund, and has not been adjusted to reflect
expenses associated with other classes. If it had been,
performance would have been lower.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
13.21%
|
|
-14.19%
|
(6/30/03)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -3.93%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
GROWTH ALLOCATION
STRATEGY
shown for only the I Shares. After-tax returns for other classes
will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Year
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
18.07%
|
|
|
|
1.55%
|
|
|
|
3.08%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
23.33%
|
|
|
|
1.99%
|
|
|
|
3.34%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
25.62%
|
|
|
|
3.09%
|
|
|
|
3.90%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
24.91%
|
|
|
|
1.50%
|
|
|
|
2.68%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
16.82%
|
|
|
|
2.12%
|
|
|
|
2.86%
|
|
|
|
Hybrid 70/30 Blend of the following benchmarks (reflects no
deductions for fees, expenses or taxes)
|
|
|
20.44%
|
|
|
|
2.03%
|
|
|
|
1.49%
|
|
|
|
S&P 500 (reflects no deduction for fees, expenses or taxes)
|
|
|
26.46%
|
|
|
|
0.42%
|
|
|
|
-0.95%
|
|
|
|
Barclays Capital U.S. Aggregate Bond Index (reflects no
deduction for fees, expenses or taxes)
|
|
|
5.93%
|
|
|
|
4.97%
|
|
|
|
6.33%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser
RidgeWorth Investments is the Funds investment adviser.
Portfolio
Management
Mr. Alan Gayle, Managing Director of the Adviser, has
managed the Fund since its inception in December 1992.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Funds
offer I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of the
Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
MODERATE
ALLOCATION STRATEGY
Summary
Section
A Shares, C
Shares and I Shares
Investment
Objective
The Moderate Allocation Strategy (the Fund) seeks
capital appreciation and current income.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 32
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
0.10%
|
|
|
|
0.10%
|
|
|
|
0.10%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.11%
|
|
|
|
0.11%
|
|
|
|
0.11%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.66%
|
|
|
|
0.66%
|
|
|
|
0.66%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.17%
|
|
|
|
1.87%
|
|
|
|
0.87%
|
|
Fee Waivers and/or Expense
Reimbursements(1)
|
|
|
(0.01)%
|
|
|
|
(0.01)%
|
|
|
|
(0.01)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waivers and/or
Expense Reimbursements
|
|
|
1.16%
|
|
|
|
1.86%
|
|
|
|
0.86%
|
|
|
|
(1) |
The Adviser has contractually agreed to waive fees and
reimburse expenses until at least August 1, 2011 in order
to keep Total Annual Fund Operating Expenses (excluding, as
applicable, taxes, brokerage commissions, substitute dividend
expenses on securities sold short, extraordinary expenses and
acquired fund fees and expenses) from exceeding 0.50%, 1.20% and
0.20% for the A, C and I Shares, respectively. This agreement
shall terminate upon the termination of the Investment Advisory
Agreement between RidgeWorth Funds and the Adviser, or it may be
terminated upon written notice to the Adviser by RidgeWorth
Funds.
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
686
|
|
|
$
|
924
|
|
|
$
|
1,181
|
|
|
$
|
1,913
|
|
C Shares
|
|
$
|
289
|
|
|
$
|
587
|
|
|
$
|
1,010
|
|
|
$
|
2,190
|
|
I Shares
|
|
$
|
88
|
|
|
$
|
277
|
|
|
$
|
481
|
|
|
$
|
1,072
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
686
|
|
|
$
|
924
|
|
|
$
|
1,181
|
|
|
$
|
1,913
|
|
C Shares
|
|
$
|
189
|
|
|
$
|
587
|
|
|
$
|
1,010
|
|
|
$
|
2,190
|
|
I Shares
|
|
$
|
88
|
|
|
$
|
277
|
|
|
$
|
481
|
|
|
$
|
1,072
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 21% of
the average value of its portfolio.
Principal
Investment Strategies
The Fund invests pursuant to an asset allocation strategy in a
combination of RidgeWorth Equity Funds, RidgeWorth Fixed Income
Funds and exchange-traded funds (ETFs) (together,
Underlying Funds). The Fund principally invests
between 40% and 60% in Underlying Funds that invest primarily in
equity securities and up to 60% in Underlying Funds that invest
primarily in fixed income securities. The Funds remaining
assets may be invested in shares of RidgeWorth Money Market
Funds, securities issued by
MODERATE
ALLOCATION STRATEGY
the U.S. Government, its agencies or instrumentalities,
repurchase agreements and short-term paper.
The Fund may invest in an Underlying Fund that:
|
|
|
invests in common stocks of real estate investment trusts
(REITs) and companies principally engaged in the
real estate industry.
|
|
|
invests in common stocks, other equity securities and debt
instruments, including mortgage and asset-backed instruments, of
U.S. and non U.S. companies. The Underlying Fund may invest in
companies of any size and in both developed and emerging markets.
|
|
|
is a 130/30 fund. A 130/30 fund is a fund that invests
approximately 130 percent of its assets in long positions,
either directly or indirectly through derivatives, while
approximately 30 percent of its assets are sold short,
either directly or indirectly through derivatives. The proceeds
from the short strategies may be used to purchase all or a
portion of the additional 30 percent of the long positions.
|
|
|
invests in bank loans and other below investment grade
instruments.
|
|
|
invests in inflation-protected public obligations of the U.S.
Treasury, commonly known as TIPS, which are
securities issued by the U.S. Treasury that are designed to
provide inflation protection to investors.
|
In selecting a diversified portfolio of Underlying Funds, the
Adviser analyzes many factors, including the Underlying
Funds investment objectives, total returns, volatility and
expenses.
The table below shows how the Adviser currently expects to
allocate the Fund among asset classes. The table also shows the
sectors within those asset classes to which the Fund will
currently have exposure.
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Investment Range
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(Percentage of the
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Moderate Allocation
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Asset Class
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Strategys Assets)
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Underlying Equity Funds
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40-60%
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U.S. Equities
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International Equities
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Emerging Market Equities
(All Capitalizations)
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Underlying Fixed Income Funds
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40-60%
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U.S. Investment Grade Bonds
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U.S. High Yield Bonds
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U.S. Floating Rate Securities
(including Bank Loans)
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International Bonds
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Emerging Market Bonds
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Underlying Money Market Funds
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0-20%
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The Fund holds Underlying Funds that buy and sell securities
frequently, which may result in higher transaction costs and
lower performance, and will be more likely to generate
short-term capital gains (which are generally taxed at ordinary
income tax rates).
Principal
Investment Risks
The value of an investment in the Fund is based primarily on the
performance of the Underlying Funds and the allocation of the
Funds assets among them. The Advisers asset
allocation decisions may not anticipate market trends
successfully. The risks of the Fund will directly correspond to
the risks of the Underlying Funds in which it invests. These
risks will vary depending upon how the assets are allocated
among the Underlying Funds. The risks associated with investing
in the Underlying Funds are described in this section.
Equity Risk: Stock prices may fall over short or extended
periods of time. The value the Funds securities may
fluctuate drastically from day to day.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, reducing the Funds return. The
lower the rating of a debt security, the higher its credit risk.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization
MODERATE
ALLOCATION STRATEGY
companies may be less flexible in evolving markets or unable to
implement change as quickly as smaller capitalization companies.
Smaller Company Risk: Small and mid-cap stocks can
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of larger companies.
Style Risk (Value): A value investing style may be out of
favor in the marketplace. The potential value of a security as
perceived by an Underlying Funds investment subadviser may
never be realized by the market.
Style Risk (Growth Stock): Growth stocks typically are
sensitive to market movements because their market prices tend
to reflect future expectations. When it appears those
expectations will not be met, the prices of growth stocks
typically fall.
Real Estate Risk: An investment in the Fund may be
subject to many of the same risks as a direct investment in real
estate and the real estate owned by the companies in which it
invests. These risks include changes in economic conditions,
interest rates, credit risk, property values, property tax
increases, overbuilding and increased competition, increasing
vacancies or declining rents, environmental contamination,
zoning and natural disasters.
Because the Fund concentrates its investments in the real estate
industry, the Funds performance will be closely linked to
the performance of the real estate markets.
Foreign Investment Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments.
These risks are increased for investments in emerging markets.
Short Sales Risk: If the price of a stock goes up after a
short sale, the Fund will lose money because it will have to pay
more to replace the borrowed stock than it received when it sold
the stock short. The amount of loss on a short sale is
theoretically unlimited, as there is no maximum attainable price
of the shorted security.
Leverage Risk: The Funds short sales effectively
leverage the Underlying Funds assets. It is possible that
the Underlying Fund may lose money on both long and short
positions at the same time. The Underlying Funds assets
that are used as collateral to secure the short sales may
decrease in value while the short positions are outstanding,
which may force the Underlying Fund to use its other assets to
increase the collateral. Leverage also creates interest expenses
that may decrease the Funds overall returns.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan.
These requirements may limit the eligible pool of potential bank
loan holders by placing conditions or restrictions on sales and
purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may negatively impact the liquidity of loans. Difficulty in
selling a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which may require the Fund to
replace a particular loan with a lower-yielding security. There
may be less extensive public information available with respect
to loans than for rated, registered or exchange listed
securities. The Fund may assume the credit risk of the
administrative agent in addition to the borrower, and
investments in loan assignments may involve the risks of being a
lender.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities including
difficult or frozen credit markets, swings in interest rates,
changes in default rates, or deteriorating economic conditions.
During periods of declining asset values, mortgage-backed and
asset-backed securities may face valuation difficulties, become
more volatile
and/or
illiquid. The risk of default is generally higher in the
MODERATE
ALLOCATION STRATEGY
case of securities backed by loans made to borrowers with
sub-prime
credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates resulting in unexpected capital loss.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government securities can
exhibit price movements resulting from changes in interest
rates. Interest rate risk is generally higher for investments
with longer maturities or durations. Treasury inflation
protected securities (TIPS) can also exhibit price
movements as a result of changing inflation expectations and
seasonal inflation patterns.
Exchange Traded Fund Risk: The risk of owning shares
of an ETF generally reflects the risk of owning the underlying
securities the ETF is designed to track. Liquidity in an ETF
could result in more volatility than ownership of the underlying
portfolio of securities. In addition, because of ETF expenses,
compared to owning the underlying securities directly, it may be
more costly to own an ETF.
Derivatives Risk: Because the Fund may invest in
derivatives, the Fund is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. A shares
commenced operations on October 10, 2003 and C shares
commenced operations on April 5, 2005. Performance prior to
the commencement of operations of each respective class is that
of I shares of the Fund, and has not been adjusted to reflect
expenses associated with other classes. If it had been,
performance would have been lower.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
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Best Quarter
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Worst Quarter
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10.66%
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-9.20%
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(6/30/03)
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(9/30/02)
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* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -1.55%.
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This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
MODERATE
ALLOCATION STRATEGY
shown for only the I Shares. After-tax returns for other classes
will vary.
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1 Year
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5 Year
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10 Years
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A Shares Returns Before Taxes
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13.53%
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2.32%
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3.40%
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C Shares Returns Before Taxes
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18.44%
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2.78%
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3.67%
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I Shares Returns Before Taxes
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20.69%
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3.82%
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4.19%
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I Shares Returns After Taxes on Distributions
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19.73%
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2.27%
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2.75%
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I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
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13.54%
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2.57%
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2.88%
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Hybrid 50/50 Blend of the following benchmarks (reflects no
deductions for fees, expenses or taxes)
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16.34%
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2.99 %
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2.99%
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S&P 500 (reflects no deduction for fees, expenses or taxes)
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26.46%
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0.42 %
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-0.95%
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Barclays Capital U.S. Aggregate Bond Index (reflects no
deduction for fees, expenses or taxes)
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5.93%
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4.97 %
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6.33%
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Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser
RidgeWorth Investments is the Funds investment adviser.
Portfolio
Management
Mr. Alan Gayle, Managing Director of the Adviser, has
managed the Fund since its inception in December 1992.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Funds
offer I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of the
Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
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Class
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Dollar Amount
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A Shares
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$2,000
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C Shares
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$5,000 ($2,000 for IRA or other tax qualified accounts)
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I Shares
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None
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Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
MORE INFORMATION
ABOUT RISK
More Information
About Risk
Below Investment
Grade Risk
Conservative Allocation Strategy
Growth Allocation Strategy
Moderate Allocation Strategy
High yield securities, also known as junk bonds,
involve greater risks of default or downgrade and are more
volatile than investment grade securities due to actual or
perceived changes in an issuers credit-worthiness. Issuers
of high yield securities may be more susceptible to economic
downturns and, therefore, may be unable to pay interest,
dividends or ultimately repay the principal upon maturity.
Discontinuation of these payments could adversely affect the
market value of the security. High yield securities may be less
liquid and a security whose credit rating has been lowered may
be particularly difficult to sell.
Borrowing
Risk
All Funds
An Underlying Fund may borrow cash
and/or
securities subject to certain limits which may amplify the
effect of any increase or decrease in the value of portfolio
securities or the net asset value of an Underlying Fund. Money
borrowed will be subject to interest costs. Interest costs on
borrowings may fluctuate due to changing rates of interest and
may partially offset or exceed the return earned on borrowed
funds. Under adverse market conditions, an Underlying Fund may
have to sell portfolio securities to meet interest or principal
payments at a time when fundamental investment considerations
would not favor such sales.
Derivatives
Risk
All Funds
A derivative is a financial contract whose value adjusts in
accordance with the value of one or more underlying assets,
reference rates or indices. Derivatives (such as credit linked
notes, futures, options, inverse floaters, swaps and warrants)
may be used to attempt to achieve investment objectives or to
offset certain investment risks. These positions may be
established for hedging, substitution of a position in the
underlying asset, or for speculation purposes. Hedging involves
making an investment (e.g., in a futures contract) to reduce the
risk of adverse price movements in an already existing
investment position. Risks associated with the use of
derivatives include those associated with hedging and leveraging
activities:
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The success of a hedging strategy may depend on an ability to
predict movements in the prices of individual securities,
fluctuations in markets, and movements in interest rates.
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An Underlying Fund may experience losses over certain market
movements that exceed losses experienced by a fund that does not
use derivatives.
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There may be an imperfect or no correlation between the changes
in market value of the securities held by an Underlying Fund and
the prices of derivatives used to hedge those positions.
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There may not be a liquid secondary market for derivatives.
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Trading restrictions or limitations may be imposed by an
exchange.
|
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Government regulations may restrict trading in derivatives.
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The other party to an agreement (e.g., options or swaps) may
default; however, in certain circumstances, such counter-party
risk may be reduced by the creditworthiness of the counterparty
and/or using
an exchange as an intermediary.
|
Because premiums or totals paid or received on derivatives are
small in relation to the market value of the underlying
investments, buying and selling derivatives can be more
speculative than investing directly in securities. In addition,
many types of derivatives have limited investment lives and may
expire or necessitate being sold at inopportune times.
The use of derivatives may cause an Underlying Fund to recognize
higher amounts of short-term capital gains, which are generally
taxed to shareholders at ordinary income tax rates.
Credit default swaps may involve greater risks than if an
Underlying Fund had invested in the asset directly. An
Underlying Fund may be more exposed to credit risk. In addition,
an Underlying Fund may experience losses if the an Underlying
Funds investment subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Total return swaps could result in losses if
their reference index, security or investments do not perform as
anticipated.
Leverage may cause an Underlying Fund to be more volatile than
if the Underlying Fund had not been leveraged. This is because
leverage tends to
MORE INFORMATION
ABOUT RISK
exaggerate the effect of any increase or decrease on the value
of an Underlying Funds portfolio securities. To limit
leveraging risk, an Underlying Fund observes asset segregation
requirements to fully cover its future obligations. By setting
aside assets equal only to its net obligations under certain
derivative instruments, an Underlying Fund will have the ability
to employ leverage to a greater extent than if it were required
to segregate assets equal to the full notional value of such
derivative instruments.
Emerging Markets
Risk
All Funds
Emerging market countries are countries that the World Bank or
the United Nations considers to be emerging or developing.
Emerging markets may be more likely to experience political
turmoil or rapid changes in market or economic conditions than
more developed countries. In addition, the financial stability
of issuers (including governments) in emerging market countries
may be more precarious than in other countries. As a result,
there will tend to be an increased risk of price volatility
associated with investments in emerging market countries, which
may be magnified by currency fluctuations relative to the U.S.
dollar. Governments of some emerging market countries have
defaulted on their bonds and may do so in the future.
Equity
Risk
All Funds
Equity securities include public and privately issued equity
securities, common and preferred stocks, warrants, rights to
subscribe to common stock and convertible securities, as well as
instruments that attempt to track the price movement of equity
indices. Individual companies may report poor results or be
negatively affected by industry
and/or
economic trends and developments. The prices of securities
issued by such companies may suffer a decline in response. These
factors contribute to price volatility, which is the principal
risk of investing in funds that primarily hold equity
securities. Historically, the equity market has moved in cycles
and investments in equity securities and equity derivatives in
general are subject to market risks that may cause their prices
to fluctuate over time. The value of securities convertible into
equity securities, such as warrants or convertible debt, is also
affected by prevailing interest rates, the credit quality of the
issuer and any call provision. Fluctuations in the value of
equity securities in which a mutual fund invests will cause a
funds net asset value to fluctuate. An investment in a
portfolio of equity securities may be more suitable for
long-term investors who can bear the risk of these share price
fluctuations.
Exchange Traded
Fund Risk
All Funds
The Funds and the Underlying Funds may purchase shares of
exchange-traded funds (ETFs) to gain exposure to a
particular portion of the market. ETFs are investment companies
that are bought and sold on a securities exchange. ETFs may
track a securities index, a particular market sector, or a
particular segment of a securities index or market sector. ETFs,
like mutual funds, have expenses associated with their
operation, including advisory fees. When a Fund or Underlying
Fund invests in an ETF, in addition to directly bearing expenses
associated with its own operations, it will bear a pro rata
portion of the ETFs expense. The risks of owning shares of
an ETF generally reflect the risks of owning the underlying
securities the ETF is designed to track, although lack of
liquidity in an ETF could result in being more volatile than the
underlying portfolio of securities. In addition, because of ETF
expenses, compared to owning the underlying securities directly,
it may be more costly to own shares of an ETF.
Fixed Income
Risk
Conservative Allocation Strategy
Growth Allocation Strategy
Moderate Allocation Strategy
The prices of an Underlying Funds fixed income securities
respond to economic developments, particularly interest rate
changes, as well as to perceptions about the creditworthiness of
individual issuers, including governments. Generally, an
Underlying Funds fixed income securities will decrease in
value if interest rates rise and vice versa.
Long-term debt securities generally are more sensitive to
changes in interest rates, usually making them more volatile
than short-term debt securities and thereby increasing risk.
Debt securities are also subject to credit risk, which is the
possibility than an issuer will fail to make timely payments of
interest or principal, or go bankrupt. The lower the ratings of
such debt securities, the greater their risks. In addition,
lower rated securities have higher risk characteristics, and
changes in economic conditions are likely to cause issuers of
these securities to be unable to meet their obligations.
MORE INFORMATION
ABOUT RISK
Debt securities are also subject to income risk, which is the
possibility that falling interest rates will cause an Underlying
Funds income to decline. Income risk is generally higher
for short-term bonds.
An additional risk of debt securities is reinvestment risk,
which is the possibility that an Underlying Fund may not be able
to reinvest interest or dividends earned from an investment in
such a way that they earn the same rate of return as the
invested funds that generated them. For example, falling
interest rates may prevent bond coupon payments from earning the
same rate of return as the original bond. Furthermore,
pre-funded loans and issues may cause an Underlying Fund to
reinvest those assets at a rate lower than originally
anticipated.
Floating Rate
Loan Risk
Conservative Allocation Strategy
Growth Allocation Strategy
Moderate Allocation Strategy
Investments in floating rate loans are subject to interest rate
risk although the risk is less because the interest rate of the
loan adjusts periodically. Investments in floating rate loans
are also subject to credit risk. Many floating rate loans are
rated below investment grade or are unrated, therefore, an
Underlying Fund relies heavily on the analytical ability of the
Underlying Funds investment subadviser. Many floating rate
loans share the same risks as high yield securities, although
these risks are reduced when the floating rate loans are senior
and secured as opposed to many high yield securities that are
junior and unsecured. Floating rate loans are often subject to
restrictions on resale which can result in reduced liquidity.
Borrowers may repay principal faster than the scheduled due date
which may result in an Underlying Fund replacing that loan with
a lower-yielding security. Investment in loan participation
interests may result in increased exposure to financial services
sector risk. A loan may not be fully collateralized which may
cause the loan to decline significantly in value.
One lending institution acting as agent for all of the lenders
will generally be required to administer and manage the loan
and, with respect to collateralized loans, to service or monitor
the collateral. Investing in certain types of floating rate
loans, such as revolving credit facilities and unfunded loans,
creates a future obligation for an Underlying Fund. To avoid any
leveraging concerns, an Underlying Fund will segregate or
earmark liquid assets with the Underlying Funds custodian
in amounts sufficient to fully cover any future obligations.
Seix Investment Advisors LLC (Seix), subadviser to
the Seix Floating Rate High Income Fund, an Underlying Fund in
which the Funds may invest, currently serves as collateral
manager to six collateralized loan obligation (CLO)
CLO funds that invest in bank loans. The trustees and custodians
of the CLO funds are not affiliated entities of the Adviser or
Seix. In addition, the Adviser serves as adviser to an account
established with its affiliate, SunTrust Equity Funding, LLC for
the purpose of purchasing high yield securities for subsequent
sale to these same CLO funds. Each of these transactions is
subject to the approval of the independent trustee of the
applicable CLO fund. In addition to disclosure to the trustee,
all such transactions are fully disclosed to potential investors
in the CLOs offering and disclosure documents.
In addition to the CLO funds, Seix serves as subadviser to an
unaffiliated registered fund and as investment manager to two
unregistered funds that invest in bank loans. The custodian and
adviser for the unaffiliated registered fund are not affiliated
entities of the Adviser or Seix. The custodians and
administrators for the two unregistered funds are not affiliated
entities of the Adviser or Seix. There are no trustees for the
unregistered funds. Only the offshore entities that are a part
of one of the unregistered funds have independent boards of
directors that are not affiliated entities of the Adviser or
Seix. SunTrust Equity Funding, LLC does not purchase assets for
the unregistered funds.
As a result of these multiple investment-oriented and associated
relationships, there exists a potential risk that the portfolio
managers may favor other adviser and non-adviser contracted
businesses over an Underlying Fund.
Seix has created and implemented additional policies and
procedures designed to protect shareholders against such
conflicts; however, there can be no absolute guarantee that an
Underlying Fund will always participate in the same or similar
investments or receive equal or better individual investment
allocations at any given time.
Foreign
Securities Risk
All Funds
Investments in securities of foreign companies or governments
can be more volatile than investments in U.S. companies or
governments. Diplomatic, political,
MORE INFORMATION
ABOUT RISK
or economic developments, including nationalization or
appropriation, unique to a country or region will affect those
markets and their issuers. Foreign securities markets generally
have less trading volume and less liquidity than U.S. markets.
The value of securities denominated in foreign currencies, and
of dividends from such securities, can change significantly when
foreign currencies strengthen or weaken relative to the U.S.
dollar. As a result, changes in the value of those currencies
compared to the U.S. dollar may affect (positively or
negatively) the value of an Underlying Funds investment.
Foreign currency exchange rates may fluctuate significantly.
They are determined by supply and demand in the foreign exchange
markets, the relative merits of investments in different
countries, actual or perceived changes in interest rates, and
other complex factors. Currency exchange rates also can be
affected unpredictably by intervention (or the failure to
intervene) by U.S. or foreign governments or central banks or by
currency controls or political developments. Currency movements
may happen separately from and in response to events that do not
otherwise affect the value of the security in the issuers
home country.
Foreign companies or governments generally are not subject to
uniform accounting, auditing, and financial reporting standards
comparable to those applicable to domestic U.S. companies or
governments. Transaction costs are generally higher than those
in the U.S. and expenses for custodial arrangements of foreign
securities may be somewhat greater than typical expenses for
custodial arrangements of similar U.S. securities. Some foreign
governments levy withholding taxes against dividend and interest
income. Although in some countries a portion of these taxes are
recoverable, the non-recovered portion will reduce the income
received from the securities comprising the portfolio.
Foreign Currency
Risk
All Funds
Non-U.S.
securities often trade in currencies other than the U.S. dollar.
Changes in currency exchange rates may affect an Underlying
Funds net asset value, the value of dividends and interest
earned, and gains and losses realized on the sale of securities.
An increase in the strength of the U.S. dollar relative to these
other currencies may cause the value of the Underlying Fund to
decline. Certain currencies may be particularly volatile, and
non-U.S.
governments may intervene in the currency markets, causing a
decline in value or liquidity in the Underlying Funds
non-U.S.
holdings whose value is tied to that particular currency.
Large Company
Risk
All Funds
Large cap stocks can perform differently from other segments of
the equity market or the equity market as a whole. Companies
with large capitalization tend to go in and out of favor based
on market and economic conditions and, while they can be less
volatile than companies with smaller market capitalizations,
they may also be less flexible in evolving markets or unable to
implement change as quickly as their smaller counterparts.
Accordingly the value of large cap stocks may not rise to the
same extent as the value of small or mid-cap companies under
certain market conditions or during certain periods.
Leverage occurs when an Underlying Fund increases its assets
available for investment using borrowings or similar
transactions. Due to the fact that short sales involve borrowing
securities and then selling them, an Underlying Funds
short sales effectively leverage the Underlying Funds
assets. It is possible that the Underlying Fund may lose money
on both long positions and short positions at the same time. The
use of leverage may make any change in an Underlying Funds
net asset value even greater and thus result in increased
volatility of returns. An Underlying Funds assets that are
used as collateral to secure the short sales may decrease in
value while the short positions are outstanding, which may force
the Underlying Fund to use its other assets to increase the
collateral. Leverage also creates interest expense that may
lower an Underlying Funds overall returns. Lastly, there
is no guarantee that a leveraging strategy will be successful.
Mortgage-Backed
and Asset-Backed Securities Risk
Conservative Allocation Strategy
Growth Allocation Strategy
Moderate Allocation Strategy
Mortgage and asset-backed securities are fixed income securities
representing an interest in a pool of underlying mortgage or
asset-backed secured and unsecured cashflow producing assets
such as automobile loans and leases, credit card receivables and
other financial assets. The risks associated with these types of
securities include: (1) prepayment risk that could result
in earlier or later return of principal
MORE INFORMATION
ABOUT RISK
than expected and can lead to significant fluctuations in the
value and realized yield of the securities;
(2) liquidity/market risk which can result in higher than
expected changes in security valuation and transactions costs
especially in times of general market stress; and
(3) credit risk that is associated with the underlying
borrowers and can also be driven by general economic conditions
which can result in the loss of invested principal.
The value of some mortgage- or asset-backed securities may be
particularly sensitive to changes in prevailing interest rates.
Early repayment of principal on some mortgage-backed securities
may expose an Underlying Fund to a lower rate of return upon
reinvestment of principal. When interest rates rise, the value
of these securities generally will decline; however, when
interest rates are declining, the value of these securities with
prepayment features may not increase as much as other fixed
income securities. The rate of prepayments on underlying
mortgages will affect the price and volatility of a
mortgage-backed security, and may shorten or extend the
effective maturity of the security beyond what was anticipated
at the time of purchase. If unanticipated rates of prepayment on
underlying mortgages increase the effective maturity of a
mortgage-related security, the volatility of the security can be
expected to increase. The value of these securities may
fluctuate in response to the markets perception of the
creditworthiness of the issuers. Additionally, although
mortgage-backed securities are generally supported by some form
of government or private guarantee
and/or
insurance, there is no assurance that private guarantors or
insurers will meet their obligations.
Real Estate
Risk
All Funds
Investments in real estate related securities are subject to
risks similar to those associated with direct ownership of real
estate, and an investment in an Underlying Fund will be closely
linked to the performance of the real estate markets. These
risks include, among others, declines in the value of real
estate; risks related to general and local economic conditions;
possible lack of availability of mortgage funds; overbuilding;
extended vacancies of properties; defaults by borrowers or
tenants, particularly during an economic downturn; increasing
competition; increases in property taxes and operating expenses;
changes in zoning laws; losses due to costs resulting from the
clean-up of
environmental problems; liability to third parties for damages
resulting from environmental problems; casualty or condemnation
losses; limitations on rents; changes in market and
sub-market
values and the appeal of properties to tenants; and changes in
interest rates.
In addition to the risks associated with investing in securities
of real estate companies and real estate related companies, real
estate investment trust (REITs) are subject to
certain additional risks. Equity REITs may be affected by
changes in the value of the underlying properties owned by the
trusts, and mortgage REITs may be affected by the quality of any
credit extended. Further, REITs are dependent upon specialized
management skills and may have their investments in relatively
few properties, or in a small geographic area or a single
property type. REITs are also subject to heavy cash flow
dependency, defaults by borrowers and self-liquidation. In
addition, REITs could possibly fail to qualify for tax free
pass-through of income under the Internal Revenue Code (the
Code) or to maintain their exemptions from
registration under the Investment Company Act of 1940. The
failure of a company to qualify as a REIT under federal tax law
may have adverse consequences to the Underlying Fund. The above
factors may also adversely affect a borrowers or a
lessees ability to meet its obligations to the REIT. In
the event of a default by a borrower or lessee, the REIT may
experience delays in enforcing its rights as a mortgagee or
lessor and may incur substantial costs associated with
protecting its investments. In addition, REITs have their own
expense and the Underlying Fund will bear a proportionate share
of those expenses.
Real estate companies tend to be small to medium-sized
companies. Real estate company shares, like other smaller
company shares, can be more volatile than, and perform
differently from, larger company shares. There may be less
trading in a smaller companys shares, which means that buy
and sell transactions in those shares could have a larger impact
on the shares price than is the case with larger company
shares.
Regional
Risk
All Funds
To the extent that an Underlying Funds investments are
concentrated in a specific geographic region, an Underlying Fund
may be subject to the political and other developments affecting
that region. Regional economies are often closely interrelated,
and political and economic developments affecting one region,
country or state often affect other regions, countries
MORE INFORMATION
ABOUT RISK
or states, thus subjecting the Underlying Fund to additional
risks.
Restricted
Security Risk
Moderate Allocation Strategy
Growth Allocation Strategy
Conservative Allocation Strategy
Restricted securities may increase the level of illiquidity in
an Underlying Fund during any period that qualified
institutional buyers become uninterested in purchasing these
restricted securities. The Adviser and the Underlying
Funds investment subadvisers intend to invest only in
restricted securities that they believe present minimal
liquidity risk.
Securities
Lending Risk
All Funds
A Fund (and the Underlying Funds) may lend securities to
approved borrowers, such as broker-dealers, to earn additional
income. Risks include the potential insolvency of the borrower
that could result in delays in recovering securities and capital
losses. Additionally, losses could result from the reinvestment
of collateral received on loaned securities in investments that
default or do not perform well. It is also possible that if a
security on loan is sold and a Fund is unable to timely recall
the security, the Fund may be required to repurchase the
security in the market place, which may result in a potential
loss to shareholders. There is a risk that the Fund may not be
able to recall securities on loan in sufficient time to vote on
material proxy matters. In addition, as a general practice, a
Fund will not recall securities on loan solely to receive income
payments, which could result in an increase of a Funds tax
obligation that is subsequently passed on to its shareholders.
Short Sales
Risk
All Funds
A short sale is the sale by a fund of a security which has been
borrowed from a third party on the expectation that the market
price will decline. Short sales involve additional costs and
risk. If a security sold short increases in price, the fund may
have to cover its short position at a higher price than the
short sale price, resulting in a loss. Therefore, short sales
involve the risk that losses may be exaggerated, potentially
losing more money than the actual cost of the investment, or a
theoretically unlimited loss, as there is no maximum attainable
price of the shorted security. Also, there is the risk that the
third party to the short sale may fail to honor its contract
terms, causing a loss to the fund. An Underlying Fund may not
initiate a short sale unless it is able to borrow the security
and must then deliver the security to the buyer to complete the
transaction. An Underlying Fund may not be able to borrow a
security that it wishes to short or the lender of the securities
may, at any time, recall the loaned security which would force
the Underlying Fund to purchase the security in the open market
at the then current price. In addition, the Underlying Fund may
not be able to close out a short position at a profit or an
acceptable price and may have to sell long positions to cover
accumulated losses in the short portfolio. Thus, the Underlying
Fund may not be able to successfully implement its short sale
strategy due to the limited availability of desired securities
or for other reasons.
The Underlying Fund must normally repay to the lender an amount
equal to any dividends or interest that accrues while the loan
is outstanding. The amount of any gain will be decreased, and
the amount of any loss increased, by the amount of the premium,
dividends, interest or expenses the Underlying Fund may be
required to pay in connection with the short sale. Also, the
lender of a security may terminate the loan at a time when the
Underlying Fund is unable to borrow the same security from
another lender for delivery. In that case, the Underlying Fund
would need to purchase a replacement security at the then
current market price or buy in by paying the lender
with securities purchased in the open market or with an amount
equal to the cost of purchasing the securities.
Until the Underlying Fund replaces a borrowed security, it is
required to maintain a segregated account of cash or liquid
assets with a broker or custodian to cover the Underlying
Funds short position. Securities held in a segregated
account cannot be sold while the position they are covering is
outstanding, unless they are replaced with similar securities.
Additionally, the Underlying Fund must maintain sufficient
liquid assets (less any additional collateral held by the
broker),
marked-to-market
daily, to cover the short sale obligation. This may limit the
Underlying Funds investment flexibility, as well as its
ability to meet redemption requests or other current obligations.
Leverage
Risk
All Funds
Leverage occurs when an Underlying Fund increases its assets
available for investment using borrowings or
MORE INFORMATION
ABOUT INDICES
similar transactions. Due to the fact that short sales involve
borrowing securities and then selling them, an Underlying
Funds short sales effectively leverage the Underlying
Funds assets. It is possible that the Underlying Fund may
lose money on both long positions and short positions at the
same time. The use of leverage may make any change in an
Underlying Funds net asset value even greater and thus
result in increased volatility of returns. An Underlying
Funds assets that are used as collateral to secure the
short sales may decrease in value while the short positions are
outstanding, which may force the Underlying Fund to use its
other assets to increase the collateral. Leverage also creates
interest expense that may lower an Underlying Funds
overall returns. Lastly, there is no guarantee that a leveraging
strategy will be successful.
Smaller Company
Risk
All Funds
Small and mid-capitalization companies may be either established
or newer companies. Smaller companies may offer greater
opportunities for gain. They also involve a greater risk of loss
because they may be more vulnerable to adverse business or
economic events, particularly those companies that have been in
operation for less than three years. Smaller company securities
may trade in lower volumes or there may be less information
about the company which may cause the investments to be more
volatile or to have less liquidity than larger company
investments. They may have unseasoned management or may rely on
the efforts of particular members of their management team to a
great degree causing turnover in management to pose a greater
risk. Smaller sized companies may have more limited access to
resources, product lines, and financial resources. Small and
mid-sized companies typically reinvest a large proportion of
their earnings in their business and may not pay dividends or
make interest payments for some time, particularly if they are
newer companies.
Tracking Error
Risk
All Funds
Factors such as Fund and Underlying Fund expenses, imperfect
correlation between the Funds investments and those of its
benchmarks, rounding of share prices, changes to the benchmark,
regulatory policies, and leverage, may affect its ability to
achieve perfect correlation. The magnitude of any tracking error
may be affected by a higher portfolio turnover rate. Because an
index is just a composite of the prices of the securities it
represents rather than an actual portfolio of those securities,
an index will have no expenses. As a result, the Fund and
Underlying Fund, which will have expenses such as taxes,
custody, management fees and other operational costs, and
brokerage, may not achieve its investment objective of
accurately correlating to an index.
Risk Information
Common to RidgeWorth Funds
Each Fund is a mutual fund. A mutual fund pools
shareholders money and, using professional investment
managers, invests it in securities.
Each Fund has its own investment goal and strategies for
reaching that goal. The Adviser invests Fund assets in a way
that it believes will help a Fund achieve its goal. Still,
investing in each Fund involves risk and there is no guarantee
that a Fund will achieve its goal. The Advisers judgments
about the markets, the economy or companies may not anticipate
actual market movements, economic conditions or company
performance, and these judgments may affect the return on your
investment. In fact, no matter how good a job the Adviser does,
you could lose money on your investment in a Fund, just as you
could with other investments. The value of your investment in a
Fund is based on the market prices of the securities the Fund
holds. These prices change daily due to economic and other
events that affect particular companies and other issuers. These
price movements, sometimes called volatility, may be greater or
lesser depending on the types of securities a Fund owns and the
markets in which they trade. The effect on a Fund of a change in
the value of a single security will depend on how widely the
Fund diversifies its holdings.
Each Funds investment goal may be changed without
shareholder approval. Before investing, make sure that the
Funds goal matches your own.
The Funds are not managed to achieve tax efficiency.
More Information
About Indices
An index measures the market prices of a specific group of
securities in a particular market or market sector. You cannot
invest directly in an index. Unlike a mutual fund, an index does
not have an investment adviser and does not pay any commissions
or expenses. If an index had expenses, its performance would be
lower.
Barclays Capital U.S. Aggregate Bond Index measures the U.S.
dollar-denominated, investment-grade, fixed rate, taxable bond
market of SEC-registered
MANAGEMENT
securities. The index includes bonds from the Treasury,
Government-related, Corporate, MBS (agency fixed-rate and hybrid
ARM passthroughs), ABS, and CMBS sectors.
S&P 500 Index is widely regarded as a gauge of the U.S.
equities market, this index includes 500 leading companies in
leading industries of the U.S. economy. Although the S&P
500 focuses on the large cap segment of the market, with
approximately 75% coverage of U.S. equities, it is also an ideal
proxy for the total market.
More Information
About Fund Investments
This prospectus describes the Funds primary strategies,
and the Funds will normally invest in the types of securities
described in this prospectus. However, in addition to the
investments and strategies described in this prospectus, each
Fund also may invest in other securities, use other strategies
and engage in other investment practices. These investments and
strategies, as well as those described in this prospectus, are
described in detail in the Statement of Additional Information
(SAI).
The investments and strategies described in this prospectus are
those that the Funds use under normal conditions. During unusual
economic or market conditions, or for temporary defensive or
liquidity purposes, each Fund may invest up to 100% of its
assets in cash, money market instruments, repurchase agreements
and short-term obligations that would not ordinarily be
consistent with a Funds objectives. A Fund will do so only
if the Adviser believes that the risk of loss outweighs the
opportunity for capital gains or higher income. Of course, a
Fund cannot guarantee that it will achieve its investment goal.
Each Fund may invest in other mutual funds for cash management
purposes. When a Fund invests in another mutual fund, in
addition to directly bearing expenses associated with its own
operations, it will bear a pro rata portion of the other mutual
funds expenses.
Information About
Portfolio Holdings
A description of the Funds policies and procedures with
respect to the circumstances under which the Funds disclose
their portfolio securities is available in the SAI.
Management
The Board of Trustees (the Board) is responsible for
the overall supervision and management of the business and
affairs of the Funds. The Board supervises the Adviser and
establishes policies that the Adviser must follow in their fund
related management activities. The
day-to-day
operations of the Funds are the responsibilities of the officers
and various service organizations retained by the Funds.
Investment
Adviser
RidgeWorth Investments, 50 Hurt Plaza,
Suite 1400, Atlanta, Georgia 30303 (RidgeWorth
or the Adviser), serves as the investment adviser to
the Funds. In addition to being an investment adviser registered
with the Securities and Exchange Commission (the
SEC), RidgeWorth is a money-management holding
company with multiple style- focused investment boutiques. As of
June 30, 2010, the Adviser had approximately
$61.5 billion in assets under management. The Adviser is
responsible for making investment decisions for the Funds and
continuously reviews, supervises and administers each Allocation
Strategys respective investment program.
The Adviser may use its affiliates as brokers for Fund
transactions.
An investment adviser has a fiduciary obligation to its clients
when the adviser has authority to vote their proxies. Under the
current contractual agreement, the Adviser is authorized to vote
proxies on behalf of each Fund. Information regarding the
Advisers, and thus each Funds, Proxy Voting Policies
and Procedures is provided in the SAI. A copy of the
Advisers Proxy Voting Policies and Procedures may be
obtained by contacting the Funds at 1-888-784-3863, or by
visiting www.ridgeworth.com.
For the fiscal year ended March 31, 2010, the following
Funds paid the Adviser advisory fees (after
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
waivers) based on the respective Funds average daily net
assets of:
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Aggressive Growth Allocation Strategy
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0.00%
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Conservative Allocation Strategy
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|
|
0.00%
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Growth Allocation Strategy
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|
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0.06%
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Moderate Allocation Strategy
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0.09%
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|
The Adviser has contractually agreed to waive fees and reimburse
expenses until at least August 1, 2011 in order to keep
total annual operating expenses of each Fund from exceeding the
applicable expense cap below. If at any point before
August 1, 2013, total annual operating expenses are less
than the expense cap, the Adviser may retain the difference to
recapture any of the prior waivers or reimbursements.
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Share
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Expense
|
Fund
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Class
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Limitation
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Aggressive Growth Allocation Strategy
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I
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0.20
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%
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A
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0.50
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%
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C
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1.20
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%
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Conservative Allocation Strategy
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I
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|
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0.20
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%
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A
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|
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0.50
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%
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|
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C
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|
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|
1.20
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%
|
Growth Allocation Strategy
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|
I
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|
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0.20
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%
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|
A
|
|
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0.50
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%
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C
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|
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1.20
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%
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Moderate Allocation Strategy
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I
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0.20
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%
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|
A
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|
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|
0.50
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%
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C
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|
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1.20
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%
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The following breakpoints are used in computing the advisory fee:
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Average Daily Net Assets
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Discount From Full Fee
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First $500 million
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None Full Fee
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Next $500 million
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5%
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Over $1 billion
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10%
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A discussion regarding the basis for the Boards approval
of the investment advisory agreement with the Adviser appears in
the Funds annual report to shareholders for the period
ended March 31, 2010.
Mr. Alan Gayle is primarily responsible for the
day-to-day
management of the Funds. Mr. Gayle has served as
Managing Director of the Adviser since July 2000 and Director of
Asset Allocation since March 2006. He has served as lead manager
of the Funds since each Funds respective inception. He has
more than 33 years of investment experience.
The SAI provides additional information regarding the portfolio
managers compensation, other accounts managed by the
portfolio manager, potential conflicts of interest and the
portfolio managers ownership of securities in the Funds.
Purchasing,
Selling and Exchanging Fund Shares
This section tells you how to purchase, sell (sometimes called
redeem) and exchange A Shares, C Shares, and I
Shares of the Funds. Investors purchasing or selling shares
through a pension or 401(k) plan should also refer to their Plan
documents.
Participants in retirement plans must contact their Employee
Benefits Office or their Plans Administrator for
information regarding the purchase, redemption or exchange of
shares. Plans may require separate documentation and the
plans policies and procedures may be different than those
described in this prospectus. Participants should contact their
employee benefits office or plan administrator for questions
about their specific accounts.
If your I Shares are held in a retirement plan account, the
rules and procedures you must follow as a plan participant
regarding the purchase, redemption or exchange of I Shares may
be different from those described in this prospectus. Review the
information you have about your retirement plan.
How to Purchase
Fund Shares
Purchasing A
Shares and C Shares
You may purchase A Shares and C Shares of the Funds through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for Fund share transactions. Your
financial institution or intermediary may charge a fee for its
services, in addition to the fees charged by a Fund. You will
also generally have to address your correspondence or questions
regarding a Fund to your financial institution or intermediary.
Your investment professional can assist you in opening a
brokerage account that will be used for purchasing shares of
RidgeWorth Funds.
Shareholders who purchase shares directly from the Funds may
purchase additional Fund shares by:
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Mail
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Telephone (1-888-784-3863)
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Wire
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PURCHASING,
SELLING AND EXCHANGING FUND SHARES
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Fax
(1-800-451-8377)
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Automated Clearing House (ACH)
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The Funds do not accept cash, credit card checks, third-party
checks, travelers checks, money orders, bank starter
checks, or checks drawn in a foreign currency, as payment for
Fund shares.
If you pay with a check or ACH transfer that does not clear or
if your payment is not received in a timely manner, your
purchase may be canceled. You will be responsible for any losses
or expenses incurred by the Fund or transfer agent, and the Fund
can redeem shares you own in this or another identically
registered RidgeWorth Funds account as reimbursement.
Purchasing I
Shares
The Funds offer I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. These accounts primarily consist of:
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assets of a bona fide trust,
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assets of a business entity possessing a tax identification
number,
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assets of an employee benefit plan,
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assets held within select fee-based programs, or
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assets held within certain non-discretionary intermediary
no-load platforms.
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Employee benefit plans generally include profit sharing, 401(k)
and 403(b) plans. Employee benefit plans generally do not
include IRAs; SIMPLE, SEP, SARSEP plans; plans covering
self-employed individuals and their employees or health savings
accounts unless you, as a customer of a financial institution or
intermediary, meet the Funds established criteria as
described above.
As a result, you, as a customer of a financial institution or
intermediary, may, under certain circumstances that meet the
Funds established criteria, be able to purchase I Shares
through accounts made with select financial institutions or
intermediaries. I Shares will be held of record by (in the name
of) your financial institution or intermediary. Depending upon
the terms of your account, you may have, or be given, the right
to vote your I Shares. Financial institutions or intermediaries
may impose eligibility requirements for each of their clients or
customers investing in the Funds, including investment minimum
requirements, which may differ from those imposed by the Funds.
Please contact your financial institution or intermediary for
complete details for purchasing I Shares.
I Shares may also be purchased directly from the Funds by
officers, directors or trustees, and employees and their
immediate families (strictly limited to current spouses/domestic
partners and dependent children) of:
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RidgeWorth Funds,
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Subadvisers to the RidgeWorth Funds, or
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SunTrust Banks, Inc. and its subsidiaries.
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Validation of current employment/service will be required upon
establishment of the account. The Funds, in their sole
discretion, may determine if an applicant qualifies for this
program.
In-Kind Purchases I Shares
Payment for I Shares of a Fund may, in the discretion of the
Adviser, be made in the form of securities that are permissible
investments for such Fund. In connection with an in-kind
securities payment, a Fund will require, among other things,
that the securities (a) meet the investment objectives and
policies of the Fund; (b) are acquired for investment and
not for resale; (c) are liquid securities that are not
restricted as to transfer either by law or liquidity of markets;
(d) have a value that is readily ascertainable (e.g., by a
listing on a nationally recognized securities exchange); and
(e) are valued on the day of purchase in accordance with
the pricing methods used by the Fund. For further information
about this form of payment, please call 1-888-784-3863.
When Can You
Purchase Shares?
The Funds are open for business on days when the New York Stock
Exchange (the NYSE) is open for regular trading (a
Business Day).
Each Fund calculates its net asset value per share
(NAV) once each Business Day at the close of regular
trading on the NYSE (normally 4:00 p.m. Eastern Time).
If a Fund or its authorized agent receives your purchase or
redemption request in proper form before 4:00 p.m., Eastern
Time, your transaction will be priced at that Business
Days NAV. If your request is received after
4:00 p.m., it will be priced at the next Business
Days NAV.
The time at which transactions and shares are priced and the
time until which orders are accepted may be
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
changed if the NYSE closes early or if the principal bond
markets close early on days when the NYSE is closed.
The Funds will not accept orders that request a particular day
or price for the transaction or any other special conditions.
You may be required to transmit your purchase sale and
exchange orders to your financial institutions or intermediaries
at an earlier time for your transaction to become effective that
day. This allows the financial institution or intermediary time
to process your order and transmit it to the transfer agent in
time to meet the above stated Fund cut-off times. For more
information about how to purchase, sell or exchange Fund shares,
including a specific financial institutions or
intermediarys internal order entry cut-off times, please
contact your financial institution or intermediary directly.
A Fund may reject any purchase order.
How the Funds
Calculate NAV A Shares, C Shares,
I Shares
NAV is calculated by adding the total value of a Funds
investments and other assets, subtracting its liabilities, and
then dividing that figure by the number of outstanding shares of
the Fund.
In calculating NAV, each Fund generally values its Underlying
Funds at the NAV reported by those Underlying Funds. Other
portfolio securities are generally valued at market price. If
market prices are not readily available or a Fund reasonably
believes that they are unreliable, such as in the case of a
security value that has been materially affected by events
occurring after the relevant market closes, a Fund is required
to price those securities at fair value as determined in good
faith using methods approved by the Board. A Funds
determination of a securitys fair value price often
involves the consideration of a number of subjective factors,
and is therefore subject to the unavoidable risk that the value
that a Fund assigns to a security may be higher or lower than
the securitys value would be if a reliable market
quotation for the security was readily available.
Although the Funds invest primarily in the stocks of U.S.
companies that are traded on U.S. exchanges, there may be
limited circumstances in which a Fund would price securities at
fair value for example, if the exchange on which a
portfolio security is principally traded closed early or if
trading in a particular security was halted during the day and
did not resume prior to the time a Fund calculated its NAV.
When valuing fixed income securities with remaining maturities
of more than 60 days, the Funds use the value of the
security provided by pricing services. The values provided by a
pricing service may be based upon market quotations for the same
security, securities expected to trade in a similar manner, or a
pricing matrix. When valuing fixed income securities with
remaining maturities of 60 days or less, the Funds use the
securitys amortized cost. Amortized cost and the use of a
pricing matrix in valuing fixed income securities are forms of
fair value pricing.
With respect to
non-U.S.
securities held by a Fund, the Fund may take factors influencing
specific markets or issues into consideration in determining the
fair value of a
non-U.S.
security. International securities markets may be open on days
when the U.S. markets are closed. In such cases, the value of
any international securities owned by a Fund may be
significantly affected on days when investors cannot buy or sell
shares. In addition, due to the difference in times between the
close of the international markets and the time a Fund prices
its shares, the value the Fund assigns to securities generally
will not be the same as the primary markets or exchanges. In
determining fair value prices, a Fund may consider the
performance of securities on their primary exchanges, foreign
currency appreciation/depreciation, securities market movements
in the U.S., or other relevant information as related to the
securities.
The prices for many securities held by the Funds are provided by
independent pricing services approved by the Board.
Minimum/Maximum
Purchases A Shares, C Shares and
I Shares
To purchase A Shares or C Shares for the first time, you must
invest in any Fund at least:
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
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C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
|
|
|
|
|
Purchases of C Shares of a Fund requested in an amount of
$1,000,000 or more will automatically be made in A Shares of
that Fund.
Your subsequent investments must be made in amounts of at least
$1,000 or, if you pay by a statement coupon, $100. The Funds may
accept investments of smaller amounts for either class of shares
at its discretion.
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
For investors who qualify to purchase R Shares and
I Shares, there are no minimum or maximum requirements for
initial or subsequent purchases.
Systematic
Investment Plan A Shares and C Shares
If you have a checking or savings account with a bank, you may
purchase A Shares and C Shares automatically through regular
deductions from your bank account. With a $500 minimum initial
investment, you may begin regularly-scheduled investments of $50
or more once or twice a month. If you are buying C Shares, you
should plan on investing at least $5,000 per Fund during the
first two years. The Funds may close your account if you do not
meet this minimum investment requirement at the end of two years.
Customer
Identification
Foreign
Investors
To purchase A Shares and C Shares of the Funds, you must be a
U.S. citizen, a U.S. resident alien, or a
U.S. entity, with a U.S. tax identification number,
and reside in the U.S. or its territories (which includes
U.S. military APO or FPO addresses). If you owned shares on
July 31, 2006, you may keep your account open even if you
do not reside in the U.S. or its territories, but you may
not make additional purchases or exchanges.
The Funds do not generally accept investments in I Shares
by
non-U.S. citizens
or entities. Investors in I Shares generally must reside in
the U.S. or its territories (which includes
U.S. military APO or FPO addresses) and have a
U.S. tax identification number.
Customer
Identification and Verification
To help the government fight the funding of terrorism and money
laundering activities, federal law requires all financial
institutions to obtain, verify, and record information that
identifies each person who opens an account.
When you open an account, you will be asked to provide your
name, residential street address, date of birth, Social Security
Number or tax identification number. You may also be asked for
other information that will allow us to identify you. Entities
are also required to provide additional documentation. This
information will be verified to ensure the identity of all
persons opening a mutual fund account.
In certain instances, the Funds are required to collect
documents to fulfill their legal obligation. Documents provided
in connection with your application will be used solely to
establish and verify a customers identity.
The Funds are required by law to reject your new account
application if the required identifying information is not
provided. Attempts to collect the missing information required
on the application will be performed by either contacting you
or, if applicable, your broker. If this information is unable to
be obtained within a timeframe established in the sole
discretion of the Funds, your application will be rejected.
Upon receipt of your application in proper form (or upon receipt
of all identifying information required on the application),
your investment will be accepted and your order will be
processed at the NAV next determined.
However, the Funds reserve the right to close your account at
the then-current days price if the Funds are unable to
verify your identity. Attempts to verify your identity will be
performed within a timeframe established in the sole discretion
of the Funds. If the Funds are unable to verify your identity,
the Funds reserve the right to liquidate your account at the
then-current days price and remit proceeds to you via
check. The Funds reserve the further right to hold your proceeds
until your original check clears the bank. In such an instance,
you may be subject to a gain or loss on Fund shares and will be
subject to corresponding tax implications.
Anti-Money
Laundering Program
Customer identification and verification is part of the
Funds overall obligation to deter money laundering under
federal law. The Funds have adopted an anti-money laundering
compliance program designed to prevent the Funds from being used
for money laundering or the financing of terrorist activities.
In this regard, the Funds reserve the right to (i) refuse,
cancel or rescind any purchase or exchange order,
(ii) freeze any account
and/or
suspend account services, or (iii) involuntarily redeem
your account in cases of threatening conduct or suspected
fraudulent or illegal activity. These actions will be taken
when, in the sole discretion of Fund management, they are deemed
to be in the best interest of the Funds or in cases when the
Funds are requested or compelled to do so by governmental or law
enforcement authority.
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
Sales
Charges A Shares and C Shares
Front-End Sales
Charges A Shares
The offering price of A Shares is the NAV next calculated after
a Fund receives your request in proper form, plus the front-end
sales charge.
The amount of any front-end sales charge included in your
offering price varies, depending on the amount of your
investment. For all Funds except the Conservative Allocation
Strategy:
|
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|
|
|
|
|
|
|
|
Your Sales
|
|
Your Sales
|
|
|
Charge as a
|
|
Charge as a
|
|
|
Percentage
|
|
Percentage of
|
|
|
of Offering
|
|
Your Net
|
If Your Investment is:
|
|
Price*
|
|
Investment
|
|
|
Less than $50,000
|
|
|
5.75%
|
|
|
|
6.10%
|
|
|
|
$50,000 but less than $100,000
|
|
|
4.75%
|
|
|
|
4.99%
|
|
|
|
$100,000 but less than $250,000
|
|
|
3.75%
|
|
|
|
3.90%
|
|
|
|
$250,000 but less than $500,000
|
|
|
2.50%
|
|
|
|
2.56%
|
|
|
|
$500,000 but less than $1,000,000
|
|
|
2.00%
|
|
|
|
2.04%
|
|
|
|
$1,000,000 and over
|
|
|
None
|
|
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
The Distributor may pay a percentage of the offering price as
a commission to broker-dealers. Merrill Lynch Pierce
Fenner & Smith, Inc. (Merrill Lynch)
receives an additional 0.25% of the front-end sales charge of A
Shares of certain Funds. While investments over $1,000,000 are
not subject to a front-end sales charge, the Distributor may pay
dealer commissions ranging from 0.25% to 1.00%.
|
Conservative Allocation Strategy:
|
|
|
|
|
|
|
|
|
|
|
Your Sales
|
|
Your Sales
|
|
|
Charge as a
|
|
Charge as a
|
|
|
Percentage
|
|
Percentage of
|
|
|
of Offering
|
|
Your Net
|
If Your Investment is:
|
|
Price*
|
|
Investment
|
|
|
Less than $50,000
|
|
|
4.75%
|
|
|
|
4.99%
|
|
|
|
$50,000 but less than $100,000
|
|
|
4.50%
|
|
|
|
4.71%
|
|
|
|
$100,000 but less than $250,000
|
|
|
3.50%
|
|
|
|
3.63%
|
|
|
|
$250,000 but less than $500,000
|
|
|
2.50%
|
|
|
|
2.56%
|
|
|
|
$500,000 but less than $1,000,000
|
|
|
2.00%
|
|
|
|
2.04%
|
|
|
|
$1,000,000 and over
|
|
|
None
|
|
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
* |
The Distributor may pay a percentage of the offering price as
a commission to broker-dealers. Merrill Lynch receives an
additional 0.25% of the front-end sales charge of A Shares
of certain Funds. While investments over $1,000,000 are not
subject to a front-end sales charge, the Distributor may pay
dealer commissions ranging from 0.25% to 1.00%.
|
Investments of $1,000,000 or more. You do not pay an
initial sales charge when you buy $1,000,000 or more of A Shares
in either a single investment or through our rights of
accumulation, letter of intent, or combined purchase/quantity
discount programs. However, you will pay a deferred sales charge
of 1.00% if you redeem any of these A Shares within one year of
purchase. The deferred sales charge is calculated based on the
lesser of (1) the NAV of the shares at the time of purchase
or (2) NAV of the shares next calculated after the Fund
receives your redemption request. The deferred sales charge does
not apply to shares you purchase through reinvestment of
dividends or capital gains distributions.
Waiver of
Front-End Sales Charge A Shares
The front-end sales charge will be waived on A Shares purchased:
|
|
|
through reinvestment of dividends and distributions;
|
|
|
through an account managed by an affiliate of the Adviser;
|
|
|
by persons repurchasing shares they redeemed within the last
180 days (see Repurchase of A Shares);
|
|
|
by employees, and members of their immediate family
(spouse/domestic partner, mother, father,
mother-in-law,
father-in-law,
and children (including step-children) under the age of
21 years), of the Adviser and its affiliates;
|
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|
by current RidgeWorth Funds shareholders reinvesting
distributions from qualified employee benefit retirement plans
and rollovers from individual retirement accounts (IRAs);
|
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|
by persons investing an amount less than or equal to the value
of an account distribution when an account for which a bank
affiliated with the Adviser acted in a fiduciary,
administrative, custodial or investment advisory capacity is
closed; or
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|
|
through dealers, retirement plans, asset allocation and wrap
programs and financial institutions that, under their dealer
agreements with the Distributor or otherwise, do not receive any
portion of the front-end sales charge; or
|
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|
by Trustees of the RidgeWorth Funds.
|
Repurchase of A
Shares
You may repurchase any amount of A Shares of any Fund at NAV
(without the normal front-end sales charge), up to the limit of
the value of any amount of
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
A Shares (other than those which were purchased with reinvested
dividends and distributions) that you redeemed within the past
180 days. In effect, this allows you to reacquire shares
that you may have had to redeem, without re-paying the front-end
sales charge. Such repurchases may be subject to special tax
rules. See the section on Taxes in the SAI for more information.
To exercise this privilege, the Funds must receive your purchase
order within 180 days of your redemption. In addition,
you must notify the Fund when you send in your purchase order
that you are repurchasing shares.
Reduced Sales
Charges A Shares
Rights of Accumulation. You may take into account
your accumulated holdings in all share classes of RidgeWorth
Funds (excluding RidgeWorth Funds Money Market Funds) to
determine the initial sales charge you pay on each purchase of A
Shares. In calculating the appropriate sales charge rate, this
right allows you to add the market value (at the close of
business on the day of the current purchase) of your existing
holdings in any class of shares to the amount of A Shares you
are currently purchasing. The Funds may amend or terminate this
right at any time. Please see the SAI for details.
Letter of Intent. A Letter of Intent allows you to
purchase shares over a
13-month
period and receive the same sales charge as if you had purchased
all the shares at the same time.
The Funds will hold a certain portion of your investment in
escrow until you fulfill your commitment. Please see the SAI for
details.
Combined Purchase/Quantity Discount Privilege. When
calculating the appropriate sales charge rate, the Funds will
combine same day purchases of shares of any class made by you,
your spouse/domestic partner and your minor children (under
age 21). This combination also applies to A Shares you
purchase with a Letter of Intent.
You can also obtain this information about sales charges, rights
of accumulation and Letters of Intent on the Funds website
at www.ridgeworth.com.
Contingent
Deferred Sales Charges (CDSC)
C Shares
You do not pay a sales charge when you purchase C Shares.
The offering price of C Shares is simply the next
calculated NAV. But, if you sell your shares within the first
year after your purchase, you will pay a CDSC equal to 1% of
either (1) the NAV of the shares at the time of purchase,
or (2) NAV of the shares next calculated after the Funds
receive your sale request, whichever is less. The Funds will use
the
first-in,
first-out (FIFO) method to determine the holding period. So, you
never pay a CDSC on any increase in your investment above the
initial offering price. The CDSC does not apply to shares you
purchase through reinvestment of dividends or distributions or
to exchanges of C Shares of one Fund for C Shares of another
Fund.
Waiver of
CDSC
The CDSC will be waived if you sell your C Shares for the
following reasons:
|
|
|
Death or Post-purchase Disablement (as defined in
Section 72(m)(7) of the Internal Revenue Code)
|
|
|
|
You are shareholder/joint shareholder or participant/beneficiary
of certain retirement plans;
|
|
|
You die or become disabled after the account is opened;
|
|
|
Redemption must be made within 1 year of such
death/disability;
|
|
|
The Funds must be notified in writing of such death/disability
at time of redemption request;
|
|
|
The Funds must be provided with satisfactory evidence of death
(death certificate) or disability (doctors certificate
specifically referencing disability as defined in 72(m)(7)
referenced above).
|
|
|
|
Shares purchased through dividend and capital gains reinvestment.
|
|
|
Participation in the Systematic Withdrawal Plan described below:
|
|
|
|
Withdrawal not to exceed 10% of the current balance of a Fund in
a 12 month period, the 10% amount will be calculated as of
the date of the initial Systematic Withdrawal Plan and
recalculated annually on the 12 month anniversary date.
Shares purchased through dividend or capital gains reinvestment,
although not subject to the CDSC, will be included in
calculating the account value and 10% limitation amount;
|
|
|
If the total of all Fund account withdrawals (Systematic
Withdrawal Plan or otherwise) exceeds the 10% limit within the
12 month period following the initial calculation date, the
entire Systematic Withdrawal Plan for the period will be subject
to the applicable sales charge, in the initial year of a
Systematic Withdrawal Plan, the withdrawal limitation period
shall begin
|
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
|
|
|
12 months before the initial Systematic Withdrawal Plan
payment;
|
|
|
|
To qualify for the CDSC waiver under the Systematic Withdrawal
Plan a Fund account must have a minimum of $25,000 at Systematic
Withdrawal Plan inception and must also reinvest dividends and
capital gains distributions.
|
|
|
|
Required mandatory minimum withdrawals made after
701/2
under any retirement plan qualified under IRS Code
Section 401, 408 or 403(b) or resulting from the tax free
return of an excess distribution to an Individual Retirement
Account (IRA). Satisfactory qualified plan documentation to
support any waiver includes employer letter (separation from
services) and plan administrator certificate (certain
distributions under plan requirements).
|
|
|
Permitted exchanges of shares, except if shares acquired by
exchange are then redeemed within the period during which a CDSC
would apply to the initial shares purchased.
|
|
|
Exchanges in connection with plans of Fund reorganizations such
as mergers and acquisitions.
|
To take advantage of any of these waivers, you must qualify in
advance. To see if you qualify, please call your investment
professional or other investment representative. These waivers
are subject to change or elimination at any time at the
discretion of the Funds.
The C Shares CDSC will be waived for certain retirement plan
providers that have entered into administrative agreements with
the Funds. Please see the SAI for more information on this
program.
Offering Price of
Fund Shares A Shares, C Shares and I
Shares
The offering price of A Shares is the NAV next calculated after
the transfer agent receives your request, in proper form, plus
any front-end sales charge. The offering price of C Shares and I
Shares is simply the next calculated NAV.
You can also obtain this information about sales charges, rights
of accumulation and letters of intent on the Funds website
at www.ridgeworth.com.
How to Sell Your
Fund Shares
You may sell your shares on any Business Day by contacting your
financial institution or intermediary. Your financial
institution or intermediary will give you information about how
to sell your shares including any specific cut-off times
required.
Selling A Shares
and C Shares
If you own your A Shares or C Shares through an account with a
broker or other financial institution or intermediary, contact
that broker, financial institution or intermediary to sell your
shares. Your broker, financial institution or intermediary may
charge a fee for its services, in addition to the fees charged
by the Funds.
Shareholders who purchased shares directly from the Funds may
sell their Fund Shares by:
|
|
|
Mail
|
|
|
Telephone (1-888-784-3863)
|
|
|
Wire
|
|
|
Fax
(1-800-451-8377)
|
|
|
ACH
|
Selling I
Shares
You may sell your I Shares on any Business Day by contacting
your financial institution or intermediary. Your financial
institution or intermediary will give you information about how
to sell your shares including any specific cut-off times
required.
Holders of I Shares may sell shares by following the procedures
established when they opened their account or accounts with the
Funds or with their financial institution or intermediary. The
sale price of each share will be the next NAV determined after
the Funds receive your request in proper form.
A Medallion
Signature
Guarantee¨
A Shares, C Shares and I Shares
A Medallion Signature Guarantee by a bank or other
financial institution (a notarized signature is not sufficient)
is required to redeem shares:
|
|
|
made payable to someone other than the registered shareholder;
|
|
|
sent to an address or bank account other than the address or
bank account of record; or
|
|
|
sent to an address or bank account of record that has been
changed within the last 15 calendar days.
|
Other documentation may be required depending on the
registration of the account.
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
|
|
|
|
|
¨
|
Medallion Signature Guarantee: A Medallion Signature
Guarantee verifies the authenticity of your signature and helps
ensure that changes to your account are in fact authorized by
you. A Medallion Signature Guarantee may be obtained from a
domestic bank or trust company, broker, dealer, clearing agency,
savings association or other financial institution participating
in a Medallion Program recognized by the Securities Trading
Association. Signature guarantees from financial institutions
that do not reflect one of the following are not part of the
program and will not be accepted. The acceptable Medallion
programs are Securities Transfer Agents Medallion Program,
(STAMP), Stock Exchange Medallion Program, (SEMP), or the New
York Stock Exchange, Inc. Medallion Program, (NYSE MSP). Contact
your local financial adviser or institution for further
assistance.
|
|
Sale Price of
Fund Shares A Shares, C Shares and
I Shares
The sale price of each share will be the next NAV determined
after the Funds receive your request, in proper form, less, in
the case of C Shares, any applicable CDSC.
Systematic
Withdrawal Plan A Shares and C Shares
If you have at least $10,000 in your account, you may use the
systematic withdrawal plan. Under the plan you may arrange
monthly, quarterly, semi-annual or annual automatic withdrawals
of at least $50 from any Fund. The proceeds of each withdrawal
will be mailed to you by check or, if you have a checking or
savings account with a bank, may be electronically transferred
to your account. Please check with your bank. Withdrawals under
the Systematic Withdrawal Plan may be subject to a CDSC unless
they meet the requirements described above under Waiver of
the CDSC.
Receiving Your
Money A Shares, C Shares and I Shares
Normally, the Funds will send your sale proceeds within five
Business Days after the Funds receive your request, but a Fund
may take up to seven days to pay the sale proceeds if making
immediate payments would adversely affect the Fund (for example,
to allow the Fund to raise capital in the case of a large
redemption). Your proceeds from the sale of A Shares, or C
Shares can be wired to your bank account (subject to a fee) or
sent to you by check. If you recently purchased your A Shares
or C Shares by check or through ACH, redemption proceeds may not
be available until your funds have cleared (which may take up to
15 calendar days from your date of purchase).
Redemptions In
Kind A Shares, C Shares and I Shares
The Funds generally pay redemption proceeds in cash. However,
under unusual conditions that make the payment of cash unwise
(and for the protection of the Funds remaining
shareholders), the Funds might pay all or part of your
redemption proceeds in liquid securities with a market value
equal to the redemption price (redemption in kind). It is highly
unlikely that your shares would ever be redeemed in kind, but if
they were you would probably have to pay transaction costs to
sell the securities distributed to you, as well as taxes on any
capital gains from the sale as with any redemption.
Involuntary Sales
of Your Shares A Shares and C Shares
If your account balance drops below the required minimum as a
result of redemptions you may be required to sell your shares.
The account balance minimums are:
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
|
|
|
|
|
But, the Funds will always give you at least 60 days
written notice to give you time to add to your account and avoid
the sale of your shares.
Suspension of
Your Right to Sell Your Shares A Shares, C
Shares and I Shares
A Fund may suspend your right to sell your shares if the NYSE
restricts trading, the SEC declares an emergency or for other
reasons approved by the SEC. More information about this is in
the SAI.
How to Exchange
Your Shares A Shares and C Shares
You may exchange your A Shares or C Shares on any Business Day
by contacting the Funds or your financial institution or
intermediary by mail or telephone. Exchange requests must be for
an amount of at least $1,000.
MARKET TIMING
POLICIES AND PROCEDURES
The exchange privilege is not intended as a vehicle for
short-term trading. Excessive exchange activity may interfere
with Fund management and may have an adverse effect on all
shareholders. In order to limit excessive exchange activity and
in other circumstances where it is in the best interests of a
Fund, all Funds reserve the right to revise or terminate the
exchange privilege, limit the amount or number of exchanges or
reject any exchange or restrict or refuse purchases if
(1) a Fund or its manager(s) believes the Fund would be
harmed or unable to invest effectively, or (2) a Fund
receives or anticipates orders that may dramatically affect the
Fund as outlined under Market Timing Policies and
Procedures below.
If you recently purchased shares by check, or through ACH,
you may not be able to exchange your shares until your funds
have cleared (which may take up to 15 calendar days from your
date of purchase). This exchange privilege may be changed or
canceled at any time upon 60 days notice.
Exchanges
When you exchange shares, you are really selling your shares of
one Fund and buying shares of another RidgeWorth Fund. So, your
sale price and purchase price will be based on the NAV next
calculated after the Funds receive your exchange requests, in
proper form.
A
Shares
You may exchange A Shares of any Fund for A Shares of any other
RidgeWorth Fund. If you exchange shares that you purchased
without a sales charge or with a lower sales charge into a
RidgeWorth Fund with a sales charge or with a higher sales
charge, the exchange is subject to a sales charge equal to the
difference between the lower and higher applicable sales
charges. If you exchange shares into a RidgeWorth Fund with the
same, lower or no sales charge there is no sales charge for the
exchange.
The amount of your exchange must meet any initial or subsequent
purchase minimums applicable to the RidgeWorth Fund into which
you are making the exchange.
C
Shares
You may exchange C Shares of any Fund for C Shares of any other
RidgeWorth Fund. For purposes of computing the CDSC applicable
to C Shares, the length of time you have owned your shares will
be measured from the original date of purchase and will not be
affected by any exchange.
Telephone
Transactions A Shares, C Shares and I
Shares
Purchasing, selling and exchanging Fund shares over the
telephone is extremely convenient, but not without risk.
Although the Funds have certain safeguards and procedures to
confirm the identity of callers and the authenticity of
instructions, the Funds are not responsible for any losses or
costs incurred by following telephone instructions the Funds
reasonably believe to be genuine. If you or your financial
institution or intermediary transact with the Funds over the
telephone, you will generally bear the risk of any loss. The
Funds reserve the right to modify, suspend or terminate
telephone transaction privileges at any time.
To redeem shares by telephone:
|
|
|
redemption checks must be made payable to the registered
shareholder; and
|
|
|
redemption checks must be mailed to an address or wired to a
bank account of record that has been associated with the
shareholder account for at least 15 calendar days.
|
Market Timing
Policies and Procedures
The Funds are intended for long-term investment purposes only
and discourage shareholders from engaging in market
timing or other types of excessive short-term trading.
This frequent trading into and out of the Funds may present
risks to the Funds long-term shareholders, all of which
could adversely affect shareholder returns. The risks posed by
frequent trading include interfering with the efficient
implementation of the Funds investment strategies,
triggering the recognition of taxable gains and losses on the
sale of Fund investments, requiring the Funds to maintain higher
cash balances to meet redemption requests, and experiencing
increased transaction costs. A Fund that invests a significant
amount of its assets in overseas markets is particularly
susceptible to the risk of certain investors using a strategy
known as time-zone arbitrage. Investors using this strategy
attempt to take advantage of the differences in value of foreign
securities that might result from events that occur between the
close of the foreign securities market on
DISTRIBUTION OF
FUND SHARES
which a foreign security is traded and the time at which the
Fund calculates its NAV.
The Funds
and/or their
service providers will take steps reasonably designed to detect
and deter frequent trading by shareholders pursuant to the
Funds policies and procedures described in this prospectus
and approved by the Funds Board. The Funds seek to
discourage short-term trading by using fair value pricing
procedures to fair value certain investments under some
circumstances. For purposes of applying these policies, the
Funds service providers may consider the trading history
of accounts under common ownership or control. The Funds
policies and procedures include:
|
|
|
Shareholders are restricted from making more than one
(1) round trip into and out of a Fund within
14 days or more than two (2) round trips
within any continuous 90 day period. If a shareholder
exceeds either round trip restriction, he or she may
be deemed a Market Timer, and the Funds
and/or their
service providers may, at their discretion, reject any
additional purchase orders. The Funds define a round trip as a
purchase into a Fund by a shareholder, followed by a subsequent
redemption out of the Fund. Anyone considered to be a Market
Timer by the Funds, the Adviser, a Subadviser to the RidgeWorth
Funds or a shareholder servicing agent may be notified in
writing of their designation as a Market Timer.
|
|
|
|
The Funds reserve the right to reject any purchase request by
any investor or group of investors for any reason without prior
notice, including, in particular, if the Funds or their Adviser
reasonably believes that the trading activity would be harmful
or disruptive to the Funds.
|
The Funds
and/or their
service providers seek to apply these policies to the best of
their abilities uniformly and in a manner they believe is
consistent with the interests of the Funds long-term
shareholders.
Although these policies are designed to deter frequent trading,
none of these measures alone nor all of them taken together
eliminate the possibility that frequent trading in the Funds
will occur, particularly with respect to trades placed by
shareholders that invest in the Funds through omnibus
arrangements maintained by brokers, retirement plan accounts and
other financial intermediaries. Purchase and redemption
transactions submitted to the Funds by these intermediaries
reflect the transactions of multiple beneficial owners whose
individual transactions are not automatically disclosed to the
Funds. Therefore, the Funds rely in large part on the
intermediaries who maintain omnibus arrangements (which may
represent a majority of Fund shares) to aid in the Funds
efforts to detect and deter short-term trading. The Funds
monitor trading activity at the omnibus account level and look
for activity that indicates potential short-term trading. If
they detect suspicious trading activity, the Funds contact the
intermediaries to determine whether the short-term trading
policy has been violated and may request and receive personal
identifying information and transaction histories for some or
all beneficial owners to make this determination. If a Fund
believes that a shareholder has violated the short-term trading
policy, it will take further steps to prevent any future
short-term trading by such shareholder in accordance with the
policy. The Funds cannot guarantee the accuracy of the
information provided by the intermediaries and may not always be
able to track short-term trading effected through these
intermediaries. A Fund has the right to terminate an
intermediarys ability to invest in a Fund if excessive
trading activity persists and a Fund or its Adviser or
Subadviser reasonably believes that such termination would be in
the best interests of long-term shareholders. In addition to the
Funds market timing policies and procedures described
above, you may be subject to the market timing policies and
procedures of the intermediary through which you invest. Please
consult with your intermediary for additional information
regarding its frequent trading restrictions.
Distribution of
Fund Shares
From their own assets, the Adviser or its affiliates may make
payments based on gross sales and current assets to selected
brokerage firms or institutions. The amount of these payments
may be substantial. The minimum aggregate sales required for
eligibility for such payments, and the factors in selecting the
brokerage firms and institutions to which they will be made, are
determined from time to time by the Adviser. Furthermore, in
addition to the fees that may be paid by a Fund, the Adviser, or
its affiliates may pay fees from their own capital resources to
brokers, banks, financial advisers, retirement plan service
providers and other financial intermediaries, including
affiliates, for providing distribution-related or shareholder
services.
The Adviser or its affiliates may pay fees from their own
capital resources to financial intermediaries to compensate them
for marketing expenses they incur or to pay for the opportunity
to have them distribute
DIVIDENDS AND
DISTRIBUTIONS AND TAXES
the Funds. The amount of these payments is determined by the
Adviser and may differ among financial intermediaries. Such
payments may provide incentives for financial intermediaries to
make shares of the Funds available to their customers, and may
allow the Funds greater access to such financial intermediaries
and their customers than would be the case if no payments were
made. You may wish to consider whether such arrangements exist
when evaluating any recommendation to purchase shares of the
Funds.
Please refer to the SAI for more information regarding these
arrangements.
Distribution of
Fund Shares A Shares and C Shares
The A Shares and C Shares of each Fund have each adopted a
distribution plan that allows the Fund to pay distribution and
service fees for the sale and distribution of its shares, and
for services provided to shareholders. Because these fees are
paid out of a Funds assets continuously, over time these
fees will increase the cost of your investment and may cost you
more than paying other types of sales charges.
While C Shares are sold without any initial sales charge, the
distributor may pay at the time of sale up to 1% of the amount
invested to broker-dealers and other financial intermediaries
who sell C Shares. Merrill Lynch may receive an additional 0.25%
payment at the time of sale related to C Shares of certain
Funds. Through the distribution plan, the distributor is
reimbursed for these payments, as well as other distribution
related services provided by the distributor.
For A Shares, each Funds distribution plan authorizes
payment of up to the amount shown under Maximum Fee
in the table that follows. Currently, however, the Board has
only approved payment of up to the amount shown under
Current Approved Fee in the table that follows. Fees
are shown as a percentage of average daily net assets of the
Funds A Shares.
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Current
|
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Maximum
|
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Approved
|
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Fee
|
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Fee
|
Aggressive Growth Allocation Strategy
|
|
|
0.35%
|
|
|
|
0.30%
|
|
Conservative Allocation Strategy
|
|
|
0.35%
|
|
|
|
0.30%
|
|
Growth Allocation Strategy
|
|
|
0.35%
|
|
|
|
0.30%
|
|
Moderate Allocation Strategy
|
|
|
0.35%
|
|
|
|
0.30%
|
|
For C Shares, the maximum distribution fee is 1.00% of the
average daily net assets of each Fund.
The Funds may provide financial assistance in connection with
pre-approved seminars, conferences and advertising to the extent
permitted by applicable state or self-regulatory agencies, such
as the Financial Industry Regulatory Authority.
From their own assets, the Adviser or its affiliates may make
payments based on gross sales and current assets to selected
brokerage firms or institutions. The amount of these payments
may be substantial. The minimum aggregate sales required for
eligibility for such payments, and the factors in selecting the
brokerage firms and institutions to which they will be made, are
determined from time to time by the Adviser. Furthermore, in
addition to the fees that may be paid by a Fund, the Adviser or
its affiliates may pay fees from their own capital resources to
brokers, banks, financial advisers, retirement plan service
providers and other financial intermediaries, including
affiliates, for providing distribution-related or shareholder
services.
The Adviser or its affiliates may pay fees from their own
capital resources to financial intermediaries to compensate them
for marketing expenses they incur or to pay for the opportunity
to have them distribute the Funds. The amount of these payments
is determined by the Adviser and may differ among financial
intermediaries. Such payments may provide incentives for
financial intermediaries to make shares of the Funds available
to their customers, and may allow the Funds greater access to
such financial intermediaries and their customers than would be
the case if no payments were made. You may wish to consider
whether such arrangements exist when evaluating any
recommendation to purchase shares of the Funds.
Please refer to the SAI for more information regarding these
arrangements.
Dividends and
Distributions
The Funds distribute their income quarterly. The Funds make
distributions of capital gains, if any, at least annually. If
you own Fund shares on a Funds record date, you will be
entitled to receive the distribution.
You will receive dividends and distributions in the form of
additional Fund shares unless you elect to receive payment in
cash. To elect cash payment, you must notify the Funds in
writing prior to the date of the distribution. Your election
will be effective for dividends and distributions paid after the
Funds
DIVIDENDS AND
DISTRIBUTIONS AND TAXES
receive your written notice. To cancel your election, simply
send the Funds written notice.
401(k) Plan participants will receive dividends and
distributions in the form of additional Fund shares if the
participant owns shares of the Fund on the date the dividend or
distribution is allocated by the Plan. Therefore, a participant
will not receive a dividend or distribution if the participant
does not own shares of the Fund on the date the dividend or
distribution is allocated.
Taxes
Please consult your tax advisor regarding your specific
questions about federal, state, and local income taxes.
Below the Funds have summarized some important tax issues
that affect the Funds and their shareholders. This summary is
based on current tax laws, which may change. More information on
taxes is in the SAI.
Dividends and distributions will accumulate on a tax-deferred
basis if you are investing through a 401(k) Plan or any other
employer-sponsored retirement or savings plan that qualifies for
tax-advantaged treatment under federal income tax laws.
Generally, you will not owe taxes on these distributions until
you begin withdrawals from the plan. Redemptions of Fund shares
resulting in withdrawals from the plan are subject to numerous
complex and special tax rules and may be subject to a penalty
tax in the case of premature withdrawals. If you have questions
about the tax consequences of 401(k) Plan withdrawals, you
should consult your tax advisor or plan administrator.
Each Fund will distribute substantially all of its net
investment income and its net realized capital gains, if any, at
least annually. The dividends and distributions you receive may
be subject to federal, state and local taxation, depending upon
your tax situation. Distributions you receive from a Fund may be
taxable whether or not you reinvest them. Income distributions
are generally taxable as either ordinary income or qualified
dividend income. Dividends that are qualified dividend income
are eligible for the reduced maximum rate to individuals of 15%
(lower rates apply to individuals in lower tax brackets) to the
extent that the Fund receives qualified dividend income. Capital
gains distributions are generally taxable at the rates
applicable to long-term capital gains. Long-term capital gains
are currently taxed at a maximum rate of 15%. Absent further
legislation, the maximum 15% tax rate on qualified dividend
income and long-term capital gains will cease to apply to
taxable years beginning after December 31, 2010. A high
portfolio turnover rate and a Funds or an Underlying
Funds use of certain derivatives may cause a Fund to
recognize higher amounts of short-term capital gains, which are
generally taxed to shareholders at ordinary income tax rates.
Each sale or exchange of Fund shares may be a taxable event.
For tax purposes, an exchange of Fund shares for shares of a
different RidgeWorth Fund is treated the same as a sale. A
transfer from one share class to another in the same RidgeWorth
Fund should not be a taxable event.
Each Fund will inform you of the amount of your ordinary income
dividends, qualified dividend income, and capital gain
distributions shortly after the close of each calendar year.
If you have a tax-advantaged or other retirement account you
will generally not be subject to federal taxation on income and
capital gain distributions until you begin receiving your
distributions from your retirement account. You should consult
your tax advisor regarding the rules governing your own
retirement plan.
More information
about taxes is in the SAI.
FINANCIAL
HIGHLIGHTS
The financial highlights table is intended to help you
understand a Funds financial performance for the past
5 years. Certain information reflects financial results for
a single Fund share. The total returns in the table represent
the rate that an investor would have earned (or lost) on an
investment in the Fund (assuming reinvestment of all dividends
and distributions). This financial information has been audited
by PricewaterhouseCoopers LLP. The Report of Independent
Registered Public Accounting Firm for each period shown, along
with the Funds financial statements and related notes, are
included in the Annual Reports to Shareholders for such periods.
The 2010 Annual Report is available upon request and without
charge by calling 1-888-784-3863 or on the Funds website
at www.ridgeworth.com.
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
Income
|
|
Average Net
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
(Loss) to
|
|
Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
|
Total
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
|
Return(1)
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
|
Aggressive Growth Allocation Strategy(4)(5)
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
5.06
|
|
|
$
|
0.10
|
|
|
$
|
2.36
|
|
|
$
|
2.46
|
|
|
$
|
(0.09
|
)
|
|
$
|
|
|
|
$
|
(0.09
|
)
|
|
$
|
7.43
|
|
|
|
48.74
|
%
|
$
|
22,335
|
|
|
|
|
%
|
|
|
1.41
|
%
|
|
|
0.33
|
%
|
|
|
23
|
%
|
Year Ended March 31, 2009
|
|
|
10.37
|
|
|
|
0.11
|
|
|
|
(3.68
|
)
|
|
|
(3.57
|
)
|
|
|
(0.13
|
)(b)
|
|
|
(1.61
|
)
|
|
|
(1.74
|
)(b)
|
|
|
5.06
|
|
|
|
(35.39
|
)
|
|
13,411
|
|
|
|
0.20
|
|
|
|
1.32
|
|
|
|
0.23
|
|
|
|
25
|
|
Year Ended March 31, 2008
|
|
|
13.00
|
|
|
|
0.14
|
(a)
|
|
|
(0.46
|
)
|
|
|
(0.32
|
)
|
|
|
(0.41
|
)
|
|
|
(1.90
|
)
|
|
|
(2.31
|
)
|
|
|
10.37
|
|
|
|
(4.59
|
)
|
|
28,514
|
|
|
|
0.19
|
|
|
|
1.04
|
|
|
|
0.20
|
|
|
|
46
|
|
Year Ended March 31, 2007
|
|
|
12.32
|
|
|
|
0.12
|
(a)
|
|
|
1.05
|
|
|
|
1.17
|
|
|
|
(0.25
|
)
|
|
|
(0.24
|
)
|
|
|
(0.49
|
)
|
|
|
13.00
|
|
|
|
9.60
|
|
|
53,098
|
|
|
|
0.18
|
|
|
|
0.94
|
|
|
|
0.18
|
|
|
|
52
|
|
Year Ended March 31, 2006
|
|
|
11.07
|
|
|
|
0.07
|
(a)
|
|
|
1.45
|
|
|
|
1.52
|
|
|
|
(0.14
|
)
|
|
|
(0.13
|
)
|
|
|
(0.27
|
)
|
|
|
12.32
|
|
|
|
13.90
|
|
|
52,765
|
|
|
|
0.21
|
|
|
|
0.66
|
|
|
|
0.26
|
|
|
|
31
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
5.04
|
|
|
|
0.07
|
|
|
|
2.34
|
|
|
|
2.41
|
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
(0.07
|
)
|
|
|
7.38
|
|
|
|
48.02
|
|
|
2,438
|
|
|
|
|
|
|
|
1.03
|
|
|
|
0.63
|
|
|
|
23
|
|
Year Ended March 31, 2009
|
|
|
10.33
|
|
|
|
0.09
|
|
|
|
(3.66
|
)
|
|
|
(3.57
|
)
|
|
|
(0.11
|
)(b)
|
|
|
(1.61
|
)
|
|
|
(1.72
|
)(b)
|
|
|
5.04
|
|
|
|
(35.50
|
)
|
|
1,815
|
|
|
|
0.50
|
|
|
|
1.07
|
|
|
|
0.53
|
|
|
|
25
|
|
Year Ended March 31, 2008
|
|
|
12.97
|
|
|
|
0.13
|
(a)
|
|
|
(0.49
|
)
|
|
|
(0.36
|
)
|
|
|
(0.38
|
)
|
|
|
(1.90
|
)
|
|
|
(2.28
|
)
|
|
|
10.33
|
|
|
|
(4.88
|
)
|
|
3,067
|
|
|
|
0.49
|
|
|
|
0.94
|
|
|
|
0.50
|
|
|
|
46
|
|
Year Ended March 31, 2007
|
|
|
12.29
|
|
|
|
0.08
|
(a)
|
|
|
1.05
|
|
|
|
1.13
|
|
|
|
(0.21
|
)
|
|
|
(0.24
|
)
|
|
|
(0.45
|
)
|
|
|
12.97
|
|
|
|
9.31
|
|
|
3,040
|
|
|
|
0.48
|
|
|
|
0.63
|
|
|
|
0.48
|
|
|
|
52
|
|
Year Ended March 31, 2006
|
|
|
11.05
|
|
|
|
0.04
|
(a)
|
|
|
1.44
|
|
|
|
1.48
|
|
|
|
(0.11
|
)
|
|
|
(0.13
|
)
|
|
|
(0.24
|
)
|
|
|
12.29
|
|
|
|
13.50
|
|
|
2,619
|
|
|
|
0.52
|
|
|
|
0.42
|
|
|
|
0.62
|
|
|
|
31
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
5.00
|
|
|
|
0.03
|
|
|
|
2.32
|
|
|
|
2.35
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
7.30
|
|
|
|
47.14
|
|
|
1,554
|
|
|
|
|
|
|
|
0.37
|
|
|
|
1.33
|
|
|
|
23
|
|
Year Ended March 31, 2009
|
|
|
10.29
|
|
|
|
0.03
|
|
|
|
(3.65
|
)
|
|
|
(3.62
|
)
|
|
|
(0.06
|
)(b)
|
|
|
(1.61
|
)
|
|
|
(1.67
|
)(b)
|
|
|
5.00
|
|
|
|
(36.04
|
)
|
|
1,076
|
|
|
|
1.20
|
|
|
|
0.39
|
|
|
|
1.23
|
|
|
|
25
|
|
Year Ended March 31, 2008
|
|
|
12.98
|
|
|
|
0.04
|
(a)
|
|
|
(0.49
|
)
|
|
|
(0.45
|
)
|
|
|
(0.34
|
)
|
|
|
(1.90
|
)
|
|
|
(2.24
|
)
|
|
|
10.29
|
|
|
|
(5.56
|
)
|
|
1,767
|
|
|
|
1.19
|
|
|
|
0.27
|
|
|
|
1.21
|
|
|
|
46
|
|
Year Ended March 31, 2007
|
|
|
12.33
|
|
|
|
|
(a)
|
|
|
1.04
|
|
|
|
1.04
|
|
|
|
(0.15
|
)
|
|
|
(0.24
|
)
|
|
|
(0.39
|
)
|
|
|
12.98
|
|
|
|
8.54
|
|
|
1,573
|
|
|
|
1.18
|
|
|
|
(0.03
|
)
|
|
|
1.18
|
|
|
|
52
|
|
Period Ended March 31, 2006
|
|
|
11.07
|
|
|
|
0.01
|
(a)
|
|
|
1.46
|
|
|
|
1.47
|
|
|
|
(0.08
|
)
|
|
|
(0.13
|
)
|
|
|
(0.21
|
)
|
|
|
12.33
|
|
|
|
13.40
|
|
|
1,146
|
|
|
|
1.17
|
|
|
|
0.03
|
|
|
|
1.22
|
|
|
|
31
|
|
|
Conservative Allocation Strategy(4)(5)
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
9.81
|
|
|
|
0.27
|
|
|
|
1.72
|
|
|
|
1.99
|
|
|
|
(0.28
|
)
|
|
|
(0.01
|
)
|
|
|
(0.29
|
)
|
|
|
11.51
|
|
|
|
20.51
|
|
|
6,310
|
|
|
|
0.20
|
|
|
|
2.61
|
|
|
|
0.53
|
|
|
|
29
|
|
Year Ended March 31, 2009
|
|
|
11.11
|
|
|
|
0.44
|
|
|
|
(1.10
|
)
|
|
|
(0.66
|
)
|
|
|
(0.50
|
)
|
|
|
(0.14
|
)
|
|
|
(0.64
|
)
|
|
|
9.81
|
|
|
|
(6.06
|
)
|
|
3,778
|
|
|
|
0.20
|
|
|
|
4.08
|
|
|
|
0.36
|
|
|
|
48
|
|
Year Ended March 31, 2008
|
|
|
11.37
|
|
|
|
0.44
|
|
|
|
(0.10
|
)
|
|
|
0.34
|
|
|
|
(0.44
|
)
|
|
|
(0.16
|
)
|
|
|
(0.60
|
)
|
|
|
11.11
|
|
|
|
3.02
|
|
|
5,177
|
|
|
|
0.18
|
|
|
|
3.98
|
|
|
|
0.30
|
|
|
|
47
|
|
Year Ended March 31, 2007
|
|
|
11.21
|
|
|
|
0.45
|
(a)
|
|
|
0.30
|
|
|
|
0.75
|
|
|
|
(0.48
|
)
|
|
|
(0.11
|
)
|
|
|
(0.59
|
)
|
|
|
11.37
|
|
|
|
6.91
|
|
|
3,362
|
|
|
|
0.20
|
|
|
|
4.00
|
|
|
|
0.32
|
|
|
|
43
|
|
Year Ended March 31, 2006
|
|
|
11.09
|
|
|
|
0.34
|
|
|
|
0.20
|
|
|
|
0.54
|
|
|
|
(0.36
|
)
|
|
|
(0.06
|
)
|
|
|
(0.42
|
)
|
|
|
11.21
|
|
|
|
4.96
|
|
|
3,066
|
|
|
|
0.20
|
|
|
|
3.33
|
|
|
|
0.56
|
|
|
|
29
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
9.81
|
|
|
|
0.23
|
|
|
|
1.74
|
|
|
|
1.97
|
|
|
|
(0.26
|
)
|
|
|
(0.01
|
)
|
|
|
(0.27
|
)
|
|
|
11.51
|
|
|
|
20.25
|
|
|
3,137
|
|
|
|
0.50
|
|
|
|
2.27
|
|
|
|
0.89
|
|
|
|
29
|
|
Year Ended March 31, 2009
|
|
|
11.12
|
|
|
|
0.41
|
|
|
|
(1.11
|
)
|
|
|
(0.70
|
)
|
|
|
(0.47
|
)
|
|
|
(0.14
|
)
|
|
|
(0.61
|
)
|
|
|
9.81
|
|
|
|
(6.42
|
)
|
|
584
|
|
|
|
0.50
|
|
|
|
3.81
|
|
|
|
0.67
|
|
|
|
48
|
|
Year Ended March 31, 2008
|
|
|
11.38
|
|
|
|
0.44
|
|
|
|
(0.13
|
)
|
|
|
0.31
|
|
|
|
(0.41
|
)
|
|
|
(0.16
|
)
|
|
|
(0.57
|
)
|
|
|
11.12
|
|
|
|
2.75
|
|
|
663
|
|
|
|
0.49
|
|
|
|
3.63
|
|
|
|
0.61
|
|
|
|
47
|
|
Year Ended March 31, 2007
|
|
|
11.21
|
|
|
|
0.41
|
(a)
|
|
|
0.32
|
|
|
|
0.73
|
|
|
|
(0.45
|
)
|
|
|
(0.11
|
)
|
|
|
(0.56
|
)
|
|
|
11.38
|
|
|
|
6.64
|
|
|
811
|
|
|
|
0.50
|
|
|
|
3.61
|
|
|
|
0.62
|
|
|
|
43
|
|
Year Ended March 31, 2006
|
|
|
11.09
|
|
|
|
0.30
|
|
|
|
0.20
|
|
|
|
0.50
|
|
|
|
(0.32
|
)
|
|
|
(0.06
|
)
|
|
|
(0.38
|
)
|
|
|
11.21
|
|
|
|
4.63
|
|
|
1,324
|
|
|
|
0.53
|
|
|
|
2.85
|
|
|
|
0.83
|
|
|
|
29
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
9.77
|
|
|
|
0.16
|
|
|
|
1.71
|
|
|
|
1.87
|
|
|
|
(0.19
|
)
|
|
|
(0.01
|
)
|
|
|
(0.20
|
)
|
|
|
11.44
|
|
|
|
19.29
|
|
|
4,294
|
|
|
|
1.20
|
|
|
|
1.61
|
|
|
|
1.52
|
|
|
|
29
|
|
Year Ended March 31, 2009
|
|
|
11.09
|
|
|
|
0.31
|
|
|
|
(1.08
|
)
|
|
|
(0.77
|
)
|
|
|
(0.41
|
)
|
|
|
(0.14
|
)
|
|
|
(0.55
|
)
|
|
|
9.77
|
|
|
|
(7.08
|
)
|
|
1,973
|
|
|
|
1.20
|
|
|
|
3.17
|
|
|
|
1.37
|
|
|
|
48
|
|
Year Ended March 31, 2008
|
|
|
11.37
|
|
|
|
0.34
|
|
|
|
(0.11
|
)
|
|
|
0.23
|
|
|
|
(0.35
|
)
|
|
|
(0.16
|
)
|
|
|
(0.51
|
)
|
|
|
11.09
|
|
|
|
2.03
|
|
|
840
|
|
|
|
1.18
|
|
|
|
2.94
|
|
|
|
1.31
|
|
|
|
47
|
|
Year Ended March 31, 2007
|
|
|
11.20
|
|
|
|
0.34
|
(a)
|
|
|
0.31
|
|
|
|
0.65
|
|
|
|
(0.37
|
)
|
|
|
(0.11
|
)
|
|
|
(0.48
|
)
|
|
|
11.37
|
|
|
|
5.91
|
|
|
792
|
|
|
|
1.20
|
|
|
|
2.99
|
|
|
|
1.32
|
|
|
|
43
|
|
Period Ended March 31, 2006
|
|
|
11.08
|
|
|
|
0.26
|
|
|
|
0.20
|
|
|
|
0.46
|
|
|
|
(0.28
|
)
|
|
|
(0.06
|
)
|
|
|
(0.34
|
)
|
|
|
11.20
|
|
|
|
4.22
|
|
|
835
|
|
|
|
1.03
|
|
|
|
2.39
|
|
|
|
1.59
|
|
|
|
29
|
|
See Notes to Financial
Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
Income
|
|
Average Net
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
(Loss) to
|
|
Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
|
Total
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
|
Return(1)
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
|
Growth Allocation Strategy(4)(5)
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
7.02
|
|
|
$
|
0.15
|
|
|
$
|
2.50
|
|
|
$
|
2.65
|
|
|
$
|
(0.15
|
)
|
|
$
|
|
|
|
$
|
(0.15
|
)
|
|
$
|
9.52
|
|
|
|
37.92
|
%
|
$
|
54,407
|
|
|
|
0.19
|
%
|
|
|
1.70
|
%
|
|
|
0.24
|
%
|
|
|
21
|
%
|
Year Ended March 31, 2009
|
|
|
11.31
|
|
|
|
0.23
|
|
|
|
(2.99
|
)
|
|
|
(2.76
|
)
|
|
|
(0.26
|
)
|
|
|
(1.27
|
)
|
|
|
(1.53
|
)
|
|
|
7.02
|
|
|
|
(25.01
|
)
|
|
40,472
|
|
|
|
0.20
|
|
|
|
2.41
|
|
|
|
0.21
|
|
|
|
28
|
|
Year Ended March 31, 2008
|
|
|
12.89
|
|
|
|
0.28
|
|
|
|
(0.44
|
)
|
|
|
(0.16
|
)
|
|
|
(0.45
|
)
|
|
|
(0.97
|
)
|
|
|
(1.42
|
)
|
|
|
11.31
|
|
|
|
(2.16
|
)
|
|
69,704
|
|
|
|
0.17
|
|
|
|
2.02
|
|
|
|
0.17
|
|
|
|
50
|
|
Year Ended March 31, 2007
|
|
|
12.43
|
|
|
|
0.25
|
(a)
|
|
|
0.82
|
|
|
|
1.07
|
|
|
|
(0.35
|
)
|
|
|
(0.26
|
)
|
|
|
(0.61
|
)
|
|
|
12.89
|
|
|
|
8.73
|
|
|
111,848
|
|
|
|
0.17
|
|
|
|
2.00
|
|
|
|
0.17
|
|
|
|
45
|
|
Year Ended March 31, 2006
|
|
|
11.41
|
|
|
|
0.17
|
(a)
|
|
|
1.08
|
|
|
|
1.25
|
|
|
|
(0.23
|
)
|
|
|
|
|
|
|
(0.23
|
)
|
|
|
12.43
|
|
|
|
11.05
|
|
|
97,964
|
|
|
|
0.19
|
|
|
|
1.46
|
|
|
|
0.24
|
|
|
|
34
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.00
|
|
|
|
0.13
|
|
|
|
2.48
|
|
|
|
2.61
|
|
|
|
(0.13
|
)
|
|
|
|
|
|
|
(0.13
|
)
|
|
|
9.48
|
|
|
|
37.46
|
|
|
3,638
|
|
|
|
0.49
|
|
|
|
1.39
|
|
|
|
0.54
|
|
|
|
21
|
|
Year Ended March 31, 2009
|
|
|
11.28
|
|
|
|
0.20
|
|
|
|
(2.98
|
)
|
|
|
(2.78
|
)
|
|
|
(0.23
|
)
|
|
|
(1.27
|
)
|
|
|
(1.50
|
)
|
|
|
7.00
|
|
|
|
(25.21
|
)
|
|
2,776
|
|
|
|
0.49
|
|
|
|
2.07
|
|
|
|
0.50
|
|
|
|
28
|
|
Year Ended March 31, 2008
|
|
|
12.87
|
|
|
|
0.20
|
|
|
|
(0.40
|
)
|
|
|
(0.20
|
)
|
|
|
(0.42
|
)
|
|
|
(0.97
|
)
|
|
|
(1.39
|
)
|
|
|
11.28
|
|
|
|
(2.47
|
)
|
|
5,031
|
|
|
|
0.47
|
|
|
|
1.62
|
|
|
|
0.47
|
|
|
|
50
|
|
Year Ended March 31, 2007
|
|
|
12.41
|
|
|
|
0.21
|
(a)
|
|
|
0.82
|
|
|
|
1.03
|
|
|
|
(0.31
|
)
|
|
|
(0.26
|
)
|
|
|
(0.57
|
)
|
|
|
12.87
|
|
|
|
8.44
|
|
|
6,778
|
|
|
|
0.47
|
|
|
|
1.71
|
|
|
|
0.47
|
|
|
|
45
|
|
Year Ended March 31, 2006
|
|
|
11.39
|
|
|
|
0.15
|
(a)
|
|
|
1.06
|
|
|
|
1.21
|
|
|
|
(0.19
|
)
|
|
|
|
|
|
|
(0.19
|
)
|
|
|
12.41
|
|
|
|
10.73
|
|
|
5,737
|
|
|
|
0.51
|
|
|
|
1.24
|
|
|
|
0.58
|
|
|
|
34
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
6.94
|
|
|
|
0.07
|
|
|
|
2.46
|
|
|
|
2.53
|
|
|
|
(0.09
|
)
|
|
|
|
|
|
|
(0.09
|
)
|
|
|
9.38
|
|
|
|
36.53
|
|
|
3,234
|
|
|
|
1.19
|
|
|
|
0.69
|
|
|
|
1.24
|
|
|
|
21
|
|
Year Ended March 31, 2009
|
|
|
11.22
|
|
|
|
0.14
|
|
|
|
(2.98
|
)
|
|
|
(2.84
|
)
|
|
|
(0.17
|
)
|
|
|
(1.27
|
)
|
|
|
(1.44
|
)
|
|
|
6.94
|
|
|
|
(25.88
|
)
|
|
2,844
|
|
|
|
1.19
|
|
|
|
1.37
|
|
|
|
1.20
|
|
|
|
28
|
|
Year Ended March 31, 2008
|
|
|
12.83
|
|
|
|
0.15
|
|
|
|
(0.44
|
)
|
|
|
(0.29
|
)
|
|
|
(0.35
|
)
|
|
|
(0.97
|
)
|
|
|
(1.32
|
)
|
|
|
11.22
|
|
|
|
(3.14
|
)
|
|
5,584
|
|
|
|
1.17
|
|
|
|
1.12
|
|
|
|
1.17
|
|
|
|
50
|
|
Year Ended March 31, 2007
|
|
|
12.39
|
|
|
|
0.13
|
(a)
|
|
|
0.80
|
|
|
|
0.93
|
|
|
|
(0.23
|
)
|
|
|
(0.26
|
)
|
|
|
(0.49
|
)
|
|
|
12.83
|
|
|
|
7.62
|
|
|
5,535
|
|
|
|
1.17
|
|
|
|
1.05
|
|
|
|
1.17
|
|
|
|
45
|
|
Period Ended March 31, 2006
|
|
|
11.41
|
|
|
|
0.11
|
(a)
|
|
|
1.02
|
|
|
|
1.13
|
|
|
|
(0.15
|
)
|
|
|
|
|
|
|
(0.15
|
)
|
|
|
12.39
|
|
|
|
9.94
|
|
|
2,820
|
|
|
|
1.15
|
|
|
|
0.89
|
|
|
|
1.20
|
|
|
|
34
|
|
|
Moderate Allocation Strategy(4)(5)
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.76
|
|
|
|
0.20
|
|
|
|
2.09
|
|
|
|
2.29
|
|
|
|
(0.21
|
)
|
|
|
|
|
|
|
(0.21
|
)
|
|
|
9.84
|
|
|
|
29.66
|
|
|
125,016
|
|
|
|
0.19
|
|
|
|
2.22
|
|
|
|
0.21
|
|
|
|
21
|
|
Year Ended March 31, 2009
|
|
|
10.38
|
|
|
|
0.29
|
|
|
|
(2.07
|
)
|
|
|
(1.78
|
)
|
|
|
(0.34
|
)
|
|
|
(0.50
|
)
|
|
|
(0.84
|
)
|
|
|
7.76
|
|
|
|
(17.47
|
)
|
|
103,606
|
|
|
|
0.20
|
|
|
|
3.11
|
|
|
|
0.21
|
|
|
|
31
|
|
Year Ended March 31, 2008
|
|
|
10.88
|
|
|
|
0.31
|
|
|
|
(0.25
|
)
|
|
|
0.06
|
|
|
|
(0.39
|
)
|
|
|
(0.17
|
)
|
|
|
(0.56
|
)
|
|
|
10.38
|
|
|
|
0.30
|
|
|
147,784
|
|
|
|
0.17
|
|
|
|
2.87
|
|
|
|
0.17
|
|
|
|
40
|
|
Year Ended March 31, 2007
|
|
|
10.85
|
|
|
|
0.31
|
(a)
|
|
|
0.55
|
|
|
|
0.86
|
|
|
|
(0.37
|
)
|
|
|
(0.46
|
)
|
|
|
(0.83
|
)
|
|
|
10.88
|
|
|
|
8.02
|
|
|
193,107
|
|
|
|
0.16
|
|
|
|
2.80
|
|
|
|
0.16
|
|
|
|
49
|
|
Year Ended March 31, 2006
|
|
|
10.49
|
|
|
|
0.24
|
(a)
|
|
|
0.64
|
|
|
|
0.88
|
|
|
|
(0.28
|
)
|
|
|
(0.24
|
)
|
|
|
(0.52
|
)
|
|
|
10.85
|
|
|
|
8.48
|
|
|
158,301
|
|
|
|
0.18
|
|
|
|
2.17
|
|
|
|
0.22
|
|
|
|
34
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.75
|
|
|
|
0.17
|
|
|
|
2.08
|
|
|
|
2.25
|
|
|
|
(0.18
|
)
|
|
|
|
|
|
|
(0.18
|
)
|
|
|
9.82
|
|
|
|
29.23
|
|
|
8,615
|
|
|
|
0.49
|
|
|
|
1.91
|
|
|
|
0.51
|
|
|
|
21
|
|
Year Ended March 31, 2009
|
|
|
10.37
|
|
|
|
0.25
|
|
|
|
(2.06
|
)
|
|
|
(1.81
|
)
|
|
|
(0.31
|
)
|
|
|
(0.50
|
)
|
|
|
(0.81
|
)
|
|
|
7.75
|
|
|
|
(17.72
|
)
|
|
5,845
|
|
|
|
0.50
|
|
|
|
2.81
|
|
|
|
0.51
|
|
|
|
31
|
|
Year Ended March 31, 2008
|
|
|
10.88
|
|
|
|
0.28
|
|
|
|
(0.25
|
)
|
|
|
0.03
|
|
|
|
(0.37
|
)
|
|
|
(0.17
|
)
|
|
|
(0.54
|
)
|
|
|
10.37
|
|
|
|
(0.02
|
)
|
|
8,632
|
|
|
|
0.47
|
|
|
|
2.59
|
|
|
|
0.48
|
|
|
|
40
|
|
Year Ended March 31, 2007
|
|
|
10.84
|
|
|
|
0.28
|
(a)
|
|
|
0.55
|
|
|
|
0.83
|
|
|
|
(0.33
|
)
|
|
|
(0.46
|
)
|
|
|
(0.79
|
)
|
|
|
10.88
|
|
|
|
7.77
|
|
|
11,069
|
|
|
|
0.46
|
|
|
|
2.53
|
|
|
|
0.46
|
|
|
|
49
|
|
Year Ended March 31, 2006
|
|
|
10.48
|
|
|
|
0.20
|
(a)
|
|
|
0.64
|
|
|
|
0.84
|
|
|
|
(0.24
|
)
|
|
|
(0.24
|
)
|
|
|
(0.48
|
)
|
|
|
10.84
|
|
|
|
8.16
|
|
|
5,821
|
|
|
|
0.47
|
|
|
|
1.92
|
|
|
|
0.59
|
|
|
|
34
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.72
|
|
|
|
0.11
|
|
|
|
2.07
|
|
|
|
2.18
|
|
|
|
(0.13
|
)
|
|
|
|
|
|
|
(0.13
|
)
|
|
|
9.77
|
|
|
|
28.31
|
|
|
15,431
|
|
|
|
1.19
|
|
|
|
1.21
|
|
|
|
1.21
|
|
|
|
21
|
|
Year Ended March 31, 2009
|
|
|
10.34
|
|
|
|
0.20
|
|
|
|
(2.07
|
)
|
|
|
(1.87
|
)
|
|
|
(0.25
|
)
|
|
|
(0.50
|
)
|
|
|
(0.75
|
)
|
|
|
7.72
|
|
|
|
(18.34
|
)
|
|
12,405
|
|
|
|
1.20
|
|
|
|
2.08
|
|
|
|
1.20
|
|
|
|
31
|
|
Year Ended March 31, 2008
|
|
|
10.86
|
|
|
|
0.20
|
|
|
|
(0.25
|
)
|
|
|
(0.05
|
)
|
|
|
(0.30
|
)
|
|
|
(0.17
|
)
|
|
|
(0.47
|
)
|
|
|
10.34
|
|
|
|
(0.66
|
)
|
|
20,419
|
|
|
|
1.17
|
|
|
|
1.87
|
|
|
|
1.17
|
|
|
|
40
|
|
Year Ended March 31, 2007
|
|
|
10.82
|
|
|
|
0.23
|
(a)
|
|
|
0.52
|
|
|
|
0.75
|
|
|
|
(0.25
|
)
|
|
|
(0.46
|
)
|
|
|
(0.71
|
)
|
|
|
10.86
|
|
|
|
7.01
|
|
|
24,424
|
|
|
|
1.19
|
|
|
|
2.12
|
|
|
|
1.19
|
|
|
|
49
|
|
Period Ended March 31, 2006
|
|
|
10.49
|
|
|
|
0.15
|
(a)
|
|
|
0.62
|
|
|
|
0.77
|
|
|
|
(0.20
|
)
|
|
|
(0.24
|
)
|
|
|
(0.44
|
)
|
|
|
10.82
|
|
|
|
7.40
|
|
|
1,674
|
|
|
|
1.13
|
|
|
|
1.43
|
|
|
|
1.19
|
|
|
|
34
|
|
See Notes to Financial
Highlights.
NOTES TO
FINANCIAL HIGHLIGHTS
|
|
|
(1)
|
|
Total return excludes sales charge.
Not annualized for periods less than one year.
|
|
(2)
|
|
Annualized for periods less than
one year.
|
|
(3)
|
|
Not annualized for periods less
than one year.
|
|
|
|
(4)
|
|
The following table details the
commencement of operations of certain classes of each respective
fund.
|
|
|
|
|
|
Fund
|
|
Class
|
|
Commencement Date
|
Aggressive Growth Allocation Strategy
|
|
C Shares
|
|
April 1, 2005
|
Conservative Allocation Strategy
|
|
C Shares
|
|
April 1, 2005
|
Growth Allocation Strategy
|
|
C Shares
|
|
April 5, 2005
|
Moderate Allocation Strategy
|
|
C Shares
|
|
April 5, 2005
|
|
|
|
(5)
|
|
The Allocation Strategies and their
shareholders indirectly bear a pro rata share of the expenses of
the underlying funds. The expense ratios do not include such
expenses.
|
|
|
|
(a)
|
|
Per share data was calculated using
the average shares outstanding method.
|
|
|
|
(b)
|
|
The Aggressive Growth Allocation
Strategy includes per share distributions from tax return of
capital of $.
|
|
|
|
|
|
Net Investment Income (Loss), Net
Realized and Unrealized Gains (Losses) on Investments and the
Ratio of Net Investment Income (Loss) to Average Net Assets have
been adjusted due to the reclassification of short-term gains
from Net Investment Income to Net Realized and Unrealized Gains
(Losses) on Investments.
|
Amounts designated as are $0 or have been
rounded to $0.
PRIVACY
POLICY
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Policy
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personal financial information and take every precaution to
protect your privacy. In providing services to you as an
individual who owns or is considering investing in shares of
RidgeWorth Funds, we collect certain nonpublic personal
information about you. Our policy is to safeguard this
information and keep it confidential, and to use or disclose it
only as necessary to provide services to you or as otherwise
required or permitted by law. When you entrust us with your
financial information, it will be used only within our strict
guidelines. Our privacy policy and practices apply equally to
nonpublic personal information about former shareholders and
individuals who have inquired about RidgeWorth Funds.
Information We
Collect
Nonpublic personal information is personally
identifiable financial information about you as an individual or
your family. The type of nonpublic personal information we have
about you may include the information you provide on your
account application; information you provide in telephone calls
or correspondence with us; information about your transactions
and holdings in RidgeWorth Funds, and information about how you
vote your shares.
Information We
Disclose
RidgeWorth Funds policy is to only disclose nonpublic
personal information about you to companies that provide
necessary services such as RidgeWorth Funds transfer
agent, distributor, administrator or investment adviser;
affiliates of RidgeWorth Funds, or as may otherwise be permitted
or required by law or authorized by you.
How We Safeguard
Your Information
We restrict access to nonpublic personal information about you
to those persons who are required to have certain information in
order to provide services to you, or who are permitted by law to
receive it. We have strict internal policies against
unauthorized disclosure or use of customer information. We
maintain customer information as mandated by financial
regulations, and policies and procedures are in place for
appropriate confidential destruction of all restricted access
data.
If you have any questions regarding our Privacy Policy,
please call 1-888-784-3863.
This is not part of the Prospectus.
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Investment Adviser:
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RidgeWorth Investments
50 Hurt Plaza, Suite 1400
Atlanta, Georgia 30303
www.ridgeworth.com
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More information about the RidgeWorth Funds is available without
charge through the following:
Statement of Additional Information (SAI):
The SAI includes detailed information about the RidgeWorth
Funds. The SAI is on file with the SEC and is incorporated by
reference into this prospectus. This means that the SAI, for
legal purposes, is a part of this prospectus.
Annual and Semi-Annual Reports:
These reports list each Funds holdings and contain
information from the Funds managers about strategies and
recent market conditions and trends and their impact on Fund
performance. The reports also contain detailed financial
information about the Funds.
To Obtain an SAI, Annual or Semi-Annual Report, or More
Information:
|
|
Telephone: |
Shareholder Services
1-888-784-3863
|
Mail:
RidgeWorth Funds
3435 Stelzer Road
Columbus, Ohio 43219
Website: www.ridgeworth.com
SEC:
You can also obtain the SAI or the Annual and Semi-Annual
reports, as well as other information about the RidgeWorth
Funds, from the EDGAR Database on the SECs website at
http://www.sec.gov.
You may review and copy documents at the SEC Public Reference
Room in Washington, DC (for information on the operation of the
Public Reference Room, call
202-551-8090).
You may request documents by mail from the SEC, upon payment of
a duplicating fee, by writing to: Securities and Exchange
Commission, Public Reference Section, Washington, DC
20549-1520.
You may also obtain this information, upon payment of a
duplicating fee, by
e-mailing
the SEC at publicinfo@sec.gov.
The RidgeWorth Funds Investment Company Act registration
number is
811-06557.
Collective Strength Individual Insight is a federally registered
service mark of RidgeWorth Investments.
RFPRO-LV-0810
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FIXED INCOME FUNDS A, C, R, & I SHARES PROSPECTUS
August 1, 2010 Investment Adviser: RidgeWorth Investments®
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Class A
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Class C
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Class R
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Class I
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Shares
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Shares
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Shares
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Shares
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Investment Grade Funds
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Subadviser: Seix Investment Advisors LLC
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Corporate Bond Fund
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SAINX
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STIFX
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STICX
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Intermediate Bond Fund
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IBASX
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IBLSX
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SAMIX
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Investment Grade Bond Fund
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STGIX
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SCIGX
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STIGX
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Limited Duration Fund
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SAMLX
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Limited-Term Federal Mortgage Securities Fund
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SLTMX
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SCLFX
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SLMTX
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Total Return Bond Fund
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CBPSX
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SCBLX
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SAMFX
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U.S. Government Securities Fund
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SCUSX
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SGUSX
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SUGTX
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High Yield/Global Funds
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Subadviser: Seix Investment Advisors LLC
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High Income Fund
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SAHIX
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STHIX
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STHTX
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Seix Floating Rate High Income Fund
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SFRAX
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SFRCX
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SAMBX
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Seix Global Strategy Fund
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CGSAX
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CGSIX
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Seix High Yield Fund
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HYPSX
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HYLSX
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SAMHX
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Municipal Bond Funds
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Subadviser: StableRiver Capital Management LLC
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Georgia Tax-Exempt Bond Fund
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SGTEX
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SGATX
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High Grade Municipal Bond Fund
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SFLTX
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SCFTX
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Investment Grade Tax-Exempt Bond Fund
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SISIX
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STTBX
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Maryland Municipal Bond Fund
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SMMAX
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CMDTX
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North Carolina Tax-Exempt Bond Fund
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SNCIX
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CNCFX
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Virginia Intermediate Municipal Bond Fund
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CVIAX
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CRVTX
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Short Duration Funds
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Subadviser: StableRiver Capital Management LLC
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Short-Term Bond Fund
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STSBX
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SCBSX
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SSBTX
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Short-Term U.S. Treasury Securities Fund
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STSFX
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SSUSX
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SUSTX
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Ultra-Short Bond Fund
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SISSX
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U.S. Government Securities Ultra-Short Bond Fund
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SIGVX
|
The Securities and Exchange Commission has not approved or
disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal
offense.
RidgeWorth
Investments®
is the trade name of RidgeWorth Capital Management, Inc.
About
This Prospectus
RidgeWorth Funds is a mutual fund family that offers shares in
separate investment portfolios that have individual investment
goals and strategies. RidgeWorth Funds is an open-end management
investment company (commonly known as a mutual fund) established
under Massachusetts law as a Massachusetts business trust.
RidgeWorth Funds is required to comply with the Investment
Company Act of 1940 as well as other federal securities laws
that are applicable to all mutual funds. This prospectus gives
you important information about the A Shares, C Shares, R Shares
and I Shares of the Fixed Income Funds (Funds) that
you should know before investing. Please read this prospectus
and keep it for future reference.
A Shares, C Shares, R Shares and I Shares have different
expenses and other characteristics, allowing you to choose the
class that best suits your needs. You should consider the amount
you want to invest, how long you plan to have it invested, and
whether you plan to make additional investments.
A Shares
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Front-end sales charge
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12b-1
fees
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$2,000 minimum initial investment
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C Shares
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Contingent deferred sales charge
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Higher 12b-1
fees
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$5,000 minimum initial investment
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R Shares
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No sales charge
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12b-1 fees
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Offered exclusively through third-party intermediaries that
offer employer-sponsored defined contribution retirement plans
and other retirement plan platforms
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I Shares are offered exclusively to financial
institutions and intermediaries for their own accounts or for
the accounts of their customers.
This prospectus has been arranged into different sections so
that you can easily review this important information. For
detailed information about each Fund, please see:
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1
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Investment Grade
Funds
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1
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Corporate Bond Fund
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4
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Intermediate Bond Fund
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8
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Investment Grade Bond Fund
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12
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Limited Duration Fund
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15
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Limited-Term Federal
Mortgage Securities Fund
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18
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Total Return Bond Fund
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22
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U.S. Government
Securities Fund
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25
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High Yield/Global
Funds
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25
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High Income Fund
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29
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Seix Floating Rate High
Income Fund
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33
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Seix Global Strategy Fund
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37
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Seix High Yield Fund
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41
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Municipal Bond
Funds
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41
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Georgia Tax-Exempt Bond
Fund
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44
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High Grade Municipal Bond
Fund
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48
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Investment Grade
Tax-Exempt Bond Fund
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51
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Maryland Municipal Bond
Fund
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54
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North Carolina Tax-Exempt
Bond Fund
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57
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Virginia Intermediate
Municipal Bond Fund
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60
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Short Duration
Funds
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60
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Short-Term Bond Fund
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64
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Short-Term U.S. Treasury
Securities Fund
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67
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Ultra-Short Bond Fund
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71
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U.S. Government
Securities Ultra-Short Bond Fund
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74
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More Information About
Risk
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79
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More Information About
Indices
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81
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More Information About
Fund Investments
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81
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Information About
Portfolio Holdings
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81
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Management
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86
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Purchasing, Selling and
Exchanging Fund Shares
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95
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Market Timing Policies
and Procedures
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96
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Distribution of Fund
Shares
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97
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Shareholder Servicing
Plans
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98
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Dividends and
Distributions
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98
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Taxes
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100
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Financial Highlights
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Inside
Back Cover
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Privacy Policy
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Back
Cover
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How to Obtain More
Information
About RidgeWorth Funds
|
August 1,
2010
CORPORATE BOND
FUND
Summary
Section
A Shares,
C Shares and I Shares
Investment
Objective
The Corporate Bond Fund (the Fund) seeks current
income and, secondarily, preservation of capital.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
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A Shares
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C Shares
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I Shares
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Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
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4.75%
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None
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None
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Maximum Deferred Sales Charge (load) (as a % of net asset value)
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None
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1.00%
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None
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Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
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A Shares
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C Shares
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I Shares
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Management Fees
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0.40%
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0.40%
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0.40%
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Distribution
(12b-1) Fees
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0.30%
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1.00%
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None
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Other Expenses
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0.11%
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0.11%
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0.12%
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Total Annual Fund Operating Expenses
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0.81%
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1.51%
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0.52%
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Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
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1 Year
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3 Years
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5 Years
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10 Years
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A Shares
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$
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554
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$
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721
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$
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903
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$
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1,429
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C Shares
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$
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254
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$
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477
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$
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824
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$
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1,802
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I Shares
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$
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53
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$
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167
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$
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291
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$
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653
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You would pay the following expenses if you did not redeem
your shares:
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1 Year
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3 Years
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5 Years
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10 Years
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A Shares
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$
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554
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$
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721
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$
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903
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$
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1,429
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C Shares
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$
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154
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$
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477
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$
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824
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$
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1,802
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I Shares
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$
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53
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$
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167
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$
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291
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$
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653
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Portfolio
Turnover
The Fund pays transaction costs, when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 75% of the average value
of its portfolio.
Principal
Investment Strategies
The Fund invests in a diversified portfolio of U.S. dollar
denominated corporate obligations and other fixed income
securities that are rated BBB-/Baa3 or better by
Standard & Poors Ratings Services, Moodys
Investors Service or Fitch Ratings or unrated securities that
the Funds subadviser, Seix Investment Advisors LLC (the
Subadviser), believes are of comparable quality.
Under normal circumstances, the Fund invests at least 80% of its
net assets in corporate bonds. The Fund may also invest in
U.S. Treasury and agency obligations. The Fund may invest
in U.S. dollar denominated obligations of U.S. and
non-U.S. issuers.
The Fund may invest a portion of its assets in securities that
are restricted as to resale.
The Fund will maintain an overall credit quality of A- or
better. Securities downgraded below BBB-/Baa3 after purchase by
all agencies that rate the securities can be retained up to 10%
of the Funds total net assets.
CORPORATE BOND
FUND
The Subadviser attempts to identify investment grade corporate
bonds offering above average total return. In selecting
corporate debt investments for purchase and sale, the Subadviser
seeks out companies with good fundamentals and above average
return prospects that are currently priced at attractive levels.
The primary basis for security selection is the potential income
offered by the security relative to the Subadvisers
assessment of the issuers ability to generate the cash
flow required to meet its obligations. The Subadviser employs a
bottom-up
approach, identifying investment opportunities based on the
underlying financial and economic fundamentals of the specific
issuer.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Default and Downgrade Risk: Securities rated below
BBB-/Baa3 involve greater risk of default or downgrade and are
more volatile than investment grade securities. Below investment
grade securities may also be less liquid than higher quality
securities.
Foreign Companies Risk: Dollar denominated securities of
foreign issuers involve special risks such as economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund began
operating April 1, 2009. Performance prior to April 1,
2009 is that of the Strategic Income Fund, the Funds
predecessor, which began operations on November 30, 2001.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
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Best Quarter
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Worst Quarter
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7.54%
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-3.98%
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(6/30/09)
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(3/31/09)
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* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
5.35%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax
CORPORATE BOND
FUND
returns are shown for only the I Shares. After-tax returns
for other classes will vary.
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Since
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Inception
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of the
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Since
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1 Year
|
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5 Years
|
|
A Shares*
|
|
Inception**
|
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|
A Shares Returns Before Taxes
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5.87%
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2.95%
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|
4.52%
|
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|
|
N/A
|
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|
|
C Shares Returns Before Taxes
|
|
|
9.30%
|
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|
3.27%
|
|
|
|
N/A
|
|
|
|
4.83%
|
|
|
|
I Shares Returns Before Taxes
|
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|
11.40%
|
|
|
|
4.25%
|
|
|
|
N/A
|
|
|
|
5.65%
|
|
|
|
I Shares Returns After Taxes on Distributions
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|
|
9.35%
|
|
|
|
2.09%
|
|
|
|
N/A
|
|
|
|
3.44%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
7.32%
|
|
|
|
2.35%
|
|
|
|
N/A
|
|
|
|
3.52%
|
|
|
|
Barclays Capital Corporate Index (reflects no deduction for
fees, expenses or taxes)
|
|
|
18.68%
|
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|
|
4.58%
|
|
|
|
4.89%
|
|
|
|
5.66%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since inception of the A Shares on October 8,
2003.
|
|
|
** |
Since inception of the C Shares and the I Shares on
November 30, 2001.
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Funds management team since 2008.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Funds
management team since 2004. Mr. Perry Troisi, Managing Director
and Senior Portfolio Manager, has been a member of the
Funds management team since 2004.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
INTERMEDIATE BOND
FUND
Summary
Section
A Shares,
R Shares and I Shares
Investment
Objective
The Intermediate Bond Fund (the Fund) seeks total
return (comprised of capital appreciation and income) that
consistently exceeds the total return of the broad
U.S. dollar denominated, investment grade market of
intermediate term government and corporate bonds.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
R Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
R Shares
|
|
I Shares
|
Management Fees
|
|
|
0.24%
|
|
|
|
0.24%
|
|
|
|
0.24%
|
|
Distribution
(12b-1) Fees
|
|
|
0.25%
|
|
|
|
0.50%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.06%
|
|
|
|
0.27%
|
|
|
|
0.08%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.01%
|
|
|
|
0.01%
|
|
|
|
0.01%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.56%
|
|
|
|
1.02%
|
|
|
|
0.33%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
530
|
|
|
$
|
646
|
|
|
$
|
773
|
|
|
$
|
1,143
|
|
R Shares
|
|
$
|
104
|
|
|
$
|
325
|
|
|
$
|
563
|
|
|
$
|
1,248
|
|
I Shares
|
|
$
|
34
|
|
|
$
|
106
|
|
|
$
|
185
|
|
|
$
|
418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 122% of the average
value of its portfolio.
Principal
Investment Strategies
The Fund invests in various types of income producing debt
securities including mortgage-and asset-backed securities,
government and agency obligations, corporate obligations and
floating rate loans. The Fund may invest in debt securities of
U.S. and
non-U.S. issuers,
including emerging market debt. The Funds investment in
non-U.S. issuers
may at times be significant. Under normal circumstances, the
Fund invests at least 80% of its net assets in fixed income
securities. These securities will be chosen from the broad
universe of available intermediate term fixed income securities
rated investment grade by Standard & Poors
Ratings Services, Moodys Investors Service or Fitch
Ratings or unrated securities that the Funds subadviser,
Seix Investment Advisors LLC, (the Subadviser)
believes are of comparable quality. The Fund may invest up to
20% of its net assets in below investment grade, high yield debt
obligations. The Fund may also invest a portion of its assets in
securities that are restricted as to resale.
The Subadviser invests in intermediate term fixed income
securities with an emphasis on corporate and mortgage backed
securities. The Subadviser anticipates that the Fund will
maintain an average weighted maturity of 3 to 10 years and
the Fund will be managed with a duration that is close to that
of its
INTERMEDIATE BOND
FUND
comparative benchmark, the Barclays Capital Intermediate
U.S. Government/Credit Bond Index, which is generally
between 3 to 4 years. In selecting investments for purchase
and sale, the Subadviser generally selects a greater weighting
in obligations of domestic corporations and mortgage-backed
securities relative to the Funds comparative benchmark,
and a lower relative weighting in U.S. Treasury and
government agency issues.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as foreign currency
forward contracts, swaps, including credit default swaps,
futures, credit linked notes, options, inverse floaters and
warrants) to use as a substitute for a purchase or sale of a
position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate or credit risks. The Fund may count the
value of certain derivatives with investment grade
intermediate-term fixed income characteristics towards its
policy to invest, under normal circumstances, at least 80% of
its net assets in fixed income securities.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Foreign Securities Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments and
delays in enforcement of rights. These risks are increased for
investments in emerging markets.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan. These requirements may limit
the eligible pool of potential bank loan holders by placing
conditions or restrictions on sales and purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may negatively impact the liquidity of loans. Difficulty in
selling a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which may require the Fund to
replace a particular loan with a lower-yielding security. There
may be less extensive public information available with respect
to loans than for rated, registered or exchange listed
securities. The Fund may assume the credit risk of the
administrative agent in addition to the borrower, and
investments in loan assignments may involve the risks of being a
lender.
INTERMEDIATE BOND
FUND
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Foreign Currency Forward Contracts Risk: The technique of
purchasing foreign currency forward contracts to obtain exposure
to currencies or manage currency risk may not be effective. In
addition, currency markets generally are not as regulated as
securities markets.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Swap agreements may also subject the Fund to the
risk that the counterparty to the transaction may not meet its
obligations.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as foreign currency forward contracts, swaps
and futures may create leveraging risk. Leverage may cause the
Fund to be more volatile than if the Fund had not been
leveraged. This is because leverage tends to exaggerate the
effect of any increase or decrease in the value of the
Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund began
operating on October 11, 2004. Performance prior to
October 11, 2004 is that of the I Shares of the Seix
Intermediate Bond Fund, the Funds predecessor, and has not
been adjusted to reflect A Share or R Share expenses.
If it had been, performance would have been lower.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
6.43%
|
|
-2.33%
|
(12/31/08)
|
|
(06/30/04)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
5.48%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax
INTERMEDIATE BOND
FUND
returns are shown for only the I Shares. After-tax returns
for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
0.36%
|
|
|
|
4.00%
|
|
|
|
5.18%
|
|
|
|
R Shares Returns Before Taxes*
|
|
|
4.87%
|
|
|
|
4.43%
|
|
|
|
3.39%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
5.51%
|
|
|
|
5.31%
|
|
|
|
5.85%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
4.16%
|
|
|
|
3.57%
|
|
|
|
3.94%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
3.57%
|
|
|
|
3.51%
|
|
|
|
3.85%
|
|
|
|
Barclays Capital Intermediate U.S. Government/Credit Bond Index
(reflects no deduction for fees, expenses or taxes)
|
|
|
5.24%
|
|
|
|
4.66%
|
|
|
|
5.93%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
The average annual total return information shown above,
prior to the conversion of C Shares to R Shares at the
close of business on February 12, 2009, is that of
C Shares except for the period from October 16, 2007
through January 17, 2008, which is that of I Shares,
not adjusted for C Share expenses. If expenses were
adjusted performance would have been lower.
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Funds management team since 2008.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Funds
management team since 2002. Mr. Perry Troisi, Managing
Director and Senior Portfolio Manager, has been a member of the
Funds management team since 2002. Mr. Michael Rieger,
Managing Director and Senior Portfolio Manager, has been a
member of the Funds management team since 2007.
Mr. Seth Antiles, Ph.D., Managing Director and
Portfolio Manager, has been a member of the management team for
the Fund since 2005.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and R Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
R Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
INVESTMENT GRADE
BOND FUND
Summary
Section
A Shares,
R Shares and I Shares
Investment
Objective
The Investment Grade Bond Fund (the Fund) seeks high
total return through current income and capital appreciation,
while preserving the principal amount invested.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on
page 90 of the Funds prospectus and Rights of Accumulation
on page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
R Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
R Shares
|
|
I Shares
|
Management Fees
|
|
|
0.50%
|
|
|
|
0.50%
|
|
|
|
0.50%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
0.50%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.08%
|
|
|
|
0.13%
|
|
|
|
0.08%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.88%
|
|
|
|
1.13%
|
|
|
|
0.58%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
561
|
|
|
$
|
742
|
|
|
$
|
939
|
|
|
$
|
1,508
|
|
R Shares
|
|
$
|
115
|
|
|
$
|
359
|
|
|
$
|
622
|
|
|
$
|
1,375
|
|
I Shares
|
|
$
|
59
|
|
|
$
|
186
|
|
|
$
|
324
|
|
|
$
|
726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 99% of the average value
of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in fixed income securities rated investment grade by
at least one national securities rating agency or unrated
securities that the Funds subadviser, Seix Investment
Advisors LLC (the Subadviser) believes are of
comparable quality. The Subadviser focuses on corporate debt
securities, U.S. Treasury obligations, mortgage-backed
securities and other asset-backed securities. The Fund may
invest in debt obligations of U.S. and non
U.S. issuers. The Funds investment in
non-U.S. issuers
may at times be significant. The Fund may invest up to 20% of
its net assets in below investment grade, high yield debt
obligations, including emerging market debt and floating rate
loans. The Fund may also invest a portion of its assets in
securities that are restricted as to resale.
The Subadviser attempts to identify relatively inexpensive
securities in a selected market index. In selecting investments
for purchase and sale, the Subadviser tries to minimize risk
while attempting to outperform selected market indices.
Currently, the Subadvisers selected index is the Barclays
Capital U.S. Government/Credit Index, a widely recognized,
unmanaged index of investment grade government and corporate
debt securities. The Subadviser seeks
INVESTMENT GRADE
BOND FUND
to invest more in portions of the Index that seem relatively
inexpensive, and less in those that seem expensive. The
Subadviser allocates the Funds investments among various
market sectors based on the Subadvisers analysis of
historical data, yield information and credit ratings.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as foreign currency
forward contracts, swaps, including credit default swaps,
futures, credit linked notes, options, inverse floaters and
warrants) to use as a substitute for a purchase or sale of a
position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate or credit risks. The Fund may count the
value of certain derivatives with investment grade fixed income
characteristics towards its policy to invest, under normal
circumstances, at least 80% of its net assets in investment
grade fixed income securities.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Foreign Securities Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments and
delays in enforcement of rights. These risks are increased for
investments in emerging markets.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan. These requirements may limit
the eligible pool of potential bank loan holders by placing
conditions or restrictions on sales and purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may negatively impact the liquidity of loans. Difficulty in
selling a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which may require the Fund to
replace a particular loan with a lower-yielding security. There
may be less extensive public information available with respect
to loans than for rated, registered or exchange listed
securities. The Fund may assume the credit risk of the
administrative agent in addition to the borrower, and
investments in loan assignments may involve the risks of being a
lender.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
|
|
|
10
|
|
Investment Grade Funds
|
INVESTMENT GRADE
BOND FUND
Foreign Currency Forward Contracts Risk: The technique of
purchasing foreign currency forward contracts to obtain exposure
to currencies or manage currency risk may not be effective. In
addition, currency markets generally are not as regulated as
securities markets.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. The Fund may also be subject to the risk that the
counterparty to the transaction may not meet its obligations.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as foreign currency forward contracts, swaps
and futures may create leveraging risk. Leverage may cause the
Fund to be more volatile than if the Fund had not been
leveraged. This is because leverage tends to exaggerate the
effect of any increase or decrease in the value of the
Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. At the close
of business on July 31, 2009, all outstanding C Shares
converted to R Shares. R Share performance shown prior
to that date is that of C Shares and has not been adjusted
to reflect R Shares expenses.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
8.51%
|
|
-3.47%
|
(12/31/08)
|
|
(6/30/04)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
6.23%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax
|
|
|
Investment Grade
Funds
|
|
11
|
INVESTMENT GRADE
BOND FUND
returns are shown for only the I Shares. After-tax returns
for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
1.08%
|
|
|
|
4.45%
|
|
|
|
5.09%
|
|
|
|
R Shares Returns Before Taxes
|
|
|
5.51%
|
|
|
|
4.81%
|
|
|
|
5.00%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
6.44%
|
|
|
|
5.80%
|
|
|
|
5.98%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
5.02%
|
|
|
|
4.20%
|
|
|
|
4.23%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
4.16%
|
|
|
|
4.01%
|
|
|
|
4.06%
|
|
|
|
Barclays Capital U.S. Government/Credit Index (reflects no
deduction for fees, expenses or taxes)
|
|
|
4.52%
|
|
|
|
4.71%
|
|
|
|
6.34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Funds management team since 2008.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Funds
management team since 2004. Mr. Perry Troisi, Managing
Director and Senior Portfolio Manager, has been a member of the
Funds management team since 2004. Mr. Michael Rieger,
Managing Director and Senior Portfolio Manager, has been a
member of the Funds management team since 2007.
Mr. Seth Antiles, Ph.D., Managing Director and
Portfolio Manager, has been a member of the management team for
the Fund since 2005.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and R Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
R Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
12
|
|
Investment Grade Funds
|
LIMITED DURATION
FUND
Summary
Section
I Shares
Investment
Objective
The Limited Duration Fund (the Fund) seeks current
income, while preserving liquidity and principal.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
I Shares
|
Management Fees
|
|
|
0.10%
|
|
Other Expenses
|
|
|
0.13%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.05%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.28%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
I Shares
|
|
$
|
29
|
|
|
$
|
90
|
|
|
$
|
157
|
|
|
$
|
356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 124% of the average
value of its portfolio.
Principal
Investment Strategies
The Fund invests in U.S. dollar-denominated, investment
grade fixed income securities, including corporate and bank
obligations, government securities, and mortgage-and
asset-backed securities of U.S. and
non-U.S. issuers,
rated A or better by Standard & Poors Ratings
Services, Moodys Investors Service or Fitch Ratings or
unrated securities that the Funds subadviser, Seix
Investment Advisors LLC (the Subadviser) believes
are of comparable quality. The Funds investment in
non-U.S. issuers
may at times be significant.
The Fund will maintain an average credit quality of AA or Aa and
all securities held in the Fund will have interest rate
durations of 180 days or less. For floating rate notes, the
interest rate duration will be based on the next interest rate
reset date. Duration measures a bond or Funds sensitivity
to interest rate changes and is expressed as a number of years.
The higher the number, the greater the risk. Under normal
circumstances, for example, if a portfolio has a duration of
5 years, its value will change by 5% if rates change by 1%.
Shorter duration bonds result in lower expected volatility.
The Subadviser attempts to identify
U.S. dollar-denominated, investment grade fixed income
securities that offer high current income while preserving
liquidity and principal. In selecting investments for purchase
and sale, the Subadviser emphasizes securities that are within
the targeted segment of the U.S. dollar-denominated, fixed
income securities markets and will generally focus on
investments that have good business prospects, credit strength,
stable cash flows and effective management. The Subadviser may
retain securities if the rating of the security falls below
investment grade and the Subadviser deems retention of the
security to be in the best interests of the Fund.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as credit linked notes, futures, options, inverse floaters,
swaps and warrants) to use as a substitute for a purchase or
sale of a position in the underlying asset
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate risk and credit risk.
|
|
|
Investment Grade
Funds
|
|
13
|
LIMITED DURATION
FUND
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Foreign Securities Risk: Foreign securities involve
special risks such as economic or financial instability, lack of
timely or reliable financial information and unfavorable
political or legal developments and delays in enforcement of
rights. These risks are increased for investments in emerging
markets.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund began
operating on October 11, 2004. Performance prior to
October 11, 2004 is that of the I Shares of the Seix
Limited Duration Fund, the Funds predecessor, which began
operations on October 25, 2002.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
2.18%
|
|
-3.37%
|
(3/31/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
0.62%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax
|
|
|
14
|
|
Investment Grade Funds
|
LIMITED DURATION
FUND
returns are shown for only the I Shares. After-tax returns
for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
5 Years
|
|
Inception*
|
|
|
I Shares Returns Before Taxes
|
|
|
4.68%
|
|
|
|
2.83%
|
|
|
|
2.29%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
4.39%
|
|
|
|
1.63%
|
|
|
|
1.33%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
3.04%
|
|
|
|
1.72%
|
|
|
|
1.40%
|
|
|
|
Bank of America Merrill Lynch U.S. Treasury Bill 3 Month Index
(reflects no deduction for fees, expenses or taxes)
|
|
|
0.21%
|
|
|
|
3.02%
|
|
|
|
2.49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since inception of the predecessor fund on October 25,
2002. Benchmark returns since October 31, 2002.
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Funds management team since 2008.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Funds
management team since 2007. Mr. Perry Troisi, Managing
Director and Senior Portfolio Manager, has been a member of the
Funds management team since the Funds inception.
Mr. Michael Rieger, Managing Director and Senior Portfolio
Manager, has been a member of the Funds management team
since 2007. Mr. Seth Antiles, Ph.D., Managing Director
and Portfolio Manager, has been a member of the management team
for the Fund since 2009.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. The
Fund offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
There is no minimum initial investment amount for the
Funds I Shares. There are no minimums for subsequent
investments.
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
Investment Grade
Funds
|
|
15
|
LIMITED-TERM
FEDERAL MORTGAGE SECURITIES FUND
Summary
Section
A Shares,
C Shares and I Shares
Investment
Objective
The Limited-Term Federal Mortgage Securities Fund (the
Fund) seeks high current income, while preserving
capital.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on
page 90 of the Funds prospectus and Rights of Accumulation
on page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
2.50%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
0.50%
|
|
|
|
0.50%
|
|
|
|
0.50%
|
|
Distribution (12b-1) Fees
|
|
|
0.20%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.16%
|
|
|
|
0.16%
|
|
|
|
0.16%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.03%
|
|
|
|
0.03%
|
|
|
|
0.03%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.89%
|
|
|
|
1.69%
|
|
|
|
0.69%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
339
|
|
|
$
|
527
|
|
|
$
|
731
|
|
|
$
|
1,319
|
|
C Shares
|
|
$
|
272
|
|
|
$
|
533
|
|
|
$
|
918
|
|
|
$
|
1,998
|
|
I Shares
|
|
$
|
70
|
|
|
$
|
221
|
|
|
$
|
384
|
|
|
$
|
859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
339
|
|
|
$
|
527
|
|
|
$
|
731
|
|
|
$
|
1,319
|
|
C Shares
|
|
$
|
172
|
|
|
$
|
533
|
|
|
$
|
918
|
|
|
$
|
1,998
|
|
I Shares
|
|
$
|
70
|
|
|
$
|
221
|
|
|
$
|
384
|
|
|
$
|
859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 435% of the average
value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in U.S. government agency mortgage-backed
securities, such as Fannie Mae, GNMA and collateralized mortgage
obligations.
In selecting investments for purchase and sale, the Funds
subadviser, Seix Investment Advisors LLC (the
Subadviser) attempts to identify securities that it
expects to perform well in rising and falling markets. The
Subadviser also attempts to reduce the risk that the underlying
mortgages are prepaid by focusing on securities that it believes
are less prone to this risk. For example, Fannie Mae or GNMA
securities that were issued years ago may be less prone to
prepayment risk because there have been many opportunities for
prepayment, but few have occurred.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as credit linked notes, futures,
|
|
|
16
|
|
Investment Grade Funds
|
LIMITED-TERM
FEDERAL MORTGAGE SECURITIES FUND
options, inverse floaters, swaps and warrants) to use as a
substitute for a purchase or sale of a position in the
underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate risk and credit risk.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
4.36%
|
|
-1.70%
|
(9/30/01)
|
|
(6/30/04)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
4.96%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
|
|
A Shares Returns Before Taxes
|
|
|
2.75%
|
|
|
|
3.87%
|
|
|
|
4.49%
|
|
|
|
|
|
|
|
C Shares Returns Before Taxes
|
|
|
3.57%
|
|
|
|
3.61%
|
|
|
|
4.19%
|
|
|
|
|
|
|
|
I Shares Returns Before Taxes
|
|
|
5.61%
|
|
|
|
4.60%
|
|
|
|
5.01%
|
|
|
|
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
4.22%
|
|
|
|
3.00%
|
|
|
|
3.36%
|
|
|
|
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
3.63%
|
|
|
|
2.98%
|
|
|
|
3.29%
|
|
|
|
|
|
|
|
Barclays Capital U.S. Mortgage-Backed Securities Index (reflects
no deduction for fees, expenses or taxes)
|
|
|
5.89%
|
|
|
|
5.78%
|
|
|
|
6.46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Grade
Funds
|
|
17
|
LIMITED-TERM
FEDERAL MORTGAGE SECURITIES FUND
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Funds management team since 2008.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of The Funds
management team since 2007. Mr. Perry Troisi, Managing
Director and Senior Portfolio Manager, has been a member of the
Funds management team since 2007. Mr. Michael Rieger,
Managing Director and Senior Portfolio Manager, has been a
member of the Funds management team since 2007.
Mr. Seth Antiles, Ph.D., Managing Director and
Portfolio Manager, has been a member of the Funds
Management team since 2009.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
18
|
|
Investment Grade Funds
|
TOTAL RETURN BOND
FUND
Summary
Section
A Shares,
R Shares and I Shares
Investment
Objective
The Total Return Bond Fund (the Fund) seeks total
return (comprised of capital appreciation and income) that
consistently exceeds the total return of the broad
U.S. investment grade bond market.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
R Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
R Shares
|
|
I Shares
|
Management Fees
|
|
|
0.25%
|
|
|
|
0.25%
|
|
|
|
0.25%
|
|
Distribution (12b-1) Fees
|
|
|
0.25%
|
|
|
|
0.50%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.06%
|
|
|
|
0.14%
|
|
|
|
0.07%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.03%
|
|
|
|
0.03%
|
|
|
|
0.03%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.59%
|
|
|
|
0.92%
|
|
|
|
0.35%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
532
|
|
|
$
|
655
|
|
|
$
|
789
|
|
|
$
|
1,178
|
|
R Shares
|
|
$
|
94
|
|
|
$
|
293
|
|
|
$
|
509
|
|
|
$
|
1,131
|
|
I Shares
|
|
$
|
36
|
|
|
$
|
113
|
|
|
$
|
197
|
|
|
$
|
443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 326% of the average
value of its portfolio.
Principal
Investment Strategies
The Fund invests in various types of income producing debt
securities including mortgage- and asset-backed securities,
government and agency obligations, corporate obligations and
floating rate loans. The Fund may invest in debt obligations of
U.S. and
non-U.S. issuers,
including emerging market debt. The Funds investment in
non-U.S. issuers
may at times be significant. Under normal circumstances, the
Fund invests at least 80% of its net assets in fixed income
securities. These securities will be chosen from the broad
universe of available fixed income securities rated investment
grade by Standard & Poors Ratings Services,
Moodys Investors Service or Fitch Ratings or unrated
securities that the Funds subadviser, Seix Investment
Advisors LLC, believes are of comparable quality. The Fund may
invest up to 20% of its net assets in below investment grade,
high yield debt obligations. The Fund may also invest a portion
of its assets in securities that are restricted as to resale.
The Subadviser anticipates that the Funds modified
adjusted duration will generally range from 3 to 6 years,
similar to that of the Barclays Capital U.S. Aggregate Bond
Index, the Funds comparative benchmark. Duration measures
a bond or Funds sensitivity to interest rate changes and
is expressed as a number of years. The higher the number, the
|
|
|
Investment Grade
Funds
|
|
19
|
TOTAL RETURN BOND
FUND
greater the risk. Under normal circumstances, for example, if a
portfolio has a duration of five years, its value will change by
5% if rates change by 1%. Shorter duration bonds result in lower
expected volatility. In selecting investments for purchase and
sale, the Subadviser generally selects a greater weighting in
obligations of domestic corporations and mortgage-backed
securities relative to the Funds comparative benchmark,
and a lower relative weighting in U.S. Treasury and
government agency issues.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as foreign currency
forward contracts, swaps, including credit default swaps,
futures, credit linked notes, options, inverse floaters and
warrants) to use as a substitute for a purchase or sale of a
position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate or credit risks. The Fund may count the
value of certain derivatives with investment grade fixed income
characteristics towards its policy to invest, under normal
circumstances, at least 80% of its net assets in fixed income
securities.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan. These requirements may limit
the eligible pool of potential bank loan holders by placing
conditions or restrictions on sales and purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may negatively impact the liquidity of loans. Difficulty in
selling a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which may require the Fund to
replace a particular loan with a lower-yielding security. There
may be less extensive public information available with respect
to loans than for rated, registered or exchange listed
securities. The Fund may assume the credit risk of the
administrative agent in addition to the borrower, and
investments in loan assignments may involve the risks of being a
lender.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
|
|
|
20
|
|
Investment Grade Funds
|
TOTAL RETURN BOND
FUND
Foreign Currency Forward Contracts Risk: The technique of
purchasing foreign currency forward contracts to obtain exposure
to currencies or manage currency risk may not be effective. In
addition, currency markets generally are not as regulated as
securities markets.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Swap agreements may also subject the Fund to the
risk that the counterparty to the transaction may not meet its
obligations.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as foreign currency forward contracts, swaps
and futures may create leveraging risk. Leverage may cause the
Fund to be more volatile than if the Fund had not been
leveraged. This is because leverage tends to exaggerate the
effect of any increase or decrease in the value of the
Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund began
operating on October 11, 2004. The performance for
I Shares prior to such date is that of the I Shares of
the Seix Core Bond Fund, the Funds predecessor. The
performance for A Shares from January 25, 2002 to
October 11, 2004 is that of the P Shares of the Seix Core
Bond Fund. The performance for A Shares prior to
January 25, 2002 is that of the I Shares of the Seix
Core Bond Fund. The performance of the predecessor fund has not
been adjusted to reflect the Funds A Share or
R Share expenses. If it had been, performance would have
been lower. The performance shown below prior to the conversion
of C Shares to R Shares at the close of business on
February 12, 2009, is that of C Shares.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
6.61%
|
|
-2.16%
|
(12/31/08)
|
|
(6/30/04)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was
6.61%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax
|
|
|
Investment Grade
Funds
|
|
21
|
TOTAL RETURN BOND
FUND
returns are shown for only the I Shares. After-tax returns
for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
1.74%
|
|
|
|
4.02%
|
|
|
|
5.32%
|
|
|
|
R Shares Returns Before Taxes
|
|
|
6.60%
|
|
|
|
4.51%
|
|
|
|
5.65%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
7.22%
|
|
|
|
5.43%
|
|
|
|
6.12%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
5.43%
|
|
|
|
3.69%
|
|
|
|
4.24%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
4.74%
|
|
|
|
3.61%
|
|
|
|
4.12%
|
|
|
|
Barclays Capital U.S. Aggregate Bond Index (reflects no
deduction for fees, expenses or taxes)
|
|
|
5.93%
|
|
|
|
4.97%
|
|
|
|
6.33%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Funds management team since 2008.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of The Funds
management team since 2002. Mr. Perry Troisi, Managing
Director and Senior Portfolio Manager, has been a member of the
Funds management team since 2002. Mr. Michael Rieger,
Managing Director and Senior Portfolio Manager, has been a
member of the Funds management team since 2007.
Mr. Seth Antiles, Ph.D., Managing Director and
Portfolio Manager, has been a member of the management team for
the Fund since 2007.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and R Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
R Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
22
|
|
Investment Grade Funds
|
U.S. GOVERNMENT
SECURITIES FUND
Summary
Section
A Shares,
C Shares and I Shares
Investment
Objective
The U.S. Government Securities Fund (the Fund)
seeks high current income, while preserving capital.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
0.50%
|
|
|
|
0.50%
|
|
|
|
0.50%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.09%
|
|
|
|
0.08%
|
|
|
|
0.08%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.89%
|
|
|
|
1.58%
|
|
|
|
0.58%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
562
|
|
|
$
|
745
|
|
|
$
|
945
|
|
|
$
|
1,519
|
|
C Shares
|
|
$
|
261
|
|
|
$
|
499
|
|
|
$
|
860
|
|
|
$
|
1,878
|
|
I Shares
|
|
$
|
59
|
|
|
$
|
186
|
|
|
$
|
324
|
|
|
$
|
726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
562
|
|
|
$
|
745
|
|
|
$
|
945
|
|
|
$
|
1,519
|
|
C Shares
|
|
$
|
161
|
|
|
$
|
499
|
|
|
$
|
860
|
|
|
$
|
1,878
|
|
I Shares
|
|
$
|
59
|
|
|
$
|
186
|
|
|
$
|
324
|
|
|
$
|
726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 85% of the average value
of its portfolio.
Principal
Investment Strategies
The Fund invests at least 80% of its net assets in
U.S. government debt securities, such as mortgage-backed
securities and U.S. Treasury obligations and shares of
registered money market mutual funds that invest in the
foregoing. In selecting investments for purchase and sale, the
Funds subadviser, Seix Investment Advisors LLC (the
Subadviser), focuses its investments in
mortgage-backed securities in an attempt to provide a
consistently high dividend without adding undue risk.) Under
certain circumstances, the Subadviser may strategically position
the Funds exposure across the yield curve to potentially
benefit from a normalization of the term structure of rates
(i.e., in an environment where the yield curve is abnormally
steep, investments will be strategically positioned along the
yield curve to benefit as the curves shape reverts to a
more traditional, or normal slope).
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative
|
|
|
Investment Grade
Funds
|
|
23
|
U.S. GOVERNMENT
SECURITIES FUND
instruments (such as credit linked notes, futures, options,
inverse floaters, swaps and warrants) to use as a substitute for
a purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate risk.
Principal
Investment Risks
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
U.S. Government Debt Securities Risk:
U.S. government debt securities may underperform other
segments of the fixed income market or the fixed income market
as a whole.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
8.12%
|
|
-2.81%
|
(12/31/08)
|
|
(6/30/09)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
6.08%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
-8.11%
|
|
|
|
2.89%
|
|
|
|
4.43%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
-4.99%
|
|
|
|
3.20%
|
|
|
|
4.31%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
-3.26%
|
|
|
|
4.23%
|
|
|
|
5.31%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
-8.26%
|
|
|
|
1.92%
|
|
|
|
3.21%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
-0.02%
|
|
|
|
2.50%
|
|
|
|
3.43%
|
|
|
|
Barclays Capital U.S. Government Bond Index (reflects no
deduction for fees, expenses or taxes)
|
|
|
-2.20%
|
|
|
|
4.87%
|
|
|
|
6.17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24
|
|
Investment Grade Funds
|
U.S. GOVERNMENT
SECURITIES FUND
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Funds management team since 2008.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Funds
management team since 2007. Mr. Perry Troisi, Managing
Director and Senior Portfolio Manager, has been a member of the
Funds management team since 2007. Mr. Michael Rieger,
Managing Director and Senior Portfolio Manager, has been a
member of the Funds management team since 2007.
Mr. Seth Antiles, Ph.D., Managing Director and
Portfolio Manager, has been a member of the management team for
the Fund since 2009.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
High Yield/Global
Funds
|
|
25
|
HIGH INCOME
FUND
Summary
Section
A Shares,
R Shares and I Shares
Investment
Objective
The High Income Fund (the Fund) seeks high current
income and, secondarily, total return (comprised of capital
appreciation and income).
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
R Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
R Shares
|
|
I Shares
|
Management Fees
|
|
|
0.60%
|
|
|
|
0.60%
|
|
|
|
0.60%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
0.50%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.12%
|
|
|
|
0.20%
|
|
|
|
0.12%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.02%
|
|
|
|
0.02%
|
|
|
|
0.02%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.04%
|
|
|
|
1.32%
|
|
|
|
0.74%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
576
|
|
|
$
|
790
|
|
|
$
|
1,022
|
|
|
$
|
1,686
|
|
R Shares
|
|
$
|
134
|
|
|
$
|
418
|
|
|
$
|
723
|
|
|
$
|
1,590
|
|
I Shares
|
|
$
|
76
|
|
|
$
|
237
|
|
|
$
|
411
|
|
|
$
|
918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 466% of the average
value of its portfolio.
Principal
Investment Strategies
The Fund invests primarily in a diversified portfolio of higher
yielding, lower-rated income producing debt instruments,
including corporate obligations, floating rate loans and other
debt obligations. The Fund may invest in debt obligations of
U.S. and
non-U.S. issuers,
including emerging market debt. The Funds investment in
non-U.S. issuers
may at times be significant. The Fund will invest at least 65%,
and may invest up to 100%, of its assets in securities rated
below investment grade by either Moodys Investors Service
or Standard & Poors Ratings Services or in
unrated securities that the Funds subadviser, Seix
Investment Advisors LLC (the Subadviser), believes
are of comparable quality. Such securities are commonly known as
junk bonds and offer greater risks than investment
grade debt securities. The Fund may also invest a portion of its
assets in securities that are restricted as to resale.
In selecting investments for purchase and sale, the Subadviser
employs a research driven process designed to identify value
areas within the high yield market. The Subadviser seeks to
identify securities which generally seek to meet the following
criteria: (1) industries that have sound fundamentals;
(2) companies that have good business prospects and
|
|
|
26
|
|
High Yield/Global Funds
|
HIGH INCOME
FUND
increasing credit strength; and (3) issuers with stable or
growing cash flows and effective management.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including
credit default swaps, futures, credit linked notes, options,
inverse floaters and warrants) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate or credit risks. The Fund may count the
value of certain derivatives with below investment grade fixed
income characteristics towards its policy to invest, under
normal circumstances, at least 65% of its net assets in
non-investment grade fixed income securities.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan. These requirements may limit
the eligible pool of potential bank loan holders by placing
conditions or restrictions on sales and purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may negatively impact the liquidity of loans. Difficulty in
selling a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which may require the Fund to
replace a particular loan with a lower-yielding security. There
may be less extensive public information available with respect
to loans than for rated, registered or exchange listed
securities. The Fund may assume the credit risk of the
administrative agent in addition to the borrower, and
investments in loan assignments may involve the risks of being a
lender.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Foreign Securities Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments and
delays in enforcement of rights. These risks are increased for
investments in emerging markets.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Swap agreements may also subject the Fund to the
risk that the counterparty to the transaction may not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as foreign currency forward contracts, swaps
and futures may create leveraging risk. Leverage may cause the
Fund to be more volatile
|
|
|
High Yield/Global
Funds
|
|
27
|
HIGH INCOME
FUND
than if the Fund had not been leveraged. This is because
leverage tends to exaggerate the effect of any increase or
decrease in the value of the Funds portfolio securities. A
Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund began
operating on March 28, 2000. Performance prior to
March 28, 2000 is that of the ESC Strategic Income Fund,
the Funds predecessor. At the close of business on
July 31, 2009, all outstanding C Shares converted to
R Shares. The performance shown below from March 28,
2000 through July 31, 2009 is that of C Shares and has
not been adjusted to reflect R Shares expenses, which are
lower. If it had been, performance would have been higher.
This bar chart shows the changes in performance of the
Funds R Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
17.94%
|
|
-22.06%
|
(6/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was
3.27%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
R Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
Since
|
|
|
|
|
|
|
|
|
Inception
|
|
Inception
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
of A Shares*
|
|
of I Shares*
|
|
|
A Shares Returns Before Taxes
|
|
|
53.68%
|
|
|
|
5.85%
|
|
|
|
N/A
|
|
|
|
7.18%
|
|
|
|
N/A
|
|
|
|
R Shares Returns Before Taxes
|
|
|
60.28%
|
|
|
|
6.24%
|
|
|
|
5.47%
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
R Shares Returns After Taxes on Distributions**
|
|
|
55.34%
|
|
|
|
3.04%
|
|
|
|
2.38%
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
R Shares Returns After Taxes on Distributions and Sale of
Fund Shares**
|
|
|
38.57%
|
|
|
|
3.41%
|
|
|
|
2.75%
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
I Shares Returns Before Taxes
|
|
|
61.52%
|
|
|
|
7.22%
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
8.55%
|
|
|
|
Barclays Capital U.S. Corporate High-Yield Index (reflects no
deduction for fees, expenses or taxes)
|
|
|
58.21%
|
|
|
|
6.46%
|
|
|
|
6.71%
|
|
|
|
7.69%
|
|
|
|
9.02%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Since inception of the A Shares on October 27, 2003
and the I Shares on October 3, 2001.
|
|
**
|
The average annual total return information shown above is
that of C Shares not adjusted for the C Shares
sales charge. At the close of business on July 31, 2009,
all outstanding C Shares converted to R Shares.
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. Michael McEachern, CFA, President and Senior Portfolio
Manager of Seix, has co-managed the High Income Fund since July
2004. Mr. Brian Nold, M.D., Managing Director and
Senior Portfolio Manager, has co-managed the High Income Fund
since August 2006.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and
|
|
|
28
|
|
High Yield/Global Funds
|
HIGH INCOME
FUND
R Shares of the Fund through financial institutions or
intermediaries that are authorized to place transactions in Fund
shares for their customers. Please contact your financial
institution or intermediary directly and follow its procedures
for fund share transactions. The Fund offers I Shares to
financial institutions and intermediaries for their own accounts
or for the accounts of customers for whom they may act as
fiduciary agent, investment adviser, or custodian. Please
consult your financial institution or intermediary to find out
about how to purchase I Shares of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
R Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
High Yield/Global
Funds
|
|
29
|
SEIX FLOATING
RATE HIGH INCOME FUND
Summary
Section
A Shares,
C Shares and I Shares
Investment
Objective
The Seix Floating Rate High Income Fund (the Fund)
attempts to provide a high level of current income by investing
primarily in first lien senior floating rate loans and other
floating rate debt securities.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
2.50%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
0.44%
|
|
|
|
0.44%
|
|
|
|
0.44%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.10%
|
|
|
|
0.06%
|
|
|
|
0.07%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.02%
|
|
|
|
0.02%
|
|
|
|
0.02%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.86%
|
|
|
|
1.52%
|
|
|
|
0.53%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
336
|
|
|
$
|
518
|
|
|
$
|
715
|
|
|
$
|
1,284
|
|
C Shares
|
|
$
|
255
|
|
|
$
|
480
|
|
|
$
|
829
|
|
|
$
|
1,813
|
|
I Shares
|
|
$
|
54
|
|
|
$
|
170
|
|
|
$
|
296
|
|
|
$
|
665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
336
|
|
|
$
|
518
|
|
|
$
|
715
|
|
|
$
|
1,284
|
|
C Shares
|
|
$
|
155
|
|
|
$
|
480
|
|
|
$
|
829
|
|
|
$
|
1,813
|
|
I Shares
|
|
$
|
54
|
|
|
$
|
170
|
|
|
$
|
296
|
|
|
$
|
665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 117% of the average
value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in a combination of first and second lien senior
floating rate loans and other floating rate debt securities.
These loans are loans made by banks and other large financial
institutions to various companies and are senior in the
borrowing companies capital structure. Coupon rates are
floating, not fixed and are tied to a benchmark lending rate,
the most popular of which is LIBOR (London Interbank
Offered Rate). LIBOR is based on rates that contributor
banks in London charge each other for interbank deposits and is
typically used to set coupon rates on floating rate debt
securities.
The interest rates of these floating rate debt securities vary
periodically based upon a benchmark indicator of prevailing
interest rates. The Fund may
|
|
|
30
|
|
High Yield/Global Funds
|
SEIX FLOATING
RATE HIGH INCOME FUND
invest all or substantially all of its assets in floating rate
loans and debt securities that are rated below investment grade
by Moodys Investors Service or Standard &
Poors Ratings Services, or in comparable unrated
securities. The Fund may also invest up to 20% of its net assets
in any combination of junior debt securities or securities with
a lien on collateral lower than a senior claim on collateral,
high yield fixed rate bonds, investment grade fixed income debt
obligations, asset backed securities (such as special purpose
trusts investing in bank loans), money market securities and
repurchase agreements.
In selecting investments for purchase and sale, the Funds
subadviser, Seix Investment Advisors LLC (the
Subadviser) will emphasize securities which are
within the segment of the high yield market it has targeted,
which are securities rated either BB and
B by Standard & Poors Ratings
Services or Ba and B by Moodys
Investors Service or unrated securities that the Subadviser
believes are of comparable quality.
The Fund may invest up to 20% of its total assets in senior
loans made to
non-U.S. borrowers
provided that no more than 5% of the portfolios loans are
non-U.S. dollar
denominated. The Fund may also engage in certain hedging
transactions.
Preservation of capital is considered when consistent with the
funds objective.
Some types of senior loans in which the Fund may invest require
that an open loan for a specific amount be continually offered
to a borrower. These types of senior loans are commonly referred
to as revolvers. Because revolvers contractually obligate the
lender (and therefore those with an interest in the loan) to
fund the revolving portion of the loan at the borrowers
discretion, the Fund must have funds sufficient to cover its
contractual obligation. Therefore the Fund will maintain, on a
daily basis, high-quality, liquid assets in an amount at least
equal in value to its contractual obligation to fulfill the
revolving senior loan. The Fund will not encumber any assets
that are otherwise encumbered. The Fund will limit its
investments in such obligations to no more than 25% of the
Funds total assets.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including
credit default swaps, futures, credit linked notes, options,
inverse floaters and warrants) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate or credit risks. The Fund may count the
value of certain derivatives with floating rate debt or high
yield bond characteristics towards its policy to invest, under
normal circumstances, at least 80% of its net assets in a
combination of first and second lien senior floating rate loans
and other floating rate debt securities.
Principal
Investment Risks
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Credit Risk: Loans and other debt securities are subject
to credit risk. Credit risk is the possibility that an issuer
will fail to make timely payments of interest or principal, go
bankrupt, or that the value of the securities will decline
because of a market perception that the owner may not make
payment on time. The lower the ratings of such debt securities,
the greater their risks. In addition, lower rated securities
have higher risk characteristics, and changes in economic
conditions are likely to cause issuers of these securities to be
unable to meet their obligations. Many floating rate loans are
such lower rated securities. Economic and other market events
may reduce the demand for certain senior loans held by the Fund,
which may adversely impact the net asset value of the Fund.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan. These requirements may limit
the eligible pool of potential bank loan holders by placing
conditions or restrictions on sales and purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may
|
|
|
High Yield/Global
Funds
|
|
31
|
SEIX FLOATING
RATE HIGH INCOME FUND
negatively impact the liquidity of loans. Difficulty in selling
a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which may require the Fund to
replace a particular loan with a lower-yielding security. There
may be less extensive public information available with respect
to loans than for rated, registered or exchange listed
securities. The Fund may assume the credit risk of the
administrative agent in addition to the borrower, and
investments in loan assignments may involve the risks of being a
lender.
Default and Downgrade Risk: Securities rated below
BBB-/Baa3 involve greater risk of default or downgrade and are
more volatile than investment grade securities. Below investment
grade securities may also be less liquid than higher quality
securities.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Foreign Securities Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments and
delays in enforcement of rights. These risks are increased for
investments in emerging markets.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Swap agreements may also subject the Fund to the
risk that the counterparty to the transaction may not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as foreign currency forward contracts, swaps
and futures may create leveraging risk. Leverage may cause the
Fund to be more volatile than if the Fund had not been
leveraged. This is because leverage tends to exaggerate the
effect of any increase or decrease in the value of the
Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund began
operating on March 1, 2006. Performance information for the
A Shares and C Shares prior to their inception on
May 8, 2006 and August 2, 2007 respectively, is based
on that of the I Shares of the Fund. The performance of
I Shares has not been adjusted to reflect the Funds
A Share or C Share expenses. If it had been, the
performance would have been lower.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
12.47%
|
|
-18.04%
|
(6/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
2.03%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are
|
|
|
32
|
|
High Yield/Global Funds
|
SEIX FLOATING
RATE HIGH INCOME FUND
not relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
Inception*
|
|
|
A Shares Returns Before Taxes
|
|
|
28.53%
|
|
|
|
2.02%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
29.98%
|
|
|
|
2.36%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
32.31%
|
|
|
|
2.97%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
29.59%
|
|
|
|
0.58%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
20.84%
|
|
|
|
1.12%
|
|
|
|
Credit Suisse First Boston Institutional Leveraged Loan Index
(reflects no deduction for fees, expenses or taxes)**
|
|
|
12.28%
|
|
|
|
0.59%
|
|
|
|
Credit Suisse First Boston Leveraged Loan Index (reflects no
deduction for fees, expenses or taxes)
|
|
|
44.87%
|
|
|
|
2.85%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Since inception of the I Shares of the Fund on
March 1, 2006. Benchmark returns since February 28,
2006 (benchmark returns available only on a month end basis).
|
|
**
|
Effective January 31, 2010, the Fund transitioned its
benchmark from the Credit Suisse First Boston Leveraged Loan
Index to the Credit Suisse First Boston Institutional Leveraged
Loan Index as this index is more reflective of the Funds
composition.
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. Michael McEachern, CFA, President and Senior Portfolio
Manager of Seix, has co-managed the Fund since its inception.
Mr. George Goudelias currently serves as Managing Director
of Seix and has co-managed the Fund since its inception.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
High Yield/Global
Funds
|
|
33
|
SEIX GLOBAL
STRATEGY FUND
Summary
Section
A Shares
and I Shares
Investment
Objective
The Seix Global Strategy Fund (the Fund) seeks solid
positive returns with limited downside risk from capital
appreciation and current income.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
0.60%
|
|
|
|
0.60%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.41%
|
|
|
|
0.41%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.15%
|
|
|
|
0.15%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.46%
|
|
|
|
1.16%
|
|
Fee Waivers and/or Expense
Reimbursements(1)
|
|
|
(0.18)%
|
|
|
|
(0.18)%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waiver
and/or Expense Reimbursements
|
|
|
1.28%
|
|
|
|
0.98%
|
|
|
|
(1) |
The Adviser and the Subadviser have contractually agreed to
waive fees and reimburse expenses until at least August 1,
2011 in order to keep Total Annual Fund Operating Expenses
(excluding, as applicable, taxes, brokerage commissions,
substitute dividend expenses on securities sold short,
extraordinary expenses and underlying fund fees and expenses)
from exceeding 1.13% and 0.83% for the A and I Shares,
respectively. This agreement shall terminate upon the
termination of the Investment Advisory Agreement between
RidgeWorth Funds and the Adviser, or it may be terminated upon
written notice to the Adviser by RidgeWorth Funds.
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
599
|
|
|
$
|
898
|
|
|
$
|
1,218
|
|
|
$
|
2,124
|
|
I Shares
|
|
$
|
100
|
|
|
$
|
351
|
|
|
$
|
621
|
|
|
$
|
1,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 0% of the average value
of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests primarily in debt
securities of issuers worldwide (including emerging markets) and
foreign currencies. The Funds investments may include debt
securities issued by domestic and foreign governments and their
agencies and authorities, and corporations, and may be
denominated in U.S. dollars or other currencies. The Fund
focuses primarily on investment grade and may also invest
significantly in below investment grade securities that are
rated by a nationally recognized statistical rating
organization, or if no such rating exists, securities that are
deemed to be of comparable quality by the Subadviser. Such below
investment grade securities are commonly known as junk
bonds and offer greater risks than investment grade debt
securities. The Fund may invest in debt securities with a range
of maturities from short to long term. The Funds
investments in foreign currency
|
|
|
34
|
|
High Yield/Global Funds
|
SEIX GLOBAL
STRATEGY FUND
may include buying and selling currency on a spot basis.
To implement its investment strategy, the Fund may enter into
foreign currency forward contracts and will buy or sell
derivative instruments (such as credit linked notes, futures,
options, inverse floaters, swaps, including credit default swaps
and warrants) to use as a substitute for a purchase or sale of a
position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks.
For example, there are instances in which the derivatives market
is more liquid and less volatile than the market for the
underlying fixed income instruments and currencies. In other
cases, the only way to gain exposure to some foreign markets is
to purchase foreign currency forward contracts and other
derivatives. When derivatives are used as the primary or only
means by which the Fund implements its investment strategy, the
Fund may be significantly invested in money market instruments
such as U.S. Treasuries or Shares of RidgeWorth Money
Market Funds. The Fund may count the value of derivatives as
applying to its requirement to invest primarily in debt
securities of issuers worldwide and foreign currencies where the
derivatives underlying securities attributes meet those
described in the first paragraph. Portfolio turnover rate is
calculated without regard to cash instruments or derivatives. If
such instruments were included, the Funds portfolio
turnover rate would be significantly higher.
In selecting investments for purchase and sale, the Subadviser
identifies investment opportunities by beginning with country
selection, then assessing local markets for upside potential and
downside risk. Factors considered include prospects for a
countrys political stability, currency exchange rates,
interest rates, inflation, relative economic growth and
governmental policies.
The Subadviser may sell a security if it no longer believes the
security will contribute to meeting the investment objective of
the Fund. In considering whether to sell a security, the
Subadviser may evaluate, among other things, the condition of
foreign economies, and meaningful changes in the issuers
financial condition and competitiveness.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Foreign Securities Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments and
delays in enforcement of rights. These risks are increased for
investments in emerging markets.
Foreign Currency Risk: Changes in foreign currency
exchange rates will affect the value of what the fund owns and
the price of the Funds shares. Generally, when the
U.S. dollar rises in value against a foreign currency, an
investment in that country loses value because that currency is
worth fewer U.S. dollars. Currency trends are unpredictable
and currency rates may fluctuate significantly for a number of
reasons, including changes in interest rates, intervention (or
failure to intervene) by U.S. or foreign governments or
central banks, or by currency controls or political developments.
Foreign Currency Forward Contracts Risk: The technique of
purchasing foreign currency forward contracts to obtain exposure
to currencies or manage currency risk may not be effective. In
addition, currency markets generally are not as regulated as
securities markets.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Swap
|
|
|
High Yield/Global
Funds
|
|
35
|
SEIX GLOBAL
STRATEGY FUND
agreements may also subject the Fund to the risk that the
counterparty to the transaction may not meet its obligations.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as foreign currency forward contracts, swaps
and futures may create leveraging risk. Leverage may cause the
Fund to be more volatile than if the Fund had not been
leveraged. This is because leverage tends to exaggerate the
effect of any increase or decrease in the value of the
Funds portfolio securities.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Non-Diversification Risk: The Fund is non-diversified,
which means that it may invest in the securities of relatively
few issuers. As a result, the Fund may be more susceptible to a
single adverse economic, political or regulatory occurrence
affecting one or more of these issuers, and may experience
increased volatility due to its investments in those securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares for the 2009 calendar year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
1.72%
|
|
-3.30%
|
(6/30/09)
|
|
(9/30/09)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
12.45%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
Inception*
|
|
|
I Shares Returns Before Taxes
|
|
|
-1.75%
|
|
|
|
3.51%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
-2.86%
|
|
|
|
2.39%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
-1.15%
|
|
|
|
2.34%
|
|
|
|
J.P. Morgan EMBI+ Index
|
|
|
25.95%
|
|
|
|
8.78%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
The Fund commenced operations on September 8, 2008.
Index returns since August 31, 2008 (benchmark returns
available only on a month-end basis).
|
|
|
|
36
|
|
High Yield/Global Funds
|
SEIX GLOBAL
STRATEGY FUND
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Funds management team since the Funds
inception. Mr. Adrien Webb, CFA, Managing Director and
Senior Portfolio Manager, has been a member of the Funds
management team since the Funds inception. Mr. Seth
Antiles, Ph.D., Managing Director and Portfolio Manager,
has been a member of the Funds management team since the
Funds inception.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
High Yield/Global
Funds
|
|
37
|
SEIX HIGH YIELD
FUND
Summary
Section
A Shares,
R Shares and I Shares
Investment
Objective
The Seix High Yield Fund (the Fund) seeks high
income and, secondarily, capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
R Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
R Shares
|
|
I Shares
|
Management Fees
|
|
|
0.43%
|
|
|
|
0.43%
|
|
|
|
0.43%
|
|
Distribution (12b-1) Fees
|
|
|
0.25%
|
|
|
|
0.50%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.06%
|
|
|
|
0.13%
|
|
|
|
0.06%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.01%
|
|
|
|
0.01%
|
|
|
|
0.01%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.75%
|
|
|
|
1.07%
|
|
|
|
0.50%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
548
|
|
|
$
|
703
|
|
|
$
|
872
|
|
|
$
|
1,361
|
|
|
|
R Shares
|
|
$
|
109
|
|
|
$
|
340
|
|
|
$
|
590
|
|
|
$
|
1,306
|
|
|
|
I Shares
|
|
$
|
51
|
|
|
$
|
160
|
|
|
$
|
280
|
|
|
$
|
628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 116% of the average
value of its portfolio.
Principal
Investment Strategies
The Fund invests in various types of lower rated, higher
yielding debt instruments, including corporate obligations,
floating rate loans and other debt obligations. The Fund may
invest in debt obligations of U.S. and
non-U.S. issuers,
including emerging market debt. The Funds investment in
non-U.S. issuers
may at times be significant. Under normal circumstances, the
Fund invests at least 80% of its net assets in high yield
securities. These securities will be chosen from the broad
universe of available U.S. dollar denominated, high yield
securities rated below investment grade by either Moodys
Investors Service or Standard & Poors Ratings
Services or unrated securities that the Subadviser believes are
of comparable quality. Such securities are commonly known as
junk bonds and offer greater risks than investment
grade bonds. Although the Fund seeks to achieve its investment
objective primarily through investment in high yield securities,
the Fund may invest up to 20% of its net assets in investment
grade securities. The Fund will be managed with a duration that
is close to the Funds comparative benchmark, the Merrill
Lynch U.S. High Yield BB/B Rated Constrained Index, which
is generally between 3 and 6 years. Duration measures a
bond or Funds sensitivity to interest rate changes and is
expressed as a number of years. The higher the number, the
|
|
|
38
|
|
High Yield/Global Funds
|
SEIX HIGH YIELD
FUND
greater the risk. Under normal circumstances, for example, if a
portfolio has a duration of five years, its value will change by
5% if rates change by 1%. Shorter duration bonds result in lower
expected volatility. The Fund may also invest a portion of its
assets in securities that are restricted as to resale.
In selecting investments for purchase and sale, the Funds
subadviser, Seix Investment Advisors LLC (the
Subadviser) employs a research driven process
designed to identify value areas within the high yield market
and attempts to identify lower rated, higher yielding bonds
offering above average total return. Additionally, the
Subadviser will emphasize securities which are within the
segment of the high yield market it has targeted for emphasis,
which are BB and B rated issuers. The
Subadviser seeks to identify securities which generally seek to
meet the following criteria: (1) industries that have sound
fundamentals; (2) companies that have good business
prospects and increasing credit strength; and (3) issuers
with stable or growing cash flows and effective management.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including
credit default swaps, futures, credit linked notes, options,
inverse floaters and warrants) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate or credit risks. The Fund may count the
value of certain derivatives with below investment grade fixed
income characteristics towards its policy to invest, under
normal circumstances, at least 80% of its net assets in high
yield securities.
Principal
Investment Risks
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan. These requirements may limit
the eligible pool of potential bank loan holders by placing
conditions or restrictions on sales and purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may negatively impact the liquidity of loans. Difficulty in
selling a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which may require the Fund to
replace a particular loan with a lower-yielding security. There
may be less extensive public information available with respect
to loans than for rated, registered or exchange listed
securities. The Fund may assume the credit risk of the
administrative agent in addition to the borrower, and
investments in loan assignments may involve the risks of being a
lender.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Foreign Securities Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments and
delays in enforcement of rights. These risks are increased for
investments in emerging markets.
|
|
|
High Yield/Global
Funds
|
|
39
|
SEIX HIGH YIELD
FUND
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Swap agreements may also subject the Fund to the
risk that the counterparty to the transaction may not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as foreign currency forward contracts, swaps
and futures may create leveraging risk. Leverage may cause the
Fund to be more volatile than if the Fund had not been
leveraged. This is because leverage tends to exaggerate the
effect of any increase or decrease in the value of the
Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund began
operating on October 11, 2004. Performance between
December 29, 2000 to October 11, 2004 is that of the
I Shares of the Seix High Yield Fund, the Funds
predecessor. At the close of business on July 31, 2009, all
outstanding C Shares converted to R Shares.
R Shares performance shown below prior to that date is that
of C Shares and has not been adjusted to reflect
R Shares expenses. The performance of the predecessor
funds I Shares has not been adjusted to reflect the
Funds A Share or R Share expenses. If it had
been, the performance would have been lower.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
11.39%
|
|
-14.52%
|
(6/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was
3.56%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
|
|
|
40
|
|
High Yield/Global Funds
|
SEIX HIGH YIELD
FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
5 Years
|
|
Inception*
|
|
|
A Shares Returns Before Taxes
|
|
|
29.28%
|
|
|
|
2.93%
|
|
|
|
6.04%
|
|
|
|
R Shares Returns Before Taxes
|
|
|
34.66%
|
|
|
|
3.10%
|
|
|
|
6.22%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
35.70%
|
|
|
|
4.03%
|
|
|
|
6.78%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
31.58%
|
|
|
|
1.23%
|
|
|
|
4.03%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
22.89%
|
|
|
|
1.77%
|
|
|
|
4.17%
|
|
|
|
Bank of America Merrill Lynch U.S. High Yield BB/B Rated
Constrained Index (reflects no deduction for fees, expenses or
taxes)
|
|
|
46.06%
|
|
|
|
5.49%
|
|
|
|
7.28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since inception of the predecessor fund on December 29,
2000. Benchmark returns since December 31, 2000 (benchmark
returns available only on a month-end basis).
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. Michael McEachern, CFA, President and Senior Portfolio
Manager, has been a member of the Funds management team
since the Funds inception. Mr. Michael Kirkpatrick,
Managing Director and Senior Portfolio Manager, has been a
member of the Funds management team since 2007.
Mr. Brian Nold, M.D., Managing Director and Senior
Portfolio Manager, has been a member of the Funds
management team since 2007.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and R Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
R Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
GEORGIA
TAX-EXEMPT BOND FUND
Summary
Section
A Shares
and I Shares
Investment
Objective
The Georgia Tax-Exempt Bond Fund (the Fund) seeks
current income exempt from federal and state income taxes for
Georgia residents without undue risk.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
0.55%
|
|
|
|
0.55%
|
|
Distribution (12b-1) Fees
|
|
|
0.15%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.06%
|
|
|
|
0.06%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.76%
|
|
|
|
0.61%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
549
|
|
|
$
|
706
|
|
|
$
|
877
|
|
|
$
|
1,372
|
|
I Shares
|
|
$
|
62
|
|
|
$
|
195
|
|
|
$
|
340
|
|
|
$
|
762
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 45% of the average value
of its portfolio.
Principal
Investment Strategies
The Fund invests at least 80% of its net assets in municipal
securities with income exempt from federal and Georgia income
taxes. Issuers of these securities can be located in Georgia,
Puerto Rico and other U.S. territories and possessions. In
addition, the Fund may invest up to 20% of its assets in
securities subject to the alternative minimum tax or in certain
taxable debt securities.
In selecting investments for purchase and sale, the Funds
subadviser, StableRiver Capital Management LLC (the
Subadviser) tries to limit risk as much as possible.
Based on the Subadvisers analysis of municipalities,
credit risk, market trends and investment cycles, the Subadviser
attempts to invest more of the Funds assets in undervalued
market sectors and less in overvalued sectors. The Subadviser
tries to diversify the Funds holdings within Georgia. The
Subadviser also tries to identify and invest in municipal
issuers with improving credit and avoid those with deteriorating
credit. The Subadviser may retain securities if the rating of
the security falls below investment grade and the Subadviser
deems retention of the security to be in the best interests of
the Fund.
In addition, to implement its investment strategy, the Fund may
buy or sell, derivative instruments (such as swaps, including
interest rate swaps, futures, options
GEORGIA
TAX-EXEMPT BOND FUND
and inverse floaters) to use as a substitute for a purchase or
sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate risk.
Principal
Investment Risks
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Concentration Risk: The Funds concentration of
investments in securities of issuers located in Georgia subjects
the Fund to economic and government policies within Georgia.
Municipal Securities Risk: Litigation, legislation or
other political events, local business or economic conditions or
the bankruptcy of the issuer could have a significant effect on
an issuers ability to make payments of principal
and/or
interest or otherwise affect the value of such securities. The
value of these securities may decline because of a market
perception that the issuer may not make payments on time.
Derivatives Risk: Because the Fund may invest in derivatives, it
is exposed to additional volatility and potential loss.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as swaps and futures may create leveraging
risk. Leverage may cause the Fund to be more volatile than if
the Fund had not been leveraged. This is because leverage tends
to exaggerate the effect of any increase or decrease in the
value of the Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
6.69%
|
|
-3.42%
|
(9/30/09)
|
|
(9/30/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was
2.55%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax
GEORGIA
TAX-EXEMPT BOND FUND
returns are shown for only the I Shares. After-tax returns
for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
6.57%
|
|
|
|
2.41%
|
|
|
|
4.03%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
11.92%
|
|
|
|
3.58%
|
|
|
|
4.73%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
11.92%
|
|
|
|
3.57%
|
|
|
|
4.68%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
9.20%
|
|
|
|
3.59%
|
|
|
|
4.61%
|
|
|
|
Barclays Capital Municipal Bond Index (reflects no deduction for
fees, expenses or taxes)
|
|
|
12.91%
|
|
|
|
4.32%
|
|
|
|
5.75%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver Capital Management LLC is the Funds subadviser.
Portfolio
Management
Mr. Chris Carter, CFA, serves as Director of StableRiver
and has managed the Fund since August 2003.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
Capital gains, if any, will be distributed on an annual basis.
The Fund intends to distribute income that is exempt from
regular federal and Georgia income taxes. A portion of the
Funds distributions may be subject to Georgia or federal
income taxes or to the federal alternative minimum tax.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
HIGH GRADE
MUNICIPAL BOND FUND
Summary
Section
A Shares
and I Shares
Investment
Objective
The High Grade Municipal Bond Fund (the Fund) seeks
yield driven by seeking current income exempt from regular
federal income tax other than the alternative minimum tax while
preserving capital.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
0.55%
|
|
|
|
0.55%
|
|
Distribution (12b-1) Fees
|
|
|
0.15%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.11%
|
|
|
|
0.11%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.02%
|
|
|
|
0.02%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.83%
|
|
|
|
0.68%
|
|
Fee Waivers and/or Expense
Reimbursements(1)
|
|
|
(0.01)%
|
|
|
|
(0.01)%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses after Fee Waivers
and/or Expense Reimbursements
|
|
|
0.82%
|
|
|
|
0.67%
|
|
|
|
(1) |
The Adviser and the Subadviser have contractually agreed to
waive fees and reimburse expenses until at least August 1,
2011 in order to keep Total Annual Fund Operating Expenses
(excluding, as applicable, taxes, brokerage commissions,
substitute dividend expenses on securities sold short,
extraordinary expenses and acquired fund fees and expenses) from
exceeding 0.80% and 0.65% for the A and I Shares,
respectively. This agreement shall terminate upon the
termination of the Investment Advisory Agreement between
RidgeWorth Funds and the Adviser, or it may be terminated upon
written notice to the Adviser by RidgeWorth Funds.
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
555
|
|
|
$
|
726
|
|
|
$
|
913
|
|
|
$
|
1,451
|
|
I Shares
|
|
$
|
68
|
|
|
$
|
217
|
|
|
$
|
378
|
|
|
$
|
846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 123% of the average
value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in investment grade municipal securities, including
securities subject to the alternative minimum tax, with income
exempt from regular federal income tax. The Fund may invest up
to 20% of its assets in securities rated below investment grade
by either Moodys Investors Service or Standard &
Poors Ratings Services or unrated securities that the
Funds subadviser, StableRiver Capital Management LLC (the
Subadviser), believes are of comparable quality. Up
to 20% of the Funds assets may also be invested in certain
taxable debt securities.
In selecting investments for purchase and sale, the Subadviser
tries to limit risk as much as possible.
HIGH GRADE
MUNICIPAL BOND FUND
Based on the Subadvisers analysis of municipalities,
credit risk, market trends and investment cycles, the Subadviser
attempts to invest more of the Funds assets in undervalued
market sectors and less in overvalued sectors. The Subadviser
anticipates that the Funds average weighted maturity will
range from 5 to 25 years. The Subadviser may retain
securities if the rating of the security falls below investment
grade and the Subadviser deems retention of the security to be
in the best interests of the Fund.
Under normal circumstances, the Fund will invest at least 65% of
its assets in municipal securities insured or protected as to
timely payment of principal and interest. The Subadviser
considers insured or protected bonds to be those bonds covered
by a municipal bond insurance company, a recognized state credit
enhancement program, or in a pre-refunded position. These
situations reduce (but do not eliminate) credit risk.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including
interest rate swaps, futures, options and inverse floaters) to
use as a substitute for a purchase or sale of a position in the
underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate risk.
Principal
Investment Risks
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Municipal Securities Risk: Litigation, legislation or
other political events, local business or economic conditions or
the bankruptcy of the issuer could have a significant effect on
an issuers ability to make payments of principal or
interest or otherwise affect the value of such securities. The
value of these securities may decline because of a market
perception that the issuer may not make payments on time. These
securities are subject to the economic conditions and government
policies of their respective state or municipality.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as swaps and futures may create leveraging
risk. Leverage may cause the Fund to be more volatile than if
the Fund had not been leveraged. This is because leverage tends
to exaggerate the effect of any increase or decrease in the
value of the Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
HIGH GRADE
MUNICIPAL BOND FUND
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
7.78%
|
|
-3.04%
|
(9/30/09)
|
|
(9/30/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
4.40%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
6.74%
|
|
|
|
2.50%
|
|
|
|
4.31%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
12.23%
|
|
|
|
3.66%
|
|
|
|
5.00%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
12.23%
|
|
|
|
3.62%
|
|
|
|
4.88%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
9.35%
|
|
|
|
3.60%
|
|
|
|
4.77%
|
|
|
|
Barclays Capital Municipal Bond Index (reflects no deduction for
fees, expenses or taxes)
|
|
|
12.91%
|
|
|
|
4.32%
|
|
|
|
5.75%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver Capital Management LLC is the Funds subadviser.
Portfolio
Management
Mr. Ronald Schwartz, CFA, serves as Managing Director of
StableRiver and has managed the Fund since its inception in
January 1994.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment
HIGH GRADE
MUNICIPAL BOND FUND
adviser, the Fund, the Adviser or the Distributor may pay the
intermediary for the sale of Fund shares and related services.
These payments may create a conflict of interest by influencing
the broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
INVESTMENT GRADE
TAX-EXEMPT BOND FUND
Summary
Section
A Shares
and I Shares
Investment
Objective
The Investment Grade Tax-Exempt Bond Fund (the Fund)
seeks high total return through (i) current income that is
exempt from federal income taxes and (ii) capital
appreciation, while preserving the principal amount invested.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
|
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
|
|
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
|
|
Management Fees
|
|
|
0.49%
|
|
|
|
0.49%
|
|
|
|
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
None
|
|
|
|
|
|
Other Expenses
|
|
|
0.06%
|
|
|
|
0.08%
|
|
|
|
|
|
Acquired Fund Fees and Expenses
|
|
|
0.03%
|
|
|
|
0.03%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.88%
|
|
|
|
0.60%
|
|
|
|
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
561
|
|
|
$
|
742
|
|
|
$
|
939
|
|
|
$
|
1,508
|
|
I Shares
|
|
$
|
61
|
|
|
$
|
192
|
|
|
$
|
335
|
|
|
$
|
750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 169% of the average
value of its portfolio.
Principal
Investment Strategies
The Fund invests at least 80% of its net assets in investment
grade tax-exempt obligations, like municipal securities. The
issuers of these securities may be located in any
U.S. state, territory or possession. In addition, the Fund
may invest up to 20% of its assets in securities subject to the
alternative minimum tax or in certain taxable debt securities.
In selecting investments for purchase and sale, the Funds
subadviser, StableRiver Capital Management LLC (the
Subadviser) tries to limit risk as much as possible.
Based on the Subadvisers analysis of municipalities,
credit risk, market trends and investment cycles, the Subadviser
attempts to invest more of the Funds assets in undervalued
market sectors and less in overvalued sectors. The Subadviser
also tries to identify and invest in municipal issuers with
improving credit and avoid those with deteriorating credit. The
Subadviser anticipates that the Funds average weighted
maturity will range from 4 to 10 years. The Fund invests in
securities rated investment grade by at least one national
securities rating agency or unrated securities that the
Subadviser believes are of comparable quality. The Subadviser
may retain securities if the rating of the security falls below
investment grade and the
INVESTMENT GRADE
TAX-EXEMPT BOND FUND
Subadviser deems retention of the security to be in the best
interests of the Fund.
In addition, to implement its investment strategy, the Fund may
buy or sell, derivative instruments (such as swaps, including
interest rate swaps, futures, options and inverse floaters) to
use as a substitute for a purchase or sale of a position in the
underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate risk.
Principal
Investment Risks
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Municipal Securities Risk: Litigation, legislation or
other political events, local business or economic conditions or
the bankruptcy of the issuer could have a significant effect on
an issuers ability to make payments of principal or
interest or otherwise affect the value of such securities. The
value of the securities may decline because of a market
perception that the issuer may not make payments on time. These
securities are subject to the economic conditions and government
policies of their respective state or municipality.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as swaps and futures may create leveraging
risk. Leverage may cause the Fund to be more volatile than if
the Fund had not been leveraged. This is because leverage tends
to exaggerate the effect of any increase or decrease in the
value of the Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
6.32%
|
|
-2.31%
|
(9/30/09)
|
|
(9/30/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
3.29%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares
INVESTMENT GRADE
TAX-EXEMPT BOND FUND
through tax deferred arrangements, such as 401(k) plans or
individual retirement accounts. After-tax returns are shown for
only the I Shares. After-tax returns for other classes will
vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
4.67%
|
|
|
|
3.17%
|
|
|
|
4.79%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
10.26%
|
|
|
|
4.51%
|
|
|
|
5.69%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
9.72%
|
|
|
|
4.29%
|
|
|
|
5.21%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
7.86%
|
|
|
|
4.19%
|
|
|
|
5.08%
|
|
|
|
Barclays Capital Municipal Bond 1-15 Year Blend Index
(reflects no deduction for fees, expenses or taxes)
|
|
|
8.90%
|
|
|
|
4.40%
|
|
|
|
5.42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver Capital Management LLC is the Funds subadviser.
Portfolio
Management
Mr. Ronald Schwartz, CFA, serves as Managing Director of
StableRiver and has managed the Fund since its inception in June
1992.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Fund intends to distribute income that is exempt from
regular federal income taxes. A portion of the Funds
distributions may be subject to federal income taxes or to the
federal alternative minimum tax.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
MARYLAND
MUNICIPAL BOND FUND
Summary
Section
A Shares
and I Shares
Investment
Objective
The Maryland Municipal Bond Fund (the Fund) seeks
high current income exempt from regular federal income tax and
Maryland income tax, consistent with preservation of capital.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
|
Management Fees
|
|
|
0.55%
|
|
|
|
0.55%
|
|
Distribution (12b-1) Fees
|
|
|
0.15%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.10%
|
|
|
|
0.10%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.03%
|
|
|
|
0.03%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.83%
|
|
|
|
0.68%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
556
|
|
|
$
|
727
|
|
|
$
|
914
|
|
|
$
|
1,452
|
|
I Shares
|
|
$
|
69
|
|
|
$
|
218
|
|
|
$
|
379
|
|
|
$
|
847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 35% of the average value
of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in municipal securities, including securities subject
to the alternative minimum tax, with income exempt from regular
federal income tax and Maryland income tax. Issuers of these
securities can be located in Maryland, Puerto Rico and other
U.S. territories and possessions. In addition, the Fund may
invest up to 20% of its assets in certain taxable debt
securities.
In selecting investments for purchase and sale, the Funds
subadviser, StableRiver Capital Management LLC (the
Subadviser) tries to limit risk by buying primarily
investment grade securities. Based on the Subadvisers
analysis of municipalities, credit risk, market trends and
investment cycles, the subadviser attempts to invest more of the
Funds assets in undervalued sectors and less in overvalued
sectors. There are no limits on the Funds average weighted
maturity or on the remaining maturities of individual
securities. The Subadviser may retain securities if the rating
of the security falls below investment grade and the Subadviser
deems retention of the security to be in the best interests of
the Fund.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including
interest rate swaps, futures, options and inverse floaters) to
use as a substitute for a
MARYLAND
MUNICIPAL BOND FUND
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate risk.
Principal
Investment Risks
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. Interest rate risk is
generally higher for investments with longer maturities or
durations.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Concentration Risk: The Funds concentration of
investments in securities of issuers located in Maryland
subjects the Fund to economic and government policies within
Maryland.
Municipal Securities Risk: Litigation, legislation or
other political events, local business or economic conditions or
the bankruptcy of the issuer could have a significant effect on
an issuers ability to make payments of principal
and/or
interest or otherwise affect the value of such securities. The
value of these securities may decline because of a market
perception that the issuer may not make payments on time.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Leverage Risk: Certain transactions and the use of
derivatives such as swaps and futures may create leveraging
risk. Leverage may cause the Fund to be more volatile than if
the Fund had not been leveraged. This is because leverage tends
to exaggerate the effect of any increase or decrease in the
value of the Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
6.09%
|
|
-2.31%
|
(9/30/09)
|
|
(9/30/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
2.60%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
6.88%
|
|
|
|
3.16%
|
|
|
|
4.78%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
12.24%
|
|
|
|
4.18%
|
|
|
|
5.29%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
12.24%
|
|
|
|
4.13%
|
|
|
|
5.09%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
9.32%
|
|
|
|
4.09%
|
|
|
|
4.97%
|
|
|
|
Barclays Capital Municipal Bond Index (reflects no deduction for
fees, expenses or taxes)
|
|
|
12.91%
|
|
|
|
4.32%
|
|
|
|
5.75%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARYLAND
MUNICIPAL BOND FUND
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver Capital Management LLC is the Funds subadviser.
Portfolio
Management
Mr. George E. Calvert, Jr., Director of StableRiver,
has managed the Fund since August 2000.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Fund intends to distribute income that is exempt from
regular federal and Maryland income taxes. A portion of the
Funds distributions may be subject to Maryland or federal
income taxes or to the federal alternative minimum tax.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
NORTH CAROLINA
TAX-EXEMPT BOND FUND
Summary
Section
A Shares
and I Shares
Investment
Objective
The North Carolina Tax-Exempt Bond Fund (the Fund)
seeks current income exempt from federal and state income taxes
for North Carolina residents without undue risk.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
0.55%
|
|
|
|
0.55%
|
|
Distribution (12b-1) Fees
|
|
|
0.15%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.07%
|
|
|
|
0.07%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.01%
|
|
|
|
0.01%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.78%
|
|
|
|
0.63%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
551
|
|
|
$
|
712
|
|
|
$
|
888
|
|
|
$
|
1,395
|
|
I Shares
|
|
$
|
64
|
|
|
$
|
202
|
|
|
$
|
351
|
|
|
$
|
786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 65% of the average value
of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in municipal securities with income exempt from
federal and North Carolina income taxes. Issuers of these
securities can be located in North Carolina, Puerto Rico and
other U.S. territories and possessions. In addition, the
Fund may invest up to 20% of its assets in securities subject to
the alternative minimum tax or in certain taxable debt
securities.
In selecting investments for purchase and sale, the Funds
subadviser, StableRiver Capital Management LLC (the
Subadviser), tries to limit risk as much as
possible. Based on the Subadvisers analysis of
municipalities, credit risk, market trends and investment
cycles, the Subadviser attempts to invest more of the
Funds assets in undervalued market sectors and less in
overvalued sectors. The Subadviser tries to diversify the
Funds holdings within North Carolina. The Subadviser also
tries to identify and invest in municipal issuers with improving
credit and avoid those with deteriorating credit. The Subadviser
may retain securities if the rating of the security falls below
investment grade and the Subadviser deems retention of the
security to be in the best interests of the Fund.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including
interest rate swaps, futures, options
NORTH CAROLINA
TAX-EXEMPT BOND FUND
and inverse floaters) to use as a substitute for a purchase or
sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate risk.
Principal
Investment Risks
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
Securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Concentration Risk: The Funds concentration of
investments in securities of issuers located in North Carolina
subjects the Fund to economic and government policies of North
Carolina.
Municipal Securities Risk: Litigation, legislation or
other political events, local business or economic conditions or
the bankruptcy of the issuer could have a significant effect on
an issuers ability to make payments of principal
and/or
interest or otherwise affect the value of such securities. The
value of these securities may decline because of a market
perception that the issuer may not make payments on time.
Non-Diversification Risk: The Fund is non-diversified,
which means that it may invest in the securities of relatively
few issuers. As a result, the Fund may be more susceptible to a
single adverse economic or regulatory occurrence affecting one
or more of these issuers, and may experience increased
volatility due to its investments in those securities.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Leverage Risk: Certain transactions and the use of
derivatives such as swaps and futures may create leveraging
risk. Leverage may cause the Fund to be more volatile than if
the Fund had not been leveraged. This is because leverage tends
to exaggerate the effect of any increase or decrease in the
value of the Funds portfolio securities.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund
commenced operations on March 21, 2005. Performance between
January 8, 2004 and March 21, 2005 is that of the CCMI
Tax-Exempt North Carolina Bond Fund, the Funds
predecessor. The performance of the predecessor fund has not
been adjusted to reflect the Funds A Share expenses.
If it had been, performance would have been lower.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
6.54%
|
|
-3.25%
|
(9/30/09)
|
|
(9/30/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
2.23%.
|
NORTH CAROLINA
TAX-EXEMPT BOND FUND
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
5 Years
|
|
Inception*
|
|
|
A Shares Returns Before Taxes
|
|
|
6.73%
|
|
|
|
2.63%
|
|
|
|
2.78%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
12.02%
|
|
|
|
3.66%
|
|
|
|
3.65%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
12.01%
|
|
|
|
3.64%
|
|
|
|
3.63%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
9.21%
|
|
|
|
3.62%
|
|
|
|
3.59%
|
|
|
|
Barclays Capital Municipal Bond Index (reflects no deduction for
fees, expenses or taxes)
|
|
|
12.91%
|
|
|
|
4.32%
|
|
|
|
4.29%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since inception of the predecessor fund on January 8,
2004.
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver Capital Management LLC is the Funds subadviser.
Portfolio
Management
Mr. Chris Carter, CFA, Director of StableRiver, has managed
the Fund since March 2005.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Fund intends to distribute income that is exempt from
regular federal and North-Carolina income taxes. A portion of
the Funds distributions may be subject to North-Carolina
or federal income taxes or to the federal alternative minimum
tax.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
VIRGINIA
INTERMEDIATE MUNICIPAL BOND FUND
Summary
Section
A Shares
and I Shares
Investment
Objective
The Virginia Intermediate Municipal Bond Fund (the
Fund) seeks high current income exempt from federal
and Virginia income taxes, consistent with preservation of
capital.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
4.75%
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
0.55%
|
|
|
|
0.55%
|
|
Distribution (12b-1) Fees
|
|
|
0.15%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.06%
|
|
|
|
0.06%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.02%
|
|
|
|
0.02%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.78%
|
|
|
|
0.63%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
551
|
|
|
$
|
712
|
|
|
$
|
888
|
|
|
$
|
1,395
|
|
I Shares
|
|
$
|
64
|
|
|
$
|
202
|
|
|
$
|
351
|
|
|
$
|
786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 33% of the average value
of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in municipal securities, including securities subject
to the alternative minimum tax, with income exempt from regular
federal income tax and Virginia income tax. Issuers of these
securities can be located in Virginia, Puerto Rico and other
U.S. territories and possessions. In addition, the Fund may
invest up to 20% of its net assets in certain taxable debt
securities.
In selecting investments for purchase and sale, the Funds
subadviser, StableRiver Capital Management LLC (the
Subadviser), tries to limit risk by buying
investment grade securities. Based on the Subadvisers
analysis of municipalities, credit risk, market trends and
investment cycles, the subadviser attempts to invest more of the
Funds assets in undervalued sectors and less in overvalued
sectors. The Subadviser expects that the Funds average
weighted maturity will range from 5 to 10 years but there
is no limit on the maturities of individual securities. The
Subadviser may retain securities if the rating of the security
falls below investment grade and the Subadviser deems retention
of the security to be in the best interests of the Fund.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including
interest rate swaps, futures, options
VIRGINIA
INTERMEDIATE MUNICIPAL BOND FUND
and inverse floaters) to use as a substitute for a purchase or
sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate risk.
Principal
Investment Risks
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Concentration Risk: The Funds concentration of
investments in securities of issuers located in Virginia
subjects the Fund to economic and government policies of
Virginia.
Municipal Securities Risk: Litigation, legislation or
other political events, local business or economic conditions or
the bankruptcy of the issuer could have a significant effect on
an issuers ability to make payments of principal
and/or
interest or otherwise affect the value of such securities. The
value of these securities may decline because of a market
perception that the issuer may not make payments on time.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as swaps and futures may create leveraging
risk. Leverage may cause the Fund to be more volatile than if
the Fund had not been leveraged. This is because leverage tends
to exaggerate the effect of any increase or decrease in the
value of the Funds portfolio securities.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
4.47%
|
|
-2.08%
|
(9/30/09)
|
|
(6/30/04)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
2.37%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax
VIRGINIA
INTERMEDIATE MUNICIPAL BOND FUND
returns are shown for only the I Shares. After-tax returns
for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
2.95%
|
|
|
|
2.95%
|
|
|
|
4.25%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
8.34%
|
|
|
|
4.12%
|
|
|
|
4.86%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
8.30%
|
|
|
|
4.09%
|
|
|
|
4.68%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
6.79%
|
|
|
|
4.04%
|
|
|
|
4.58%
|
|
|
|
Barclays Capital Municipal Bond 1-15 Year Blend Index
(reflects no deduction for fees, expenses or taxes)
|
|
|
8.90%
|
|
|
|
4.40%
|
|
|
|
5.42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver Capital Management LLC is the Funds subadviser.
Portfolio
Management
Mr. George E. Calvert, Jr., Director of StableRiver,
has managed the Fund since August 2000.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Fund intends to distribute income that is exempt from
regular federal and Virginia income taxes. A portion of the
Funds distributions may be subject to Virginia or federal
income taxes or to the federal alternative minimum tax.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
SHORT-TERM BOND
FUND
Summary
Section
A Shares,
C Shares and I Shares
Investment
Objective
The Short-Term Bond Fund (the Fund) seeks high
current income, while preserving capital.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
2.50%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
0.40%
|
|
|
|
0.40%
|
|
|
|
0.40%
|
|
Distribution (12b-1) Fees
|
|
|
0.20%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.06%
|
|
|
|
0.06%
|
|
|
|
0.06%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.01%
|
|
|
|
0.01%
|
|
|
|
0.01%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.67%
|
|
|
|
1.47%
|
|
|
|
0.47%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
317
|
|
|
$
|
459
|
|
|
$
|
614
|
|
|
$
|
1,064
|
|
C Shares
|
|
$
|
250
|
|
|
$
|
465
|
|
|
$
|
803
|
|
|
$
|
1,757
|
|
I Shares
|
|
$
|
48
|
|
|
$
|
151
|
|
|
$
|
263
|
|
|
$
|
591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
317
|
|
|
$
|
459
|
|
|
$
|
614
|
|
|
$
|
1,064
|
|
C Shares
|
|
$
|
150
|
|
|
$
|
465
|
|
|
$
|
803
|
|
|
$
|
1,757
|
|
I Shares
|
|
$
|
48
|
|
|
$
|
151
|
|
|
$
|
263
|
|
|
$
|
591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 122% of the average
value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in a diversified portfolio of short-to medium-term
investment grade U.S. Treasury, corporate debt,
mortgage-backed and asset-backed securities. These securities
may be rated investment grade by at least one national
securities rating agency or may be unrated securities that the
Funds subadviser, StableRiver Capital Management LLC (the
Subadviser) believes are of comparable quality. The
Fund expects that it will normally maintain an effective
maturity of 3 years or less. The Fund may invest in foreign
securities, which at times may be significant.
In selecting securities for purchase and sale, the Subadviser
attempts to identify securities that are expected to offer a
comparably better investment return for a given level of risk.
For example, short-term bonds generally have better returns than
money market instruments, with a fairly modest increase in risk
and/or
volatility. The Subadviser manages the
SHORT-TERM BOND
FUND
Fund from a total return perspective. That is, the Subadviser
makes day-to-day investment decisions for the Fund with a view
towards maximizing returns. The Subadviser analyzes, among other
things, yields, market sectors and credit risk in an effort to
identify attractive investments with attractive risk/reward
trade-off.
The Subadviser may retain securities if the rating of the
security falls below investment grade and the Subadviser deems
retention of the security to be in the best interests of the
Fund.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including
credit default swaps, futures and options) to use as a
substitute for a purchase or sale of a position in the
underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate risk.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Foreign Securities Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments and
delays in enforcement of rights.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Swap agreements may also subject the Fund to the
risk that the counterparty to the transaction may not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as swaps and futures may create leveraging
risk. Leverage may cause the Fund to be more volatile than if
the Fund had not been leveraged. This is because leverage tends
to exaggerate the effect of any increase or decrease in the
value of the Funds portfolio securities.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
SHORT-TERM BOND
FUND
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
3.86%
|
|
-2.34%
|
(9/30/01)
|
|
(9/30/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was
2.61%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
5.51%
|
|
|
|
3.31%
|
|
|
|
3.66%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
6.25%
|
|
|
|
3.06%
|
|
|
|
3.36%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
8.46%
|
|
|
|
4.05%
|
|
|
|
4.13%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
7.24%
|
|
|
|
2.65%
|
|
|
|
2.65%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
5.47%
|
|
|
|
2.63%
|
|
|
|
2.64%
|
|
|
|
Barclays Capital 1-3 Year Government/Credit Index (reflects
no deduction for fees, expenses or taxes)
|
|
|
3.82%
|
|
|
|
4.32%
|
|
|
|
4.86%
|
|
|
|
Citigroup 1-3 Year Government/Credit Index (reflects no
deduction for fees, expenses or taxes)*
|
|
|
3.80%
|
|
|
|
4.35%
|
|
|
|
4.90%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Effective March 31, 2010, the Fund transitioned its
benchmark from the Citigroup 1-3 Year Government/Credit
Index to the Barclays Capital 1-3 Year Government/Credit
Index as it is more prominently used as the industry standard
for fixed income benchmarks.
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver Capital Management LLC is the Funds subadviser.
Portfolio
Management
The Fund is managed by a portfolio management team comprised of
Mr. H. Rick Nelson, Chief Executive Officer and Chief
Investment Officer of StableRiver and Managing Director of the
Adviser, Mr. Robert W. Corner, Managing Director of
StableRiver and Managing Director of the Adviser, and
Mr. Chad Stephens, Director of StableRiver and Vice
President of the Adviser. Mr. Nelson and Mr. Corner
have co-managed the Fund since 2003 while Mr. Stephens has
co-managed the Fund since 2008.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or
SHORT-TERM BOND
FUND
intermediary directly and follow its procedures for fund share
transactions. The Fund offers I Shares to financial
institutions and intermediaries for their own accounts or for
the accounts of customers for whom they may act as fiduciary
agent, investment adviser, or custodian. Please consult your
financial institution or intermediary to find out about how to
purchase I Shares of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
SHORT-TERM U.S.
TREASURY SECURITIES FUND
Summary
Section
A Shares,
C Shares and I Shares
Investment
Objective
The Short-Term U.S. Treasury Securities Fund (the
Fund) seeks high current income, while preserving
capital.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
2.50%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
0.40%
|
|
|
|
0.40%
|
|
|
|
0.40%
|
|
Distribution (12b-1) Fees
|
|
|
0.18%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.14%
|
|
|
|
0.14%
|
|
|
|
0.14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.72%
|
|
|
|
1.54%
|
|
|
|
0.54%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
322
|
|
|
$
|
474
|
|
|
$
|
641
|
|
|
$
|
1,122
|
|
C Shares
|
|
$
|
257
|
|
|
$
|
486
|
|
|
$
|
839
|
|
|
$
|
1,834
|
|
I Shares
|
|
$
|
55
|
|
|
$
|
173
|
|
|
$
|
302
|
|
|
$
|
677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
322
|
|
|
$
|
474
|
|
|
$
|
641
|
|
|
$
|
1,122
|
|
C Shares
|
|
$
|
157
|
|
|
$
|
486
|
|
|
$
|
839
|
|
|
$
|
1,834
|
|
I Shares
|
|
$
|
55
|
|
|
$
|
173
|
|
|
$
|
302
|
|
|
$
|
677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 147% of the average
value of its portfolio.
Principal
Investment Strategies
The Fund invests exclusively in short-term U.S. Treasury
securities (those with remaining maturities of 5 years or
less) and shares of registered money market funds that invest in
the foregoing. The Fund intends to maintain an average weighted
maturity from 1 to 3 years.
The Funds subadviser, StableRiver Capital Management LLC
(the Subadviser) manages the Fund from a total
return perspective. That is, the Subadviser makes day to day
investment decisions for the Fund with a view toward maximizing
total return. In selecting investments for purchase and sale,
the Subadviser attempts to identify U.S. Treasury
securities with maturities that offer a comparably better return
potential and yield than either shorter maturity or longer
maturity securities for a given level of interest rate risk.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative
SHORT-TERM U.S.
TREASURY SECURITIES FUND
instruments (such as futures, options and swaps) to use as a
substitute for a purchase or sale of a position in the
underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate risk.
Principal
Investment Risks
Short-term U.S. Government Debt Securities Risk:
Short-term U.S. Treasury securities may underperform other
segments of the fixed income market or the fixed income market
as a whole.
Interest Rate Risk: Debt securities will lose value
because of increases in interest rates. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can exhibit
price movements as a result of changing inflation expectations
and seasonal inflation patterns.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
7.00%
|
|
-0.94%
|
(3/31/09)
|
|
(6/30/04)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was
1.71%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
-2.26%
|
|
|
|
2.98%
|
|
|
|
3.33%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
-1.50%
|
|
|
|
2.74%
|
|
|
|
3.09%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
0.47%
|
|
|
|
3.70%
|
|
|
|
3.77%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
-0.11%
|
|
|
|
2.59%
|
|
|
|
2.54%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
0.33%
|
|
|
|
2.51%
|
|
|
|
2.49%
|
|
|
|
Barclays Capital 1-3 Year U.S. Treasury Index (reflects no
deduction for fees, expenses or taxes)*
|
|
|
0.80%
|
|
|
|
4.03%
|
|
|
|
4.51%
|
|
|
|
Citigroup 1-3 Year Treasury Index (reflects no deduction
for fees, expenses or taxes)*
|
|
|
0.72%
|
|
|
|
3.99%
|
|
|
|
4.46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Effective March 31, 2010, the Fund transitioned its
benchmark from the Citigroup 1-3 Year Treasury Index to the
Barclays Capital 1-3 Year Treasury Index as it is more
prominently used as the industry standard for fixed income
benchmarks.
|
SHORT-TERM U.S.
TREASURY SECURITIES FUND
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver Capital Management LLC is the Funds subadviser.
Portfolio
Management
The Fund is managed by a portfolio management team comprised of
Mr. H. Rick Nelson, Chief Executive Officer and Chief
Investment Officer of StableRiver and Managing Director of the
Adviser, Mr. Robert W. Corner, Managing Director of
StableRiver and Managing Director of the Adviser and
Mr. Chad Stephens, Director of StableRiver and Vice
President of the Adviser. Mr. Nelson and Mr. Stephens
have co-managed the Fund since 2005 while Mr. Corner has
co-managed the Fund since 2008.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
ULTRA-SHORT BOND
FUND
Summary
Section
I Shares
Investment
Objective
The Ultra-Short Bond Fund (the Fund) seeks high
current income consistent with preserving capital and
maintaining liquidity.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulations on
page 84 of the Funds Statement of Additional
Information.
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
I Shares
|
Management Fees
|
|
|
0.22%
|
|
Other Expenses
|
|
|
0.15%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.02%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.39%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
I Shares
|
|
$
|
40
|
|
|
$
|
125
|
|
|
$
|
219
|
|
|
$
|
493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 130% of the average
value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in short duration, investment grade money market and
fixed income securities including, but not limited to,
U.S. Treasury and agency securities, obligations of
supranational entities and foreign governments, domestic and
foreign corporate debt obligations, taxable municipal debt
securities, mortgage-backed and asset-backed securities,
repurchase agreements, and other mutual funds. The Funds
investment in foreign issuers may at times be significant. The
Fund normally expects to maintain an average effective duration
between 3 months and 1 year. Individual purchases will
generally be limited to securities with an effective duration of
less than 5 years. Duration measures a bond or Funds
sensitivity to interest rate changes and is expressed as a
number of years. The higher the number, the greater the risk.
Under normal circumstances, for example, if a portfolio has a
duration of five years, its value will change by 5% if rates
change by 1%. Shorter duration bonds result in lower expected
volatility.
In selecting investments for purchase and sale, the Funds
subadviser, StableRiver Capital Management LLC (the
Subadviser), attempts to maximize income by
identifying securities that offer an acceptable yield for a
given level of credit risk and maturity. The Subadviser attempts
to identify short duration securities that offer a comparably
better return potential and yield than money market funds. The
Subadviser may retain securities if the rating of the security
falls below investment grade and the Subadviser deems retention
of the security to be in the best interests of the Fund.
In addition, to implement its investment strategy, the Fund may
buy or sell, derivative instruments (such as swaps, including
credit default swaps, futures and options) to use as a
substitute for a purchase or sale of a position in the
underlying assets
and/or as
part of
ULTRA-SHORT BOND
FUND
a strategy designed to reduce exposure to other risks, such as
interest rate risk.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Short-term U.S. Government Debt Securities Risk:
Short-term U.S. government debt securities may underperform
other segments of the fixed income market or the fixed income
market as a whole.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Foreign Securities Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments and
delays in enforcement of rights.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Swap agreements may also subject the Fund to the
risk that the counterparty to the transaction may not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as swaps and futures may create leveraging
risk. Leverage may cause the Fund to be more volatile than if
the Fund had not been leveraged. This is because leverage tends
to exaggerate the effect of any increase or decrease in the
value of the Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
ULTRA-SHORT BOND
FUND
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
3.10%
|
|
-1.75%
|
(6/30/09)
|
|
(9/30/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
1.43%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
5 Years
|
|
Inception*
|
|
|
I Shares Returns Before Taxes
|
|
|
8.01%
|
|
|
|
3.76%
|
|
|
|
3.09%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
6.91%
|
|
|
|
2.34%
|
|
|
|
1.93%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
5.19%
|
|
|
|
2.37%
|
|
|
|
1.95%
|
|
|
|
Barclays Capital 3-6 Month U.S. Treasury Bill Index (reflects no
deductions for fees, expenses or taxes)
|
|
|
0.35%
|
|
|
|
3.29%
|
|
|
|
2.63%
|
|
|
|
Citigroup 6 Month U.S. Treasury Bill Index (reflects no
deductions for fees, expenses or taxes)**
|
|
|
0.47%
|
|
|
|
3.11%
|
|
|
|
2.50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Since inception of the I Shares on April 15,
2002.
|
|
**
|
Effective March 31, 2010, the Fund transitioned its
benchmark from the Citigroup 6 Month U.S. Treasury Bill Index to
the Barclays Capital 3-6 Month Treasury Bill Index as it is more
prominently used as the industry standard for fixed income
benchmarks.
|
Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver Capital Management LLC is the Funds subadviser.
Portfolio
Management
The Fund is managed by a portfolio management team comprised of
Mr. H. Rick Nelson, Chief Executive Officer and Chief
Investment Officer of StableRiver and Managing Director of the
Adviser, Mr. Robert W. Corner, Managing Director of
StableRiver and Managing Director of the Adviser and
Mr. Chad Stephens, Director of StableRiver and Vice
President of the Adviser. Mr. Nelson and Mr. Corner
have co-managed the Fund since 2004 while Mr. Stephens has
co-managed the Fund since 2006.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. The
Fund offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or
ULTRA-SHORT BOND
FUND
intermediary to find out about how to purchase I Shares of
the Fund.
There is no minimum initial investment amount for the
Funds I Shares. There are no minimums for subsequent
investments.
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
U.S. GOVERNMENT
SECURITIES ULTRA-SHORT BOND FUND
Summary
Section
I Shares
Investment
Objective
The U.S. Government Securities Ultra-Short Bond Fund (the
Fund) seeks high current income consistent with
preserving capital and maintaining liquidity.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 90
of the Funds prospectus and Rights of Accumulations on
page 84 of the Funds Statement of Additional
Information.
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
I Shares
|
Management Fees
|
|
|
0.20%
|
|
Other Expenses
|
|
|
0.14%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.02%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.36%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
I Shares
|
|
$
|
37
|
|
|
$
|
116
|
|
|
$
|
202
|
|
|
$
|
456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 119% of the average
value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in short duration U.S. Treasury securities,
U.S. agency securities, U.S. agency mortgage-backed
securities, repurchase agreements, other U.S. government
securities and shares of registered money market mutual funds
that invest in the foregoing. The Fund expects to maintain an
average effective duration between 3 months and
1 year. Individual purchases will generally be limited to
securities with an effective duration of less than 5 years.
Duration measures a bond or Funds sensitivity to interest
rate changes and is expressed as a number of years. The higher
the number, the greater the risk. Under normal circumstances,
for example, if a portfolio has a duration of five years, its
value will change by 5% if rates change by 1%. Shorter duration
bonds result in lower expected volatility.
In selecting securities for purchase and sale, the Funds
subadviser, StableRiver Capital Management LLC (the
Subadviser), attempts to maximize income by
identifying securities that offer an acceptable yield for a
given maturity.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate risk.
Principal
Investment Risks
Short-term U.S. Government Debt Securities Risk:
Short-term U.S. government debt securities may underperform
other segments of the fixed income market or the fixed income
market as a whole.
U.S. GOVERNMENT
SECURITIES ULTRA-SHORT BOND FUND
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
If market interest rates increase substantially and the
Funds adjustable-rate securities are not able to reset to
market interest rates during any one adjustment period, the
value of the Funds holdings and its net asset value may
decline until the rates are able to reset to market rates. In
the event of a dramatic increase in interest rates, the lifetime
limit on a securitys interest rate may prevent the rate
from adjusting to prevailing market rates. In such an event the
market value of the security could decline substantially and
affect the Funds net asset value.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as swaps and futures may create leveraging
risk. Leverage may cause the Fund to be more volatile than if
the Fund had not been leveraged. This is because leverage tends
to exaggerate the effect of any increase or decrease in the
value of the Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
2.14%
|
|
-0.13%
|
(3/31/09)
|
|
(6/30/04)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
0.94%.
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This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax
U.S. GOVERNMENT
SECURITIES ULTRA-SHORT BOND FUND
returns are shown for only the I Shares. After-tax returns
for other classes will vary.
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Since
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1 Year
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5 Years
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Inception*
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I Shares Returns Before Taxes
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5.39%
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4.33%
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3.49%
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I Shares Returns After Taxes on Distributions
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4.06%
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2.89%
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2.31%
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I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
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3.49%
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2.85%
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2.28%
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Barclays Capital 3-6 Month U.S. Treasury Bill Index (reflects no
deductions for fees, expenses or taxes)
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0.35%
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3.29%
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2.63%
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Citigroup 6 Month U.S. Treasury Bill Index (reflects no
deductions for fees, expenses or taxes)
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0.47%
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3.11%
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2.50%
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* |
Since the Inception of I Shares on April 11,
2002.
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** |
Effective March 31, 2010, the Fund transitioned its
benchmark from the Citigroup 6 Month U.S. Treasury Bill Index to
the Barclays Capital 3-6 Month Treasury Bill Index as it is more
prominently used as the industry standard for fixed income
benchmarks.
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Updated performance information is available by contacting the
RidgeWorth Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver Capital Management LLC is the Funds subadviser.
Portfolio
Management
The Fund is managed by a portfolio management team comprised of
Mr. H. Rick Nelson, Chief Executive Officer and Chief
Investment Officer of StableRiver and Managing Director of the
Adviser, Mr. Robert W. Corner, Managing Director of
StableRiver and Managing Director of the Adviser and
Mr. Chad Stephens, Director of StableRiver and Vice
President of the Adviser. Mr. Nelson and Mr. Corner
have co-managed the Fund since 2004 while Mr. Stephens has
co-managed the Fund since 2006.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. The
Fund offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
There is no minimum initial investment amount for the
Funds I Shares. There are no minimums for subsequent
investments.
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
MORE INFORMATION
ABOUT RISK
More Information
About Risk
Below Investment
Grade Risk
Corporate Bond Fund
Georgia Tax-Exempt Bond Fund
High Grade Municipal Bond Fund
High Income Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Investment Grade Tax-Exempt Bond Fund
Limited Duration Fund
Maryland Municipal Bond Fund
North Carolina Tax-Exempt Bond Fund
Seix Floating Rate High Income Fund
Seix Global Strategy Fund
Seix High Yield Fund
Short-Term Bond Fund
Total Return Bond Fund
Ultra-Short Bond Fund
Virginia Intermediate Municipal Bond Fund
High yield securities, also known as junk bonds,
involve greater risks of default or downgrade and are more
volatile than investment grade securities due to actual or
perceived changes in an issuers credit-worthiness. Issuers
of high yield securities may be more susceptible to economic
downturns and, therefore, may be unable to pay interest,
dividends or ultimately repay the principal upon maturity.
Discontinuation of these payments could adversely affect the
market value of the security. High yield securities may be less
liquid and a security whose credit rating has been lowered may
be particularly difficult to sell.
Derivatives
Risk
All Funds (except Corporate Bond Fund)
A derivative is a financial contract whose value adjusts in
accordance with the value of one or more underlying assets,
reference rates or indices. Derivatives (such as credit linked
notes, futures, options, inverse floaters, swaps and warrants)
may be used to attempt to achieve investment objectives or to
offset certain investment risks. These positions may be
established for hedging, substitution of a position in the
underlying asset, or for speculation purposes. Hedging involves
making an investment (e.g., in a futures contract) to reduce the
risk of adverse price movements in an already existing
investment position. Risks associated with the use of
derivatives include those associated with hedging and leveraging
activities:
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The success of a hedging strategy may depend on an ability to
predict movements in the prices of individual securities,
fluctuations in markets, and movements in interest rates.
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A Fund may experience losses over certain market movements that
exceed losses experienced by a fund that does not use
derivatives.
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There may be an imperfect or no correlation between the changes
in market value of the securities held by a Fund and the prices
of derivatives used to hedge those positions.
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There may not be a liquid secondary market for derivatives.
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Trading restrictions or limitations may be imposed by an
exchange.
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Government regulations may restrict trading in derivatives.
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The other party to an agreement (e.g., options or swaps) may
default; however, in certain circumstances, such counter-party
risk may be reduced by the creditworthiness of the counterparty
and/or using
an exchange as an intermediary.
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Because premiums or totals paid or received on derivatives are
small in relation to the market value of the underlying
investments, buying and selling derivatives can be more
speculative than investing directly in securities. In addition,
many types of derivatives have limited investment lives and may
expire or necessitate being sold at inopportune times.
The use of derivatives may cause a Fund to recognize higher
amounts of short-term capital gains, which are generally taxed
to shareholders at ordinary income tax rates.
Credit default swaps may involve greater risks than if a Fund
had invested in the asset directly. A Fund may be more exposed
to credit risk. In addition, a Fund may experience losses if the
Funds investment subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Total return swaps could result in losses if
their reference index, security or investments do not perform as
anticipated.
Leverage may cause a Fund to be more volatile than if the Fund
had not been leveraged. This is because leverage tends to
exaggerate the effect of any increase or decrease on the value
of a Funds portfolio
MORE INFORMATION
ABOUT RISK
securities. To limit leveraging risk, a Fund observes asset
segregation requirements to fully cover its future obligations.
By setting aside assets equal only to its net obligations under
certain derivative instruments, a Fund will have the ability to
employ leverage to a greater extent than if it were required to
segregate assets equal to the full notional value of such
derivative instruments.
Emerging Markets
Risk
High Income Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Seix Floating Rate High Income Fund
Seix Global Strategy Fund
Seix High Yield Fund
Short-Term Bond Fund
Total Return Bond Fund
Ultra-Short Bond Fund
Emerging market countries are countries that the World Bank or
the United Nations considers to be emerging or developing.
Emerging markets may be more likely to experience political
turmoil or rapid changes in market or economic conditions than
more developed countries. In addition, the financial stability
of issuers (including governments) in emerging market countries
may be more precarious than in other countries. As a result,
there will tend to be an increased risk of price volatility
associated with investments in emerging market countries, which
may be magnified by currency fluctuations relative to the
U.S. dollar. Governments of some emerging market countries
have defaulted on their bonds and may do so in the future.
Equity
Risk
High Income Fund
Seix Floating Rate High Income Fund
Seix High Yield Fund
Equity securities include public and privately issued equity
securities, common and preferred stocks, warrants, rights to
subscribe to common stock and convertible securities, as well as
instruments that attempt to track the price movement of equity
indices. Individual companies may report poor results or be
negatively affected by industry
and/or
economic trends and developments. The prices of securities
issued by such companies may suffer a decline in response. These
factors contribute to price volatility, which is the principal
risk of investing in funds that primarily hold equity
securities. Historically, the equity market has moved in cycles
and investments in equity securities and equity derivatives in
general are subject to market risks that may cause their prices
to fluctuate over time. The value of securities convertible into
equity securities, such as warrants or convertible debt, is also
affected by prevailing interest rates, the credit quality of the
issuer and any call provision. Fluctuations in the value of
equity securities in which a mutual fund invests will cause a
funds net asset value to fluctuate. An investment in a
portfolio of equity securities may be more suitable for
long-term investors who can bear the risk of these share price
fluctuations.
Exchange Traded
Fund Risk
All Funds
The Funds may purchase shares of exchange-traded funds
(ETFs) to gain exposure to a particular portion of
the market. ETFs are investment companies that are bought and
sold on a securities exchange. ETFs may track a securities
index, a particular market sector, or a particular segment of a
securities index or market sector. ETFs, like mutual funds, have
expenses associated with their operation, including advisory
fees. When the Fund invests in an ETF, in addition to directly
bearing expenses associated with its own operations, it will
bear a pro rata portion of the ETFs expense. The risks of
owning shares of an ETF generally reflect the risks of owning
the underlying securities the ETF is designed to track, although
lack of liquidity in an ETF could result in being more volatile
than the underlying portfolio of securities. In addition,
because of ETF expenses, compared to owning the underlying
securities directly, it may be more costly to own shares of an
ETF.
Fixed Income
Risk
All Funds
The prices of a Funds fixed income securities respond to
economic developments, particularly interest rate changes, as
well as to perceptions about the creditworthiness of individual
issuers, including governments. Generally, a Funds fixed
income securities will decrease in value if interest rates rise
and vice versa.
Long-term debt securities generally are more sensitive to
changes in interest rates, usually making them more volatile
than short-term debt securities and thereby increasing risk.
Debt securities are also subject to credit risk, which is the
possibility than an issuer will fail to make timely payments of
interest or principal, or go bankrupt. The
MORE INFORMATION
ABOUT RISK
lower the ratings of such debt securities, the greater their
risks. In addition, lower rated securities have higher risk
characteristics, and changes in economic conditions are likely
to cause issuers of these securities to be unable to meet their
obligations.
Debt securities are also subject to income risk, which is the
possibility that falling interest rates will cause a Funds
income to decline. Income risk is generally higher for
short-term bonds.
An additional risk of debt securities is reinvestment risk,
which is the possibility that a Fund may not be able to reinvest
interest or dividends earned from an investment in such a way
that they earn the same rate of return as the invested funds
that generated them. For example, falling interest rates may
prevent bond coupon payments from earning the same rate of
return as the original bond. Furthermore, pre-funded loans and
issues may cause a Fund to reinvest those assets at a rate lower
than originally anticipated.
Floating Rate
Loan Risk
High Income Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Seix Floating Rate High Income Fund
Seix Global Strategy Fund
Seix High Yield Fund
Total Return Bond Fund
Investments in floating rate loans are subject to interest rate
risk although the risk is less because the interest rate of the
loan adjusts periodically. Investments in floating rate loans
are also subject to credit risk. Many floating rate loans are
rated below investment grade or are unrated, therefore, a Fund
relies heavily on the analytical ability of the Funds
investment subadviser. Many floating rate loans share the same
risks as high yield securities, although these risks are reduced
when the floating rate loans are senior and secured as opposed
to many high yield securities that are junior and unsecured.
Floating rate loans are often subject to restrictions on resale
which can result in reduced liquidity. The risk is greater for
the Seix Floating Rate High Income Fund, due to its
concentration in these types of instruments. Borrowers may repay
principal faster than the scheduled due date which may result in
a Fund replacing that loan with a lower-yielding security.
Investment in loan participation interests may result in
increased exposure to financial services sector risk. A loan may
not be fully collateralized which may cause the loan to decline
significantly in value.
One lending institution acting as agent for all of the lenders
will generally be required to administer and manage the loan
and, with respect to collateralized loans, to service or monitor
the collateral. Investing in certain types of floating rate
loans, such as revolving credit facilities and unfunded loans,
creates a future obligation for a Fund. To avoid any leveraging
concerns, a Fund will segregate or earmark liquid assets with
the Funds custodian in amounts sufficient to fully cover
any future obligations.
Seix currently serves as collateral manager to six
collateralized loan obligation (CLO) CLO funds that
invest in bank loans. The trustees and custodians of the CLO
funds are not affiliated entities of the Adviser or Seix. In
addition, the Adviser serves as adviser to an account
established with its affiliate, SunTrust Equity Funding, LLC for
the purpose of purchasing high yield securities for subsequent
sale to these same CLO funds. Each of these transactions is
subject to the approval of the independent trustee of the
applicable CLO fund. In addition to disclosure to the trustee,
all such transactions are fully disclosed to potential investors
in the CLOs offering and disclosure documents.
In addition to the CLO funds, the Subadviser serves as
subadviser to an unaffiliated registered fund and as investment
manager to two unregistered funds that invest in bank loans. The
custodian and adviser for the unaffiliated registered fund are
not affiliated entities of the Adviser or Seix. The custodians
and administrators for the two unregistered funds are not
affiliated entities of the Adviser or Seix. There are no
trustees for the unregistered funds. Only the offshore entities
that are a part of one of the unregistered funds have
independent boards of directors that are not affiliated entities
of the Adviser or Subadviser. SunTrust Equity Funding, LLC does
not purchase assets for the unregistered funds.
As a result of these multiple investment-oriented and associated
relationships, there exists a potential risk that the portfolio
managers may favor other adviser and non-adviser contracted
businesses over a Fund.
Seix has created and implemented additional policies and
procedures designed to protect shareholders against such
conflicts; however, there can be no absolute guarantee that a
Fund will always participate in the same or similar investments
or receive equal or better individual investment allocations at
any given time.
MORE INFORMATION
ABOUT RISK
Foreign
Securities Risk
Corporate Bond Fund
High Income Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Limited Duration Fund
Seix Floating Rate High Income Fund
Seix Global Strategy Fund
Seix High Yield Fund
Short-Term Bond Fund
Total Return Bond Fund
Ultra-Short Bond Fund
Investments in securities of foreign companies or governments
can be more volatile than investments in U.S. companies or
governments. Diplomatic, political, or economic developments,
including nationalization or appropriation, unique to a country
or region will affect those markets and their issuers. Foreign
securities markets generally have less trading volume and less
liquidity than U.S. markets.
The value of securities denominated in foreign currencies, and
of dividends from such securities, can change significantly when
foreign currencies strengthen or weaken relative to the
U.S. dollar. As a result, changes in the value of those
currencies compared to the U.S. dollar may affect
(positively or negatively) the value of a Funds
investment. Foreign currency exchange rates may fluctuate
significantly. They are determined by supply and demand in the
foreign exchange markets, the relative merits of investments in
different countries, actual or perceived changes in interest
rates, and other complex factors. Currency exchange rates also
can be affected unpredictably by intervention (or the failure to
intervene) by U.S. or foreign governments or central banks
or by currency controls or political developments. Currency
movements may happen separately from and in response to events
that do not otherwise affect the value of the security in the
issuers home country.
Foreign companies or governments generally are not subject to
uniform accounting, auditing, and financial reporting standards
comparable to those applicable to domestic U.S. companies
or governments. Transaction costs are generally higher than
those in the U.S. and expenses for custodial arrangements
of foreign securities may be somewhat greater than typical
expenses for custodial arrangements of similar
U.S. securities. Some foreign governments levy withholding
taxes against dividend and interest income. Although in some
countries a portion of these taxes are recoverable, the
non-recovered portion will reduce the income received from the
securities comprising the portfolio.
Foreign Currency
Risk
Corporate Bond Fund
High Income Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Limited Duration Fund
Seix Floating Rate High Income Fund
Seix Global Strategy Fund
Seix High Yield Fund
Short-Term Bond Fund
Total Return Bond Fund
Ultra-Short Bond Fund
Non-U.S. securities
often trade in currencies other than the U.S. dollar.
Changes in currency exchange rates may affect a Funds net
asset value, the value of dividends and interest earned, and
gains and losses realized on the sale of securities. An increase
in the strength of the U.S. dollar relative to these other
currencies may cause the value of the Fund to decline. Certain
currencies may be particularly volatile, and
non-U.S. governments
may intervene in the currency markets, causing a decline in
value or liquidity in the Funds
non-U.S. holdings
whose value is tied to that particular currency.
Mortgage-Backed
and Asset-Backed Securities Risk
High Income Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Limited Duration Fund
Limited-Term Federal Mortgage Securities Fund
Seix High Yield Fund
Short-Term Bond Fund
Total Return Bond Fund
U.S. Government Securities Fund
U.S. Government Securities Ultra-Short Bond Fund
Ultra-Short Bond Fund
Mortgage and asset-backed securities are fixed income securities
representing an interest in a pool of underlying mortgage or
asset-backed secured and unsecured cashflow producing assets
such as automobile loans and leases, credit card receivables and
other financial assets. The risks associated with these types of
securities include: (1) prepayment risk that could result
in earlier or later return of principal than expected and can
lead to significant fluctuations in the value and realized yield
of the securities; (2) liquidity/market risk which can
result in higher than expected changes in security valuation and
MORE INFORMATION
ABOUT RISK
transactions costs especially in times of general market stress;
and (3) credit risk that is associated with the underlying
borrowers and can also be driven by general economic conditions
which can result in the loss of invested principal.
The value of some mortgage- or asset-backed securities may be
particularly sensitive to changes in prevailing interest rates.
Early repayment of principal on some mortgage-backed securities
may expose a Fund to a lower rate of return upon reinvestment of
principal. When interest rates rise, the value of these
securities generally will decline; however, when interest rates
are declining, the value of these securities with prepayment
features may not increase as much as other fixed income
securities. The rate of prepayments on underlying mortgages will
affect the price and volatility of a mortgage-backed security,
and may shorten or extend the effective maturity of the security
beyond what was anticipated at the time of purchase. If
unanticipated rates of prepayment on underlying mortgages
increase the effective maturity of a mortgage-related security,
the volatility of the security can be expected to increase. The
value of these securities may fluctuate in response to the
markets perception of the creditworthiness of the issuers.
Additionally, although mortgage-backed securities are generally
supported by some form of government or private guarantee
and/or
insurance, there is no assurance that private guarantors or
insurers will meet their obligations.
Municipal
Securities Risk
Georgia Tax-Exempt Bond Fund
High Grade Municipal Bond Fund
Investment Grade Tax-Exempt Bond Fund
Maryland Municipal Bond Fund
North Carolina Tax-Exempt Bond Fund
Virginia Intermediate Municipal Bond Fund
Municipal securities can be significantly affected by political
changes as well as uncertainties in the municipal market related
to taxation, legislative changes or the rights of municipal
security holders. Because many municipal securities are issued
to finance similar projects, especially those relating to
education, health care, transportation and utilities, conditions
in those sectors can affect the overall municipal market. In
addition, changes in the financial condition of an individual
municipal insurer can affect the overall municipal market.
Municipal securities backed by current or anticipated revenues
from a specific project or specific assets can be negatively
affected by the discontinuance of the taxation supporting the
project or assets or the inability to collect revenues for the
project or from the assets. If the Internal Revenue Service
determines an issuer of a municipal security has not complied
with applicable tax requirements, interest from the security
could become taxable and the security could decline
significantly in value.
In addition, a Funds concentration of investments in
issuers located in a single state makes the Fund more
susceptible to adverse political or economic developments
affecting that state. The Fund also may be riskier than mutual
funds that buy securities of issuers in numerous states.
Regional
Risk
Georgia Tax-Exempt Bond Fund
High Grade Municipal Bond Fund
Investment Grade Tax Exempt Bond Fund
Maryland Municipal Bond Fund
North Carolina Tax-Exempt Bond Fund
Seix Global Strategy Fund
Virginia Intermediate Municipal Bond Fund
To the extent that a Funds investments are concentrated in
a specific geographic region, a Fund may be subject to the
political and other developments affecting that region. Regional
economies are often closely interrelated, and political and
economic developments affecting one region, country or state
often affect other regions, countries or states, thus subjecting
the Fund to additional risks.
Restricted
Security Risk
Corporate Bond Fund
High Grade Municipal Bond Fund
High Income Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Investment Grade Tax-Exempt Bond Fund
Limited Duration Fund
Maryland Municipal Bond Fund
Seix Floating Rate High Income Fund
Seix Global Strategy Fund
Seix High Yield Fund
Short-Term Bond Fund
Total Return Bond Fund
Ultra-Short Bond Fund
Virginia Intermediate Municipal Bond Fund
Restricted securities may increase the level of illiquidity in
the Fund during any period that qualified institutional buyers
become uninterested in purchasing these restricted securities.
The Adviser and Subadviser intend to invest only in restricted
MORE INFORMATION
ABOUT INDICES
securities that they believe present minimal liquidity risk.
Securities
Lending Risk
All Funds
A Fund may lend securities to approved borrowers, such as
broker-dealers, to earn additional income. Risks include the
potential insolvency of the borrower that could result in delays
in recovering securities and capital losses. Additionally,
losses could result from the reinvestment of collateral received
on loaned securities in investments that default or do not
perform well. It is also possible that if a security on loan is
sold and a Fund is unable to timely recall the security, the
Fund may be required to repurchase the security in the market
place, which may result in a potential loss to shareholders.
There is a risk that the Fund may not be able to recall
securities on loan in sufficient time to vote on material proxy
matters. In addition, as a general practice, a Fund will not
recall securities on loan solely to receive income payments,
which could result in an increase of a Funds tax
obligation that is subsequently passed on to its shareholders.
Smaller Company
Risk
High Income Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Seix Floating Rate High Income Fund
Seix High Yield Fund
Total Return Bond Fund
Small and mid-capitalization companies may be either established
or newer companies. Smaller companies may offer greater
opportunities for gain. They also involve a greater risk of loss
because they may be more vulnerable to adverse business or
economic events, particularly those companies that have been in
operation for less than three years. Smaller company securities
may trade in lower volumes or there may be less information
about the company which may cause the investments to be more
volatile or to have less liquidity than larger company
investments. They may have unseasoned management or may rely on
the efforts of particular members of their management team to a
great degree causing turnover in management to pose a greater
risk. Smaller sized companies may have more limited access to
resources, product lines, and financial resources. Small and
mid-sized companies typically reinvest a large proportion of
their earnings in their business and may not pay dividends or
make interest payments for some time, particularly if they are
newer companies.
Risk Information
Common to RidgeWorth Funds
Each Fund is a mutual fund. A mutual fund pools
shareholders money and, using professional investment
managers, invests it in securities.
Each Fund has its own investment goal and strategies for
reaching that goal. The Adviser invests Fund assets in a way
that it believes will help a Fund achieve its goal. Still,
investing in each Fund involves risk and there is no guarantee
that a Fund will achieve its goal. The Advisers or
Sub-Advisers judgments about the markets, the economy or
companies may not anticipate actual market movements, economic
conditions or company performance, and these judgments may
affect the return on your investment. In fact, no matter how
good a job the Adviser or Sub-Adviser does, you could lose money
on your investment in a Fund, just as you could with other
investments. The value of your investment in a Fund is based on
the market prices of the securities the Fund holds. These prices
change daily due to economic and other events that affect
particular companies and other issuers. These price movements,
sometimes called volatility, may be greater or lesser depending
on the types of securities a Fund owns and the markets in which
they trade. The effect on a Fund of a change in the value of a
single security will depend on how widely the Fund diversifies
its holdings.
Except for the Maryland Municipal Bond, North Carolina
Tax-Exempt Bond, Seix Global Strategy and Virginia Intermediate
Municipal Bond Funds, each Funds investment goal may be
changed without shareholder approval. Before investing, make
sure that the Funds goal matches your own.
The Funds are not managed to achieve tax efficiency, except for
the Georgia Tax-Exempt Bond, High Grade Municipal Bond,
Investment Grade Tax-Exempt Bond, Maryland Municipal Bond, North
Carolina Tax-Exempt Bond and Virginia Intermediate Municipal
Bond Funds, which intend to distribute tax-exempt income.
More Information
About Indices
An index measures the market prices of a specific group of
securities in a particular market or market sector. You cannot
invest directly in an index. Unlike a mutual fund, an index does
not have an investment adviser and does not pay any commissions
or expenses. If an index had expenses, its performance would be
lower.
MORE INFORMATION
ABOUT INDICES
Barclays Capital Corporate Index covers USD-denominated,
investment-grade, fixed-rate, taxable securities sold by
industrial, utility and financial issuers. It includes publicly
issued U.S. corporate and foreign debentures and secured
notes that meet specified maturity, liquidity, and quality
requirements.
Barclays Capital Intermediate U.S. Government/Credit Bond
Index measures the performance of dollar-denominated
U.S. Treasuries, government-related (the United States and
foreign agencies, sovereign, supranational and local authority
debt), and investment-grade credit securities that have a
remaining maturity of greater than or equal to 1 year and
less than 10 years, and have $250 million or more of
outstanding face value. In addition, the securities must be
denominated in United States dollars, and must be fixed-rate and
non-convertible securities.
Barclays Capital Municipal Bond Index covers the USD-denominated
long-term tax-exempt bond market. The index has four main
sectors: state and local general obligation bonds, revenue
bonds, insured bonds, and prerefunded bonds.
Barclays Capital Municipal Bond 1-15 Year Blend Index is an
index composed of tax-exempt bonds with maturities ranging
between 1-16 years.
Barclays Capital U.S. Aggregate Bond Index measures the
U.S. dollar-denominated, investment-grade, fixed rate,
taxable bond market of SEC-registered securities. The index
includes bonds from the Treasury, Government-related, Corporate,
MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and
CMBS sectors.
Barclays Capital U.S. Corporate High-Yield Index covers the
U.S. dollar-denominated non-investment grade, fixed-rate,
taxable corporate bond market. Securities are classified as
high-yield if the middle of Moodys, Fitch and S&P is
Ba1/BB+/BB+ or below. The index excludes emerging markets debt.
Barclays Capital U.S. Government/Credit Index is a
non-securitized component of the Barclays Capital
U.S. Aggregate Index and was the first macro index launched
by Lehman Brothers. The U.S. Government/Credit Index
includes Treasuries (i.e., public obligations of the
U.S. Treasury that have remaining maturities of more than
one year), Government-Related issues (i.e., agency, sovereign,
supranational, and local authority debt), and USD Corporates.
Barclays Capital U.S. Government Bond Index is composed of
the U.S. Treasury and U.S. Agency Indices. The
U.S. Government Index includes Treasuries (public
obligations of the U.S. Treasury that have remaining
maturities of more than one year) and U.S. agency
debentures (publicly issued debt of U.S. Government
agencies, quasi-federal corporations, and corporate or foreign
debt guaranteed by the U.S. Government). The
U.S. Government Index is a component of the
U.S. Government/Credit Index and the U.S. Aggregate
Index.
Barclays Capital U.S. Mortgage-Backed Securities Index
covers agency mortgage-backed pass through securities (both
fixed-rate and hybrid ARM) issued by Ginnie Mae (GNMA), Fannie
Mae (FNMA), and Freddie Mac (FHLMC).
Barclays Capital
1-3 Year
Government/Credit Bond Index is the
1-3 year
component of the U.S. Government/Credit index. The
Government/Credit Index includes securities in the Government
and Credit Indices. The Government Index includes treasuries
(i.e., public obligations of the U.S. Treasury that have
remaining maturities of more than one year) and agencies (i.e.,
publicly issued debt of U.S. Government agencies,
quasi-federal corporations, and corporate or foreign debt
guaranteed by the U.S. Government). The Credit Index
includes publicly issued U.S. corporate and foreign
debentures and secured notes that meet specified maturity,
liquidity, and quality requirements.
Barclays Capital
1-3 Year
U.S. Treasury Index is the
1-3 year
component of the U.S. Treasury index. It includes
securities in the Treasury Index (i.e., public obligations of
the U.S. Treasury) with a maturity from 1 up to (but not
including) 3 years.
Barclays Capital
3-6 Month
Treasury Bill Index is the
3-6 Months
component of the Barclays Capital U.S. Treasury Bills index
which includes U.S. Treasury bills with a remaining
maturity from 1 up to (but not including) 12 months. It
excludes zero coupon strips.
Citigroup
1-3 Year
Government/Credit Index is an index of U.S. Treasury
securities, government agency obligations, and corporate debt
securities rated at least investment grade (BBB). The securities
in the Index have maturities of 1 year or greater and less
than 3 years.
Citigroup
1-3 Year
Treasury Index is an index of U.S. Treasury securities with
maturities of one year or greater and less than three years.
Citigroup 6 Month U.S. Treasury Bill Index is an index of
the 6 month U.S. Treasury Bills.
Credit Suisse First Boston (CSFB) Leveraged Loan Index is an
unmanaged market value-weighted index
MANAGEMENT
designed to represent the investable universe of the
U.S. dollar-denominated leveraged loan market. The index
reflects reinvestment of all distributions and changes in market
prices.
Credit Suisse First Boston (CSFB) Institutional Leveraged Loan
Index is a sub-index of the Credit Suisse First Boston Leveraged
Loan Index which contains only institutional loan facilities
priced above 90, excluding TL and TLa facilities and loans
rated CC, C or in default. It is designed to more closely
reflect the investment criteria of institutional investors.
The J.P. Morgan EMBI+ Index tracks returns for actively
traded external debt instruments in emerging market, and is also
most liquid US-dollar emerging markets debt benchmark. The index
segments further the universe of emerging markets as defined by
the broader EMBI Global and EMBI Global Diversified, by placing
a strict liquidity requirement rule for inclusion. Included in
the EMBI+ are US-dollar denominated Brady bonds, Eurobonds, and
traded loans issued by sovereign entities. The EMBI+ is a market
capitalization-weighted index and is rebalanced on the last
business day of each month. Only issues with a current face
amount outstanding of $500 million or more and a remaining
life of greater than
21/2 years
are eligible for inclusion in the index. Index returns are
available hedged or unhedged in a variety of currencies.
Bank of America Merrill Lynch U.S. High Yield
BB/B Rated
Constrained Index tracks the performance of
BB/B rated
U.S. dollar denominated corporate bonds publicly issued in
the U.S. domestic market.
Bank of America Merrill Lynch U.S. Treasury Bill 3 Month
Index is an index which tracks the monthly price-only and total
return performance of a three-month Treasury bill, based on
monthly average auction rates.
More Information
About Fund Investments
This prospectus describes the Funds primary strategies,
and the Funds will normally invest in the types of securities
described in this prospectus. However, in addition to the
investments and strategies described in this prospectus, each
Fund also may invest in other securities, use other strategies
and engage in other investment practices. These investments and
strategies, as well as those described in this prospectus, are
described in detail in the Statement of Additional Information
(SAI).
The investments and strategies described in this prospectus are
those that the Funds use under normal conditions. During unusual
economic or market conditions, or for temporary defensive or
liquidity purposes, each Fund may invest up to 100% of its
assets in cash, money market instruments, repurchase agreements
and short-term obligations that would not ordinarily be
consistent with a Funds objectives. In addition, each Fund
may shorten its average weighted maturity to as little as
90 days. A Fund will do so only if the Adviser or
Subadviser believes that the risk of loss outweighs the
opportunity for capital gains or higher income. Of course, a
Fund cannot guarantee that it will achieve its investment goal.
Each Fund may invest in other mutual funds for cash management
purposes. When a Fund invests in another mutual fund, in
addition to directly bearing expenses associated with its own
operations, it will bear a pro rata portion of the other mutual
funds expenses.
Further, during certain interest rate environments, the gross
yield of certain shares of money market funds may be less than
the related expenses of that class. In these instances,
shareholders of these Funds may not receive a monthly income
payment, or may receive a much smaller payment than during a
more typical interest rate environment.
Information About
Portfolio Holdings
A description of the Funds policies and procedures with
respect to the circumstances under which the Funds disclose
their portfolio securities is available in the SAI.
Management
The Board of Trustees (the Board) is responsible for
the overall supervision and management of the business and
affairs of the Funds. The Board supervises the Adviser and
Subadvisers and establishes policies that the Adviser and
Subadvisers must follow in their fund related management
activities. The day-to-day operations of the Funds are the
responsibilities of the officers and various service
organizations retained by the Funds.
MANAGEMENT
Investment
Adviser
RidgeWorth Investments, 50 Hurt Plaza,
Suite 1400, Atlanta, Georgia 30303 (RidgeWorth
or the Adviser), serves as the investment adviser to
the Funds. In addition to being an investment adviser registered
with the Securities and Exchange Commission (the
SEC), RidgeWorth is a money-management holding
company with multiple style- focused investment boutiques. As of
June 30, 2010, the Adviser had approximately
$61.5 billion in assets under management. The Adviser is
responsible for overseeing the Subadvisers to ensure compliance
with each Funds investment policies and guidelines and
monitors each Subadvisers adherence to its investment
style. The Adviser also executes transactions with respect to
specific securities selected by StableRiver Capital Management
LLC for purchase and sale by the Funds. The Adviser pays the
Subadvisers out of the fees it receives from the Funds.
The Adviser may use its affiliates as brokers for Fund
transactions.
An investment adviser has a fiduciary obligation to its clients
when the adviser has authority to vote their proxies. Under the
current contractual agreement, the Adviser is authorized to vote
proxies on behalf of each Fund. Information regarding the
Advisers, and thus each Funds, Proxy Voting Policies
and Procedures is provided in the SAI. A copy of the
Advisers Proxy Voting Policies and Procedures may be
obtained by contacting the Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
For the fiscal year ended March 31, 2010, the following
Funds paid the Adviser advisory fees (after waivers) based on
the respective Funds average daily net assets of:
|
|
|
|
|
Corporate Bond Fund
|
|
|
0.40%
|
|
Georgia Tax-Exempt Bond Fund
|
|
|
0.55%
|
|
High Grade Municipal Bond Fund
|
|
|
0.53%
|
|
High Income Fund
|
|
|
0.58%
|
|
Intermediate Bond Fund
|
|
|
0.24%
|
|
Investment Grade Bond Fund
|
|
|
0.50%
|
|
Investment Grade Tax-Exempt Bond Fund
|
|
|
0.49%
|
|
Limited Duration Fund
|
|
|
0.10%
|
|
Limited-Term Federal Mortgage Securities Fund
|
|
|
0.46%
|
|
Maryland Municipal Bond Fund
|
|
|
0.55%
|
|
North Carolina Tax-Exempt Bond Fund
|
|
|
0.55%
|
|
Seix Floating Rate High Income Fund
|
|
|
0.44%
|
|
Seix Global Strategy Fund
|
|
|
0.42%
|
|
Seix High Yield Fund
|
|
|
0.43%
|
|
Short-Term Bond Fund
|
|
|
0.40%
|
|
Short-Term U.S. Treasury Securities Fund
|
|
|
0.36%
|
|
Total Return Bond Fund
|
|
|
0.25%
|
|
Ultra-Short Bond Fund
|
|
|
0.19%
|
|
U.S. Government Securities Fund
|
|
|
0.50%
|
|
U.S. Government Securities Ultra-Short Bond Fund
|
|
|
0.20%
|
|
Virginia Intermediate Municipal Bond Fund
|
|
|
0.55%
|
|
The Adviser and the Subadviser have contractually agreed to
waive fees and reimburse expenses until at least August 1,
2011 in order to keep total annual operating expenses of each
Fund from exceeding the applicable expense cap below. If at any
point before August 1, 2013, total annual operating
expenses are less than the expense cap, the Adviser may retain
the difference to recapture any of the prior waivers or
reimbursements.
|
|
|
|
|
|
|
|
|
|
|
Share
|
|
Expense
|
Fund
|
|
Class
|
|
Limitation
|
Seix Global Strategy Fund
|
|
|
I
|
|
|
|
0.83%
|
|
|
|
|
A
|
|
|
|
1.13%
|
|
Short-Term U.S. Treasury Securities Fund
|
|
|
I
|
|
|
|
0.55%
|
|
|
|
|
A
|
|
|
|
0.73%
|
|
|
|
|
C
|
|
|
|
1.55%
|
|
High Grade Municipal Bond Fund
|
|
|
I
|
|
|
|
0.65%
|
|
|
|
|
A
|
|
|
|
0.80%
|
|
The following breakpoints are used in computing the advisory fee:
|
|
|
Average Daily Net Assets
|
|
Discount From Full Fee
|
|
First $500 million
|
|
None Full Fee
|
Next $500 million
|
|
5%
|
Over $1 billion
|
|
10%
|
Based on average daily net assets as of March 31, 2010, the
asset levels of the following Funds had reached a breakpoint in
the advisory fee.* Had the Funds asset levels been lower,
the Adviser may have been entitled to receive maximum advisory
fees as follows:
|
|
|
|
|
Intermediate Bond Fund
|
|
|
0.25%
|
|
Investment Grade Tax-Exempt Bond Fund
|
|
|
0.50%
|
|
Seix Floating Rate High Income Fund
|
|
|
0.45%
|
|
Seix High Yield Fund
|
|
|
0.45%
|
|
|
|
* |
Fund expenses in the Annual Fund Operating
Expenses tables shown earlier in this prospectus reflect
the advisory breakpoints.
|
MANAGEMENT
A discussion regarding the basis for the Boards approval
of the investment advisory agreement with the Adviser appears in
the Funds annual report to shareholders for the period
ended March 31, 2010.
The SAI provides additional information regarding the portfolio
managers compensation, other accounts managed by the
portfolio manager, potential conflicts of interest and the
portfolio managers ownership of securities in the Funds.
Investment
Subadvisers
The Subadvisers are responsible for managing the portfolios of
the Funds on a day-to-day basis and selecting the specific
securities to buy, sell and hold for the Funds under the
supervision of the Adviser and the Board. A discussion regarding
the basis for the Boards approval of the investment
subadvisory agreements appears in the Funds annual report
to shareholders for the period ended March 31, 2010.
Information about the Subadvisers and the individual portfolio
managers of the Funds is discussed below. The SAI provides
additional information regarding the portfolio managers
compensation, other accounts managed by the portfolio managers,
potential conflicts of interest and the portfolio managers
ownership of securities in the Funds.
Seix Investment Advisors LLC (Seix)
10 Mountainview Road,
Suite C-200,
Upper Saddle River, New Jersey 07458
www.seixadvisors.com
Seix, established in 2008 as a wholly-owned subsidiary of
RidgeWorth, is an investment adviser registered with the SEC.
Its predecessor, Seix Investment Advisors, Inc., was founded in
1992 and was independently-owned until 2004 when the firm joined
RidgeWorth as the high grade, high yield investment management
division. As of June 30, 2010, Seix had approximately
$24.8 billion in assets under management.
Seix is a fundamental, credit driven fixed income boutique
specializing in both investment grade and high yield bond
management. Seix has employed its
bottom-up,
research-oriented approach to fixed income management for over
17 years. Seix is focused on delivering superior,
risk-adjusted investment performance for its clients. Seix
selects, buys and sells securities for the Funds it subadvises
under the supervision of the Adviser and the Board.
The following individuals are primarily responsible for the
day-to-day management of the High Income and Seix Floating Rate
High Income Funds.
Mr. Michael McEachern, CFA, currently serves as President
and Senior Portfolio Manager of Seix and served as Managing
Director of Seix since May 2004. Mr. McEachern joined Seix
Investment Advisors, Inc., a predecessor of Seix, in 1997, where
he served as Senior Portfolio Manager. Mr. McEachern has
co-managed the High Income Fund since July 2004 and the
Seix Floating Rate High Income Fund since its inception.
He has more than 26 years of investment experience.
Mr. George Goudelias currently serves as Managing Director
and Senior Portfolio Manager of Seix and served as Managing
Director of the Adviser since May 2004. Prior to joining Seix,
Mr. Goudelias served as Director of High Yield Research of
Seix Investment Advisors, Inc., a predecessor of Seix, from
February 2001 to May 2004. Mr. Goudelias has co-managed the
Seix Floating Rate High Income Fund since its inception.
He has more than 24 years of investment experience.
Mr. Brian Nold, M.D., currently serves as Managing
Director and Senior Portfolio Manager of Seix and served as
Senior High Yield Analyst of Seix since May 2004. Mr. Nold
was a High Yield Research Analyst at Morgan Stanley prior to
joining Seix Investment Advisors, Inc., a predecessor of Seix,
in 2003. Mr. Nold has co-managed the High Income Fund
since August 2006. He has more than 10 years of
investment experience.
Seix High Yield
Fund
Mr. Michael McEachern, CFA, President and Senior Portfolio
Manager, has been a member of the Seix High Yield Funds
management team since the Funds inception.
Mr. McEachern focuses primarily on high yield bonds and
loans and related securities held in the Fund.
Mr. McEachern joined Seix Investment Advisors, Inc., a
predecessor of Seix, in 1997, where he served as Senior
Portfolio Manager. Mr. McEachern has more than
26 years of investment experience.
Mr. Michael Kirkpatrick, Managing Director and Senior
Portfolio Manager, has been a member of the Seix High Yield
Funds management team since February 2007.
Mr. Kirkpatrick focuses primarily on high yield
MANAGEMENT
bonds and loans and related securities held in the Fund.
Mr. Kirkpatrick joined Seix Investment Advisors Inc., a
predecessor of Seix, in 2002, where he served as a Senior High
Yield Analyst. Mr. Kirkpatrick has more than 19 years
of investment experience.
Mr. Brian Nold, M.D., Managing Director and Senior
Portfolio Manager, has been a member of the Seix High Yield
Funds management team since August 2007. Mr. Nold
focuses primarily on high yield bonds and loans and related
securities held in the Fund. Mr. Nold was a High Yield
Research Analyst at Morgan Stanley prior to joining Seix
Investment Advisors, Inc., a predecessor of Seix, in 2003.
Mr. Nold has more than 10 years of investment
experience.
Intermediate Bond
Fund, Investment Grade Bond Fund, Limited Duration Fund,
Limited-Term Federal Mortgage Securities Fund, Total Return Bond
Fund and U.S. Government Securities Fund (collectively, the
Investment Grade Funds)
Seix utilizes a team management approach for the Investment
Grade Funds for which it acts as Subadviser. Seix is organized
into teams of portfolio managers and credit analysts along
sectors and broad investment categories, including government
securities, corporate bonds, securitized assets, high yield
bonds, high yield loans, emerging market debt,
non-U.S. securities
and global currencies. The senior portfolio managers are
responsible for security selection, portfolio structure and
rebalancing, compliance with stated investment objectives, and
cash flow monitoring.
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Investment Grade Funds management team since
March 2008, when he joined Seix. Mr. Keegan sets overall
investment strategy and works with Mr. Troisi,
Mr. Webb, Mr. Antiles and Mr. Rieger on sector
allocation for the Investment Grade Funds. Prior to joining
Seix, Mr. Keegan was a Senior Vice President at American
Century Investments from February 2006 through March 2008, a
private investor from July 2003 through January 2006, and the
Chief Investment Officer of Westmoreland Capital Management, LLC
from February 2002 through June 2003. Mr. Keegan has more
than 27 years of investment experience.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Investment Grade
Funds management team for several years. Mr. Webb
focuses primarily on high grade corporate bonds and related
securities held in the Investment Grade Funds. Mr. Webb
joined Seix Investment Advisors, Inc., a predecessor of Seix, in
2000, where he served as Senior Portfolio Manager. Mr. Webb
has co-managed the Intermediate Bond Fund since January
2002, the Investment Grade Bond Fund since July 2004, the
Limited Duration Fund since February 2007, the
Limited-Term Federal Mortgage Securities Fund since
February 2007, the Total Return Bond Fund since January
2002 and the U.S. Government Securities Fund since
February 2007. Mr. Webb has more than 15 years of
investment experience.
Mr. Perry Troisi, Managing Director and Senior Portfolio
Manager, has been a member of the Investment Grade Funds
management team for several years. Mr. Troisi focuses
primarily on United States government and agency bonds and
related securities held in the Investment Grade Funds.
Mr. Troisi joined Seix Investment Advisors, Inc., a
predecessor of Seix, in 1999, where he served as Senior
Portfolio Manager. Mr. Troisi has co-managed the
Intermediate Bond Fund since January 2002, the
Investment Grade Bond Fund since July 2004, the
Limited Duration Fund since inception, the
Limited-Term Federal Mortgage Securities Fund since
February 2007, the Total Return Bond Fund since January
2002 and the U.S. Government Securities Fund since
February 2007. He has more than 24 years of investment
experience.
Mr. Michael Rieger, Managing Director and Portfolio
Manager, has been a member of the Investment Grade Funds
management team since 2007, when he joined Seix. Mr. Rieger
focuses primarily on securitized assets including
mortgage-backed and asset-backed securities held in the
Investment Grade Funds. Prior to joining the Adviser in 2007,
Mr. Rieger was a Managing Director at AIG Global
Investments since 2005 and a Vice President from 2002 to 2005.
Mr. Rieger has co-managed the Intermediate Bond
Fund, the Investment Grade Bond Fund and the
Limited Duration Fund since February 2007. He has
co-managed the Limited-Term Federal Mortgage Securities Fund,
the Total Return Bond Fund and the
U.S. Government Securities Fund since May 2007.
Mr. Rieger has more than 23 years of investment
experience.
Mr. Seth Antiles, Ph.D., Managing Director and
Portfolio Manager, has been a member of the management team for
the Investment Grade Funds for several years. Mr. Antiles
focuses on emerging market debt, foreign currency and related
securities held in the Investment Grade Funds. Mr. Antiles
joined the Adviser in 2005 as the Head of Emerging Markets.
Prior to joining the Adviser, Mr. Antiles was a Director at
Citigroup/Salomon Smith Barney since 1997.
MANAGEMENT
Mr. Antiles has co-managed the Intermediate Bond Fund
since May 2005, the Investment Grade Bond Fund since
May 2005, the Limited Duration Fund since March 2009, the
Limited-Term Federal Mortgage Securities Fund since March
2009, the Total Return Bond Fund since February 2007 and
the U.S. Government Securities Fund since March
2009. Mr. Antiles has more than 16 years investment
experience.
Corporate Bond
Fund
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Corporate Bond Funds management team since
March 2008, when he joined the management team of its
predecessor Fund. Mr. Keegan sets overall investment
strategy and works with Mr. Webb and Mr. Troisi on
sector allocation for the Fund. Prior to joining Seix in 2008,
Mr. Keegan was a Senior Vice President at American Century
Investments from February 2006 through March 2008, a private
investor from July 2003 through January 2006, and the Chief
Investment Officer of Westmoreland Capital Management, LLC from
February 2002 through June 2003. Mr. Keegan has more than
27 years of investment experience.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Corporate Bond
Funds management team since July 2004, when he joined the
management team of its predecessor Fund. Mr. Webb focuses
primarily on high grade corporate bonds and related securities
held in the Fund. Mr. Webb joined Seix Investment Advisors,
Inc., a predecessor of Seix, in 2000, where he served as Senior
Portfolio Manager. Mr. Webb has more than 15 years of
investment experience.
Mr. Perry Troisi, Managing Director and Senior Portfolio
Manager, has been a member of the Corporate Bond Funds
management team since July 2004. Mr. Troisi focuses primarily on
U.S. Treasury and agency obligations held in the Fund. Mr.
Troisi joined Seix Investment Advisors, Inc., a predecessor of
Seix, in 1999, where he served as Senior Portfolio Manager. He
has more than 23 years of investment experience.
Seix Global
Strategy Fund
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Seix Global Strategy Funds management team
since the Funds inception. Mr. Keegan sets overall
investment strategy and works with Mr. Webb and
Mr. Antiles on sector allocation for the Fund. Prior to
joining Seix in 2008, Mr. Keegan was a Senior Vice
President at American Century Investments from February 2006
through March 2008, a private investor from July 2003 through
January 2006, and the Chief Investment Officer of Westmoreland
Capital Management, LLC from February 2002 through June 2003.
Mr. Keegan has more than 27 years of investment
experience.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Seix Global Strategy
Funds management team since the Funds inception.
Mr. Webb focuses primarily on high grade corporate bonds
and related securities held in the Fund. Mr. Webb joined
Seix Investment Advisors, Inc., a predecessor of Seix, in 2000,
where he served as Senior Portfolio Manager. Mr. Webb has
more than 15 years of investment experience.
Mr. Seth Antiles, Ph.D., Managing Director and
Portfolio Manager, has been a member of the Seix Global Strategy
Funds management team since the Funds inception.
Mr. Antiles focuses on emerging market debt, foreign
currency and related securities held in the Fund.
Mr. Antiles joined the Adviser in 2005 as the Head of
Emerging Markets. Prior to joining the Adviser, Mr. Antiles
was a Director at Citigroup/Salomon Smith Barney since 1997.
Mr. Antiles has more than 16 years of investment
experience.
StableRiver Capital Management LLC
(StableRiver)
50 Hurt Plaza, Suite 1400,
Atlanta, Georgia 30303
www.stableriver.com
StableRiver, a wholly-owned subsidiary of RidgeWorth, is an
investment adviser registered with the SEC. The firm was
established in 2008 after 23 years functioning as
RidgeWorths fixed income investment management team. As of
June 30, 2010, StableRiver had approximately
$27.3 billion in assets under management.
StableRiver focuses on delivering high-quality fixed income
strategies to institutional investors. As the name suggests,
StableRiver has a firmly established, steadfast investment
process that follows a predictable course of action
even in unpredictable market cycles. The firms
multi-faceted strategy employs top-down management with
bottom-up
security selection incorporating comprehensive risk management
and compliance systems.
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
StableRiver is responsible for managing the portfolios of the
Funds on a day-to-day basis and selecting the specific
securities to buy, sell and hold for the Funds under the
supervision of the Adviser and the Board. A discussion regarding
the basis for the Boards approval of the investment
subadvisory agreement appears in the Funds annual report
to shareholders for the period ending March 31, 2010.
The following individuals are primarily responsible for the
day-to-day management of the following Funds
Mr. George E. Calvert, Jr. currently serves as
Director of StableRiver and served as Vice President of the
Adviser since August 2000. He has managed the Maryland
Municipal Bond Fund and the Virginia Intermediate
Municipal Bond Fund since August 2000. Mr. Calvert has
more than 34 years of investment experience.
Mr. Ronald Schwartz, CFA, currently serves as Managing
Director of StableRiver and served as Managing Director of the
Adviser since July 2000. He has managed the High Grade
Municipal Bond Fund and the Investment Grade Tax-Exempt
Bond Fund since each Funds respective inception. He
has more than 29 years of investment experience.
Mr. Chris Carter, CFA, currently serves as Director of
StableRiver and served as Vice President of the Adviser since
July 2003. He has managed the Georgia Tax-Exempt Bond Fund
since August 2003 and the North Carolina Tax-Exempt Bond
Fund since March 2005. Prior to joining the Adviser,
Mr. Carter served as a Portfolio Manager and Assistant
Portfolio Manager of Evergreen Investment Management Company
from January 2002 to July 2003. He has more than 18 years
of investment experience.
The Short-Term Bond Fund, the Short-Term
U.S. Treasury Securities Fund, the Ultra-Short Bond
Fund and the U.S. Government Securities Ultra-Short
Bond Fund are each managed by a portfolio management team
comprised of Mr. H. Rick Nelson, Mr. Robert W. Corner
and Mr. Chad Stephens. Each member of the team is primarily
responsible for the day-to-day management of the Funds and has
authority over all aspects of the Funds investment
portfolio, including selecting securities to purchase, sell or
hold, developing the Funds investment strategies,
portfolio construction techniques, portfolio risk assessment,
and the management of daily cash flows.
Mr. H. Rick Nelson currently serves as Chief Executive
Officer and Chief Investment Officer of StableRiver and served
as Managing Director of the Adviser since March 2002. He has
co-managed the Short-Term U.S. Treasury Securities Fund
since January 2005, the Short-Term Bond Fund since January 2003,
the Ultra-Short Bond Fund since July 2004 and the
U.S. Government Securities Ultra-Short Bond Fund since July
2004. He has more than 29 years of investment experience.
Mr. Robert W. Corner currently serves as Managing Director
of StableRiver and served as Managing Director of the Adviser
since September 1996. He has co-managed the Ultra-Short Bond
Fund and the U.S. Government Securities Ultra-Short Bond
Fund since July 2004 and the Short Term Bond Fund since January
2003 after managing each respective Fund since its inception and
has co-managed the Short-Term U.S. Treasury Securities Fund
since March 2008. He has more than 21 years of investment
experience.
Mr. Chad Stephens currently serves as Director of
StableRiver and served as Vice President of the Adviser since
December 2000. He has co-managed the Short-Term
U.S. Treasury Securities Fund since January 2005, the
Ultra-Short Bond Fund and the U.S. Government Securities
Ultra-Short Fund since August 2006 and the Short-Term Bond Fund
since March 2008. He has more than 20 years of investment
experience.
Purchasing,
Selling and Exchanging Fund Shares
This section tells you how to purchase, sell (sometimes called
redeem) and exchange A Shares, C Shares,
R Shares and I Shares of the Funds. Investors
purchasing or selling shares through a pension or 401(k) plan
should also refer to their Plan documents.
Participants in retirement plans must contact their Employee
Benefits Office or their Plans Administrator for
information regarding the purchase, redemption or exchange of
shares. Plans may require separate documentation and the
plans policies and procedures may be different than those
described in this prospectus. Participants should contact their
employee benefits office or plan administrator for questions
about their specific accounts.
If your I Shares are held in a retirement plan account, the
rules and procedures you must follow as a plan participant
regarding the purchase, redemption or exchange of I Shares
may be different from those described in this prospectus. Review
the information you have about your retirement plan.
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
How to Purchase
Fund Shares
Purchasing
A Shares and C Shares
You may purchase A Shares and C Shares of the Funds
through financial institutions or intermediaries that are
authorized to place transactions in Fund shares for their
customers. Please contact your financial institution or
intermediary directly and follow its procedures for Fund share
transactions. Your financial institution or intermediary may
charge a fee for its services, in addition to the fees charged
by a Fund. You will also generally have to address your
correspondence or questions regarding a Fund to your financial
institution or intermediary.
Your investment professional can assist you in opening a
brokerage account that will be used for purchasing shares of
RidgeWorth Funds.
Shareholders who purchase shares directly from the Funds may
purchase additional Fund shares by:
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Mail
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Telephone (1-888-784-3863)
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Wire
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Fax
(1-800-451-8377)
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Automated Clearing House (ACH)
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The Funds do not accept cash, credit card checks, third-party
checks, travelers checks, money orders, bank starter
checks, or checks drawn in a foreign currency, as payment for
Fund shares.
If you pay with a check or ACH transfer that does not clear or
if your payment is not received in a timely manner, your
purchase may be canceled. You will be responsible for any losses
or expenses incurred by the Fund or transfer agent, and the Fund
can redeem shares you own in this or another identically
registered RidgeWorth Funds account as reimbursement.
Purchasing
R Shares
R Shares are designed to be sold only through various
third-party intermediaries that offer employer-sponsored defined
contribution retirement plans and other retirement plan
platforms including brokers, dealers, banks, insurance
companies, retirement plan record-keepers and others.
R Shares require an agreement with the Funds prior to
investment. The intermediary may charge a fee for its services.
Please consult your intermediary to find out about how to
purchase R Shares of the Funds.
R Shares may also be purchased by shareholders of the
Intermediate Bond Fund and Total Return Bond Fund who owned
C Shares in the applicable Fund on February 12, 2009
and by shareholders of the Investment Grade Bond Fund, the High
Income Fund, and the Seix High Yield Fund who owned
C Shares in the applicable Fund on July 31, 2009.
Purchasing
I Shares
The Funds offer I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. These accounts primarily consist of:
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assets of a bona fide trust,
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assets of a business entity possessing a tax identification
number,
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assets of an employee benefit plan,
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assets held within select fee-based programs, or
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assets held within certain non-discretionary intermediary
no-load platforms.
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Employee benefit plans generally include profit sharing, 401(k)
and 403(b) plans. Employee benefit plans generally do not
include IRAs; SIMPLE, SEP, SARSEP plans; plans covering
self-employed individuals and their employees or health savings
accounts unless you, as a customer of a financial institution or
intermediary, meet the Funds established criteria as
described above.
As a result, you, as a customer of a financial institution or
intermediary, may, under certain circumstances that meet the
Funds established criteria, be able to purchase
I Shares through accounts made with select financial
institutions or intermediaries. I Shares will be held of
record by (in the name of) your financial institution or
intermediary. Depending upon the terms of your account, you may
have, or be given, the right to vote your I Shares.
Financial institutions or intermediaries may impose eligibility
requirements for each of their clients or customers investing in
the Funds, including investment minimum requirements, which may
differ from those imposed by the Funds. Please contact your
financial institution or intermediary for complete details for
purchasing I Shares.
I Shares may also be purchased directly from the Funds by
officers, directors or trustees, and employees and their
immediate families (strictly
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
limited to current spouses/domestic partners and dependent
children) of:
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RidgeWorth Funds,
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Subadvisers to the RidgeWorth Funds, or
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SunTrust Banks, Inc. and its subsidiaries.
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Validation of current employment/service will be required upon
establishment of the account. The Funds, in their sole
discretion, may determine if an applicant qualifies for this
program.
In-Kind
Purchases I Shares
Payment for I Shares of a Fund may, in the discretion of
the Adviser, be made in the form of securities that are
permissible investments for such Fund. In connection with an
in-kind securities payment, a Fund will require, among other
things, that the securities (a) meet the investment
objectives and policies of the Fund; (b) are acquired for
investment and not for resale; (c) are liquid securities
that are not restricted as to transfer either by law or
liquidity of markets; (d) have a value that is readily
ascertainable (e.g., by a listing on a nationally recognized
securities exchange); and (e) are valued on the day of
purchase in accordance with the pricing methods used by the
Fund. For further information about this form of payment, please
call 1-888-784-3863.
When Can You
Purchase Shares? A Shares, C Shares,
R Shares and I Shares
The Funds are open for business on days when the New York Stock
Exchange (the NYSE) is open for regular trading (a
Business Day). The RidgeWorth Funds reserve the
right to open one or more Funds on days that the principal bond
markets (as recommended by SIFMA (Securities Industry and
Financial Markets Association)) are open even if the NYSE is
closed. Each Fund calculates its net asset value per Share
(NAV) once each Business Day at the close of regular
trading on the NYSE (normally 4:00 p.m. Eastern Time).
If a Fund or its authorized agent receives your purchase or
redemption request in proper form before 4:00 p.m., Eastern
Time, your transaction will be priced at that Business
Days NAV. If your request is received after
4:00 p.m., it will be priced at the next Business
Days NAV.
The time at which transactions and shares are priced and the
time until which orders are accepted may be changed if the NYSE
closes early or if the principal bond markets close early on
days when the NYSE is closed. For those Funds that open on days
when the NYSE is closed, these times will be the time the
principal bond markets close.
The Funds will not accept orders that request a particular day
or price for the transaction or any other special conditions.
You may be required to transmit your purchase sale and
exchange orders to your financial institutions or intermediaries
at an earlier time for your transaction to become effective that
day. This allows the financial institution or intermediary time
to process your order and transmit it to the transfer agent in
time to meet the above stated Fund cut-off times. For more
information about how to purchase, sell or exchange Fund shares,
including a specific financial institutions or
intermediarys internal order entry cut-off times, please
contact your financial institution or intermediary directly.
A Fund may reject any purchase order.
How the Funds
Calculate NAV A Shares, C Shares,
R Shares and I Shares
NAV is calculated by adding the total value of a Funds
investments and other assets, subtracting its liabilities, and
then dividing that figure by the number of outstanding shares of
the Fund.
In calculating NAV, each Fund generally values its investment
portfolio at market price. If market prices are not readily
available or a Fund reasonably believes that market prices or
amortized cost valuation method are unreliable, such as in the
case of a security value that has been materially affected by
events occurring after the relevant market closes, a Fund is
required to price those securities at fair value as determined
in good faith using methods approved by the Board. A Funds
determination of a securitys fair value price often
involves the consideration of a number of subjective factors,
and is therefore subject to the unavoidable risk that the value
that a Fund assigns to a security may be higher or lower than
the securitys value would be if a reliable market
quotation for the security was readily available.
With respect to
non-U.S. securities
held by a Fund, the Fund may take factors influencing specific
markets or issues into consideration in determining the fair
value of a
non-U.S. security.
International securities markets may be open on days when the
U.S. markets are closed. In such cases, the value of any
international securities owned by a Fund may be significantly
affected on days when investors cannot buy or sell shares. In
addition, due to the difference in
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
times between the close of the international markets and the
time a Fund prices its shares, the value the Fund assigns to
securities generally will not be the same as the primary markets
or exchanges. In determining fair value prices, a Fund may
consider the performance of securities on their primary
exchanges, foreign currency appreciation/depreciation,
securities market movements in the U.S., or other relevant
information as related to the securities.
When valuing fixed income securities with remaining maturities
of more than 60 days, the Funds use the value of the
security provided by pricing services. The values provided by a
pricing service may be based upon market quotations for the same
security, securities expected to trade in a similar manner, or a
pricing matrix. When valuing fixed income securities with
remaining maturities of 60 days or less, the Funds use the
securitys amortized cost. Amortized cost and the use of a
pricing matrix in valuing fixed income securities are forms of
fair value pricing. Fair value prices may be determined in good
faith using methods approved by the Board.
The prices for many securities held by the Funds are provided by
independent pricing services approved by the Board.
Minimum/Maximum
Purchases A Shares, C Shares,
R Shares and I Shares
To purchase A Shares or C Shares for the first time,
you must invest in any Fund at least:
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Class
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Dollar Amount
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A Shares
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$2,000
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C Shares
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$5,000 ($2,000 for IRA or other tax qualified accounts)
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Purchases of C Shares of the Short-Term U.S. Treasury
Securities Fund requested in an amount of $100,000 or more will
be automatically made in A Shares of that Fund. Purchases
of C Shares of the Limited-Term Federal Mortgage Securities
Fund or the Short-Term Bond Fund requested in an amount of
$250,000 or more will be automatically made in A Shares of
that Fund. Purchases of C Shares of any other Fund
requested in an amount of $1,000,000 or more will automatically
be made in A Shares of that Fund.
Your subsequent investments must be made in amounts of at least
$1,000. The Funds may accept investments of smaller amounts for
either class of shares at its discretion.
For investors who qualify to purchase R Shares and
I Shares, there are no minimum or maximum requirements for
initial or subsequent purchases.
Systematic
Investment Plan A Shares and
C Shares
If you have a checking or savings account with a bank, you may
purchase A Shares and C Shares automatically through
regular deductions from your bank account. With a $500 minimum
initial investment, you may begin regularly-scheduled
investments of $50 or more once or twice a month. If you are
buying C Shares, you should plan on investing at least
$5,000 per Fund during the first two years. The Funds may close
your account if you do not meet this minimum investment
requirement at the end of two years.
Customer
Identification
Foreign
Investors
To purchase A Shares, C Shares and R Shares of
the Funds, you must be a U.S. citizen, a U.S. resident
alien, or a U.S. entity, with a U.S. tax
identification number, and reside in the U.S. or its
territories (which includes U.S. military APO or FPO
addresses). If you owned shares on July 31, 2006, you may
keep your account open even if you do not reside in the
U.S. or its territories, but you may not make additional
purchases or exchanges.
The Funds do not generally accept investments in I Shares
by
non-U.S. citizens
or entities. Investors in I Shares generally must reside in
the U.S. or its territories (which includes
U.S. military APO or FPO addresses) and have a
U.S. tax identification number.
Customer
Identification and Verification
To help the government fight the funding of terrorism and money
laundering activities, federal law requires all financial
institutions to obtain, verify, and record information that
identifies each person who opens an account.
When you open an account, you will be asked to provide your
name, residential street address, date of birth, Social Security
Number or tax identification number. You may also be asked for
other information that will allow us to identify you. Entities
are also required to provide additional documentation. This
information will be verified to ensure the identity of all
persons opening a mutual fund account.
In certain instances, the Funds are required to collect
documents to fulfill their legal obligation. Documents
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
provided in connection with your application will be used solely
to establish and verify a customers identity.
The Funds are required by law to reject your new account
application if the required identifying information is not
provided. Attempts to collect the missing information required
on the application will be performed by either contacting you
or, if applicable, your broker. If this information is unable to
be obtained within a timeframe established in the sole
discretion of the Funds, your application will be rejected.
Upon receipt of your application in proper form (or upon receipt
of all identifying information required on the application),
your investment will be accepted and your order will be
processed at the NAV next determined.
However, the Funds reserve the right to close your account at
the then-current days price if the Funds are unable to
verify your identity. Attempts to verify your identity will be
performed within a timeframe established in the sole discretion
of the Funds. If the Funds are unable to verify your identity,
the Funds reserve the right to liquidate your account at the
then-current days price and remit proceeds to you via
check. The Funds reserve the further right to hold your proceeds
until your original check clears the bank. In such an instance,
you may be subject to a gain or loss on Fund shares and will be
subject to corresponding tax implications.
Anti-Money
Laundering Program
Customer identification and verification is part of the
Funds overall obligation to deter money laundering under
federal law. The Funds have adopted an anti-money laundering
compliance program designed to prevent the Funds from being used
for money laundering or the financing of terrorist activities.
In this regard, the Funds reserve the right to (i) refuse,
cancel or rescind any purchase or exchange order,
(ii) freeze any account
and/or
suspend account services, or (iii) involuntarily redeem
your account in cases of threatening conduct or suspected
fraudulent or illegal activity. These actions will be taken
when, in the sole discretion of Fund management, they are deemed
to be in the best interest of the Funds or in cases when the
Funds are requested or compelled to do so by governmental or law
enforcement authority.
Sales
Charges A Shares and C Shares
Front-End Sales
Charges A Shares
The offering price of A Shares is the NAV next calculated
after a Fund receives your request in proper form, plus the
front-end sales charge.
The amount of any front-end sales charge included in your
offering price varies, depending on the amount of your investment
Investment Grade Funds
Corporate Bond Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Total Return Bond Fund
U.S. Government Securities Fund
High Yield/Global Funds
High Income Fund
Seix Global Strategy Fund
Seix High Yield Fund
Municipal Bond Funds
Georgia Tax-Exempt Bond Fund
High Grade Municipal Bond Fund
Investment Grade Tax-Exempt Bond Fund
Maryland Municipal Bond Fund
North Carolina Tax-Exempt Bond Fund
Virginia Intermediate Municipal Bond Fund
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Your Sales
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Your Sales
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Charge as a
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Charge as a
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Percentage
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Percentage of
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of Offering
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Your Net
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If Your Investment is:
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Price*
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Investment
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Less than $50,000
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4.75%
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4.99%
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$50,000 but less than $100,000
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4.50%
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4.71%
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$100,000 but less than $250,000
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3.50%
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3.63%
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$250,000 but less than $500,000
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2.50%
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2.56%
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$500,000 but less than $1,000,000
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2.00%
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2.04%
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$1,000,000 and over
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None
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None
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* |
The Distributor may pay a percentage of the offering price as
a commission to broker-dealers. Merrill Lynch Pierce Fenner
& Smith, Inc. (Merrill Lynch) receives an
additional 0.25% of the front-end sales charge of A Shares of
certain Funds. While investments over $1,000,000 are not subject
to a front-end sales charge, the Distributor may pay dealer
commissions ranging from 0.25% to 1.00%.
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PURCHASING,
SELLING AND EXCHANGING FUND SHARES
Investment Grade Funds
Limited-Term Federal Mortgage Securities Fund
High Yield/Global Funds
Seix Floating Rate High Income Fund
Short Duration Funds
Short-Term U.S. Treasury Securities Fund
Short-Term Bond Fund
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Your Sales
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Your Sales
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Charge as a
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Charge as a
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Percentage
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Percentage of
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of Offering
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Your Net
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If Your Investment is:
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Price*
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Investment
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Less than $50,000
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2.50%
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2.56%
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$50,000 but less than $100,000
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2.25%
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2.30%
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$100,000 but less than $250,000
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2.00%
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2.04%
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$250,000 but less than $500,000
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1.75%
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1.78%
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$500,000 but less than $1,000,000
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1.50%
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1.52%
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$1,000,000 and over
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None
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None
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* |
The Distributor may pay a percentage of the offering price as
a commission to broker-dealers. Merrill Lynch receives an
additional 0.25% of the front-end sales charge of A Shares
of certain Funds. While investments over $1,000,000 are not
subject to a front-end sales charge, the Distributor may pay
dealer commissions ranging from 0.25% to 1.00%.
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Investments of $1,000,000 or more. You do not pay an
initial sales charge when you buy $1,000,000 or more of
A Shares in either a single investment or through our
rights of accumulation, letter of intent, or combined
purchase/quantity discount programs. However, you will pay a
deferred sales charge of 1.00% if you redeem any of these
A Shares within one year of purchase. The deferred sales
charge is calculated based on the lesser of (1) the NAV of
the shares at the time of purchase or (2) NAV of the shares
next calculated after the Fund receives your redemption request.
The deferred sales charge does not apply to shares you purchase
through reinvestment of dividends or capital gains distributions.
Waiver of
Front-End Sales Charge A Shares
The front-end sales charge will be waived on A Shares
purchased:
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through reinvestment of dividends and distributions;
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through an account managed by an affiliate of the Adviser;
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by persons repurchasing shares they redeemed within the last
180 days (see Repurchase of A Shares);
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by employees, and members of their immediate family
(spouse/domestic partner, mother, father,
mother-in-law,
father-in-law,
and children (including step-children) under the age of
21 years), of the Adviser and its affiliates;
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by current RidgeWorth Funds shareholders reinvesting
distributions from qualified employee benefit retirement plans
and rollovers from individual retirement accounts (IRAs);
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by persons investing an amount less than or equal to the value
of an account distribution when an account for which a bank
affiliated with the Adviser acted in a fiduciary,
administrative, custodial or investment advisory capacity is
closed; or
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through dealers, retirement plans, asset allocation and wrap
programs and financial institutions that, under their dealer
agreements with the Distributor or otherwise, do not receive any
portion of the front-end sales charge; or
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by Trustees of the RidgeWorth Funds.
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Repurchase of
A Shares
You may repurchase any amount of A Shares of any Fund at
NAV (without the normal front-end sales charge), up to the limit
of the value of any amount of A Shares (other than those
which were purchased with reinvested dividends and
distributions) that you redeemed within the past 180 days.
In effect, this allows you to reacquire shares that you may have
had to redeem, without re-paying the front-end sales charge.
Such repurchases may be subject to special tax rules. See the
section on Taxes in the SAI for more information. To exercise
this privilege, the Funds must receive your purchase order
within 180 days of your redemption. In addition, you
must notify the Fund when you send in your purchase order that
you are repurchasing shares.
Reduced Sales
Charges A Shares
Rights of Accumulation. You may take into account your
accumulated holdings in all share classes of RidgeWorth Funds
(excluding RidgeWorth Funds Money Market Funds) to determine the
initial sales charge you pay on each purchase of A Shares.
In calculating the appropriate sales charge rate, this right
allows you to add the market value (at the close of business on
the day of the current purchase) of your existing holdings in
any class of shares to the amount of A Shares you are
currently purchasing. The Funds may amend or terminate this
right at any time. Please see the SAI for details.
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
Letter of Intent. A Letter of Intent allows you to
purchase shares over a
13-month
period and receive the same sales charge as if you had purchased
all the shares at the same time. The Funds will hold a certain
portion of your investment in escrow until you fulfill your
commitment. Please see the SAI for details.
Combined Purchase/Quantity Discount Privilege. When
calculating the appropriate sales charge rate, the Funds will
combine same day purchases of shares of any class made by you,
your spouse/domestic partner and your minor children (under
age 21). This combination also applies to A Shares you
purchase with a Letter of Intent.
You can also obtain this information about sales charges, rights
of accumulation and Letters of Intent on the Funds website
at www.ridgeworth.com.
Contingent
Deferred Sales Charges (CDSC)
C Shares
You do not pay a sales charge when you purchase C Shares.
The offering price of C Shares is simply the next
calculated NAV. But, if you sell your shares within the first
year after your purchase, you will pay a CDSC equal to 1% of
either (1) the NAV of the shares at the time of purchase,
or (2) NAV of the shares next calculated after the Funds
receive your sale request, whichever is less. The Funds will use
the
first-in,
first-out (FIFO) method to determine the holding period. So, you
never pay a CDSC on any increase in your investment above the
initial offering price. The CDSC does not apply to shares you
purchase through reinvestment of dividends or distributions or
to exchanges of C Shares of one Fund for C Shares of
another Fund.
Waiver of
CDSC
The CDSC will be waived if you sell your C Shares for the
following reasons:
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Death or Post-purchase Disablement (as defined in
Section 72(m)(7) of the Internal Revenue Code)
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You are shareholder/joint shareholder or participant/beneficiary
of certain retirement plans;
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You die or become disabled after the account is opened;
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Redemption must be made within 1 year of such
death/disability;
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The Funds must be notified in writing of such death/disability
at time of redemption request;
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The Funds must be provided with satisfactory evidence of death
(death certificate) or disability (doctors certificate
specifically referencing disability as defined in 72(m)(7)
referenced above).
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Shares purchased through dividend and capital gains reinvestment.
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Participation in the Systematic Withdrawal Plan described below:
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Withdrawal not to exceed 10% of the current balance of a Fund in
a 12 month period, the 10% amount will be calculated as of
the date of the initial Systematic Withdrawal Plan and
recalculated annually on the 12 month anniversary date.
Shares purchased through dividend or capital gains reinvestment,
although not subject to the CDSC, will be included in
calculating the account value and 10% limitation amount;
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If the total of all Fund account withdrawals (Systematic
Withdrawal Plan or otherwise) exceeds the 10% limit within the
12 month period following the initial calculation date, the
entire Systematic Withdrawal Plan for the period will be subject
to the applicable sales charge, in the initial year of a
Systematic Withdrawal Plan, the withdrawal limitation period
shall begin 12 months before the initial Systematic
Withdrawal Plan payment;
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To qualify for the CDSC waiver under the Systematic Withdrawal
Plan a Fund account must have a minimum of $25,000 at Systematic
Withdrawal Plan inception and must also reinvest dividends and
capital gains distributions.
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Required mandatory minimum withdrawals made after
701/2
under any retirement plan qualified under IRS Code
Section 401, 408 or 403(b) or resulting from the tax free
return of an excess distribution to an Individual Retirement
Account (IRA). Satisfactory qualified plan documentation to
support any waiver includes employer letter (separation from
services) and plan administrator certificate (certain
distributions under plan requirements).
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Permitted exchanges of shares, except if shares acquired by
exchange are then redeemed within the period during which a CDSC
would apply to the initial shares purchased.
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Exchanges in connection with plans of Fund reorganizations such
as mergers and acquisitions.
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To take advantage of any of these waivers, you must qualify in
advance. To see if you qualify, please call your investment
professional or other investment
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
representative. These waivers are subject to change or
elimination at any time at the discretion of the Funds.
The C Shares CDSC will be waived for certain retirement
plan providers that have entered into administrative agreements
with the Funds. Please see the SAI for more information on this
program.
Offering Price of
Fund Shares A Shares, C Shares,
R Shares and I Shares
The offering price of A Shares is the NAV next calculated
after the transfer agent receives your request, in proper form,
plus any front-end sales charge. The offering price of
C Shares, R Shares and I Shares is simply the
next calculated NAV.
You can also obtain this information about sales charges, rights
of accumulation and letters of intent on the Funds website
at www.ridgeworth.com.
How to Sell Your
Fund Shares
Selling
A Shares and C Shares
If you own your A Shares or C Shares through an
account with a broker or other financial institution or
intermediary, contact that broker, financial institution or
intermediary to sell your shares. Your broker, financial
institution or intermediary may charge a fee for its services,
in addition to the fees charged by the Funds.
Shareholders who purchased shares directly from the Funds may
sell their Fund Shares by:
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Mail
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Telephone (1-888-784-3863)
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Wire
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Fax
(1-800-451-8377)
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ACH
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Selling
R Shares
Please consult your intermediary to find out about how to sell
your R Shares of the Funds.
Selling
I Shares
You may sell your I Shares on any Business Day by
contacting your financial institution or intermediary. Your
financial institution or intermediary will give you information
about how to sell your shares including any specific cut-off
times required.
Holders of I Shares may sell shares by following the
procedures established when they opened their account or
accounts with the Funds or with their financial institution or
intermediary. The sale price of each share will be the next NAV
determined after the Funds receive your request in proper form.
A Medallion
Signature
Guarantee¨
A Shares, C Shares, R Shares and
I Shares
A Medallion Signature Guarantee by a bank or other
financial institution (a notarized signature is not sufficient)
is required to redeem shares:
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made payable to someone other than the registered shareholder;
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sent to an address or bank account other than the address or
bank account of record; or
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sent to an address or bank account of record that has been
changed within the last 15 calendar days.
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Other documentation may be required depending on the
registration of the account.
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¨
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Medallion Signature Guarantee: A Medallion Signature
Guarantee verifies the authenticity of your signature and helps
ensure that changes to your account are in fact authorized by
you. A Medallion Signature Guarantee may be obtained from a
domestic bank or trust company, broker, dealer, clearing agency,
savings association or other financial institution participating
in a Medallion Program recognized by the Securities Trading
Association. Signature guarantees from financial institutions
that do not reflect one of the following are not part of the
program and will not be accepted. The acceptable Medallion
programs are Securities Transfer Agents Medallion Program,
(STAMP), Stock Exchange Medallion Program, (SEMP), or the New
York Stock Exchange, Inc. Medallion Program, (NYSE MSP). Contact
your local financial adviser or institution for further
assistance.
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Sale Price of
Fund Shares A Shares, C Shares,
R Shares and I Shares
The sale price of each share will be the next NAV determined
after the Funds receive your request, in proper form, less, in
the case of C Shares, any applicable CDSC.
Systematic
Withdrawal Plan A Shares and
C Shares
If you have at least $10,000 in your account, you may use the
systematic withdrawal plan. Under the plan you may arrange
monthly, quarterly, semi-annual or
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
annual automatic withdrawals of at least $50 from any Fund. The
proceeds of each withdrawal will be mailed to you by check or,
if you have a checking or savings account with a bank, may be
electronically transferred to your account. Please check with
your bank. Withdrawals under the Systematic Withdrawal Plan may
be subject to a CDSC unless they meet the requirements described
above under Waiver of the CDSC.
Receiving Your
Money A Shares, C Shares, R Shares
and I Shares
Normally, the Funds will send your sale proceeds within five
Business Days after the Funds receive your request, but a Fund
may take up to seven days to pay the sale proceeds if making
immediate payments would adversely affect the Fund (for example,
to allow the Fund to raise capital in the case of a large
redemption). Your proceeds from the sale of A Shares, or
C Shares can be wired to your bank account (subject to a
fee) or sent to you by check. If you recently purchased your
A Shares or C Shares by check or through ACH,
redemption proceeds may not be available until your funds have
cleared (which may take up to 15 calendar days from your date of
purchase).
Redemptions In
Kind A Shares, C Shares, R Shares and
I Shares
The Funds generally pay redemption proceeds in cash. However,
under unusual conditions that make the payment of cash unwise
(and for the protection of the Funds remaining
shareholders), the Funds might pay all or part of your
redemption proceeds in liquid securities with a market value
equal to the redemption price (redemption in kind). It is highly
unlikely that your shares would ever be redeemed in kind, but if
they were you would probably have to pay transaction costs to
sell the securities distributed to you, as well as taxes on any
capital gains from the sale as with any redemption.
Involuntary Sales
of Your Shares A Shares and
C Shares
If your account balance drops below the required minimum as a
result of redemptions you may be required to sell your shares.
The account balance minimums are:
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Class
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Dollar Amount
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A Shares
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$2,000
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C Shares
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$5,000 ($2,000 for IRA or other tax qualified accounts)
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But, the Funds will always give you at least 60 days
written notice to give you time to add to your account and avoid
the sale of your shares.
Suspension of
Your Right to Sell Your Shares A Shares,
C Shares, R Shares and I Shares
A Fund may suspend your right to sell your shares if the NYSE
restricts trading, the SEC declares an emergency or for other
reasons approved by the SEC. More information about this is in
the SAI.
How to Exchange
Your Shares A Shares and
C Shares
You may exchange your A Shares or C Shares on any
Business Day by contacting the Funds or your financial
institution or intermediary by mail or telephone. Exchange
requests must be for an amount of at least $1,000.
The exchange privilege is not intended as a vehicle for
short-term trading. Excessive exchange activity may interfere
with Fund management and may have an adverse effect on all
shareholders. In order to limit excessive exchange activity and
in other circumstances where it is in the best interests of a
Fund, all Funds reserve the right to revise or terminate the
exchange privilege, limit the amount or number of exchanges or
reject any exchange or restrict or refuse purchases if
(1) a Fund or its manager(s) believes the Fund would be
harmed or unable to invest effectively, or (2) a Fund
receives or anticipates orders that may dramatically affect the
Fund as outlined under Market Timing Policies and
Procedures below.
If you recently purchased shares by check, or through ACH,
you may not be able to exchange your shares until your funds
have cleared (which may take up to 15 calendar days from your
date of purchase). This exchange privilege may be changed or
canceled at any time upon 60 days notice.
Exchanges
When you exchange shares, you are really selling your shares of
one Fund and buying shares of another RidgeWorth Fund. So, your
sale price and purchase price will be based on the NAV next
calculated after the Funds receive your exchange requests, in
proper form.
MARKET TIMING
POLICIES AND PROCEDURES
A Shares
You may exchange A Shares of any Fund for A Shares of
any other RidgeWorth Fund. If you exchange shares that you
purchased without a sales charge or with a lower sales charge
into a RidgeWorth Fund with a sales charge or with a higher
sales charge, the exchange is subject to a sales charge equal to
the difference between the lower and higher applicable sales
charges. If you exchange shares into a RidgeWorth Fund with the
same, lower or no sales charge there is no sales charge for the
exchange.
The amount of your exchange must meet any initial or subsequent
purchase minimums applicable to the RidgeWorth Fund into which
you are making the exchange.
C Shares
You may exchange C Shares of any Fund for C Shares of
any other RidgeWorth Fund. For purposes of computing the CDSC
applicable to C Shares, the length of time you have owned
your shares will be measured from the original date of purchase
and will not be affected by any exchange.
Telephone
Transactions A Shares, C Shares,
R Shares and I Shares
Purchasing, selling and exchanging Fund shares over the
telephone is extremely convenient, but not without risk.
Although the Funds have certain safeguards and procedures to
confirm the identity of callers and the authenticity of
instructions, the Funds are not responsible for any losses or
costs incurred by following telephone instructions the Funds
reasonably believe to be genuine. If you or your financial
institution or intermediary transact with the Funds over the
telephone, you will generally bear the risk of any loss. The
Funds reserve the right to modify, suspend or terminate
telephone transaction privileges at any time.
To redeem shares by telephone:
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redemption checks must be made payable to the registered
shareholder; and
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redemption checks must be mailed to an address or wired to a
bank account of record that has been associated with the
shareholder account for at least 15 calendar days.
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Market Timing
Policies and Procedures
The Funds are intended for long-term investment purposes only
and discourage shareholders from engaging in market
timing or other types of excessive short-term trading.
This frequent trading into and out of the Funds may present
risks to the Funds long-term shareholders, all of which
could adversely affect shareholder returns. The risks posed by
frequent trading include interfering with the efficient
implementation of the Funds investment strategies,
triggering the recognition of taxable gains and losses on the
sale of Fund investments, requiring the Funds to maintain higher
cash balances to meet redemption requests, and experiencing
increased transaction costs. A Fund that invests a significant
amount of its assets in overseas markets is particularly
susceptible to the risk of certain investors using a strategy
known as time-zone arbitrage. Investors using this strategy
attempt to take advantage of the differences in value of foreign
securities that might result from events that occur between the
close of the foreign securities market on which a foreign
security is traded and the time at which the Fund calculates its
NAV.
The Funds
and/or their
service providers will take steps reasonably designed to detect
and deter frequent trading by shareholders pursuant to the
Funds policies and procedures described in this prospectus
and approved by the Funds Board. The Funds seek to
discourage short-term trading by using fair value pricing
procedures to fair value certain investments under some
circumstances. For purposes of applying these policies, the
Funds service providers may consider the trading history
of accounts under common ownership or control. The Funds
policies and procedures include:
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Shareholders are restricted from making more than one
(1) round trip into and out of a Fund within
14 days or more than two (2) round trips
within any continuous 90 day period. If A Shareholder
exceeds either round trip restriction, he or she may
be deemed a Market Timer, and the Funds
and/or their
service providers may, at their discretion, reject any
additional purchase orders. The Funds define a round trip as a
purchase into a Fund by A Shareholder, followed by a
subsequent redemption out of the Fund. Anyone considered to be a
Market Timer by the Funds, the Adviser, the Subadviser or
A Shareholder servicing agent may be notified in writing of
their designation as a Market Timer.
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DISTRIBUTION OF
FUND SHARES
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The Funds reserve the right to reject any purchase request by
any investor or group of investors for any reason without prior
notice, including, in particular, if the Funds or their Adviser
reasonably believes that the trading activity would be harmful
or disruptive to the Funds.
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The Funds
and/or their
service providers seek to apply these policies to the best of
their abilities uniformly and in a manner they believe is
consistent with the interests of the Funds long-term
shareholders.
Although these policies are designed to deter frequent trading,
none of these measures alone nor all of them taken together
eliminate the possibility that frequent trading in the Funds
will occur, particularly with respect to trades placed by
shareholders that invest in the Funds through omnibus
arrangements maintained by brokers, retirement plan accounts and
other financial intermediaries. Purchase and redemption
transactions submitted to the Funds by these intermediaries
reflect the transactions of multiple beneficial owners whose
individual transactions are not automatically disclosed to the
Funds. Therefore, the Funds rely in large part on the
intermediaries who maintain omnibus arrangements (which may
represent a majority of Fund shares) to aid in the Funds
efforts to detect and deter short-term trading. The Funds
monitor trading activity at the omnibus account level and look
for activity that indicates potential short-term trading. If
they detect suspicious trading activity, the Funds contact the
intermediaries to determine whether the short-term trading
policy has been violated and may request and receive personal
identifying information and transaction histories for some or
all beneficial owners to make this determination. If a Fund
believes that A Shareholder has violated the short-term
trading policy, it will take further steps to prevent any future
short-term trading by such shareholder in accordance with the
policy. The Funds cannot guarantee the accuracy of the
information provided by the intermediaries and may not always be
able to track short-term trading effected through these
intermediaries. A Fund has the right to terminate an
intermediarys ability to invest in a Fund if excessive
trading activity persists and a Fund or its Adviser or
Subadviser reasonably believes that such termination would be in
the best interests of long-term shareholders. In addition to the
Funds market timing policies and procedures described
above, you may be subject to the market timing policies and
procedures of the intermediary through which you invest. Please
consult with your intermediary for additional information
regarding its frequent trading restrictions.
Distribution of
Fund Shares
From their own assets, the Adviser, the Subadviser or their
affiliates may make payments based on gross sales and current
assets to selected brokerage firms or institutions. The amount
of these payments may be substantial. The minimum aggregate
sales required for eligibility for such payments, and the
factors in selecting the brokerage firms and institutions to
which they will be made, are determined from time to time by the
Adviser or Subadviser. Furthermore, in addition to the fees that
may be paid by a Fund, the Adviser, the Subadviser or their
affiliates may pay fees from their own capital resources to
brokers, banks, financial advisers, retirement plan service
providers and other financial intermediaries, including
affiliates, for providing distribution-related
or Shareholder services.
The Adviser, the Subadviser or their affiliates may pay fees
from their own capital resources to financial intermediaries to
compensate them for marketing expenses they incur or to pay for
the opportunity to have them distribute the Funds. The amount of
these payments is determined by the Adviser or the Subadviser
and may differ among financial intermediaries. Such payments may
provide incentives for financial intermediaries to make shares
of the Funds available to their customers, and may allow the
Funds greater access to such financial intermediaries and their
customers than would be the case if no payments were made. You
may wish to consider whether such arrangements exist when
evaluating any recommendation to purchase shares of the Funds.
Please refer to the SAI for more information regarding these
arrangements.
Distribution of
Fund Shares A Shares, C Shares and
R Shares
The A Shares, C Shares and R Shares of each Fund
have each adopted a distribution plan that allows the Fund to
pay distribution and service fees for the sale and distribution
of its shares, and for services provided to shareholders.
Because these fees are paid out of a Funds assets
continuously, over time these fees will increase the cost of
your investment and may cost you more than paying other types of
sales charges.
While C Shares are sold without any initial sales charge,
the distributor may pay at the time of sale up to 1% of the
amount invested to broker-dealers and other financial
intermediaries who sell C Shares. Merrill Lynch may receive
an additional 0.25% payment at the time of sale related to
C Shares of certain Funds. Through the distribution plan,
the
SHAREHOLDER
SERVICING PLANS
distributor is reimbursed for these payments, as well as other
distribution related services provided by the distributor. For
A Shares, each Funds distribution plan authorizes
payment of up to the amount shown under Maximum Fee
in the table that follows. Currently, however, the Board has
only approved payment of up to the amount shown under
Current Approved Fee in the table that follows. Fees
are shown as a percentage of average daily net assets of the
Funds A Shares.
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Current
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Maximum
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Approved
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Fee
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Fee
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Investment Grade Funds
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Corporate Bond Fund
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0.35%
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0.30%
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Intermediate Bond Fund
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0.25%
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0.25%
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Investment Grade Bond Fund
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0.35%
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0.30%
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Limited-Term Federal Mortgage Securities Fund
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0.23%
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0.20%
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Total Return Bond Fund
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0.25%
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0.25%
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U.S. Government Securities Fund
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0.35%
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0.30%
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High Yield/Global Funds
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High Income Fund
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0.30%
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0.30%
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Seix Floating Rate High Income Fund
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0.30%
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0.30%
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Seix Global Strategy Fund
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0.35%
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0.30%
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Seix High Yield Fund
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0.25%
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0.25%
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Municipal Bond Funds
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Georgia Tax-Exempt Bond Fund
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0.18%
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0.15%
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High Grade Municipal Bond Fund
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0.18%
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0.15%
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Investment Grade Tax-Exempt Bond Fund
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0.35%
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0.30%
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Maryland Municipal Bond Fund
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0.15%
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0.15%
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North Carolina Tax-Exempt Bond Fund
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0.15%
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0.15%
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Virginia Intermediate Municipal Bond Fund
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0.15%
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0.15%
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Short Duration Funds
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Short-Term Bond Fund
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0.23%
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0.20%
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Short-Term U.S. Treasury Securities Fund
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0.18%
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0.18%
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For C Shares, the maximum distribution fee is 1.00% of the
average daily net assets of each Fund.
The R Shares maximum distribution and service fee is 0.50%
of the average daily net assets of a Funds R Shares.
The Funds may provide financial assistance in connection with
pre-approved seminars, conferences and advertising to the extent
permitted by applicable state or self-regulatory agencies, such
as the Financial Industry Regulatory Authority.
From their own assets, the Adviser, the Subadviser or their
affiliates may make payments based on gross sales and current
assets to selected brokerage firms or institutions. The amount
of these payments may be substantial. The minimum aggregate
sales required for eligibility for such payments, and the
factors in selecting the brokerage firms and institutions to
which they will be made, are determined from time to time by the
Adviser or Subadviser. Furthermore, in addition to the fees that
may be paid by a Fund, the Adviser, the Subadviser or their
affiliates may pay fees from their own capital resources to
brokers, banks, financial advisers, retirement plan service
providers and other financial intermediaries, including
affiliates, for providing distribution-related or Shareholder
services.
The Adviser, the Subadviser or their affiliates may pay fees
from their own capital resources to financial intermediaries to
compensate them for marketing expenses they incur or to pay for
the opportunity to have them distribute the Funds. The amount of
these payments is determined by the Adviser or the Subadviser
and may differ among financial intermediaries. Such payments may
provide incentives for financial intermediaries to make shares
of the Funds available to their customers, and may allow the
Funds greater access to such financial intermediaries and their
customers than would be the case if no payments were made. You
may wish to consider whether such arrangements exist when
evaluating any recommendation to purchase shares of the Funds.
Please refer to the SAI for more information regarding these
arrangements.
Shareholder
Servicing Plans
With respect to the A Shares and I Shares of certain
of the Funds, the A Shares and I Shares Shareholder
Servicing Plan permits the A Shares and I Shares of
that Fund to pay financial service firms for Shareholder
support services they provide, at a rate of up to 0.15% of the
average daily net assets of each of the A Shares and
I Shares of that Fund. The R Shares Shareholder
Servicing Plan permits R Shares for certain of the Funds to
pay specified benefit plans or other financial service firms
for Shareholder support services they provide, at a rate of
up to 0.25% of the average daily net assets of each of the
R Shares of that Fund. The shareholder support services may
include, among others, providing general shareholder liaison
services (including responding to shareholder inquiries),
providing information on
DIVIDENDS AND
DISTRIBUTIONS AND TAXES
shareholder investments, and establishing and maintaining
shareholder accounts and records.
Dividends and
Distributions
Each Fund declares dividends daily and pays these dividends
monthly. Each Fund makes distributions of its net realized
capital gains, if any, at least annually. If you own Fund shares
on a Funds record date, you will be entitled to receive
the distribution.
You will receive dividends and distributions in the form of
additional Fund shares unless you elect to receive payment in
cash. To elect cash payment, you must notify the Funds in
writing prior to the date of the distribution. Your election
will be effective for dividends and distributions paid after the
Funds receive your written notice. To cancel your election,
simply send the Funds written notice.
401(k) Plan participants will receive dividends and
distributions in the form of additional Fund shares if the
participant owns shares of the Funds on the date the dividend or
distribution is allocated by the Plan. Therefore, a participant
will not receive a dividend or distribution if the participant
does not own shares of the Funds on the date the dividend or
distribution is allocated.
Taxes
Please consult your tax advisor regarding your specific
questions about federal, state, and local income taxes.
Below the Funds have summarized some important tax issues that
affect the Funds and their shareholders. This summary is based
on current tax laws, which may change. More information on taxes
is in the SAI.
Dividends and distributions will accumulate on a tax-deferred
basis if you are investing through a 401(k) Plan or any other
employer-sponsored retirement or savings plan that qualifies for
tax-advantaged treatment under federal income tax laws.
Generally, you will not owe taxes on these distributions until
you begin withdrawals from the plan. Redemptions of Fund shares
resulting in withdrawals from the plan are subject to numerous
complex and special tax rules and may be subject to a penalty
tax in the case of premature withdrawals. If you have questions
about the tax consequences of 401(k) Plan withdrawals, you
should consult your tax advisor or plan administrator.
Each Fund will distribute substantially all of its net
investment income and its net realized capital gains, if any, at
least annually. The dividends and distributions you receive may
be subject to federal, state and local taxation, depending upon
your tax situation. Distributions you receive from a Fund may be
taxable whether or not you reinvest them. Income distributions
are generally taxable as either ordinary income or qualified
dividend income. Dividends that are qualified dividend income
are eligible for the reduced maximum rate to individuals of 15%
(lower rates apply to individuals in lower tax brackets) to the
extent that the Fund receives qualified dividend income. Capital
gains distributions are generally taxable at the rates
applicable to long-term capital gains. Long-term capital gains
are currently taxed at a maximum rate of 15%. Absent further
legislation, the maximum 15% tax rate on qualified dividend
income and long-term capital gains will cease to apply to
taxable years beginning after December 31, 2010. A high
portfolio turnover rate and a Funds or an Underlying
Funds use of certain derivatives may cause a Fund to
recognize higher amounts of short-term capital gains, which are
generally taxed to shareholders at ordinary income tax rates.
Each sale or exchange of Fund shares may be a taxable event.
For tax purposes, an exchange of Fund shares for Shares of
a different RidgeWorth Fund is treated the same as a sale. A
transfer from one share class to another in the same RidgeWorth
Fund should not be a taxable event.
Each Fund will inform you of the amount of your ordinary income
dividends, qualified dividend income, and capital gain
distributions shortly after the close of each calendar year.
If you have a tax-advantaged or other retirement account you
will generally not be subject to federal taxation on income and
capital gain distributions until you begin receiving your
distributions from your retirement account. You should consult
your tax advisor regarding the rules governing your own
retirement plan.
The Georgia Tax-Exempt Bond Fund, High Grade Municipal Bond
Fund, Investment Grade Tax-Exempt Bond Fund, Maryland Municipal
Bond Fund, North Carolina Tax-Exempt Bond Fund and Virginia
Intermediate Municipal Bond Fund intend to distribute federally
tax-exempt income. Each Fund may invest a portion of its assets
in securities that generate taxable income for federal or state
income taxes. Income exempt from federal tax may be subject to
state and local taxes. Any capital gains distributed by these
Funds may be taxable. While shareholders of state specific Funds
may receive distributions that are exempt from that particular
states income tax, such
DIVIDENDS AND
DISTRIBUTIONS AND TAXES
distributions may be taxable in other states where the
shareholder files tax returns.
Except for those certain Funds that expect to distribute
federally tax-exempt income (described above), the Funds expect
to distribute primarily ordinary income dividends currently
taxable at a maximum rate of 35%.
The Short-Term U.S. Treasury Securities Fund and the
U.S. Government Securities Fund each expect that a
substantial portion of Fund distributions will represent
interest earned on U.S. obligations, while the Investment
Grade Bond Fund, the Short-Term Bond Fund the Ultra-Short Bond
Fund and the U.S. Government Ultra-Short Bond Fund expect
that some portion of each Funds distributions will be so
derived. Many states grant tax-free status to dividends paid
from interest earned on direct obligations of the
U.S. Government, subject to certain limitations.
More information
about taxes is in the SAI.
FINANCIAL
HIGHLIGHTS
The financial highlights table is intended to help you
understand a Funds financial performance for the past
5 years or, if shorter, the period of the Funds
operations. Certain information reflects financial results for a
single Fund share. The total returns in the table represent the
rate that an investor would have earned (or lost) on an
investment in the Fund (assuming reinvestment of all dividends
and distributions). This financial information has been audited
by PricewaterhouseCoopers LLP. The Report of Independent
Registered Public Accounting Firm for each period shown, along
with the Funds financial statements and related notes, are
included in the Annual Reports to Shareholders for such periods.
The 2010 Annual Report is available upon request and without
charge by calling
1-888-784-3863
or on the Funds website at www.ridgeworth.com.
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
Income
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
Distributions
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
from Tax
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Return of
|
|
Capital
|
|
and
|
|
End of
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Capital
|
|
Gains
|
|
Distributions
|
|
Period
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
Corporate Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
8.53
|
|
|
$
|
0.46
|
(a)
|
|
$
|
1.09
|
|
|
$
|
1.55
|
|
|
$
|
(0.45
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(0.45
|
)
|
|
$
|
9.63
|
|
|
18.49
|
%
|
|
$
|
157,739
|
|
|
|
0.50
|
%
|
|
|
4.86
|
%
|
|
|
0.50
|
%
|
|
|
75
|
%
|
Year Ended March 31, 2009
|
|
|
9.60
|
|
|
|
0.49
|
(a)
|
|
|
(0.86
|
)
|
|
|
(0.37
|
)
|
|
|
(0.70
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.70
|
)
|
|
|
8.53
|
|
|
(4.10
|
)
|
|
|
39,881
|
|
|
|
0.73
|
|
|
|
5.29
|
|
|
|
0.74
|
|
|
|
357
|
|
Year Ended March 31, 2008
|
|
|
9.88
|
|
|
|
0.60
|
(a)
|
|
|
(0.27
|
)
|
|
|
0.33
|
|
|
|
(0.61
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.61
|
)
|
|
|
9.60
|
|
|
3.43
|
|
|
|
62,581
|
|
|
|
0.69
|
|
|
|
6.16
|
|
|
|
0.71
|
|
|
|
439
|
|
Year Ended March 31, 2007
|
|
|
9.64
|
|
|
|
0.50
|
(a)
|
|
|
0.31
|
|
|
|
0.81
|
|
|
|
(0.40
|
)
|
|
|
(0.17
|
)
|
|
|
|
|
|
|
(0.57
|
)
|
|
|
9.88
|
|
|
8.66
|
|
|
|
86,812
|
|
|
|
0.71
|
|
|
|
5.20
|
|
|
|
0.73
|
|
|
|
397
|
|
Year Ended March 31, 2006
|
|
|
10.24
|
|
|
|
0.43
|
(a)
|
|
|
(0.41
|
)
|
|
|
0.02
|
|
|
|
(0.44
|
)
|
|
|
|
|
|
|
(0.18
|
)
|
|
|
(0.62
|
)
|
|
|
9.64
|
|
|
0.19
|
|
|
|
243,001
|
|
|
|
0.76
|
|
|
|
4.35
|
|
|
|
0.79
|
|
|
|
317
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
8.57
|
|
|
|
0.43
|
(a)
|
|
|
1.10
|
|
|
|
1.53
|
|
|
|
(0.43
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.43
|
)
|
|
|
9.67
|
|
|
18.05
|
|
|
|
4,524
|
|
|
|
0.80
|
|
|
|
4.52
|
|
|
|
0.80
|
|
|
|
75
|
|
Year Ended March 31, 2009
|
|
|
9.64
|
|
|
|
0.45
|
(a)
|
|
|
(0.85
|
)
|
|
|
(0.40
|
)
|
|
|
(0.67
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.67
|
)
|
|
|
8.57
|
|
|
(4.37
|
)
|
|
|
2,181
|
|
|
|
1.03
|
|
|
|
4.96
|
|
|
|
1.03
|
|
|
|
357
|
|
Year Ended March 31, 2008
|
|
|
9.92
|
|
|
|
0.57
|
(a)
|
|
|
(0.27
|
)
|
|
|
0.30
|
|
|
|
(0.58
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.58
|
)
|
|
|
9.64
|
|
|
3.10
|
|
|
|
1,226
|
|
|
|
0.99
|
|
|
|
5.84
|
|
|
|
1.00
|
|
|
|
439
|
|
Year Ended March 31, 2007
|
|
|
9.68
|
|
|
|
0.49
|
(a)
|
|
|
0.30
|
|
|
|
0.79
|
|
|
|
(0.39
|
)
|
|
|
(0.16
|
)
|
|
|
|
|
|
|
(0.55
|
)
|
|
|
9.92
|
|
|
8.31
|
|
|
|
1,144
|
|
|
|
1.01
|
|
|
|
5.10
|
|
|
|
1.03
|
|
|
|
397
|
|
Year Ended March 31, 2006
|
|
|
10.27
|
|
|
|
0.41
|
(a)
|
|
|
(0.41
|
)
|
|
|
|
|
|
|
(0.41
|
)
|
|
|
|
|
|
|
(0.18
|
)
|
|
|
(0.59
|
)
|
|
|
9.68
|
|
|
(0.01
|
)
|
|
|
1,740
|
|
|
|
1.10
|
|
|
|
4.08
|
|
|
|
1.16
|
|
|
|
317
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
8.53
|
|
|
|
0.36
|
|
|
|
1.10
|
|
|
|
1.46
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.36
|
)
|
|
|
9.63
|
|
|
17.32
|
|
|
|
18,885
|
|
|
|
1.50
|
|
|
|
3.89
|
|
|
|
1.50
|
|
|
|
75
|
|
Year Ended March 31, 2009
|
|
|
9.61
|
|
|
|
0.40
|
(a)
|
|
|
(0.87
|
)
|
|
|
(0.47
|
)
|
|
|
(0.61
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.61
|
)
|
|
|
8.53
|
|
|
(5.16
|
)
|
|
|
18,171
|
|
|
|
1.73
|
|
|
|
4.32
|
|
|
|
1.74
|
|
|
|
357
|
|
Year Ended March 31, 2008
|
|
|
9.88
|
|
|
|
0.50
|
(a)
|
|
|
(0.26
|
)
|
|
|
0.24
|
|
|
|
(0.51
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.51
|
)
|
|
|
9.61
|
|
|
2.50
|
|
|
|
24,777
|
|
|
|
1.70
|
|
|
|
5.17
|
|
|
|
1.71
|
|
|
|
439
|
|
Year Ended March 31, 2007
|
|
|
9.65
|
|
|
|
0.43
|
(a)
|
|
|
0.28
|
|
|
|
0.71
|
|
|
|
(0.34
|
)
|
|
|
(0.14
|
)
|
|
|
|
|
|
|
(0.48
|
)
|
|
|
9.88
|
|
|
7.48
|
|
|
|
32,864
|
|
|
|
1.71
|
|
|
|
4.43
|
|
|
|
1.73
|
|
|
|
397
|
|
Year Ended March 31, 2006
|
|
|
10.24
|
|
|
|
0.35
|
(a)
|
|
|
(0.41
|
)
|
|
|
(0.06
|
)
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
(0.18
|
)
|
|
|
(0.53
|
)
|
|
|
9.65
|
|
|
(0.57
|
)
|
|
|
46,679
|
|
|
|
1.63
|
|
|
|
3.53
|
|
|
|
1.83
|
|
|
|
317
|
|
Georgia Tax-Exempt Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
9.81
|
|
|
|
0.39
|
|
|
|
0.42
|
|
|
|
0.81
|
|
|
|
(0.39
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.39
|
)
|
|
|
10.23
|
|
|
8.32
|
|
|
|
205,856
|
|
|
|
0.60
|
|
|
|
3.80
|
|
|
|
0.60
|
|
|
|
45
|
|
Year Ended March 31, 2009^
|
|
|
9.95
|
|
|
|
0.37
|
|
|
|
(0.14
|
)
|
|
|
0.23
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.37
|
)
|
|
|
9.81
|
|
|
2.43
|
|
|
|
163,761
|
|
|
|
0.67
|
|
|
|
3.82
|
|
|
|
0.68
|
|
|
|
63
|
|
Year Ended March 31, 2008
|
|
|
10.25
|
|
|
|
0.39
|
|
|
|
(0.33
|
)
|
|
|
0.06
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.36
|
)
|
|
|
9.95
|
|
|
0.60
|
|
|
|
169,453
|
|
|
|
0.59
|
|
|
|
3.83
|
|
|
|
0.60
|
|
|
|
30
|
|
Year Ended March 31, 2007
|
|
|
10.16
|
|
|
|
0.37
|
|
|
|
0.13
|
|
|
|
0.50
|
|
|
|
(0.40
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
(0.41
|
)
|
|
|
10.25
|
|
|
4.95
|
|
|
|
142,485
|
|
|
|
0.60
|
|
|
|
3.71
|
|
|
|
0.60
|
|
|
|
61
|
|
Year Ended March 31, 2006
|
|
|
10.21
|
|
|
|
0.36
|
(a)
|
|
|
(0.04
|
)
|
|
|
0.32
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
(0.37
|
)
|
|
|
10.16
|
|
|
3.19
|
|
|
|
115,929
|
|
|
|
0.64
|
|
|
|
3.53
|
|
|
|
0.66
|
|
|
|
43
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
9.83
|
|
|
|
0.36
|
|
|
|
0.42
|
|
|
|
0.78
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.37
|
)
|
|
|
10.24
|
|
|
8.03
|
|
|
|
10,184
|
|
|
|
0.75
|
|
|
|
3.56
|
|
|
|
0.75
|
|
|
|
45
|
|
Year Ended March 31, 2009^
|
|
|
9.97
|
|
|
|
0.37
|
|
|
|
(0.15
|
)
|
|
|
0.22
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.36
|
)
|
|
|
9.83
|
|
|
2.27
|
|
|
|
2,747
|
|
|
|
0.82
|
|
|
|
3.66
|
|
|
|
0.83
|
|
|
|
63
|
|
Year Ended March 31, 2008
|
|
|
10.26
|
|
|
|
0.38
|
|
|
|
(0.32
|
)
|
|
|
0.06
|
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.35
|
)
|
|
|
9.97
|
|
|
0.54
|
|
|
|
4,164
|
|
|
|
0.74
|
|
|
|
3.63
|
|
|
|
0.75
|
|
|
|
30
|
|
Year Ended March 31, 2007
|
|
|
10.18
|
|
|
|
0.35
|
|
|
|
0.12
|
|
|
|
0.47
|
|
|
|
(0.38
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
(0.39
|
)
|
|
|
10.26
|
|
|
4.68
|
|
|
|
3,592
|
|
|
|
0.75
|
|
|
|
3.56
|
|
|
|
0.75
|
|
|
|
61
|
|
Year Ended March 31, 2006
|
|
|
10.22
|
|
|
|
0.35
|
(a)
|
|
|
(0.03
|
)
|
|
|
0.32
|
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
(0.36
|
)
|
|
|
10.18
|
|
|
3.12
|
|
|
|
3,711
|
|
|
|
0.79
|
|
|
|
3.38
|
|
|
|
0.81
|
|
|
|
43
|
|
High Grade Municipal Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.49
|
|
|
|
0.42
|
|
|
|
0.66
|
|
|
|
1.08
|
|
|
|
(0.42
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.42
|
)
|
|
|
11.15
|
|
|
10.43
|
|
|
|
55,203
|
|
|
|
0.64
|
|
|
|
3.83
|
|
|
|
0.66
|
|
|
|
123
|
|
Year Ended March 31, 2009
|
|
|
10.80
|
|
|
|
0.38
|
|
|
|
(0.31
|
)
|
|
|
0.07
|
|
|
|
(0.38
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.38
|
)
|
|
|
10.49
|
|
|
0.72
|
|
|
|
74,586
|
|
|
|
0.62
|
|
|
|
3.57
|
|
|
|
0.62
|
|
|
|
209
|
|
Year Ended March 31, 2008
|
|
|
10.92
|
|
|
|
0.37
|
|
|
|
(0.09
|
)
|
|
|
0.28
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
(0.40
|
)
|
|
|
10.80
|
|
|
2.58
|
|
|
|
173,975
|
|
|
|
0.66
|
|
|
|
3.40
|
|
|
|
0.66
|
|
|
|
183
|
|
Year Ended March 31, 2007
|
|
|
10.82
|
|
|
|
0.37
|
|
|
|
0.12
|
|
|
|
0.49
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
(0.39
|
)
|
|
|
10.92
|
|
|
4.54
|
|
|
|
163,707
|
|
|
|
0.60
|
|
|
|
3.37
|
|
|
|
0.61
|
|
|
|
128
|
|
Year Ended March 31, 2006
|
|
|
10.90
|
|
|
|
0.34
|
|
|
|
(0.03
|
)
|
|
|
0.31
|
|
|
|
(0.34
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
(0.39
|
)
|
|
|
10.82
|
|
|
2.90
|
|
|
|
165,341
|
|
|
|
0.63
|
|
|
|
3.13
|
|
|
|
0.65
|
|
|
|
90
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.49
|
|
|
|
0.40
|
|
|
|
0.66
|
|
|
|
1.06
|
|
|
|
(0.40
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.40
|
)
|
|
|
11.15
|
|
|
10.26
|
|
|
|
5,605
|
|
|
|
0.79
|
|
|
|
3.66
|
|
|
|
0.81
|
|
|
|
123
|
|
Year Ended March 31, 2009
|
|
|
10.80
|
|
|
|
0.37
|
|
|
|
(0.31
|
)
|
|
|
0.06
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.37
|
)
|
|
|
10.49
|
|
|
0.56
|
|
|
|
1,900
|
|
|
|
0.78
|
|
|
|
3.47
|
|
|
|
0.78
|
|
|
|
209
|
|
Year Ended March 31, 2008
|
|
|
10.93
|
|
|
|
0.35
|
|
|
|
(0.10
|
)
|
|
|
0.25
|
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
(0.38
|
)
|
|
|
10.80
|
|
|
2.33
|
|
|
|
2,442
|
|
|
|
0.81
|
|
|
|
3.26
|
|
|
|
0.81
|
|
|
|
183
|
|
Year Ended March 31, 2007
|
|
|
10.83
|
|
|
|
0.35
|
|
|
|
0.12
|
|
|
|
0.47
|
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
(0.37
|
)
|
|
|
10.93
|
|
|
4.38
|
|
|
|
2,844
|
|
|
|
0.75
|
|
|
|
3.23
|
|
|
|
0.76
|
|
|
|
128
|
|
Year Ended March 31, 2006
|
|
|
10.91
|
|
|
|
0.33
|
|
|
|
(0.03
|
)
|
|
|
0.30
|
|
|
|
(0.33
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
(0.38
|
)
|
|
|
10.83
|
|
|
2.73
|
|
|
|
5,077
|
|
|
|
0.80
|
|
|
|
2.98
|
|
|
|
0.81
|
|
|
|
90
|
|
See
Notes to Financial Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
Income
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
High Income Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
4.67
|
|
|
$
|
0.55
|
|
|
$
|
2.09
|
|
|
$
|
2.64
|
|
|
$
|
(0.54
|
)
|
|
$
|
|
|
|
$
|
(0.54
|
)
|
|
$
|
6.77
|
|
|
58.65
|
%
|
|
$
|
148,252
|
|
|
|
0.70
|
%
|
|
|
8.97
|
%
|
|
|
0.72
|
%
|
|
|
466
|
%
|
Year Ended March 31, 2009
|
|
|
6.40
|
|
|
|
0.54
|
|
|
|
(1.74
|
)
|
|
|
(1.20
|
)
|
|
|
(0.53
|
)
|
|
|
|
|
|
|
(0.53
|
)
|
|
|
4.67
|
|
|
(19.40
|
)
|
|
|
23,995
|
|
|
|
0.70
|
|
|
|
9.67
|
|
|
|
0.76
|
|
|
|
368
|
|
Year Ended March 31, 2008
|
|
|
7.36
|
|
|
|
0.57
|
|
|
|
(0.82
|
)
|
|
|
(0.25
|
)
|
|
|
(0.58
|
)
|
|
|
(0.13
|
)
|
|
|
(0.71
|
)
|
|
|
6.40
|
|
|
(3.68
|
)
|
|
|
30,587
|
|
|
|
0.70
|
|
|
|
8.23
|
|
|
|
0.71
|
|
|
|
403
|
|
Year Ended March 31, 2007
|
|
|
6.97
|
|
|
|
0.58
|
|
|
|
0.39
|
|
|
|
0.97
|
|
|
|
(0.58
|
)
|
|
|
|
|
|
|
(0.58
|
)
|
|
|
7.36
|
|
|
14.58
|
|
|
|
42,809
|
|
|
|
0.70
|
|
|
|
8.11
|
|
|
|
0.71
|
|
|
|
379
|
|
Year Ended March 31, 2006
|
|
|
7.38
|
|
|
|
0.55
|
|
|
|
(0.03
|
)
|
|
|
0.52
|
|
|
|
(0.55
|
)
|
|
|
(0.38
|
)
|
|
|
(0.93
|
)
|
|
|
6.97
|
|
|
7.53
|
|
|
|
36,764
|
|
|
|
0.72
|
|
|
|
7.64
|
|
|
|
0.82
|
|
|
|
208
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
4.68
|
|
|
|
0.53
|
|
|
|
2.09
|
|
|
|
2.62
|
|
|
|
(0.52
|
)
|
|
|
|
|
|
|
(0.52
|
)
|
|
|
6.78
|
|
|
58.07
|
|
|
|
3,822
|
|
|
|
0.99
|
|
|
|
8.67
|
|
|
|
1.01
|
|
|
|
466
|
|
Year Ended March 31, 2009
|
|
|
6.41
|
|
|
|
0.52
|
|
|
|
(1.74
|
)
|
|
|
(1.22
|
)
|
|
|
(0.51
|
)
|
|
|
|
|
|
|
(0.51
|
)
|
|
|
4.68
|
|
|
(19.60
|
)
|
|
|
860
|
|
|
|
0.99
|
|
|
|
8.33
|
|
|
|
1.04
|
|
|
|
368
|
|
Year Ended March 31, 2008
|
|
|
7.37
|
|
|
|
0.55
|
|
|
|
(0.82
|
)
|
|
|
(0.27
|
)
|
|
|
(0.56
|
)
|
|
|
(0.13
|
)
|
|
|
(0.69
|
)
|
|
|
6.41
|
|
|
(3.96
|
)
|
|
|
847
|
|
|
|
1.00
|
|
|
|
7.95
|
|
|
|
1.02
|
|
|
|
403
|
|
Year Ended March 31, 2007
|
|
|
6.98
|
|
|
|
0.56
|
|
|
|
0.39
|
|
|
|
0.95
|
|
|
|
(0.56
|
)
|
|
|
|
|
|
|
(0.56
|
)
|
|
|
7.37
|
|
|
14.22
|
|
|
|
498
|
|
|
|
1.00
|
|
|
|
7.86
|
|
|
|
1.01
|
|
|
|
379
|
|
Year Ended March 31, 2006
|
|
|
7.39
|
|
|
|
0.53
|
|
|
|
(0.03
|
)
|
|
|
0.50
|
|
|
|
(0.53
|
)
|
|
|
(0.38
|
)
|
|
|
(0.91
|
)
|
|
|
6.98
|
|
|
7.20
|
|
|
|
403
|
|
|
|
1.03
|
|
|
|
7.36
|
|
|
|
1.13
|
|
|
|
208
|
|
R Shares(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
4.67
|
|
|
|
0.51
|
|
|
|
2.10
|
|
|
|
2.61
|
|
|
|
(0.50
|
)
|
|
|
|
|
|
|
(0.50
|
)
|
|
|
6.78
|
|
|
57.86
|
|
|
|
16,176
|
|
|
|
1.35
|
|
|
|
8.68
|
|
|
|
1.38
|
|
|
|
466
|
|
Year Ended March 31, 2009
|
|
|
6.40
|
|
|
|
0.49
|
|
|
|
(1.74
|
)
|
|
|
(1.25
|
)
|
|
|
(0.48
|
)
|
|
|
|
|
|
|
(0.48
|
)
|
|
|
4.67
|
|
|
(20.20
|
)
|
|
|
12,249
|
|
|
|
1.70
|
|
|
|
8.54
|
|
|
|
1.76
|
|
|
|
368
|
|
Year Ended March 31, 2008
|
|
|
7.36
|
|
|
|
0.50
|
|
|
|
(0.82
|
)
|
|
|
(0.32
|
)
|
|
|
(0.51
|
)
|
|
|
(0.13
|
)
|
|
|
(0.64
|
)
|
|
|
6.40
|
|
|
(4.63
|
)
|
|
|
20,546
|
|
|
|
1.71
|
|
|
|
7.24
|
|
|
|
1.72
|
|
|
|
403
|
|
Year Ended March 31, 2007
|
|
|
6.97
|
|
|
|
0.51
|
|
|
|
0.39
|
|
|
|
0.90
|
|
|
|
(0.51
|
)
|
|
|
|
|
|
|
(0.51
|
)
|
|
|
7.36
|
|
|
13.45
|
|
|
|
28,862
|
|
|
|
1.70
|
|
|
|
7.11
|
|
|
|
1.71
|
|
|
|
379
|
|
Year Ended March 31, 2006
|
|
|
7.38
|
|
|
|
0.49
|
|
|
|
(0.03
|
)
|
|
|
0.46
|
|
|
|
(0.49
|
)
|
|
|
(0.38
|
)
|
|
|
(0.87
|
)
|
|
|
6.97
|
|
|
6.57
|
|
|
|
36,062
|
|
|
|
1.62
|
|
|
|
6.78
|
|
|
|
1.83
|
|
|
|
208
|
|
Intermediate Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.27
|
|
|
|
0.34
|
(a)
|
|
|
0.27
|
|
|
|
0.61
|
|
|
|
(0.30
|
)
|
|
|
(0.05
|
)
|
|
|
(0.35
|
)
|
|
|
10.53
|
|
|
6.08
|
|
|
|
1,559,191
|
|
|
|
0.31
|
|
|
|
3.24
|
|
|
|
0.31
|
|
|
|
122
|
|
Year Ended March 31, 2009
|
|
|
10.29
|
|
|
|
0.43
|
|
|
|
0.24
|
|
|
|
0.67
|
|
|
|
(0.46
|
)
|
|
|
(0.23
|
)
|
|
|
(0.69
|
)
|
|
|
10.27
|
|
|
6.83
|
|
|
|
1,071,496
|
|
|
|
0.29
|
|
|
|
4.24
|
|
|
|
0.29
|
|
|
|
217
|
|
Year Ended March 31, 2008
|
|
|
9.96
|
|
|
|
0.50
|
|
|
|
0.33
|
|
|
|
0.83
|
|
|
|
(0.49
|
)
|
|
|
(0.01
|
)
|
|
|
(0.50
|
)
|
|
|
10.29
|
|
|
8.57
|
|
|
|
812,982
|
|
|
|
0.29
|
|
|
|
4.80
|
|
|
|
0.30
|
|
|
|
254
|
|
Year Ended March 31, 2007
|
|
|
9.85
|
|
|
|
0.46
|
(a)
|
|
|
0.11
|
|
|
|
0.57
|
|
|
|
(0.46
|
)
|
|
|
|
|
|
|
(0.46
|
)
|
|
|
9.96
|
|
|
5.97
|
|
|
|
94,136
|
|
|
|
0.31
|
|
|
|
4.67
|
|
|
|
0.31
|
|
|
|
225
|
|
Year Ended March 31, 2006
|
|
|
10.08
|
|
|
|
0.38
|
|
|
|
(0.21
|
)
|
|
|
0.17
|
|
|
|
(0.39
|
)
|
|
|
(0.01
|
)
|
|
|
(0.40
|
)
|
|
|
9.85
|
|
|
1.76
|
|
|
|
78,187
|
|
|
|
0.31
|
|
|
|
3.88
|
|
|
|
0.31
|
|
|
|
154
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.27
|
|
|
|
0.31
|
(a)
|
|
|
0.28
|
|
|
|
0.59
|
|
|
|
(0.28
|
)
|
|
|
(0.05
|
)
|
|
|
(0.33
|
)
|
|
|
10.53
|
|
|
5.83
|
|
|
|
11,916
|
|
|
|
0.55
|
|
|
|
2.96
|
|
|
|
0.55
|
|
|
|
122
|
|
Year Ended March 31, 2009
|
|
|
10.29
|
|
|
|
0.41
|
|
|
|
0.23
|
|
|
|
0.64
|
|
|
|
(0.43
|
)
|
|
|
(0.23
|
)
|
|
|
(0.66
|
)
|
|
|
10.27
|
|
|
6.54
|
|
|
|
2,624
|
|
|
|
0.54
|
|
|
|
3.89
|
|
|
|
0.54
|
|
|
|
217
|
|
Year Ended March 31, 2008
|
|
|
9.95
|
|
|
|
0.47
|
|
|
|
0.34
|
|
|
|
0.81
|
|
|
|
(0.46
|
)
|
|
|
(0.01
|
)
|
|
|
(0.47
|
)
|
|
|
10.29
|
|
|
8.39
|
|
|
|
736
|
|
|
|
0.55
|
|
|
|
4.60
|
|
|
|
0.55
|
|
|
|
254
|
|
Year Ended March 31, 2007
|
|
|
9.85
|
|
|
|
0.44
|
(a)
|
|
|
0.10
|
|
|
|
0.54
|
|
|
|
(0.44
|
)
|
|
|
|
|
|
|
(0.44
|
)
|
|
|
9.95
|
|
|
5.62
|
|
|
|
105
|
|
|
|
0.58
|
|
|
|
4.72
|
|
|
|
0.58
|
|
|
|
225
|
|
Year Ended March 31, 2006
|
|
|
10.08
|
|
|
|
0.39
|
|
|
|
(0.25
|
)
|
|
|
0.14
|
|
|
|
(0.36
|
)
|
|
|
(0.01
|
)
|
|
|
(0.37
|
)
|
|
|
9.85
|
|
|
1.39
|
|
|
|
4
|
|
|
|
0.56
|
|
|
|
3.83
|
|
|
|
0.57
|
|
|
|
154
|
|
R Shares(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.27
|
|
|
|
0.27
|
(a)
|
|
|
0.28
|
|
|
|
0.55
|
|
|
|
(0.24
|
)
|
|
|
(0.05
|
)
|
|
|
(0.29
|
)
|
|
|
10.53
|
|
|
5.47
|
|
|
|
1,068
|
|
|
|
0.91
|
|
|
|
2.56
|
|
|
|
0.91
|
|
|
|
122
|
|
Year Ended March 31, 2009
|
|
|
10.29
|
|
|
|
0.36
|
|
|
|
0.22
|
|
|
|
0.58
|
|
|
|
(0.37
|
)
|
|
|
(0.23
|
)
|
|
|
(0.60
|
)
|
|
|
10.27
|
|
|
5.84
|
|
|
|
543
|
|
|
|
1.02
|
|
|
|
3.33
|
|
|
|
1.02
|
|
|
|
217
|
|
Period from January 18, 2008 through
March 31, 2008*
|
|
|
10.32
|
|
|
|
0.07
|
|
|
|
(0.03
|
)
|
|
|
0.04
|
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
(0.07
|
)
|
|
|
10.29
|
|
|
0.40
|
|
|
|
9
|
|
|
|
1.28
|
|
|
|
3.62
|
|
|
|
1.28
|
|
|
|
254
|
|
Period from April 1, 2007 through
October 15, 2007*
|
|
|
9.95
|
|
|
|
0.21
|
|
|
|
0.01
|
|
|
|
0.22
|
|
|
|
(0.21
|
)
|
|
|
|
|
|
|
(0.21
|
)
|
|
|
9.96
|
|
|
2.21
|
|
|
|
1
|
|
|
|
1.43
|
|
|
|
3.86
|
|
|
|
1.43
|
|
|
|
254
|
|
Year Ended March 31, 2007
|
|
|
9.85
|
|
|
|
0.36
|
(a)
|
|
|
0.12
|
|
|
|
0.48
|
|
|
|
(0.38
|
)
|
|
|
|
|
|
|
(0.38
|
)
|
|
|
9.95
|
|
|
4.92
|
|
|
|
1
|
|
|
|
1.31
|
|
|
|
3.61
|
|
|
|
1.31
|
|
|
|
225
|
|
Year Ended March 31, 2006
|
|
|
10.08
|
|
|
|
0.28
|
|
|
|
(0.21
|
)
|
|
|
0.07
|
|
|
|
(0.29
|
)
|
|
|
(0.01
|
)
|
|
|
(0.30
|
)
|
|
|
9.85
|
|
|
0.74
|
|
|
|
68
|
|
|
|
1.24
|
|
|
|
2.86
|
|
|
|
1.25
|
|
|
|
154
|
|
See
Notes to Financial Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
Income
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
Investment Grade Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
10.93
|
|
|
$
|
0.43
|
|
|
$
|
0.46
|
|
|
$
|
0.89
|
|
|
$
|
(0.39
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.40
|
)
|
|
$
|
11.42
|
|
|
8.26
|
%
|
|
$
|
372,232
|
|
|
|
0.57
|
%
|
|
|
3.89
|
%
|
|
|
0.57
|
%
|
|
|
99
|
%
|
Year Ended March 31, 2009
|
|
|
10.74
|
|
|
|
0.46
|
|
|
|
0.24
|
|
|
|
0.70
|
|
|
|
(0.51
|
)
|
|
|
|
|
|
|
(0.51
|
)
|
|
|
10.93
|
|
|
6.78
|
|
|
|
389,205
|
|
|
|
0.56
|
|
|
|
4.38
|
|
|
|
0.56
|
|
|
|
208
|
|
Year Ended March 31, 2008
|
|
|
10.49
|
|
|
|
0.50
|
|
|
|
0.26
|
|
|
|
0.76
|
|
|
|
(0.51
|
)
|
|
|
|
|
|
|
(0.51
|
)
|
|
|
10.74
|
|
|
7.47
|
|
|
|
385,110
|
|
|
|
0.56
|
|
|
|
4.82
|
|
|
|
0.56
|
|
|
|
227
|
|
Year Ended March 31, 2007
|
|
|
10.40
|
|
|
|
0.49
|
|
|
|
0.10
|
|
|
|
0.59
|
|
|
|
(0.50
|
)
|
|
|
|
|
|
|
(0.50
|
)
|
|
|
10.49
|
|
|
5.79
|
|
|
|
394,196
|
|
|
|
0.55
|
|
|
|
4.70
|
|
|
|
0.55
|
|
|
|
240
|
|
Year Ended March 31, 2006
|
|
|
10.51
|
|
|
|
0.42
|
|
|
|
(0.11
|
)
|
|
|
0.31
|
|
|
|
(0.42
|
)
|
|
|
|
|
|
|
(0.42
|
)
|
|
|
10.40
|
|
|
2.94
|
|
|
|
480,024
|
|
|
|
0.65
|
|
|
|
3.91
|
|
|
|
0.65
|
|
|
|
171
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.93
|
|
|
|
0.41
|
|
|
|
0.45
|
|
|
|
0.86
|
|
|
|
(0.36
|
)
|
|
|
(0.01
|
)
|
|
|
(0.37
|
)
|
|
|
11.42
|
|
|
7.91
|
|
|
|
26,790
|
|
|
|
0.89
|
|
|
|
3.59
|
|
|
|
0.89
|
|
|
|
99
|
|
Year Ended March 31, 2009
|
|
|
10.74
|
|
|
|
0.43
|
|
|
|
0.24
|
|
|
|
0.67
|
|
|
|
(0.48
|
)
|
|
|
|
|
|
|
(0.48
|
)
|
|
|
10.93
|
|
|
6.46
|
|
|
|
25,996
|
|
|
|
0.86
|
|
|
|
4.10
|
|
|
|
0.86
|
|
|
|
208
|
|
Year Ended March 31, 2008
|
|
|
10.49
|
|
|
|
0.47
|
|
|
|
0.26
|
|
|
|
0.73
|
|
|
|
(0.48
|
)
|
|
|
|
|
|
|
(0.48
|
)
|
|
|
10.74
|
|
|
7.15
|
|
|
|
14,495
|
|
|
|
0.86
|
|
|
|
4.54
|
|
|
|
0.86
|
|
|
|
227
|
|
Year Ended March 31, 2007
|
|
|
10.40
|
|
|
|
0.46
|
|
|
|
0.10
|
|
|
|
0.56
|
|
|
|
(0.47
|
)
|
|
|
|
|
|
|
(0.47
|
)
|
|
|
10.49
|
|
|
5.48
|
|
|
|
16,526
|
|
|
|
0.85
|
|
|
|
4.40
|
|
|
|
0.85
|
|
|
|
240
|
|
Year Ended March 31, 2006
|
|
|
10.50
|
|
|
|
0.38
|
|
|
|
(0.10
|
)
|
|
|
0.28
|
|
|
|
(0.38
|
)
|
|
|
|
|
|
|
(0.38
|
)
|
|
|
10.40
|
|
|
2.69
|
|
|
|
20,210
|
|
|
|
1.00
|
|
|
|
3.57
|
|
|
|
1.00
|
|
|
|
171
|
|
R Shares(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.93
|
|
|
|
0.37
|
|
|
|
0.45
|
|
|
|
0.82
|
|
|
|
(0.32
|
)
|
|
|
(0.01
|
)
|
|
|
(0.33
|
)
|
|
|
11.42
|
|
|
7.54
|
|
|
|
9,616
|
|
|
|
1.23
|
|
|
|
3.23
|
|
|
|
1.23
|
|
|
|
99
|
|
Year Ended March 31, 2009
|
|
|
10.75
|
|
|
|
0.37
|
|
|
|
0.22
|
|
|
|
0.59
|
|
|
|
(0.41
|
)
|
|
|
|
|
|
|
(0.41
|
)
|
|
|
10.93
|
|
|
5.62
|
|
|
|
11,268
|
|
|
|
1.55
|
|
|
|
3.37
|
|
|
|
1.55
|
|
|
|
208
|
|
Year Ended March 31, 2008
|
|
|
10.50
|
|
|
|
0.40
|
|
|
|
0.26
|
|
|
|
0.66
|
|
|
|
(0.41
|
)
|
|
|
|
|
|
|
(0.41
|
)
|
|
|
10.75
|
|
|
6.40
|
|
|
|
7,709
|
|
|
|
1.56
|
|
|
|
3.83
|
|
|
|
1.56
|
|
|
|
227
|
|
Year Ended March 31, 2007
|
|
|
10.40
|
|
|
|
0.38
|
|
|
|
0.11
|
|
|
|
0.49
|
|
|
|
(0.39
|
)
|
|
|
|
|
|
|
(0.39
|
)
|
|
|
10.50
|
|
|
4.84
|
|
|
|
9,024
|
|
|
|
1.55
|
|
|
|
3.69
|
|
|
|
1.55
|
|
|
|
240
|
|
Year Ended March 31, 2006
|
|
|
10.51
|
|
|
|
0.31
|
|
|
|
(0.11
|
)
|
|
|
0.20
|
|
|
|
(0.31
|
)
|
|
|
|
|
|
|
(0.31
|
)
|
|
|
10.40
|
|
|
1.94
|
|
|
|
13,580
|
|
|
|
1.63
|
|
|
|
2.93
|
|
|
|
1.66
|
|
|
|
171
|
|
Investment Grade Tax-Exempt Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
11.60
|
|
|
|
0.37
|
|
|
|
0.56
|
|
|
|
0.93
|
|
|
|
(0.37
|
)
|
|
|
(0.17
|
)
|
|
|
(0.54
|
)
|
|
|
11.99
|
|
|
8.15
|
|
|
|
1,037,972
|
|
|
|
0.55
|
|
|
|
3.08
|
|
|
|
0.56
|
|
|
|
169
|
|
Year Ended March 31, 2009
|
|
|
11.59
|
|
|
|
0.38
|
|
|
|
0.08
|
|
|
|
0.46
|
|
|
|
(0.38
|
)
|
|
|
(0.07
|
)
|
|
|
(0.45
|
)
|
|
|
11.60
|
|
|
4.12
|
|
|
|
817,297
|
|
|
|
0.54
|
|
|
|
3.30
|
|
|
|
0.55
|
|
|
|
221
|
|
Year Ended March 31, 2008
|
|
|
11.47
|
|
|
|
0.38
|
|
|
|
0.15
|
|
|
|
0.53
|
|
|
|
(0.38
|
)
|
|
|
(0.03
|
)
|
|
|
(0.41
|
)
|
|
|
11.59
|
|
|
4.73
|
|
|
|
546,323
|
|
|
|
0.57
|
|
|
|
3.32
|
|
|
|
0.57
|
|
|
|
189
|
|
Year Ended March 31, 2007
|
|
|
11.38
|
|
|
|
0.38
|
|
|
|
0.12
|
|
|
|
0.50
|
|
|
|
(0.37
|
)
|
|
|
(0.04
|
)
|
|
|
(0.41
|
)
|
|
|
11.47
|
|
|
4.51
|
|
|
|
410,473
|
|
|
|
0.55
|
|
|
|
3.28
|
|
|
|
0.55
|
|
|
|
214
|
|
Year Ended March 31, 2006
|
|
|
11.45
|
|
|
|
0.33
|
|
|
|
0.01
|
|
|
|
0.34
|
|
|
|
(0.33
|
)
|
|
|
(0.08
|
)
|
|
|
(0.41
|
)
|
|
|
11.38
|
|
|
2.92
|
|
|
|
300,986
|
|
|
|
0.64
|
|
|
|
2.84
|
|
|
|
0.64
|
|
|
|
237
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
11.61
|
|
|
|
0.34
|
|
|
|
0.56
|
|
|
|
0.90
|
|
|
|
(0.34
|
)
|
|
|
(0.17
|
)
|
|
|
(0.51
|
)
|
|
|
12.00
|
|
|
7.82
|
|
|
|
24,344
|
|
|
|
0.84
|
|
|
|
2.74
|
|
|
|
0.85
|
|
|
|
169
|
|
Year Ended March 31, 2009
|
|
|
11.60
|
|
|
|
0.34
|
|
|
|
0.08
|
|
|
|
0.42
|
|
|
|
(0.34
|
)
|
|
|
(0.07
|
)
|
|
|
(0.41
|
)
|
|
|
11.61
|
|
|
3.81
|
|
|
|
13,819
|
|
|
|
0.84
|
|
|
|
2.97
|
|
|
|
0.84
|
|
|
|
221
|
|
Year Ended March 31, 2008
|
|
|
11.48
|
|
|
|
0.35
|
|
|
|
0.15
|
|
|
|
0.50
|
|
|
|
(0.35
|
)
|
|
|
(0.03
|
)
|
|
|
(0.38
|
)
|
|
|
11.60
|
|
|
4.41
|
|
|
|
10,869
|
|
|
|
0.87
|
|
|
|
3.02
|
|
|
|
0.87
|
|
|
|
189
|
|
Year Ended March 31, 2007
|
|
|
11.39
|
|
|
|
0.34
|
|
|
|
0.13
|
|
|
|
0.47
|
|
|
|
(0.34
|
)
|
|
|
(0.04
|
)
|
|
|
(0.38
|
)
|
|
|
11.48
|
|
|
4.20
|
|
|
|
11,723
|
|
|
|
0.85
|
|
|
|
2.97
|
|
|
|
0.85
|
|
|
|
214
|
|
Year Ended March 31, 2006
|
|
|
11.46
|
|
|
|
0.29
|
|
|
|
0.01
|
|
|
|
0.30
|
|
|
|
(0.29
|
)
|
|
|
(0.08
|
)
|
|
|
(0.37
|
)
|
|
|
11.39
|
|
|
2.57
|
|
|
|
16,182
|
|
|
|
0.99
|
|
|
|
2.49
|
|
|
|
0.99
|
|
|
|
237
|
|
Limited Duration Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
9.52
|
|
|
|
0.08
|
|
|
|
0.18
|
|
|
|
0.26
|
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
(0.07
|
)
|
|
|
9.71
|
|
|
2.69
|
|
|
|
22,482
|
|
|
|
0.23
|
|
|
|
0.82
|
|
|
|
0.23
|
|
|
|
124
|
|
Year Ended March 31, 2009
|
|
|
9.87
|
|
|
|
0.23
|
|
|
|
(0.37
|
)
|
|
|
(0.14
|
)
|
|
|
(0.21
|
)
|
|
|
|
|
|
|
(0.21
|
)
|
|
|
9.52
|
|
|
(1.38
|
)
|
|
|
30,826
|
|
|
|
0.19
|
|
|
|
2.43
|
|
|
|
0.19
|
|
|
|
44
|
|
Year Ended March 31, 2008
|
|
|
9.98
|
|
|
|
0.50
|
|
|
|
(0.12
|
)
|
|
|
0.38
|
|
|
|
(0.49
|
)
|
|
|
|
|
|
|
(0.49
|
)
|
|
|
9.87
|
|
|
3.90
|
|
|
|
43,509
|
|
|
|
0.17
|
|
|
|
5.01
|
|
|
|
0.17
|
|
|
|
132
|
|
Year Ended March 31, 2007
|
|
|
9.99
|
|
|
|
0.51
|
|
|
|
(0.02
|
)
|
|
|
0.49
|
|
|
|
(0.50
|
)
|
|
|
|
|
|
|
(0.50
|
)
|
|
|
9.98
|
|
|
5.04
|
|
|
|
40,291
|
|
|
|
0.14
|
|
|
|
5.03
|
|
|
|
0.14
|
|
|
|
185
|
|
Year Ended March 31, 2006
|
|
|
9.98
|
|
|
|
0.35
|
|
|
|
0.02
|
|
|
|
0.37
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
(0.36
|
)
|
|
|
9.99
|
|
|
3.73
|
|
|
|
58,887
|
|
|
|
0.15
|
|
|
|
3.39
|
|
|
|
0.15
|
|
|
|
94
|
|
See
Notes to Financial Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
Income
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
Limited-Term Federal Mortgage Securities Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
10.19
|
|
|
$
|
0.31
|
|
|
$
|
0.23
|
|
|
$
|
0.54
|
|
|
$
|
(0.35
|
)
|
|
$
|
|
|
|
$
|
(0.35
|
)
|
|
$
|
10.38
|
|
|
5.41
|
%
|
|
$
|
20,998
|
|
|
|
0.62
|
%
|
|
|
3.25
|
%
|
|
|
0.66
|
%
|
|
|
435
|
%
|
Year Ended March 31, 2009
|
|
|
9.93
|
|
|
|
0.43
|
|
|
|
0.29
|
|
|
|
0.72
|
|
|
|
(0.46
|
)
|
|
|
|
|
|
|
(0.46
|
)
|
|
|
10.19
|
|
|
7.48
|
|
|
|
39,135
|
|
|
|
0.60
|
|
|
|
4.34
|
|
|
|
0.60
|
|
|
|
337
|
|
Year Ended March 31, 2008
|
|
|
9.94
|
|
|
|
0.46
|
(a)
|
|
|
0.03
|
|
|
|
0.49
|
|
|
|
(0.50
|
)
|
|
|
|
|
|
|
(0.50
|
)
|
|
|
9.93
|
|
|
5.08
|
|
|
|
85,638
|
|
|
|
0.58
|
|
|
|
4.63
|
|
|
|
0.58
|
|
|
|
154
|
|
Year Ended March 31, 2007
|
|
|
9.88
|
|
|
|
0.43
|
(a)
|
|
|
0.09
|
|
|
|
0.52
|
|
|
|
(0.46
|
)
|
|
|
|
|
|
|
(0.46
|
)
|
|
|
9.94
|
|
|
5.33
|
|
|
|
422,749
|
|
|
|
0.55
|
|
|
|
4.32
|
|
|
|
0.55
|
|
|
|
90
|
|
Year Ended March 31, 2006
|
|
|
10.09
|
|
|
|
0.35
|
|
|
|
(0.15
|
)
|
|
|
0.20
|
|
|
|
(0.41
|
)
|
|
|
|
|
|
|
(0.41
|
)
|
|
|
9.88
|
|
|
2.04
|
|
|
|
369,991
|
|
|
|
0.61
|
|
|
|
3.41
|
|
|
|
0.63
|
|
|
|
81
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.17
|
|
|
|
0.30
|
|
|
|
0.22
|
|
|
|
0.52
|
|
|
|
(0.33
|
)
|
|
|
|
|
|
|
(0.33
|
)
|
|
|
10.36
|
|
|
5.21
|
|
|
|
2,598
|
|
|
|
0.82
|
|
|
|
2.91
|
|
|
|
0.88
|
|
|
|
435
|
|
Year Ended March 31, 2009
|
|
|
9.91
|
|
|
|
0.41
|
|
|
|
0.29
|
|
|
|
0.70
|
|
|
|
(0.44
|
)
|
|
|
|
|
|
|
(0.44
|
)
|
|
|
10.17
|
|
|
7.29
|
|
|
|
2,143
|
|
|
|
0.81
|
|
|
|
4.14
|
|
|
|
0.81
|
|
|
|
337
|
|
Year Ended March 31, 2008
|
|
|
9.92
|
|
|
|
0.44
|
(a)
|
|
|
0.03
|
|
|
|
0.47
|
|
|
|
(0.48
|
)
|
|
|
|
|
|
|
(0.48
|
)
|
|
|
9.91
|
|
|
4.88
|
|
|
|
2,670
|
|
|
|
0.78
|
|
|
|
4.46
|
|
|
|
0.78
|
|
|
|
154
|
|
Year Ended March 31, 2007
|
|
|
9.87
|
|
|
|
0.41
|
(a)
|
|
|
0.08
|
|
|
|
0.49
|
|
|
|
(0.44
|
)
|
|
|
|
|
|
|
(0.44
|
)
|
|
|
9.92
|
|
|
5.03
|
|
|
|
3,540
|
|
|
|
0.75
|
|
|
|
4.12
|
|
|
|
0.75
|
|
|
|
90
|
|
Year Ended March 31, 2006
|
|
|
10.07
|
|
|
|
0.30
|
|
|
|
(0.11
|
)
|
|
|
0.19
|
|
|
|
(0.39
|
)
|
|
|
|
|
|
|
(0.39
|
)
|
|
|
9.87
|
|
|
1.93
|
|
|
|
4,398
|
|
|
|
0.83
|
|
|
|
3.21
|
|
|
|
0.85
|
|
|
|
81
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.19
|
|
|
|
0.22
|
|
|
|
0.22
|
|
|
|
0.44
|
|
|
|
(0.25
|
)
|
|
|
|
|
|
|
(0.25
|
)
|
|
|
10.38
|
|
|
4.36
|
|
|
|
8,265
|
|
|
|
1.62
|
|
|
|
2.15
|
|
|
|
1.67
|
|
|
|
435
|
|
Year Ended March 31, 2009
|
|
|
9.93
|
|
|
|
0.33
|
|
|
|
0.29
|
|
|
|
0.62
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
(0.36
|
)
|
|
|
10.19
|
|
|
6.42
|
|
|
|
8,556
|
|
|
|
1.60
|
|
|
|
3.33
|
|
|
|
1.60
|
|
|
|
337
|
|
Year Ended March 31, 2008
|
|
|
9.94
|
|
|
|
0.36
|
(a)
|
|
|
0.03
|
|
|
|
0.39
|
|
|
|
(0.40
|
)
|
|
|
|
|
|
|
(0.40
|
)
|
|
|
9.93
|
|
|
4.04
|
|
|
|
10,798
|
|
|
|
1.58
|
|
|
|
3.65
|
|
|
|
1.59
|
|
|
|
154
|
|
Year Ended March 31, 2007
|
|
|
9.89
|
|
|
|
0.33
|
(a)
|
|
|
0.08
|
|
|
|
0.41
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
(0.36
|
)
|
|
|
9.94
|
|
|
4.18
|
|
|
|
14,530
|
|
|
|
1.55
|
|
|
|
3.30
|
|
|
|
1.55
|
|
|
|
90
|
|
Year Ended March 31, 2006
|
|
|
10.10
|
|
|
|
0.23
|
|
|
|
(0.12
|
)
|
|
|
0.11
|
|
|
|
(0.32
|
)
|
|
|
|
|
|
|
(0.32
|
)
|
|
|
9.89
|
|
|
1.14
|
|
|
|
20,112
|
|
|
|
1.50
|
|
|
|
2.54
|
|
|
|
1.65
|
|
|
|
81
|
|
Maryland Municipal Bond Fund(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.04
|
|
|
|
0.37
|
|
|
|
0.44
|
|
|
|
0.81
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
(0.37
|
)
|
|
|
10.48
|
|
|
8.18
|
|
|
|
24,332
|
|
|
|
0.65
|
|
|
|
3.58
|
|
|
|
0.65
|
|
|
|
35
|
|
Year Ended March 31, 2009
|
|
|
10.04
|
|
|
|
0.37
|
|
|
|
|
|
|
|
0.37
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
(0.37
|
)
|
|
|
10.04
|
|
|
3.79
|
|
|
|
26,064
|
|
|
|
0.63
|
|
|
|
3.71
|
|
|
|
0.63
|
|
|
|
26
|
|
Year Ended March 31, 2008
|
|
|
10.21
|
|
|
|
0.37
|
|
|
|
(0.16
|
)
|
|
|
0.21
|
|
|
|
(0.37
|
)
|
|
|
(0.01
|
)
|
|
|
(0.38
|
)
|
|
|
10.04
|
|
|
2.07
|
|
|
|
38,138
|
|
|
|
0.62
|
|
|
|
3.66
|
|
|
|
0.62
|
|
|
|
23
|
|
Year Ended March 31, 2007
|
|
|
10.14
|
|
|
|
0.38
|
(a)
|
|
|
0.11
|
|
|
|
0.49
|
|
|
|
(0.38
|
)
|
|
|
(0.04
|
)
|
|
|
(0.42
|
)
|
|
|
10.21
|
|
|
4.93
|
|
|
|
29,513
|
|
|
|
0.63
|
|
|
|
3.75
|
|
|
|
0.63
|
|
|
|
57
|
|
Year Ended March 31, 2006
|
|
|
10.27
|
|
|
|
0.38
|
|
|
|
(0.04
|
)
|
|
|
0.34
|
|
|
|
(0.38
|
)
|
|
|
(0.09
|
)
|
|
|
(0.47
|
)
|
|
|
10.14
|
|
|
3.34
|
|
|
|
32,699
|
|
|
|
0.66
|
|
|
|
3.68
|
|
|
|
0.68
|
|
|
|
55
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended March 31, 2010#
|
|
|
10.29
|
|
|
|
0.24
|
|
|
|
0.19
|
|
|
|
0.43
|
|
|
|
(0.24
|
)
|
|
|
|
|
|
|
(0.24
|
)
|
|
|
10.48
|
|
|
4.18
|
|
|
|
5,200
|
|
|
|
0.81
|
|
|
|
3.38
|
|
|
|
0.81
|
|
|
|
35
|
|
Period Ended March 31, 2009##
|
|
|
10.05
|
|
|
|
0.27
|
|
|
|
(0.25
|
)
|
|
|
0.02
|
|
|
|
(0.27
|
)
|
|
|
|
|
|
|
(0.27
|
)
|
|
|
9.80
|
|
|
0.22
|
|
|
|
|
|
|
|
0.78
|
|
|
|
3.58
|
|
|
|
0.78
|
|
|
|
26
|
|
Year Ended March 31, 2008
|
|
|
10.22
|
|
|
|
0.36
|
|
|
|
(0.16
|
)
|
|
|
0.20
|
|
|
|
(0.36
|
)
|
|
|
(0.01
|
)
|
|
|
(0.37
|
)
|
|
|
10.05
|
|
|
1.91
|
|
|
|
45
|
|
|
|
0.79
|
|
|
|
3.65
|
|
|
|
0.79
|
|
|
|
23
|
|
Year Ended March 31, 2007
|
|
|
10.15
|
|
|
|
0.38
|
(a)
|
|
|
0.10
|
|
|
|
0.48
|
|
|
|
(0.37
|
)
|
|
|
(0.04
|
)
|
|
|
(0.41
|
)
|
|
|
10.22
|
|
|
4.77
|
|
|
|
45
|
|
|
|
0.78
|
|
|
|
3.69
|
|
|
|
0.78
|
|
|
|
57
|
|
Period Ended March 31, 2006
|
|
|
10.32
|
|
|
|
0.30
|
|
|
|
(0.07
|
)
|
|
|
0.23
|
|
|
|
(0.31
|
)
|
|
|
(0.09
|
)
|
|
|
(0.40
|
)
|
|
|
10.15
|
|
|
2.25
|
|
|
|
502
|
|
|
|
0.77
|
|
|
|
3.54
|
|
|
|
0.78
|
|
|
|
55
|
|
See
Notes to Financial Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
Income
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
North Carolina Tax-Exempt Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
9.63
|
|
|
$
|
0.37
|
|
|
$
|
0.44
|
|
|
$
|
0.81
|
|
|
$
|
(0.37
|
)
|
|
$
|
|
|
|
$
|
(0.37
|
)
|
|
$
|
10.07
|
|
|
8.53
|
%
|
|
$
|
51,866
|
|
|
|
0.62
|
%
|
|
|
3.72
|
%
|
|
|
0.62
|
%
|
|
|
65
|
%
|
Year Ended March 31, 2009
|
|
|
9.71
|
|
|
|
0.35
|
|
|
|
(0.08
|
)
|
|
|
0.27
|
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
(0.35
|
)
|
|
|
9.63
|
|
|
2.88
|
|
|
|
43,660
|
|
|
|
0.61
|
|
|
|
3.66
|
|
|
|
0.61
|
|
|
|
74
|
|
Year Ended March 31, 2008
|
|
|
10.05
|
|
|
|
0.37
|
|
|
|
(0.34
|
)
|
|
|
0.03
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
(0.37
|
)
|
|
|
9.71
|
|
|
0.26
|
|
|
|
43,046
|
|
|
|
0.61
|
|
|
|
3.69
|
|
|
|
0.61
|
|
|
|
76
|
|
Year Ended March 31, 2007
|
|
|
9.90
|
|
|
|
0.35
|
(a)
|
|
|
0.15
|
|
|
|
0.50
|
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
(0.35
|
)
|
|
|
10.05
|
|
|
5.17
|
|
|
|
44,130
|
|
|
|
0.59
|
|
|
|
3.54
|
|
|
|
0.59
|
|
|
|
84
|
|
Year Ended March 31, 2006
|
|
|
9.87
|
|
|
|
0.31
|
|
|
|
0.03
|
|
|
|
0.34
|
|
|
|
(0.31
|
)
|
|
|
|
|
|
|
(0.31
|
)
|
|
|
9.90
|
|
|
3.51
|
|
|
|
41,276
|
|
|
|
0.68
|
|
|
|
3.14
|
|
|
|
0.70
|
|
|
|
85
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
9.61
|
|
|
|
0.36
|
|
|
|
0.43
|
|
|
|
0.79
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
(0.36
|
)
|
|
|
10.04
|
|
|
8.28
|
|
|
|
762
|
|
|
|
0.77
|
|
|
|
3.57
|
|
|
|
0.77
|
|
|
|
65
|
|
Year Ended March 31, 2009
|
|
|
9.68
|
|
|
|
0.33
|
|
|
|
(0.06
|
)
|
|
|
0.27
|
|
|
|
(0.34
|
)
|
|
|
|
|
|
|
(0.34
|
)
|
|
|
9.61
|
|
|
2.84
|
|
|
|
559
|
|
|
|
0.76
|
|
|
|
3.53
|
|
|
|
0.76
|
|
|
|
74
|
|
Year Ended March 31, 2008
|
|
|
10.03
|
|
|
|
0.34
|
|
|
|
(0.34
|
)
|
|
|
|
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
(0.35
|
)
|
|
|
9.68
|
|
|
0.01
|
|
|
|
760
|
|
|
|
0.77
|
|
|
|
3.57
|
|
|
|
0.77
|
|
|
|
76
|
|
Year Ended March 31, 2007
|
|
|
9.88
|
|
|
|
0.34
|
(a)
|
|
|
0.15
|
|
|
|
0.49
|
|
|
|
(0.34
|
)
|
|
|
|
|
|
|
(0.34
|
)
|
|
|
10.03
|
|
|
5.02
|
|
|
|
896
|
|
|
|
0.75
|
|
|
|
3.46
|
|
|
|
0.75
|
|
|
|
84
|
|
Year Ended March 31, 2006
|
|
|
9.87
|
|
|
|
0.37
|
|
|
|
0.01
|
|
|
|
0.38
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
(0.37
|
)
|
|
|
9.88
|
|
|
3.85
|
|
|
|
110
|
|
|
|
0.66
|
|
|
|
2.47
|
|
|
|
0.67
|
|
|
|
85
|
|
Seix Floating Rate High Income Fund(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.37
|
|
|
|
0.53
|
|
|
|
1.40
|
|
|
|
1.93
|
|
|
|
(0.50
|
)
|
|
|
|
|
|
|
(0.50
|
)
|
|
|
8.80
|
|
|
26.68
|
|
|
|
1,173,308
|
|
|
|
0.50
|
|
|
|
7.08
|
|
|
|
0.50
|
|
|
|
117
|
|
Year Ended March 31, 2009
|
|
|
8.90
|
|
|
|
0.52
|
|
|
|
(1.53
|
)
|
|
|
(1.01
|
)
|
|
|
(0.52
|
)
|
|
|
|
|
|
|
(0.52
|
)
|
|
|
7.37
|
|
|
(11.67
|
)
|
|
|
557,347
|
|
|
|
0.49
|
|
|
|
6.31
|
|
|
|
0.49
|
|
|
|
226
|
|
Year Ended March 31, 2008
|
|
|
9.98
|
|
|
|
0.70
|
|
|
|
(1.06
|
)
|
|
|
(0.36
|
)
|
|
|
(0.70
|
)
|
|
|
(0.02
|
)
|
|
|
(0.72
|
)
|
|
|
8.90
|
|
|
(3.85
|
)
|
|
|
553,208
|
|
|
|
0.51
|
|
|
|
7.34
|
|
|
|
0.51
|
|
|
|
134
|
|
Year Ended March 31, 2007
|
|
|
9.96
|
|
|
|
0.69
|
|
|
|
0.03
|
|
|
|
0.72
|
|
|
|
(0.70
|
)
|
|
|
|
|
|
|
(0.70
|
)
|
|
|
9.98
|
|
|
7.47
|
|
|
|
582,861
|
|
|
|
0.51
|
|
|
|
7.03
|
|
|
|
0.51
|
|
|
|
148
|
|
Period Ended March 31, 2006
|
|
|
10.00
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
9.96
|
|
|
0.02
|
|
|
|
106,405
|
|
|
|
0.56
|
|
|
|
5.24
|
|
|
|
0.80
|
|
|
|
9
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.38
|
|
|
|
0.50
|
|
|
|
1.39
|
|
|
|
1.89
|
|
|
|
(0.47
|
)
|
|
|
|
|
|
|
(0.47
|
)
|
|
|
8.80
|
|
|
26.11
|
|
|
|
22,298
|
|
|
|
0.81
|
|
|
|
6.81
|
|
|
|
0.81
|
|
|
|
117
|
|
Year Ended March 31, 2009
|
|
|
8.90
|
|
|
|
0.50
|
|
|
|
(1.52
|
)
|
|
|
(1.02
|
)
|
|
|
(0.50
|
)
|
|
|
|
|
|
|
(0.50
|
)
|
|
|
7.38
|
|
|
(11.82
|
)
|
|
|
5,513
|
|
|
|
0.79
|
|
|
|
6.08
|
|
|
|
0.79
|
|
|
|
226
|
|
Year Ended March 31, 2008
|
|
|
9.99
|
|
|
|
0.67
|
|
|
|
(1.07
|
)
|
|
|
(0.40
|
)
|
|
|
(0.67
|
)
|
|
|
(0.02
|
)
|
|
|
(0.69
|
)
|
|
|
8.90
|
|
|
(4.25
|
)
|
|
|
6,591
|
|
|
|
0.82
|
|
|
|
7.01
|
|
|
|
0.82
|
|
|
|
134
|
|
Period Ended March 31, 2007
|
|
|
9.94
|
|
|
|
0.60
|
|
|
|
0.06
|
|
|
|
0.66
|
|
|
|
(0.61
|
)
|
|
|
|
|
|
|
(0.61
|
)
|
|
|
9.99
|
|
|
6.87
|
|
|
|
10,310
|
|
|
|
0.79
|
|
|
|
6.83
|
|
|
|
0.79
|
|
|
|
148
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.37
|
|
|
|
0.45
|
|
|
|
1.41
|
|
|
|
1.86
|
|
|
|
(0.42
|
)
|
|
|
|
|
|
|
(0.42
|
)
|
|
|
8.81
|
|
|
25.59
|
|
|
|
7,402
|
|
|
|
1.49
|
|
|
|
6.35
|
|
|
|
1.49
|
|
|
|
117
|
|
Year Ended March 31, 2009
|
|
|
8.90
|
|
|
|
0.44
|
|
|
|
(1.53
|
)
|
|
|
(1.09
|
)
|
|
|
(0.44
|
)
|
|
|
|
|
|
|
(0.44
|
)
|
|
|
7.37
|
|
|
(12.55
|
)
|
|
|
543
|
|
|
|
1.49
|
|
|
|
5.27
|
|
|
|
1.49
|
|
|
|
226
|
|
Period Ended March 31, 2008
|
|
|
9.52
|
|
|
|
0.40
|
|
|
|
(0.61
|
)
|
|
|
(0.21
|
)
|
|
|
(0.39
|
)
|
|
|
(0.02
|
)
|
|
|
(0.41
|
)
|
|
|
8.90
|
|
|
(2.31
|
)
|
|
|
216
|
|
|
|
1.49
|
|
|
|
6.43
|
|
|
|
1.49
|
|
|
|
134
|
|
Seix Global Strategy Fund(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.44
|
|
|
|
(0.07
|
)
|
|
|
0.20
|
|
|
|
0.13
|
|
|
|
|
|
|
|
(0.29
|
)
|
|
|
(0.29
|
)
|
|
|
10.28
|
|
|
1.38
|
|
|
|
9,589
|
|
|
|
0.83
|
|
|
|
(0.70
|
)
|
|
|
1.01
|
|
|
|
|
|
Period Ended March 31, 2009
|
|
|
10.00
|
|
|
|
0.05
|
|
|
|
0.52
|
|
|
|
0.57
|
|
|
|
(0.07
|
)
|
|
|
(0.06
|
)
|
|
|
(0.13
|
)
|
|
|
10.44
|
|
|
5.68
|
|
|
|
10,427
|
|
|
|
0.69
|
|
|
|
0.82
|
|
|
|
1.44
|
|
|
|
741
|
|
See
Notes to Financial Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
Income
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
Seix High Yield Fund
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
7.75
|
|
|
$
|
0.77
|
|
|
$
|
1.70
|
|
|
$
|
2.47
|
|
|
$
|
(0.76
|
)
|
|
$
|
|
|
|
$
|
(0.76
|
)
|
|
$
|
9.46
|
|
|
32.91
|
%
|
|
$
|
1,723,678
|
|
|
|
0.48
|
%
|
|
|
8.54
|
%
|
|
|
0.49
|
%
|
|
|
116
|
%
|
Year Ended March 31, 2009
|
|
|
9.77
|
|
|
|
0.78
|
|
|
|
(2.03
|
)
|
|
|
(1.25
|
)
|
|
|
(0.77
|
)
|
|
|
|
|
|
|
(0.77
|
)
|
|
|
7.75
|
|
|
(13.15
|
)
|
|
|
786,029
|
|
|
|
0.50
|
|
|
|
8.99
|
|
|
|
0.51
|
|
|
|
114
|
|
Year Ended March 31, 2008
|
|
|
10.84
|
|
|
|
0.80
|
|
|
|
(1.06
|
)
|
|
|
(0.26
|
)
|
|
|
(0.81
|
)
|
|
|
|
|
|
|
(0.81
|
)
|
|
|
9.77
|
|
|
(2.50
|
)
|
|
|
663,081
|
|
|
|
0.49
|
|
|
|
7.70
|
|
|
|
0.50
|
|
|
|
117
|
|
Year Ended March 31, 2007
|
|
|
10.69
|
|
|
|
0.74
|
|
|
|
0.15
|
|
|
|
0.89
|
|
|
|
(0.74
|
)
|
|
|
|
|
|
|
(0.74
|
)
|
|
|
10.84
|
|
|
8.68
|
|
|
|
1,116,851
|
|
|
|
0.48
|
|
|
|
6.92
|
|
|
|
0.48
|
|
|
|
130
|
|
Year Ended March 31, 2006
|
|
|
10.94
|
|
|
|
0.68
|
|
|
|
(0.10
|
)
|
|
|
0.58
|
|
|
|
(0.68
|
)
|
|
|
(0.15
|
)
|
|
|
(0.83
|
)
|
|
|
10.69
|
|
|
5.37
|
|
|
|
1,217,679
|
|
|
|
0.49
|
|
|
|
6.20
|
|
|
|
0.50
|
|
|
|
95
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.58
|
|
|
|
0.74
|
|
|
|
1.67
|
|
|
|
2.41
|
|
|
|
(0.74
|
)
|
|
|
|
|
|
|
(0.74
|
)
|
|
|
9.25
|
|
|
32.81
|
|
|
|
28,378
|
|
|
|
0.75
|
|
|
|
8.51
|
|
|
|
0.75
|
|
|
|
116
|
|
Year Ended March 31, 2009
|
|
|
9.55
|
|
|
|
0.75
|
|
|
|
(1.97
|
)
|
|
|
(1.22
|
)
|
|
|
(0.75
|
)
|
|
|
|
|
|
|
(0.75
|
)
|
|
|
7.58
|
|
|
(13.14
|
)
|
|
|
18,530
|
|
|
|
0.76
|
|
|
|
8.84
|
|
|
|
0.77
|
|
|
|
114
|
|
Year Ended March 31, 2008
|
|
|
10.60
|
|
|
|
0.77
|
|
|
|
(1.04
|
)
|
|
|
(0.27
|
)
|
|
|
(0.78
|
)
|
|
|
|
|
|
|
(0.78
|
)
|
|
|
9.55
|
|
|
(2.65
|
)
|
|
|
21,640
|
|
|
|
0.75
|
|
|
|
7.68
|
|
|
|
0.75
|
|
|
|
117
|
|
Year Ended March 31, 2007
|
|
|
10.45
|
|
|
|
0.72
|
|
|
|
0.15
|
|
|
|
0.87
|
|
|
|
(0.72
|
)
|
|
|
|
|
|
|
(0.72
|
)
|
|
|
10.60
|
|
|
8.61
|
|
|
|
29,517
|
|
|
|
0.74
|
|
|
|
6.82
|
|
|
|
0.74
|
|
|
|
130
|
|
Year Ended March 31, 2006
|
|
|
10.70
|
|
|
|
0.65
|
|
|
|
(0.10
|
)
|
|
|
0.55
|
|
|
|
(0.65
|
)
|
|
|
(0.15
|
)
|
|
|
(0.80
|
)
|
|
|
10.45
|
|
|
5.22
|
|
|
|
36,291
|
|
|
|
0.73
|
|
|
|
5.94
|
|
|
|
0.73
|
|
|
|
95
|
|
R Shares(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.75
|
|
|
|
0.71
|
|
|
|
1.69
|
|
|
|
2.40
|
|
|
|
(0.70
|
)
|
|
|
|
|
|
|
(0.70
|
)
|
|
|
9.45
|
|
|
31.92
|
|
|
|
6,347
|
|
|
|
1.14
|
|
|
|
7.92
|
|
|
|
1.14
|
|
|
|
116
|
|
Year Ended March 31, 2009
|
|
|
9.77
|
|
|
|
0.70
|
|
|
|
(2.03
|
)
|
|
|
(1.33
|
)
|
|
|
(0.69
|
)
|
|
|
|
|
|
|
(0.69
|
)
|
|
|
7.75
|
|
|
(14.01
|
)
|
|
|
5,060
|
|
|
|
1.50
|
|
|
|
7.90
|
|
|
|
1.50
|
|
|
|
114
|
|
Year Ended March 31, 2008
|
|
|
10.83
|
|
|
|
0.70
|
|
|
|
(1.05
|
)
|
|
|
(0.35
|
)
|
|
|
(0.71
|
)
|
|
|
|
|
|
|
(0.71
|
)
|
|
|
9.77
|
|
|
(3.40
|
)
|
|
|
4,012
|
|
|
|
1.50
|
|
|
|
6.75
|
|
|
|
1.50
|
|
|
|
117
|
|
Year Ended March 31, 2007
|
|
|
10.68
|
|
|
|
0.63
|
|
|
|
0.15
|
|
|
|
0.78
|
|
|
|
(0.63
|
)
|
|
|
|
|
|
|
(0.63
|
)
|
|
|
10.83
|
|
|
7.62
|
|
|
|
4,970
|
|
|
|
1.48
|
|
|
|
5.92
|
|
|
|
1.48
|
|
|
|
130
|
|
Year Ended March 31, 2006
|
|
|
10.93
|
|
|
|
0.58
|
|
|
|
(0.10
|
)
|
|
|
0.48
|
|
|
|
(0.58
|
)
|
|
|
(0.15
|
)
|
|
|
(0.73
|
)
|
|
|
10.68
|
|
|
4.45
|
|
|
|
5,814
|
|
|
|
1.39
|
|
|
|
5.25
|
|
|
|
1.48
|
|
|
|
95
|
|
Short-Term Bond Fund
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
9.40
|
|
|
|
0.30
|
|
|
|
0.53
|
|
|
|
0.83
|
|
|
|
(0.29
|
)
|
|
|
|
|
|
|
(0.29
|
)
|
|
|
9.94
|
|
|
8.91
|
(b)
|
|
|
489,413
|
|
|
|
0.46
|
|
|
|
3.00
|
|
|
|
0.46
|
|
|
|
122
|
|
Year Ended March 31, 2009
|
|
|
9.87
|
|
|
|
0.40
|
|
|
|
(0.47
|
)
|
|
|
(0.07
|
)
|
|
|
(0.40
|
)
|
|
|
|
|
|
|
(0.40
|
)
|
|
|
9.40
|
|
|
(0.70
|
)(b)
|
|
|
326,801
|
|
|
|
0.46
|
|
|
|
4.20
|
|
|
|
0.46
|
|
|
|
122
|
|
Year Ended March 31, 2008
|
|
|
9.78
|
|
|
|
0.45
|
|
|
|
0.09
|
|
|
|
0.54
|
|
|
|
(0.45
|
)
|
|
|
|
|
|
|
(0.45
|
)
|
|
|
9.87
|
|
|
5.63
|
|
|
|
390,659
|
|
|
|
0.45
|
|
|
|
4.58
|
|
|
|
0.46
|
|
|
|
152
|
|
Year Ended March 31, 2007
|
|
|
9.71
|
|
|
|
0.43
|
(a)
|
|
|
0.07
|
|
|
|
0.50
|
|
|
|
(0.43
|
)
|
|
|
|
|
|
|
(0.43
|
)
|
|
|
9.78
|
|
|
5.23
|
|
|
|
426,757
|
|
|
|
0.46
|
|
|
|
4.38
|
|
|
|
0.46
|
|
|
|
104
|
|
Year Ended March 31, 2006
|
|
|
9.73
|
|
|
|
0.32
|
|
|
|
(0.01
|
)
|
|
|
0.31
|
|
|
|
(0.33
|
)
|
|
|
|
|
|
|
(0.33
|
)
|
|
|
9.71
|
|
|
3.24
|
|
|
|
281,282
|
|
|
|
0.55
|
|
|
|
3.32
|
|
|
|
0.57
|
|
|
|
94
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
9.42
|
|
|
|
0.28
|
|
|
|
0.53
|
|
|
|
0.81
|
|
|
|
(0.27
|
)
|
|
|
|
|
|
|
(0.27
|
)
|
|
|
9.96
|
|
|
8.65
|
(b)
|
|
|
3,389
|
|
|
|
0.68
|
|
|
|
2.78
|
|
|
|
0.68
|
|
|
|
122
|
|
Year Ended March 31, 2009
|
|
|
9.89
|
|
|
|
0.38
|
|
|
|
(0.47
|
)
|
|
|
(0.09
|
)
|
|
|
(0.38
|
)
|
|
|
|
|
|
|
(0.38
|
)
|
|
|
9.42
|
|
|
(0.90
|
)(b)
|
|
|
2,715
|
|
|
|
0.66
|
|
|
|
4.00
|
|
|
|
0.66
|
|
|
|
122
|
|
Year Ended March 31, 2008
|
|
|
9.81
|
|
|
|
0.43
|
|
|
|
0.08
|
|
|
|
0.51
|
|
|
|
(0.43
|
)
|
|
|
|
|
|
|
(0.43
|
)
|
|
|
9.89
|
|
|
5.30
|
|
|
|
3,767
|
|
|
|
0.65
|
|
|
|
4.38
|
|
|
|
0.66
|
|
|
|
152
|
|
Year Ended March 31, 2007
|
|
|
9.73
|
|
|
|
0.41
|
(a)
|
|
|
0.08
|
|
|
|
0.49
|
|
|
|
(0.41
|
)
|
|
|
|
|
|
|
(0.41
|
)
|
|
|
9.81
|
|
|
5.11
|
|
|
|
3,742
|
|
|
|
0.66
|
|
|
|
4.15
|
|
|
|
0.66
|
|
|
|
104
|
|
Year Ended March 31, 2006
|
|
|
9.75
|
|
|
|
0.30
|
|
|
|
(0.01
|
)
|
|
|
0.29
|
|
|
|
(0.31
|
)
|
|
|
|
|
|
|
(0.31
|
)
|
|
|
9.73
|
|
|
3.01
|
|
|
|
5,062
|
|
|
|
0.77
|
|
|
|
3.09
|
|
|
|
0.79
|
|
|
|
94
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
9.42
|
|
|
|
0.20
|
|
|
|
0.53
|
|
|
|
0.73
|
|
|
|
(0.19
|
)
|
|
|
|
|
|
|
(0.19
|
)
|
|
|
9.96
|
|
|
7.81
|
(b)
|
|
|
2,754
|
|
|
|
1.46
|
|
|
|
2.03
|
|
|
|
1.46
|
|
|
|
122
|
|
Year Ended March 31, 2009
|
|
|
9.89
|
|
|
|
0.30
|
|
|
|
(0.47
|
)
|
|
|
(0.17
|
)
|
|
|
(0.30
|
)
|
|
|
|
|
|
|
(0.30
|
)
|
|
|
9.42
|
|
|
(1.69
|
)(b)
|
|
|
2,948
|
|
|
|
1.45
|
|
|
|
3.20
|
|
|
|
1.46
|
|
|
|
122
|
|
Year Ended March 31, 2008
|
|
|
9.81
|
|
|
|
0.35
|
|
|
|
0.08
|
|
|
|
0.43
|
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
(0.35
|
)
|
|
|
9.89
|
|
|
4.46
|
|
|
|
3,477
|
|
|
|
1.46
|
|
|
|
3.58
|
|
|
|
1.46
|
|
|
|
152
|
|
Year Ended March 31, 2007
|
|
|
9.73
|
|
|
|
0.33
|
(a)
|
|
|
0.08
|
|
|
|
0.41
|
|
|
|
(0.33
|
)
|
|
|
|
|
|
|
(0.33
|
)
|
|
|
9.81
|
|
|
4.29
|
|
|
|
4,501
|
|
|
|
1.46
|
|
|
|
3.33
|
|
|
|
1.46
|
|
|
|
104
|
|
Year Ended March 31, 2006
|
|
|
9.75
|
|
|
|
0.24
|
|
|
|
(0.01
|
)
|
|
|
0.23
|
|
|
|
(0.25
|
)
|
|
|
|
|
|
|
(0.25
|
)
|
|
|
9.73
|
|
|
2.34
|
|
|
|
9,559
|
|
|
|
1.42
|
|
|
|
2.44
|
|
|
|
1.59
|
|
|
|
94
|
|
See
Notes to Financial Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
Income
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
Short-Term U.S. Treasury Securities Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
10.33
|
|
|
$
|
0.14
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.11
|
|
|
$
|
(0.14
|
)
|
|
$
|
(0.03
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
10.27
|
|
|
1.03
|
%
|
|
$
|
33,504
|
|
|
|
0.49
|
%
|
|
|
1.29
|
%
|
|
|
0.54
|
%
|
|
|
147
|
%
|
Year Ended March 31, 2009
|
|
|
10.26
|
|
|
|
0.28
|
|
|
|
0.07
|
|
|
|
0.35
|
|
|
|
(0.28
|
)
|
|
|
|
|
|
|
(0.28
|
)
|
|
|
10.33
|
|
|
3.50
|
|
|
|
61,692
|
|
|
|
0.48
|
|
|
|
2.74
|
|
|
|
0.48
|
|
|
|
144
|
|
Year Ended March 31, 2008
|
|
|
9.86
|
|
|
|
0.42
|
|
|
|
0.40
|
|
|
|
0.82
|
|
|
|
(0.42
|
)
|
|
|
|
|
|
|
(0.42
|
)
|
|
|
10.26
|
|
|
8.56
|
|
|
|
62,416
|
|
|
|
0.48
|
|
|
|
4.24
|
|
|
|
0.49
|
|
|
|
66
|
|
Year Ended March 31, 2007
|
|
|
9.80
|
|
|
|
0.39
|
|
|
|
0.06
|
|
|
|
0.45
|
|
|
|
(0.39
|
)
|
|
|
|
|
|
|
(0.39
|
)
|
|
|
9.86
|
|
|
4.64
|
|
|
|
55,459
|
|
|
|
0.48
|
|
|
|
3.93
|
|
|
|
0.48
|
|
|
|
87
|
|
Year Ended March 31, 2006
|
|
|
9.91
|
|
|
|
0.28
|
|
|
|
(0.11
|
)
|
|
|
0.17
|
|
|
|
(0.28
|
)
|
|
|
|
|
|
|
(0.28
|
)
|
|
|
9.80
|
|
|
1.70
|
|
|
|
54,991
|
|
|
|
0.58
|
|
|
|
2.79
|
|
|
|
0.63
|
|
|
|
151
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.32
|
|
|
|
0.12
|
|
|
|
(0.03
|
)
|
|
|
0.09
|
|
|
|
(0.12
|
)
|
|
|
(0.03
|
)
|
|
|
(0.15
|
)
|
|
|
10.26
|
|
|
0.85
|
|
|
|
5,839
|
|
|
|
0.67
|
|
|
|
1.20
|
|
|
|
0.71
|
|
|
|
147
|
|
Year Ended March 31, 2009
|
|
|
10.25
|
|
|
|
0.26
|
|
|
|
0.07
|
|
|
|
0.33
|
|
|
|
(0.26
|
)
|
|
|
|
|
|
|
(0.26
|
)
|
|
|
10.32
|
|
|
3.31
|
|
|
|
16,854
|
|
|
|
0.65
|
|
|
|
2.30
|
|
|
|
0.66
|
|
|
|
144
|
|
Year Ended March 31, 2008
|
|
|
9.85
|
|
|
|
0.41
|
|
|
|
0.40
|
|
|
|
0.81
|
|
|
|
(0.41
|
)
|
|
|
|
|
|
|
(0.41
|
)
|
|
|
10.25
|
|
|
8.37
|
|
|
|
3,800
|
|
|
|
0.66
|
|
|
|
4.07
|
|
|
|
0.67
|
|
|
|
66
|
|
Year Ended March 31, 2007
|
|
|
9.79
|
|
|
|
0.37
|
|
|
|
0.06
|
|
|
|
0.43
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
(0.37
|
)
|
|
|
9.85
|
|
|
4.46
|
|
|
|
3,974
|
|
|
|
0.66
|
|
|
|
3.75
|
|
|
|
0.66
|
|
|
|
87
|
|
Year Ended March 31, 2006
|
|
|
9.90
|
|
|
|
0.26
|
|
|
|
(0.11
|
)
|
|
|
0.15
|
|
|
|
(0.26
|
)
|
|
|
|
|
|
|
(0.26
|
)
|
|
|
9.79
|
|
|
1.52
|
|
|
|
4,336
|
|
|
|
0.76
|
|
|
|
2.60
|
|
|
|
0.82
|
|
|
|
151
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.31
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
(0.03
|
)
|
|
|
(0.06
|
)
|
|
|
10.25
|
|
|
0.04
|
|
|
|
6,426
|
|
|
|
1.49
|
|
|
|
0.33
|
|
|
|
1.55
|
|
|
|
147
|
|
Year Ended March 31, 2009
|
|
|
10.25
|
|
|
|
0.18
|
|
|
|
0.06
|
|
|
|
0.24
|
|
|
|
(0.18
|
)
|
|
|
|
|
|
|
(0.18
|
)
|
|
|
10.31
|
|
|
2.38
|
|
|
|
7,113
|
|
|
|
1.48
|
|
|
|
1.79
|
|
|
|
1.48
|
|
|
|
144
|
|
Year Ended March 31, 2008
|
|
|
9.84
|
|
|
|
0.32
|
|
|
|
0.41
|
|
|
|
0.73
|
|
|
|
(0.32
|
)
|
|
|
|
|
|
|
(0.32
|
)
|
|
|
10.25
|
|
|
7.60
|
|
|
|
8,839
|
|
|
|
1.48
|
|
|
|
3.27
|
|
|
|
1.50
|
|
|
|
66
|
|
Year Ended March 31, 2007
|
|
|
9.78
|
|
|
|
0.29
|
|
|
|
0.06
|
|
|
|
0.35
|
|
|
|
(0.29
|
)
|
|
|
|
|
|
|
(0.29
|
)
|
|
|
9.84
|
|
|
3.62
|
|
|
|
11,378
|
|
|
|
1.48
|
|
|
|
2.90
|
|
|
|
1.48
|
|
|
|
87
|
|
Year Ended March 31, 2006
|
|
|
9.89
|
|
|
|
0.20
|
|
|
|
(0.11
|
)
|
|
|
0.09
|
|
|
|
(0.20
|
)
|
|
|
|
|
|
|
(0.20
|
)
|
|
|
9.78
|
|
|
0.88
|
|
|
|
19,958
|
|
|
|
1.39
|
|
|
|
1.99
|
|
|
|
1.65
|
|
|
|
151
|
|
Total Return Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.26
|
|
|
|
0.40
|
|
|
|
0.43
|
|
|
|
0.83
|
|
|
|
(0.36
|
)
|
|
|
(0.13
|
)
|
|
|
(0.49
|
)
|
|
|
10.60
|
|
|
8.17
|
|
|
|
724,588
|
|
|
|
0.31
|
|
|
|
3.72
|
|
|
|
0.31
|
|
|
|
326
|
|
Year Ended March 31, 2009
|
|
|
10.10
|
|
|
|
0.49
|
|
|
|
0.18
|
|
|
|
0.67
|
|
|
|
(0.51
|
)
|
|
|
|
|
|
|
(0.51
|
)
|
|
|
10.26
|
|
|
6.89
|
|
|
|
602,267
|
|
|
|
0.30
|
|
|
|
4.85
|
|
|
|
0.30
|
|
|
|
199
|
|
Year Ended March 31, 2008
|
|
|
9.96
|
|
|
|
0.51
|
|
|
|
0.14
|
|
|
|
0.65
|
|
|
|
(0.51
|
)
|
|
|
|
|
|
|
(0.51
|
)
|
|
|
10.10
|
|
|
6.74
|
|
|
|
630,451
|
|
|
|
0.30
|
|
|
|
5.14
|
|
|
|
0.30
|
|
|
|
248
|
|
Year Ended March 31, 2007
|
|
|
9.86
|
|
|
|
0.48
|
|
|
|
0.11
|
|
|
|
0.59
|
|
|
|
(0.49
|
)
|
|
|
|
|
|
|
(0.49
|
)
|
|
|
9.96
|
|
|
6.16
|
|
|
|
601,676
|
|
|
|
0.30
|
|
|
|
4.97
|
|
|
|
0.30
|
|
|
|
310
|
|
Year Ended March 31, 2006
|
|
|
10.12
|
|
|
|
0.41
|
|
|
|
(0.24
|
)
|
|
|
0.17
|
|
|
|
(0.42
|
)
|
|
|
(0.01
|
)
|
|
|
(0.43
|
)
|
|
|
9.86
|
|
|
1.68
|
|
|
|
497,730
|
|
|
|
0.29
|
|
|
|
4.01
|
|
|
|
0.29
|
|
|
|
236
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.57
|
|
|
|
0.38
|
|
|
|
0.43
|
|
|
|
0.81
|
|
|
|
(0.33
|
)
|
|
|
(0.13
|
)
|
|
|
(0.46
|
)
|
|
|
10.92
|
|
|
7.75
|
|
|
|
8,540
|
|
|
|
0.55
|
|
|
|
3.14
|
|
|
|
0.55
|
|
|
|
326
|
|
Year Ended March 31, 2009
|
|
|
10.40
|
|
|
|
0.46
|
|
|
|
0.19
|
|
|
|
0.65
|
|
|
|
(0.48
|
)
|
|
|
|
|
|
|
(0.48
|
)
|
|
|
10.57
|
|
|
6.51
|
|
|
|
510
|
|
|
|
0.54
|
|
|
|
4.51
|
|
|
|
0.54
|
|
|
|
199
|
|
Year Ended March 31, 2008
|
|
|
10.26
|
|
|
|
0.49
|
|
|
|
0.14
|
|
|
|
0.63
|
|
|
|
(0.49
|
)
|
|
|
|
|
|
|
(0.49
|
)
|
|
|
10.40
|
|
|
6.28
|
|
|
|
269
|
|
|
|
0.54
|
|
|
|
4.76
|
|
|
|
0.54
|
|
|
|
248
|
|
Year Ended March 31, 2007
|
|
|
10.15
|
|
|
|
0.46
|
|
|
|
0.12
|
|
|
|
0.58
|
|
|
|
(0.47
|
)
|
|
|
|
|
|
|
(0.47
|
)
|
|
|
10.26
|
|
|
5.82
|
|
|
|
324
|
|
|
|
0.54
|
|
|
|
4.57
|
|
|
|
0.54
|
|
|
|
310
|
|
Year Ended March 31, 2006
|
|
|
10.41
|
|
|
|
0.38
|
|
|
|
(0.24
|
)
|
|
|
0.14
|
|
|
|
(0.39
|
)
|
|
|
(0.01
|
)
|
|
|
(0.40
|
)
|
|
|
10.15
|
|
|
1.38
|
|
|
|
493
|
|
|
|
0.56
|
|
|
|
3.67
|
|
|
|
0.56
|
|
|
|
236
|
|
R Shares(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.26
|
|
|
|
0.35
|
|
|
|
0.42
|
|
|
|
0.77
|
|
|
|
(0.30
|
)
|
|
|
(0.13
|
)
|
|
|
(0.43
|
)
|
|
|
10.60
|
|
|
7.61
|
|
|
|
710
|
|
|
|
0.82
|
|
|
|
3.11
|
|
|
|
0.82
|
|
|
|
326
|
|
Year Ended March 31, 2009
|
|
|
10.10
|
|
|
|
0.39
|
|
|
|
0.19
|
|
|
|
0.58
|
|
|
|
(0.42
|
)
|
|
|
|
|
|
|
(0.42
|
)
|
|
|
10.26
|
|
|
5.90
|
|
|
|
325
|
|
|
|
1.10
|
|
|
|
4.01
|
|
|
|
1.10
|
|
|
|
199
|
|
Year Ended March 31, 2008
|
|
|
9.96
|
|
|
|
0.41
|
|
|
|
0.14
|
|
|
|
0.55
|
|
|
|
(0.41
|
)
|
|
|
|
|
|
|
(0.41
|
)
|
|
|
10.10
|
|
|
5.68
|
|
|
|
40
|
|
|
|
1.30
|
|
|
|
4.13
|
|
|
|
1.30
|
|
|
|
248
|
|
Year Ended March 31, 2007
|
|
|
9.86
|
|
|
|
0.38
|
|
|
|
0.11
|
|
|
|
0.49
|
|
|
|
(0.39
|
)
|
|
|
|
|
|
|
(0.39
|
)
|
|
|
9.96
|
|
|
5.10
|
|
|
|
29
|
|
|
|
1.30
|
|
|
|
3.96
|
|
|
|
1.30
|
|
|
|
310
|
|
Year Ended March 31, 2006
|
|
|
10.12
|
|
|
|
0.32
|
|
|
|
(0.24
|
)
|
|
|
0.08
|
|
|
|
(0.33
|
)
|
|
|
(0.01
|
)
|
|
|
(0.34
|
)
|
|
|
9.86
|
|
|
0.76
|
|
|
|
28
|
|
|
|
1.24
|
|
|
|
3.10
|
|
|
|
1.27
|
|
|
|
236
|
|
See
Notes to Financial Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
Income
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
Ultra-Short Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
9.52
|
|
|
$
|
0.25
|
|
|
$
|
0.39
|
|
|
$
|
0.64
|
|
|
$
|
(0.25
|
)
|
|
$
|
|
|
|
$
|
(0.25
|
)
|
|
$
|
9.91
|
|
|
6.82
|
%
|
|
$
|
92,528
|
|
|
|
0.34
|
%
|
|
|
2.51
|
%
|
|
|
0.37
|
%
|
|
|
130
|
%
|
Year Ended March 31, 2009
|
|
|
9.91
|
|
|
|
0.39
|
|
|
|
(0.40
|
)
|
|
|
(0.01
|
)
|
|
|
(0.38
|
)
|
|
|
|
|
|
|
(0.38
|
)
|
|
|
9.52
|
|
|
(0.13
|
)
|
|
|
55,088
|
|
|
|
0.31
|
|
|
|
3.95
|
|
|
|
0.36
|
|
|
|
88
|
|
Year Ended March 31, 2008
|
|
|
10.00
|
|
|
|
0.47
|
|
|
|
(0.09
|
)
|
|
|
0.38
|
|
|
|
(0.47
|
)
|
|
|
|
|
|
|
(0.47
|
)
|
|
|
9.91
|
|
|
3.89
|
|
|
|
87,892
|
|
|
|
0.30
|
|
|
|
4.72
|
|
|
|
0.33
|
|
|
|
126
|
|
Year Ended March 31, 2007
|
|
|
9.96
|
|
|
|
0.48
|
|
|
|
0.05
|
|
|
|
0.53
|
|
|
|
(0.49
|
)
|
|
|
|
|
|
|
(0.49
|
)
|
|
|
10.00
|
|
|
5.44
|
|
|
|
85,646
|
|
|
|
0.28
|
|
|
|
4.58
|
|
|
|
0.28
|
|
|
|
96
|
|
Year Ended March 31, 2006
|
|
|
10.00
|
|
|
|
0.36
|
|
|
|
(0.04
|
)
|
|
|
0.32
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
(0.36
|
)
|
|
|
9.96
|
|
|
3.23
|
|
|
|
245,257
|
|
|
|
0.30
|
|
|
|
3.61
|
|
|
|
0.37
|
|
|
|
114
|
|
U.S. Government Securities Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
11.11
|
|
|
|
0.26
|
|
|
|
(0.37
|
)
|
|
|
(0.11
|
)
|
|
|
(0.27
|
)
|
|
|
(1.97
|
)
|
|
|
(2.24
|
)
|
|
|
8.76
|
|
|
(1.07
|
)
|
|
|
71,910
|
|
|
|
0.58
|
|
|
|
2.35
|
|
|
|
0.58
|
|
|
|
85
|
|
Year Ended March 31, 2009
|
|
|
10.59
|
|
|
|
0.33
|
|
|
|
0.56
|
|
|
|
0.89
|
|
|
|
(0.34
|
)
|
|
|
(0.03
|
)
|
|
|
(0.37
|
)
|
|
|
11.11
|
|
|
8.49
|
|
|
|
341,727
|
|
|
|
0.55
|
|
|
|
3.09
|
|
|
|
0.56
|
|
|
|
130
|
|
Year Ended March 31, 2008
|
|
|
10.29
|
|
|
|
0.50
|
|
|
|
0.30
|
|
|
|
0.80
|
|
|
|
(0.50
|
)
|
|
|
|
|
|
|
(0.50
|
)
|
|
|
10.59
|
|
|
8.04
|
|
|
|
491,970
|
|
|
|
0.55
|
|
|
|
4.89
|
|
|
|
0.55
|
|
|
|
134
|
|
Year Ended March 31, 2007
|
|
|
10.19
|
|
|
|
0.47
|
|
|
|
0.11
|
|
|
|
0.58
|
|
|
|
(0.48
|
)
|
|
|
|
|
|
|
(0.48
|
)
|
|
|
10.29
|
|
|
5.86
|
|
|
|
535,056
|
|
|
|
0.55
|
|
|
|
4.70
|
|
|
|
0.55
|
|
|
|
131
|
|
Year Ended March 31, 2006
|
|
|
10.42
|
|
|
|
0.37
|
|
|
|
(0.20
|
)
|
|
|
0.17
|
|
|
|
(0.40
|
)
|
|
|
|
|
|
|
(0.40
|
)
|
|
|
10.19
|
|
|
1.66
|
|
|
|
316,475
|
|
|
|
0.65
|
|
|
|
3.63
|
|
|
|
0.65
|
|
|
|
118
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
11.11
|
|
|
|
0.21
|
|
|
|
(0.35
|
)
|
|
|
(0.14
|
)
|
|
|
(0.24
|
)
|
|
|
(1.97
|
)
|
|
|
(2.21
|
)
|
|
|
8.76
|
|
|
(1.38
|
)
|
|
|
2,314
|
|
|
|
0.89
|
|
|
|
1.98
|
|
|
|
0.89
|
|
|
|
85
|
|
Year Ended March 31, 2009
|
|
|
10.59
|
|
|
|
0.29
|
|
|
|
0.56
|
|
|
|
0.85
|
|
|
|
(0.30
|
)
|
|
|
(0.03
|
)
|
|
|
(0.33
|
)
|
|
|
11.11
|
|
|
8.17
|
|
|
|
2,954
|
|
|
|
0.85
|
|
|
|
2.78
|
|
|
|
0.86
|
|
|
|
130
|
|
Year Ended March 31, 2008
|
|
|
10.29
|
|
|
|
0.47
|
|
|
|
0.30
|
|
|
|
0.77
|
|
|
|
(0.47
|
)
|
|
|
|
|
|
|
(0.47
|
)
|
|
|
10.59
|
|
|
7.72
|
|
|
|
3,496
|
|
|
|
0.85
|
|
|
|
4.61
|
|
|
|
0.85
|
|
|
|
134
|
|
Year Ended March 31, 2007
|
|
|
10.19
|
|
|
|
0.44
|
|
|
|
0.11
|
|
|
|
0.55
|
|
|
|
(0.45
|
)
|
|
|
|
|
|
|
(0.45
|
)
|
|
|
10.29
|
|
|
5.54
|
|
|
|
2,849
|
|
|
|
0.85
|
|
|
|
4.40
|
|
|
|
0.85
|
|
|
|
131
|
|
Year Ended March 31, 2006
|
|
|
10.41
|
|
|
|
0.32
|
|
|
|
(0.17
|
)
|
|
|
0.15
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
(0.37
|
)
|
|
|
10.19
|
|
|
1.43
|
|
|
|
3,032
|
|
|
|
0.99
|
|
|
|
3.31
|
|
|
|
0.99
|
|
|
|
118
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
11.11
|
|
|
|
0.14
|
|
|
|
(0.35
|
)
|
|
|
(0.21
|
)
|
|
|
(0.17
|
)
|
|
|
(1.97
|
)
|
|
|
(2.14
|
)
|
|
|
8.76
|
|
|
(2.05
|
)
|
|
|
3,038
|
|
|
|
1.58
|
|
|
|
1.28
|
|
|
|
1.58
|
|
|
|
85
|
|
Year Ended March 31, 2009
|
|
|
10.59
|
|
|
|
0.22
|
|
|
|
0.56
|
|
|
|
0.78
|
|
|
|
(0.23
|
)
|
|
|
(0.03
|
)
|
|
|
(0.26
|
)
|
|
|
11.11
|
|
|
7.42
|
|
|
|
3,649
|
|
|
|
1.55
|
|
|
|
2.08
|
|
|
|
1.55
|
|
|
|
130
|
|
Year Ended March 31, 2008
|
|
|
10.29
|
|
|
|
0.40
|
|
|
|
0.30
|
|
|
|
0.70
|
|
|
|
(0.40
|
)
|
|
|
|
|
|
|
(0.40
|
)
|
|
|
10.59
|
|
|
6.97
|
|
|
|
4,222
|
|
|
|
1.55
|
|
|
|
3.90
|
|
|
|
1.55
|
|
|
|
134
|
|
Year Ended March 31, 2007
|
|
|
10.19
|
|
|
|
0.37
|
|
|
|
0.11
|
|
|
|
0.48
|
|
|
|
(0.38
|
)
|
|
|
|
|
|
|
(0.38
|
)
|
|
|
10.29
|
|
|
4.81
|
|
|
|
5,121
|
|
|
|
1.55
|
|
|
|
3.67
|
|
|
|
1.55
|
|
|
|
131
|
|
Year Ended March 31, 2006
|
|
|
10.41
|
|
|
|
0.27
|
|
|
|
(0.19
|
)
|
|
|
0.08
|
|
|
|
(0.30
|
)
|
|
|
|
|
|
|
(0.30
|
)
|
|
|
10.19
|
|
|
0.76
|
|
|
|
7,909
|
|
|
|
1.66
|
|
|
|
2.60
|
|
|
|
1.68
|
|
|
|
118
|
|
U.S. Government Securities Ultra-Short Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.03
|
|
|
|
0.30
|
|
|
|
0.06
|
|
|
|
0.36
|
|
|
|
(0.32
|
)
|
|
|
|
|
|
|
(0.32
|
)
|
|
|
10.07
|
|
|
3.62
|
|
|
|
1,340,992
|
|
|
|
0.29
|
|
|
|
2.15
|
|
|
|
0.29
|
|
|
|
119
|
|
Year Ended March 31, 2009
|
|
|
10.03
|
|
|
|
0.41
|
|
|
|
0.01
|
|
|
|
0.42
|
|
|
|
(0.42
|
)
|
|
|
|
|
|
|
(0.42
|
)
|
|
|
10.03
|
|
|
4.29
|
|
|
|
90,675
|
|
|
|
0.28
|
|
|
|
4.00
|
|
|
|
0.32
|
|
|
|
92
|
|
Year Ended March 31, 2008
|
|
|
9.95
|
|
|
|
0.43
|
|
|
|
0.10
|
|
|
|
0.53
|
|
|
|
(0.45
|
)
|
|
|
|
|
|
|
(0.45
|
)
|
|
|
10.03
|
|
|
5.41
|
|
|
|
62,904
|
|
|
|
0.28
|
|
|
|
4.33
|
|
|
|
0.33
|
|
|
|
140
|
|
Year Ended March 31, 2007
|
|
|
9.85
|
|
|
|
0.42
|
|
|
|
0.11
|
|
|
|
0.53
|
|
|
|
(0.43
|
)
|
|
|
|
|
|
|
(0.43
|
)
|
|
|
9.95
|
|
|
5.50
|
|
|
|
34,411
|
|
|
|
0.29
|
|
|
|
4.23
|
|
|
|
0.33
|
|
|
|
141
|
|
Year Ended March 31, 2006
|
|
|
9.90
|
|
|
|
0.36
|
|
|
|
(0.06
|
)
|
|
|
0.30
|
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
(0.35
|
)
|
|
|
9.85
|
|
|
3.12
|
|
|
|
42,616
|
|
|
|
0.29
|
|
|
|
3.41
|
|
|
|
0.47
|
|
|
|
126
|
|
Virginia Intermediate Municipal Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.22
|
|
|
|
0.37
|
|
|
|
0.19
|
|
|
|
0.56
|
|
|
|
(0.37
|
)
|
|
|
(0.02
|
)
|
|
|
(0.39
|
)
|
|
|
10.39
|
|
|
5.58
|
|
|
|
191,537
|
|
|
|
0.61
|
|
|
|
3.56
|
|
|
|
0.61
|
|
|
|
33
|
|
Year Ended March 31, 2009
|
|
|
10.09
|
|
|
|
0.36
|
|
|
|
0.13
|
|
|
|
0.49
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
(0.36
|
)
|
|
|
10.22
|
|
|
5.01
|
|
|
|
181,882
|
|
|
|
0.60
|
|
|
|
3.61
|
|
|
|
0.60
|
|
|
|
20
|
|
Year Ended March 31, 2008
|
|
|
10.11
|
|
|
|
0.37
|
|
|
|
(0.02
|
)
|
|
|
0.35
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
(0.37
|
)
|
|
|
10.09
|
|
|
3.51
|
|
|
|
204,507
|
|
|
|
0.60
|
|
|
|
3.65
|
|
|
|
0.60
|
|
|
|
28
|
|
Year Ended March 31, 2007
|
|
|
10.01
|
|
|
|
0.36
|
|
|
|
0.10
|
|
|
|
0.46
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
(0.36
|
)
|
|
|
10.11
|
|
|
4.67
|
|
|
|
214,908
|
|
|
|
0.59
|
|
|
|
3.59
|
|
|
|
0.60
|
|
|
|
54
|
|
Year Ended March 31, 2006
|
|
|
10.11
|
|
|
|
0.34
|
|
|
|
(0.03
|
)
|
|
|
0.31
|
|
|
|
(0.34
|
)
|
|
|
(0.07
|
)
|
|
|
(0.41
|
)
|
|
|
10.01
|
|
|
3.05
|
|
|
|
169,743
|
|
|
|
0.65
|
|
|
|
3.33
|
|
|
|
0.66
|
|
|
|
54
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.22
|
|
|
|
0.35
|
|
|
|
0.20
|
|
|
|
0.55
|
|
|
|
(0.36
|
)
|
|
|
(0.02
|
)
|
|
|
(0.38
|
)
|
|
|
10.39
|
|
|
5.44
|
|
|
|
14,236
|
|
|
|
0.75
|
|
|
|
3.35
|
|
|
|
0.75
|
|
|
|
33
|
|
Year Ended March 31, 2009
|
|
|
10.09
|
|
|
|
0.35
|
|
|
|
0.13
|
|
|
|
0.48
|
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
(0.35
|
)
|
|
|
10.22
|
|
|
4.85
|
|
|
|
7,619
|
|
|
|
0.75
|
|
|
|
3.46
|
|
|
|
0.75
|
|
|
|
20
|
|
Year Ended March 31, 2008
|
|
|
10.11
|
|
|
|
0.35
|
|
|
|
(0.02
|
)
|
|
|
0.33
|
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
(0.35
|
)
|
|
|
10.09
|
|
|
3.36
|
|
|
|
6,232
|
|
|
|
0.75
|
|
|
|
3.50
|
|
|
|
0.75
|
|
|
|
28
|
|
Year Ended March 31, 2007
|
|
|
10.01
|
|
|
|
0.35
|
|
|
|
0.10
|
|
|
|
0.45
|
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
(0.35
|
)
|
|
|
10.11
|
|
|
4.52
|
|
|
|
5,395
|
|
|
|
0.74
|
|
|
|
3.43
|
|
|
|
0.75
|
|
|
|
54
|
|
Year Ended March 31, 2006
|
|
|
10.11
|
|
|
|
0.33
|
|
|
|
(0.03
|
)
|
|
|
0.30
|
|
|
|
(0.33
|
)
|
|
|
(0.07
|
)
|
|
|
(0.40
|
)
|
|
|
10.01
|
|
|
2.92
|
|
|
|
5,480
|
|
|
|
0.79
|
|
|
|
3.22
|
|
|
|
0.82
|
|
|
|
54
|
|
See
Notes to Financial Highlights.
NOTES TO
FINANCIAL HIGHLIGHTS
|
|
|
(1)
|
|
Total return excludes sales charge.
Not annualized for periods less than one year.
|
|
(2)
|
|
Annualized for periods less than
one year.
|
|
(3)
|
|
Not annualized for periods less
than one year.
|
|
(4)
|
|
Effective at the close of business
on July 31, 2009, C Shares converted to R Shares
and C Shares are no longer available for purchase. The data
prior to such date reflects that of C Shares.
|
|
(5)
|
|
Effective at the close of business
on February 12, 2009, C Shares converted to R Shares
and C Shares are no longer available for purchase. The data
prior to such date reflects that of C Shares.
|
|
(6)
|
|
The following table details the
commencement of operations of certain classes of each respective
fund.
|
|
|
|
|
|
Fund
|
|
Class
|
|
Commencement Date
|
Maryland Municipal Bond Fund
|
|
A Shares
|
|
April 13, 2005
|
Seix Floating Rate High Income Fund
|
|
I Shares
|
|
March 2, 2006
|
Seix Floating Rate High Income Fund
|
|
A Shares
|
|
May 8, 2006
|
Seix Floating Rate High Income Fund
|
|
C Shares
|
|
August 3, 2007
|
Seix Global Strategy Fund
|
|
I Shares
|
|
September 8, 2008
|
|
|
|
(a)
|
|
Per share data was calculated using
the average shares method.
|
|
(b)
|
|
The total return shown is based on
the ending net asset value calculated in accordance with
accounting principles generally accepted in the
United States of America (GAAP) and differs
from the total return shown based on the net asset value
calculated for shareholder transactions.
|
|
|
|
*
|
|
Amended from prior periods
financial highlights. There were no shareholders in the class
for the period from October 16, 2007 through
January 17, 2008. The financial highlight information
presented is for two separate periods of time when shareholders
were invested in the class.
|
|
^
|
|
The Georgia Tax-Exempt Bond
Funds net expense ratio and gross expense ratio includes
interest expense of 0.09% incurred during the year ended
March 31, 2009 with respect to investments in certain
inverse floating rate securities.
|
|
#
|
|
Prior to August 1, 2009, there
were no assets in Class A during the current period.
Effective at the close of business July 31, 2009,
Class A received assets from the conversion from
Class C. The net asset value shown for the beginning of the
period reflects the initial converted net asset value from
Class C and the amounts shown thereafter reflect operations
for Class A from August 1, 2009 through March 31,
2010.
|
|
##
|
|
Class A was operational during
a portion of the year only. Amounts reflect performance for the
period of time the class had operations, which was 280 days
during the period for Maryland Municipal Bond Fund. The net
asset value, end of period, presented for Maryland Municipal
Bond Fund A Shares was as of January 6, 2009, the
last day the class had shareholders.
|
Amounts designated as are $0 or have been
rounded to $0.
PRIVACY
POLICY
RidgeWorth
Funds
Our Privacy
Policy
At RidgeWorth Funds, we recognize the sensitive nature of your
personal financial information and take every precaution to
protect your privacy. In providing services to you as an
individual who owns or is considering investing in shares of
RidgeWorth Funds, we collect certain nonpublic personal
information about you. Our policy is to safeguard this
information and keep it confidential, and to use or disclose it
only as necessary to provide services to you or as otherwise
required or permitted by law. When you entrust us with your
financial information, it will be used only within our strict
guidelines. Our privacy policy and practices apply equally to
nonpublic personal information about former shareholders and
individuals who have inquired about RidgeWorth Funds.
Information We
Collect
Nonpublic personal information is personally
identifiable financial information about you as an individual or
your family. The type of nonpublic personal information we have
about you may include the information you provide on your
account application; information you provide in telephone calls
or correspondence with us; information about your transactions
and holdings in RidgeWorth Funds, and information about how you
vote your shares.
Information We
Disclose
RidgeWorth Funds policy is to only disclose nonpublic
personal information about you to companies that provide
necessary services such as RidgeWorth Funds transfer
agent, distributor, administrator or investment adviser;
affiliates of RidgeWorth Funds, or as may otherwise be permitted
or required by law or authorized by you.
How We Safeguard
Your Information
We restrict access to nonpublic personal information about you
to those persons who are required to have certain information in
order to provide services to you, or who are permitted by law to
receive it. We have strict internal policies against
unauthorized disclosure or use of customer information. We
maintain customer information as mandated by financial
regulations, and policies and procedures are in place for
appropriate confidential destruction of all restricted access
data.
If you have any questions regarding our Privacy Policy,
please call 1-888-784-3863.
This is not part of the Prospectus.
|
|
|
Investment Adviser:
|
|
|
RidgeWorth Investments
50 Hurt Plaza, Suite 1400
Atlanta, Georgia 30303
www.ridgeworth.com
|
|
|
|
|
|
Investment Subadvisers:
|
|
|
Seix Investment Advisors LLC
10 Mountainview Road,
Suite C-200
Upper Saddle River, NJ 07458
www.seixadvisors.com
|
|
StableRiver Capital Management LLC
50 Hurt Plaza, Suite 1300
Atlanta, GA 30303
www.stableriver.com
|
More information about the RidgeWorth Funds is available without
charge through the following:
Statement of Additional Information (SAI):
The SAI includes detailed information about the RidgeWorth
Funds. The SAI is on file with the SEC and is incorporated by
reference into this prospectus. This means that the SAI, for
legal purposes, is a part of this prospectus.
Annual and Semi-Annual Reports:
These reports list each Funds holdings and contain
information from the Funds managers about strategies and
recent market conditions and trends and their impact on Fund
performance. The reports also contain detailed financial
information about the Funds.
To Obtain an SAI, Annual or Semi-Annual Report, or More
Information:
|
|
Telephone: |
Shareholder Services
1-888-784-3863
|
Mail:
RidgeWorth Funds
3435 Stelzer Road
Columbus, Ohio 43219
Website: www.ridgeworth.com
SEC:
You can also obtain the SAI or the Annual and Semi-Annual
reports, as well as other information about the RidgeWorth
Funds, from the EDGAR Database on the SECs website at
http://www.sec.gov.
You may review and copy documents at the SEC Public Reference
Room in Washington, DC (for information on the operation of the
Public Reference Room, call
202-551-8090).
You may request documents by mail from the SEC, upon payment of
a duplicating fee, by writing to: Securities and Exchange
Commission, Public Reference Section, Washington, DC
20549-1520.
You may also obtain this information, upon payment of a
duplicating fee, by
e-mailing
the SEC at publicinfo@sec.gov.
The RidgeWorth Funds Investment Company Act registration
number is
811-06557.
Collective Strength Individual Insight is a federally registered
service mark of RidgeWorth Investments.
RFPRO-FI-0810
|
|
|
|
|
INSTITUTIONAL MONEY MARKET FUNDS INSTITUTIONAL & CORPORATE TRUST SHARES PROSPECTUS
August 1, 2010 Investment Adviser: RidgeWorth Investments®
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
Institutional
|
|
Trust
|
|
|
Shares
|
|
Shares
|
Institutional Money Market Funds
|
|
|
|
|
Subadviser: StableRiver Capital Management LLC
|
|
|
|
|
Institutional Cash Management Money Market Fund
|
|
CICXX
|
|
|
Institutional Municipal Cash Reserve Money Market
Fund
|
|
CMRXX
|
|
|
Institutional U.S. Government Securities Money
Market Fund
|
|
CRGXX
|
|
|
Institutional U.S. Treasury Securities Money
Market Fund
|
|
CIUXX
|
|
N/A
|
The Securities and Exchange Commission has not approved or
disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal
offense.
RidgeWorth
Investments®
is the trade name of RidgeWorth Capital Management, Inc.
About
This Prospectus
RidgeWorth Funds is a mutual fund family that offers shares in
separate investment portfolios that have individual investment
goals and strategies. RidgeWorth Funds is an open-end management
investment company (commonly known as a mutual fund) established
under Massachusetts law as a Massachusetts business trust.
RidgeWorth Funds is required to comply with the Investment
Company Act of 1940 as well as other federal securities laws
that are applicable to all mutual funds. This prospectus gives
you important information about the Institutional and Corporate
Trust Shares of the Institutional Money Market Funds
(Funds) that you should know before investing.
Please read this prospectus and keep it for future reference.
This prospectus has been arranged into different sections so
that you can easily review this important information. For more
detailed information about each Fund, please see:
|
|
|
|
|
|
1
|
|
Institutional Cash
Management Money Market Fund
|
|
|
|
4
|
|
Institutional Municipal
Cash Reserve Money Market Fund
|
|
|
|
7
|
|
Institutional U.S.
Government Securities Money Market Fund
|
|
|
|
10
|
|
Institutional U.S.
Treasury Securities Money Market Fund
|
|
|
|
12
|
|
More Information About
Risk
|
|
|
|
14
|
|
More Information About
Averages
|
|
|
|
14
|
|
More Information About
Fund Investments
|
|
|
|
15
|
|
Third-Party Ratings
|
|
|
|
15
|
|
Information About
Portfolio Holdings
|
|
|
|
15
|
|
Management
|
|
|
|
16
|
|
Purchasing and Selling
Fund Shares
|
|
|
|
20
|
|
Market Timing Policies
and Procedures
|
|
|
|
20
|
|
Distribution of Fund
Shares
|
|
|
|
20
|
|
Dividends and
Distributions
|
|
|
|
21
|
|
Taxes
|
|
|
|
22
|
|
Financial Highlights
|
|
|
|
Inside
Back Cover
|
|
Privacy Policy
|
|
|
|
Back
Cover
|
|
How to Obtain More
Information
About RidgeWorth Funds
|
August 1,
2010
|
|
|
Institutional Money
Market Funds
|
|
1
|
INSTITUTIONAL
CASH MANAGEMENT MONEY MARKET FUND
Summary
Section
Institutional
Shares
Investment
Objective
The Institutional Cash Management Money Market Fund (the
Fund) seeks as high a level of current income as is
consistent with preservation of capital and liquidity. The Fund
is a money market fund that seeks to preserve the value of your
investment at $1.00 per share.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
Institutional
|
|
|
Shares
|
Management Fees
|
|
|
0.12%
|
|
Other Expenses
|
|
|
0.06%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.01%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.19%
|
|
Fee Waivers and/or Expense
Reimbursements(1)
|
|
|
(0.01)%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waivers
and/or Expense Reimbursements
|
|
|
0.18%
|
|
|
|
(1) |
The Adviser and the Subadviser have contractually agreed to
waive fees and reimburse expenses until at least August 1,
2011 in order to keep Total Annual Fund Operating Expenses
(excluding, as applicable, taxes, brokerage commissions,
substitute dividend expenses on securities sold short,
extraordinary expenses and acquired fund fees and expenses) from
exceeding 0.17% for the Institutional Shares. This agreement
shall terminate upon the termination of the Investment Advisory
Agreement between RidgeWorth Funds and the Adviser, or it may be
terminated upon written notice to the Adviser by RidgeWorth
Funds.
|
The Adviser and, as applicable, certain other Fund service
providers, have voluntarily undertaken to reduce
and/or
subsidize certain expenses of the Fund to the extent necessary
to maintain a minimum annualized yield of 0.02% for all share
classes. This voluntary expense reduction
and/or
expense subsidy may be modified or discontinued at any time
without prior notice. There can be no assurance that this fee
reduction will be sufficient to avoid any loss.
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes
that your investment has a 5% return each year and that the
Funds operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions
your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
Institutional Shares
|
|
$
|
18
|
|
|
$
|
60
|
|
|
$
|
106
|
|
|
$
|
242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Investment Strategies
The Fund invests exclusively in high quality
U.S. dollar-denominated money market instruments. The Fund
invests in obligations of (i) the U.S. Treasury,
(ii) agencies and instrumentalities of U.S. and
foreign governments, (iii) domestic and foreign banks,
(iv) domestic and foreign corporate issuers, and
(v) supranational entities, and (vi) shares of
registered money market Funds as well as mortgage-backed
securities and other asset-backed securities and repurchase
agreements. The Fund may invest a portion of its assets in
securities that are restricted as to resale.
In selecting investments for purchase and sale, StableRiver
Capital Management LLC, the Funds subadviser
(StableRiver or the Subadviser), tries
to increase income without adding undue risk by analyzing
maturity, yields, market sectors and credit risk. As a money
market fund, the Fund follows strict rules about credit risk,
maturity and diversification of its investments.
The Fund may also invest in instruments issued by municipalities
and issuers that pay income exempt from federal income taxes and
are subject to the alternative minimum tax.
Principal
Investment Risks
Income Risk: An investment in the Fund is subject to
income risk, which is the possibility that the Funds yield
will decline due to falling interest rates.
|
|
|
2
|
|
Institutional Money
Market Funds
|
INSTITUTIONAL
CASH MANAGEMENT MONEY MARKET FUND
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, reducing the Funds return. The
lower the rating of a debt security, the higher its credit risk.
Foreign Investment Risk: Dollar denominated securities of
foreign issuers involve special risks such as economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime
credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Municipal Securities Risk: Litigation, legislation, or
other political events, local business or economic conditions or
the bankruptcy of the issuer could have a significant effect on
an issuers ability to make payments of principal or
interest or otherwise affect the value of such securities. The
value of these securities may decline because of a market
perception that the issuer may not make payments on time. These
securities are subject to the economic conditions and government
policies of their respective state or municipality.
To the extent that the aggregate market value of the Funds
assets materially varies from the aggregate of the acquisition
prices of those assets, the Fund may not be able to maintain a
stable share price of $1.00. This risk typically is higher
during periods of rapidly changing interest rates or when issuer
credit quality generally is falling, and is made worse when the
Fund experiences significant redemption requests.
A Fund share is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
government agency. In addition, although a money market fund
seeks to keep a constant price per share of $1.00, you may lose
money by investing in the Fund.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance does not indicate how the Fund will
perform in the future.
This bar chart shows the changes in performance of the
Funds Institutional Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
1.63%
|
|
0.03%
|
(12/31/00)
|
|
(12/31/09)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
0.03%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. To obtain information about the Funds
current yield, call
1-888-784-3863.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
Fund
|
|
|
0.33%
|
|
|
|
3.21%
|
|
|
|
3.04%
|
|
|
|
iMoneyNet, Inc. First Tier Institutional Average (reflects no
deduction for fees, expenses or taxes)
|
|
|
0.34%
|
|
|
|
3.09%
|
|
|
|
2.86%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional Money
Market Funds
|
|
3
|
INSTITUTIONAL
CASH MANAGEMENT MONEY MARKET FUND
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver is the Funds subadviser.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem Institutional Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions.
The minimum initial investment for Institutional Shares of the
Fund is $10,000,000 although this minimum may be reduced or
waived in some cases. Institutions that have multiple qualifying
accounts (e.g., a pension plan and a foundation) may aggregate
those accounts to meet minimum purchase requirements. There are
no minimums for subsequent investments.
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account. Such tax-deferred
arrangements may be taxed later upon withdrawal of monies from
those arrangements.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
4
|
|
Institutional Money
Market Funds
|
INSTITUTIONAL
MUNICIPAL CASH RESERVE MONEY MARKET FUND
Summary
Section
Institutional
Shares
Investment
Objective
The Institutional Municipal Cash Reserve Money Market Fund (the
Fund) seeks high current interest income exempt from
federal income taxes, while preserving capital and liquidity.
The Fund is a money market fund that seeks to preserve the value
of your investment at $1.00 per share.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
Institutional
|
|
|
Shares
|
Management Fees
|
|
|
0.15%
|
|
Other Expenses
|
|
|
0.10%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.01%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.26%
|
|
Fee Waivers and/or Expense
Reimbursements(1)
|
|
|
(0.05)%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waivers
and/or Expense Reimbursements
|
|
|
0.21%
|
|
|
|
(1) |
The Adviser and the Subadviser have contractually agreed to
waive fees and reimburse expenses until at least August 1,
2011 in order to keep Total Annual Fund Operating Expenses
(excluding, as applicable, taxes, brokerage commissions,
substitute dividend expenses on securities sold short,
extraordinary expenses and acquired fund fees and expenses) from
exceeding 0.20% for the Institutional Shares. This agreement
shall terminate upon the termination of the Investment Advisory
Agreement between RidgeWorth Funds and the Adviser, or it may be
terminated upon written notice to the Adviser by RidgeWorth
Funds.
|
The Adviser and, as applicable, certain other Fund service
providers, have voluntarily undertaken to reduce
and/or
subsidize certain expenses of the Fund to the extent necessary
to maintain a minimum annualized yield of 0.02% for all share
classes. This voluntary expense reduction
and/or
expense subsidy may be modified or discontinued at any time
without prior notice. There can be no assurance that this fee
reduction will be sufficient to avoid any loss.
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes
that your investment has a 5% return each year and that the
Funds operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions
your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
Institutional Shares
|
|
$
|
22
|
|
|
$
|
79
|
|
|
$
|
141
|
|
|
$
|
326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Investment Strategies
The Fund invests substantially all of its net assets in money
market instruments issued by municipalities and issuers that pay
income exempt from regular federal income tax. The Fund may
invest up to 100% of its net assets in securities subject to the
alternative minimum tax. The Fund may invest a portion of its
assets in securities that are restricted as to resale.
In selecting investments for purchase and sale, StableRiver
Capital Management LLC, the Funds subadviser
(StableRiver or the Subadviser),
analyzes the credit quality and structure of each security to
minimize risk and attempts to increase income without adding
undue risk by analyzing maturity, yields, market sectors and
credit risk. As a money market fund, the Fund follows strict
rules about credit risk, maturity and diversification of its
investments.
The Subadviser actively manages the Funds average maturity
based on current interest rates and the Subadvisers
outlook of the market.
Principal
Investment Risks
Income Risk: An investment in the Fund is subject to
income risk, which is the possibility that the Funds yield
will decline due to falling interest rates.
Municipal Securities Risk: Municipal securities are
subject to the risk that litigation, legislation or other
political events, local business or economic conditions or the
bankruptcy of the issuer could have a significant effect on an
issuers ability to make payments of principal
and/or
interest or otherwise affect the value of such securities. The
value of these securities may decline because of a market
perception that the issuer may not make payments on
|
|
|
Institutional Money
Market Funds
|
|
5
|
INSTITUTIONAL
MUNICIPAL CASH RESERVE MONEY MARKET FUND
time. These securities are subject to the economic conditions
and government policies of their respective state or
municipality.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, reducing the Funds return. The
lower the rating of a debt security, the higher its credit risk.
To the extent that the aggregate market value of the Funds
assets materially varies from the aggregate of the acquisition
prices of those assets, the Fund may not be able to maintain a
stable share price of $1.00. This risk typically is higher
during periods of rapidly changing interest rates or when issuer
credit quality generally is falling, and is made worse when the
Fund experiences significant redemption requests.
A Fund share is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
government agency. In addition, although a money market fund
seeks to keep a constant price per share of $1.00, you may lose
money by investing in the Fund.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance does not indicate how the Fund will
perform in the future.
This bar chart shows the changes in performance of the
Funds Institutional Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
0.90%
|
|
0.06%
|
(6/30/07)
|
|
(12/31/09)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
0.10%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. To obtain information about the Funds
current yield, call
1-888-784-3863.
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
|
|
Inception*
|
|
|
1 Year
|
|
(8/2/2005)
|
|
|
Fund
|
|
|
0.38%
|
|
|
|
2.33%
|
|
|
|
iMoneyNet, Inc. Tax-Free Institutional Average* (reflects no
deduction for fees, expenses or taxes)
|
|
|
0.27%
|
|
|
|
2.10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Benchmark returns since July 31, 2005 (benchmark returns
available only on a month end basis).
|
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver is the Funds subadviser.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem Institutional Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions.
The minimum initial investment for Institutional Shares of the
Fund is $10,000,000 although this minimum may be reduced or
waived in some cases. Institutions that have multiple qualifying
accounts (e.g., a pension plan and a foundation) may aggregate
those accounts to meet minimum purchase requirements. There are
no minimums for subsequent investments.
Tax
Information
The Fund intends to distribute income that is exempt from
regular federal income tax. A portion of the Funds
distributions may be subject to federal income tax. The
Funds distributions may be subject to the federal
alternative minimum tax.
|
|
|
6
|
|
Institutional Money
Market Funds
|
INSTITUTIONAL
MUNICIPAL CASH RESERVE MONEY MARKET FUND
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
Institutional Money
Market Funds
|
|
7
|
INSTITUTIONAL
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
Summary
Section
Institutional
Shares
Investment
Objective
The Institutional U.S. Government Securities Money Market
Fund (the Fund) seeks high current income to the
extent consistent with the preservation of capital and the
maintenance of liquidity. The Fund is a money market fund that
seeks to preserve the value of your investment at $1.00 per
share.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
Institutional
|
|
|
Shares
|
Management Fees
|
|
|
0.14%
|
|
Other Expenses
|
|
|
0.05%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.03%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.22%
|
|
The Adviser and, as applicable, certain other Fund service
providers, have voluntarily undertaken to reduce
and/or
subsidize certain expenses of the Fund to the extent necessary
to maintain a minimum annualized yield of 0.02% for all share
classes. This voluntary expense reduction
and/or
expense subsidy may be modified or discontinued at any time
without prior notice. There can be no assurance that this fee
reduction will be sufficient to avoid any loss.
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes
that your investment has a 5% return each year and that the
Funds operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions
your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
Institutional Shares
|
|
$
|
23
|
|
|
$
|
71
|
|
|
$
|
124
|
|
|
$
|
280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Investment Strategies
The Fund invests exclusively in U.S. Treasury obligations,
obligations issued or guaranteed as to principal and interest by
agencies or instrumentalities of the U.S. Government,
repurchase agreements collateralized by these securities, and
shares of registered money market funds that invest in the
foregoing.
In selecting investments for purchase and sale, StableRiver
Capital Management LLC, the Funds subadviser
(StableRiver or the Subadviser), tries
to increase income without adding undue risk by analyzing
yields. The Subadviser actively manages the maturity of the Fund
and its portfolio to maximize the Funds yield based on
current market interest rates and the Subadvisers outlook
on the market. As a money market fund, the Fund follows strict
rules about credit risk, maturity and diversification of its
investments.
Principal
Investment Risks
Income Risk: An investment in the Fund is subject to
income risk, which is the possibility that the Funds yield
will decline due to falling interest rates.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime
credit metrics.
|
|
|
8
|
|
Institutional Money
Market Funds
|
INSTITUTIONAL
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
To the extent that the aggregate market value of the Funds
assets materially varies from the aggregate of the acquisition
prices of those assets, the Fund may not be able to maintain a
stable share price of $1.00. This risk typically is higher
during periods of rapidly changing interest rates or when issuer
credit quality generally is falling, and is made worse when the
Fund experiences significant redemption requests.
A Fund share is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
government agency. In addition, although a money market fund
seeks to keep a constant price per share of $1.00, you may lose
money by investing in the Fund.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance does not indicate how the Fund will
perform in the future.
This bar chart shows the changes in performance of the
Funds Institutional Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
1.59%
|
|
0.01%
|
(12/31/00)
|
|
(12/31/09)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
0.02%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. To obtain information about the Funds
current yield, call
1-888-784-3863.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
Fund
|
|
|
0.20%
|
|
|
|
3.03%
|
|
|
|
2.91%
|
|
|
|
iMoneyNet, Inc. Government Institutional Average (reflects no
deduction for fees, expenses or taxes)
|
|
|
0.09%
|
|
|
|
2.73%
|
|
|
|
2.61%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver is the Funds subadviser.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem Institutional Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions.
The minimum initial investment for Institutional Shares of the
Fund is $10,000,000 although this minimum may be reduced or
waived in some cases. Institutions that have multiple qualifying
accounts (e.g., a pension plan and a foundation) may aggregate
those accounts to meet minimum purchase requirements. There are
no minimums for subsequent investments.
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account. Such tax-deferred
arrangements may be taxed later upon withdrawal of monies from
those arrangements.
|
|
|
Institutional Money
Market Funds
|
|
9
|
INSTITUTIONAL
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
10
|
|
Institutional Money
Market Funds
|
INSTITUTIONAL
U.S. TREASURY SECURITIES MONEY MARKET FUND
Summary
Section
Institutional
Shares and Corporate Trust Shares
Investment
Objective
The Institutional U.S. Treasury Securities Money Market
Fund (the Fund) seeks as high a level of current
income as is consistent with preservation of capital and
liquidity. The Fund is a money market fund that seeks to
preserve the value of your investment at $1.00 per share.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
Institutional
|
|
Corporate
|
|
|
Shares
|
|
Trust Shares
|
Management Fees
|
|
|
0.14%
|
|
|
|
0.14%
|
|
Other Expenses
|
|
|
0.05%
|
|
|
|
0.30%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.19%
|
|
|
|
0.44%
|
|
The Adviser and, as applicable, certain other Fund service
providers, have voluntarily undertaken to reduce
and/or
subsidize certain expenses of the Fund to the extent necessary
to maintain a minimum annualized yield of 0.02% for all share
classes. This voluntary expense reduction
and/or
expense subsidy may be modified or discontinued at any time
without prior notice. There can be no assurance that this fee
reduction will be sufficient to avoid any loss.
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes
that your investment has a 5% return each year and that the
Funds operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions
your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
Institutional Shares
|
|
$
|
19
|
|
|
$
|
61
|
|
|
$
|
107
|
|
|
$
|
243
|
|
Corporate Trust Shares
|
|
$
|
45
|
|
|
$
|
141
|
|
|
$
|
246
|
|
|
$
|
555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Investment Strategies
The Fund invests exclusively in U.S. Treasury obligations,
repurchase agreements collateralized by these securities, and
shares of registered money market funds that invest exclusively
in the foregoing.
In selecting investments for purchase and sale, StableRiver
Capital Management LLC, the Funds subadviser
(StableRiver or the Subadviser), tries
to increase income without adding undue risk by analyzing yields
for various maturities. The Subadviser actively manages the
maturity of the Fund to maximize the Funds yield based on
current market interest rates and the Subadvisers outlook
on the market. As a money market fund, the Fund follows strict
rules about credit risk, maturity and diversification of its
investments.
Principal
Investment Risks
Income Risk: An investment in the Fund is subject to
income risk, which is the possibility that the Funds yield
will decline due to falling interest rates.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
To the extent that the aggregate market value of the Funds
assets materially varies from the aggregate of the acquisition
prices of those assets, the Fund may not be able to maintain a
stable share price of $1.00. This risk typically is higher
during periods of rapidly changing interest rates or when issuer
credit quality generally is falling, and is made worse when the
Fund experiences significant redemption requests.
A Fund share is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
government agency. In addition, although a money market fund
seeks to keep a constant price per share of $1.00, you may lose
money by investing in the Fund.
|
|
|
Institutional Money
Market Funds
|
|
11
|
INSTITUTIONAL
U.S. TREASURY SECURITIES MONEY MARKET FUND
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance does not indicate how the Fund will
perform in the future.
This bar chart shows the changes in performance of the
Funds Institutional Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
1.57%
|
|
0.01%
|
(12/31/00)
|
|
(12/31/09)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
0.02%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. To obtain information about the Funds
current yield, call
1-888-784-3863.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
Institutional Shares Returns Before Taxes
|
|
|
0.11%
|
|
|
|
2.80%
|
|
|
|
2.72%
|
|
|
|
Corporate Trust Shares Returns Before Taxes
|
|
|
0.02%
|
|
|
|
2.59%
|
|
|
|
2.51%
|
|
|
|
iMoneyNet, Inc. Treasury and Repo Institutional Average
(reflects no deduction for fees, expenses or taxes)
|
|
|
0.05%
|
|
|
|
2.63%
|
|
|
|
2.53%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver is the Funds subadviser.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem Institutional Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions.
The minimum initial investment for Institutional Shares of the
Fund is $10,000,000 although this minimum may be reduced or
waived in some cases. Institutions that have multiple qualifying
accounts (e.g., a pension plan and a foundation) may aggregate
those accounts to meet minimum purchase requirements. There are
no minimums for subsequent investments. The Fund offers
Corporate Trust Shares only to accounts of various
financial intermediaries with whom the Fund has certain
agreements. There is no minimum initial or subsequent investment
for Corporate Trust Shares.
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account. Such tax-deferred
arrangements may be taxed later upon withdrawal of monies from
those arrangements.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
MORE INFORMATION
ABOUT RISK
More Information
About Risk
Fixed Income
Risk
All Funds
The prices of a Funds fixed income securities respond to
economic developments, particularly interest rate changes, as
well as to perceptions about the creditworthiness of individual
issuers, including governments. Generally, a Funds fixed
income securities will decrease in value if interest rates rise
and vice versa.
Long-term debt securities generally are more sensitive to
changes in interest rates, usually making them more volatile
than short-term debt securities and thereby increasing risk.
Debt securities are also subject to credit risk, which is the
possibility than an issuer will fail to make timely payments of
interest or principal, or go bankrupt. The lower the ratings of
such debt securities, the greater their risks. In addition,
lower rated securities have higher risk characteristics, and
changes in economic conditions are likely to cause issuers of
these securities to be unable to meet their obligations.
Debt securities are also subject to income risk, which is the
possibility that falling interest rates will cause a Funds
income to decline. Income risk is generally higher for
short-term bonds.
An additional risk of debt securities is reinvestment risk,
which is the possibility that a Fund may not be able to reinvest
interest or dividends earned from an investment in such a way
that they earn the same rate of return as the invested funds
that generated them. For example, falling interest rates may
prevent bond coupon payments from earning the same rate of
return as the original bond. Furthermore, pre-funded loans and
issues may cause a Fund to reinvest those assets at a rate lower
than originally anticipated.
Foreign
Securities Risk
Institutional Cash Management Money Market Fund
Investments in securities of foreign companies or governments
can be more volatile than investments in U.S. companies or
governments. Diplomatic, political, or economic developments,
including nationalization or appropriation, unique to a country
or region will affect those markets and their issuers. Foreign
securities markets generally have less trading volume and less
liquidity than U.S. markets.
Foreign companies or governments generally are not subject to
uniform accounting, auditing, and financial reporting standards
comparable to those applicable to domestic U.S. companies
or governments. Transaction costs are generally higher than
those in the U.S. and expenses for custodial arrangements
of foreign securities may be somewhat greater than typical
expenses for custodial arrangements of similar
U.S. securities. Some foreign governments levy withholding
taxes against dividend and interest income. Although in some
countries a portion of these taxes are recoverable, the
non-recovered portion will reduce the income received from the
securities comprising the portfolio.
MORE INFORMATION
ABOUT RISK
Mortgage-Backed
and Asset-Backed Securities Risk
Institutional Cash Management Money Market Fund
Institutional U.S. Government Securities Money Market
Fund
Mortgage-and asset-backed securities are fixed income securities
representing an interest in a pool of underlying mortgage or
asset-backed secured and unsecured cashflow producing assets
such as automobile loans and leases, credit card receivables and
other financial assets. The risks associated with these types of
securities include: (1) prepayment risk that could result
in earlier or later return of principal than expected and can
lead to significant fluctuations in the value and realized yield
of the securities; (2) liquidity/market risk which can
result in higher than expected changes in security valuation and
transactions costs especially in times of general market stress;
and (3) credit risk that is associated with the underlying
borrowers and can also be driven by general economic conditions
which can result in the loss of invested principal.
The value of some mortgage- or asset-backed securities may be
particularly sensitive to changes in prevailing interest rates.
Early repayment of principal on some mortgage-backed securities
may expose a Fund to a lower rate of return upon reinvestment of
principal. When interest rates rise, the value of these
securities generally will decline; however, when interest rates
are declining, the value of these securities with prepayment
features may not increase as much as other fixed income
securities. The rate of prepayments on underlying mortgages will
affect the price and volatility of a mortgage-backed security,
and may shorten or extend the effective maturity of the security
beyond what was anticipated at the time of purchase. If
unanticipated rates of prepayment on underlying mortgages
increase the effective maturity of a mortgage-related security,
the volatility of the security can be expected to increase. The
value of these securities may fluctuate in response to the
markets perception of the creditworthiness of the issuers.
Additionally, although mortgage-backed securities are generally
supported by some form of government or private guarantee
and/or
insurance, there is no assurance that private guarantors or
insurers will meet their obligations.
Municipal
Securities Risk
Institutional Cash Management Money Market Fund
Institutional Municipal Cash Reserve Money Market Fund
Municipal securities can be significantly affected by political
changes as well as uncertainties in the municipal market related
to taxation, legislative changes or the rights of municipal
security holders. Because many municipal securities are issued
to finance similar projects, especially those relating to
education, health care, transportation and utilities, conditions
in those sectors can affect the overall municipal market. In
addition, changes in the financial condition of an individual
municipal insurer can affect the overall municipal market.
Municipal securities backed by current or anticipated revenues
from a specific project or specific assets can be negatively
affected by the discontinuance of the taxation supporting the
project or assets or the inability to collect revenues for the
project or from the assets. If the Internal Revenue Service
determines an issuer of a municipal security has not complied
with applicable tax requirements, interest from the security
could become taxable and the security could decline
significantly in value.
In addition, a Funds concentration of investments in
issuers located in a single state makes the Fund more
susceptible to adverse political or economic developments
affecting that state. The Fund also may be riskier than mutual
funds that buy securities of issuers in numerous states.
Regional
Risk
Institutional Cash Management Money Market Fund
Institutional Municipal Cash Reserve Money Market Fund
To the extent that a Funds investments are concentrated in
a specific geographic region, a Fund may be subject to the
political and other developments affecting that region. Regional
economies are often closely interrelated, and political and
economic developments affecting one region, country or state
often affect other regions, countries or states, thus subjecting
the Fund to additional risks.
Regulatory
Risk
All Funds
The Securities and Exchange Commission (SEC)
recently amended the rules governing money market funds. In
addition, the SEC continues to review the
MORE INFORMATION
ABOUT FUND INVESTMENTS
regulation of such funds. Any further changes by the SEC or
additional legislative developments may affect a Money Market
Funds operations, investment strategies, performance and
yield.
Restricted
Security Risk
Institutional Cash Management Money Market Fund
Institutional Municipal Reserve Money Market Fund
Restricted securities may increase the level of illiquidity in
the Fund during any period that qualified institutional buyers
become uninterested in purchasing these restricted securities.
The Adviser and Subadviser intend to invest only in restricted
securities that they believe present minimal liquidity risk.
Risk Information
Common to RidgeWorth Funds
Each Fund is a mutual fund. A mutual fund pools
shareholders money and, using professional investment
managers, invests it in securities.
Each Fund has its own investment goal and strategies for
reaching that goal. The Adviser invests Fund assets in a way
that it believes will help a Fund achieve its goal. Still,
investing in each Fund involves risk and there is no guarantee
that a Fund will achieve its goal. The Advisers or
Sub-Advisers
judgments about the markets, the economy or companies may not
anticipate actual market movements, economic conditions or
company performance, and these judgments may affect the return
on your investment. In fact, no matter how good a job the
Adviser or
Sub-Adviser
does, you could lose money on your investment in a Fund, just as
you could with other investments. The value of your investment
in a Fund is based on the market prices of the securities the
Fund holds. These prices change daily due to economic and other
events that affect particular companies and other issuers. These
price movements, sometimes called volatility, may be greater or
lesser depending on the types of securities a Fund owns and the
markets in which they trade. The effect on a Fund of a change in
the value of a single security will depend on how widely the
Fund diversifies its holdings.
Each Funds investment goal may be changed without
shareholder approval. Before investing, make sure that the
Funds goal matches your own.
The Funds are not managed to achieve tax efficiency, except for
the Institutional Municipal Cash Reserve Money Market Fund,
which intends to distribute tax-exempt income.
More Information
About Averages
An average is a composite of mutual funds with similar
investment goals.
The iMoneyNet, Inc. First Tier Institutional Average is a
widely-recognized composite of money market funds that invest in
securities rated in the highest category by at least two
recognized rating agencies. The number of funds in the Average
varies.
The iMoneyNet, Inc. Tax-Free Institutional Average is a widely
recognized composite of money market funds that invest in
short-term municipal securities, the income of which is exempt
from federal taxation. The number of funds in the Average varies.
The iMoneyNet, Inc. Government Institutional Average is a
widely-recognized composite of institutional money market funds
that invest in U.S. Treasury bills, repurchase agreements,
or securities issued by agencies of the U.S. Government.
The number of funds in the Average varies.
The iMoneyNet, Inc. Treasury & Repo Institutional
Average is a widely-recognized composite of money market funds
that includes only institutional government funds that hold
100 percent in U.S. Treasuries and repurchase
agreements backed by these securities. The number of funds in
the Average varies.
More Information
About Fund Investments
This prospectus describes the Funds primary strategies,
and the Funds will normally invest in the types of securities
described in this prospectus. However, in addition to the
investments and strategies described in this prospectus, each
Fund also may invest in other securities, use other strategies
and engage in other investment practices. These investments and
strategies, as well as those described in this prospectus, are
described in detail in the Statement of Additional Information
(SAI). Of course, a Fund cannot guarantee that it
will achieve its investment goal.
Each Fund may invest in other money market mutual funds for cash
management purposes. When a Fund invests in another mutual fund,
in addition to directly bearing expenses associated with its own
operations, it will bear a pro rata portion of the other mutual
funds expenses.
Further, during certain interest rate environments, the gross
yield of certain shares of money market funds
MANAGEMENT
may be less than the related expenses of that class. In these
instances, shareholders of these Funds may not receive a monthly
income payment, or may receive a much smaller payment than
during a more typical interest rate environment.
Third-Party
Ratings
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Fund
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S&P1
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Moodys2
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NAIC3
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Institutional Cash Management Money Market Fund
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AAAm
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Aaa
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Class 1
Approved
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Institutional Municipal Cash Reserve Money
Market Fund
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AAAm
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Aaa
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Class 1
Approved
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Institutional U.S. Government Securities Money
Market Fund
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AAAm
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Aaa
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Class 1
Approved
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Institutional U.S. Treasury Securities Money
Market Fund
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AAAm
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Aaa
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Class 1
Approved
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1
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Standard & Poors Ratings Services
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2
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Moodys Investors Service
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3
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National Association of Insurance Commissioners
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Information About
Portfolio Holdings
A description of the Funds policies and procedures with
respect to the circumstances under which the Funds disclose
their portfolio securities is available in the SAI.
Management
The Board of Trustees (the Board) is responsible for
the overall supervision and management of the business and
affairs of the Funds. The Board supervises the Adviser and
Subadviser and establishes policies that the Adviser and
Subadviser must follow in their fund related management
activities. The
day-to-day
operations of the Funds are the responsibilities of the officers
and various service organizations retained by the Funds.
Investment
Adviser
RidgeWorth Investments, 50 Hurt Plaza,
Suite 1400, Atlanta, Georgia 30303 (RidgeWorth
or the Adviser), serves as the investment adviser to
the Funds. In addition to being an investment adviser registered
with the Securities and Exchange Commission (the
SEC), RidgeWorth is a money-management holding
company with multiple style- focused investment boutiques. As of
June 30, 2010, the Adviser had approximately
$61.5 billion in assets under management. The Adviser is
responsible for overseeing the Subadvisers to ensure compliance
with each Funds investment policies and guidelines and
monitors each Subadvisers adherence to its investment
style. The Adviser also executes transactions with respect to
specific securities selected by the Subadviser for purchase and
sale by the Funds. The Adviser pays the Subadviser out of the
fees it receives from the Funds.
The Adviser may use its affiliates as brokers for Fund
transactions.
An investment adviser has a fiduciary obligation to its clients
when the adviser has authority to vote their proxies. Under the
current contractual agreement, the Adviser is authorized to vote
proxies on behalf of each Fund. Information regarding the
Advisers, and thus each Funds, Proxy Voting Policies
and Procedures is provided in the SAI. A copy of the
Advisers Proxy Voting Policies and Procedures may be
obtained by contacting the Funds at
1-888-784-3863,
or by visiting www.ridgeworth.com.
For the fiscal year ended March 31, 2010, the following
Funds paid the Adviser advisory fees (after waivers) based on
the respective Funds average daily net assets of:
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Institutional Cash Management Money Market Fund
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0.11%
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Institutional Municipal Cash Reserve Money Market Fund
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0.10%
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Institutional U.S. Government Securities Money Market Fund
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0.12%
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Institutional U.S. Treasury Securities Money Market Fund
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0.08%
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The Adviser and the Subadviser have contractually agreed to
waive fees and reimburse expenses until at least August 1,
2011 in order to keep total annual operating expenses of each
Fund from exceeding the applicable expense cap below. If at any
point before August 1, 2013, total annual operating
expenses are less than the expense cap, the Adviser may retain
the
PURCHASING AND
SELLING FUND SHARES
difference to recapture any of the prior waivers or
reimbursements.
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Share
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Expense
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Fund
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Class
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Limitation
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Institutional Cash Management Money Market Fund
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Institutional
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0.17%
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Institutional Municipal Cash Reserve Money Market Fund
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Institutional
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0.20%
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Institutional U.S. Government Securities Money Market Fund
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Institutional
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0.20%
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Institutional U.S. Treasury Securities Money Market Fund
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Institutional
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0.20%
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Corporate Trust
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0.45%
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The following breakpoints are used in computing the advisory fee:
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Average Daily Net Assets
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Discount From Full Fee
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First $1 billion
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None Full Fee
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Next $1.5 billion
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5%
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Next $2.5 billion
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10%
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Over $5 billion
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20%
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Based on average daily net assets as of March 31, 2010, the
asset levels of the following Funds had reached a breakpoint in
the advisory fee.* Had the Funds asset levels been lower,
the Adviser may have been entitled to receive maximum advisory
fees as follows:
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Institutional Cash Management Money Market Fund
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0.13%
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Institutional U.S. Government Securities Money Market Fund
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0.15%
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Institutional U.S. Treasury Securities Money Market Fund
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0.15%
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* |
Fund expenses in the Annual Fund Operating
Expenses tables shown earlier in this prospectus reflect
the advisory breakpoints.
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A discussion regarding the basis for the Boards approval
of the investment advisory agreement with the Adviser appears in
the Funds annual report to shareholders for the period
ended March 31, 2010.
Investment
Subadviser
The Subadviser is responsible for managing the portfolios of the
Funds on a
day-to-day
basis and selecting the specific securities to buy, sell and
hold for the Funds under the supervision of the Adviser and the
Board.
Information about the Subadviser and the individual portfolio
managers of the Funds is discussed below. The SAI provides
additional information regarding the portfolio managers
compensation, other accounts managed by the portfolio managers,
potential conflicts of interest and the portfolio managers
ownership of securities in the Funds.
StableRiver Capital Management LLC
(StableRiver)
50 Hurt Plaza, Suite 1400,
Atlanta, Georgia 30303
www.stableriver.com
StableRiver, a wholly-owned subsidiary of RidgeWorth, is an
investment adviser registered with the SEC. The firm was
established in 2008 after 23 years functioning as
RidgeWorths fixed income investment management team. As of
June 30, 2010, StableRiver had approximately
$27.3 billion in assets under management.
StableRiver focuses on delivering high-quality fixed income
strategies to institutional investors. As the name suggests,
StableRiver has a firmly established, steadfast investment
process that follows a predictable course of action
even in unpredictable market cycles. The firms
multi-faceted strategy employs top-down management with
bottom-up
security selection incorporating comprehensive risk management
and compliance systems.
StableRiver is responsible for managing the portfolios of the
Funds on a
day-to-day
basis and selecting the specific securities to buy, sell and
hold for the Funds under the supervision of the Adviser and the
Board. A discussion regarding the basis for the Boards
approval of the investment subadvisory agreement appears in the
Funds annual report to shareholders for the period ending
March 31, 2010.
Purchasing and
Selling Fund Shares
This section tells you how to purchase and sell (sometimes
called redeem) Institutional Shares and Corporate
Trust Shares of the Funds. Participants in retirement plans
must contact their Employee Benefits Office or their Plans
Administrator for information regarding the purchase, redemption
or exchange of shares. Plans may require separate documentation
and the plans policies and procedures may be different
than those described in this prospectus. Participants should
contact their employee benefits office or plan administrator for
questions about their specific accounts.
PURCHASING AND
SELLING FUND SHARES
How to Purchase
Fund Shares
Purchasing
Institutional Shares
The Funds offer Institutional Shares exclusively to financial
institutions and intermediaries for their own accounts or for
the accounts of customers for which they act as fiduciary agent,
investment adviser, or custodian and which consist of:
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assets of a bona fide trust, or
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assets of a business entity possessing a tax identification
number.
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Shares are sold without a sales charge, although institutions
may charge their customers for services provided in connection
with the purchase of shares. Institutional shares will be held
of record by (in the name of) your institution. Depending upon
the terms of your account, however, you may have, or be given,
the right to vote your Institutional Shares.
Purchasing
Corporate Trust Shares
The Institutional U.S. Government Securities Money Market Fund
offers Corporate Trust Shares only to accounts of various
financial intermediaries with whom the Fund has certain
agreements (Intermediaries). Shares are sold without
a sales charge. Corporate Trust Shares will be held of
record by (in the name of) the Intermediary. Depending upon the
terms of your account, however, you may have, or be given, the
right to vote your Corporate Trust Shares.
In-Kind
Purchases
Payment for shares of a Fund may, in the discretion of the
Adviser, be made in the form of securities that are permissible
investments for such Fund. In connection with an in-kind
securities payment, a Money Market Fund will require, among
other things, that the securities (a) meet the investment
objectives and policies of the Fund; (b) are acquired for
investment and not for resale; (c) are liquid securities
that are not restricted as to transfer either by law or
liquidity of markets; (d) have a value that is readily
ascertainable (e.g., by a listing on a nationally recognized
securities exchange); and (e) are valued on the day of
purchase in accordance with the pricing methods used by the
Fund. For further information about this form of payment, please
call
1-888-784-3863.
When Can You
Purchase Shares?
The Funds are open for business on days when the New York Stock
Exchange (the NYSE) is open for regular trading and
the Federal Reserve Bank of New York (the Fed) is
open for settlement (a Business Day). The RidgeWorth
Funds reserve the right to open one or more Funds on days that
the principal bond markets (as recommended by SIFMA (Securities
Industry and Financial Markets Association)) are open and the
Fed is open for settlement even if the NYSE is closed.
Each Fund (except the Institutional Cash Management Money Market
Fund) calculates its net asset value per share (NAV)
once each Business Day at the close of regular trading on the
NYSE (normally 4:00 p.m. Eastern Time). The Institutional
Cash Management Money Market Fund calculates its NAV at
5:00 p.m. Eastern Time.
For you to be eligible to receive dividends declared on the day
you submit your purchase order, a Fund or its authorized agent
must receive your purchase order in proper form before the time
shown in the table below and must receive federal funds (readily
available funds) before 6:00 p.m. Eastern Time. Otherwise,
your purchase order will be effective the following Business
Day, as long as the Fund receives federal funds before
calculating its NAV the following day.
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Time
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Fund
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(Eastern Time)
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Institutional Municipal Cash Reserve Money Market Fund
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10:30 a.m.
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Institutional U.S. Government Securities Money Market Fund
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3:00 p.m.
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Institutional U.S. Treasury Securities Money Market Fund
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3:00 p.m.
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Institutional Cash Management Money Market Fund
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5:00 p.m.
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The time at which transactions and shares are priced and the
time until which orders are accepted may be changed if the NYSE
closes early or if the principal bond markets close early on
days when the NYSE is closed. For those Funds that open on days
when the NYSE is closed, these times will be the time the
principal bond markets close.
The Funds will not accept orders that request a particular day
or price for the transaction or any other special conditions.
You may be required to transmit your purchase sale and
exchange orders to your financial institutions or intermediaries
at an earlier time for your transaction to become effective that
day. This allows the financial institution or intermediary time
to process your order and transmit it to the transfer agent in
time to meet the above stated Fund cut-off times.
PURCHASING AND
SELLING FUND SHARES
For more information about how to purchase, sell or exchange
Fund shares, including a specific financial institutions
or intermediarys internal order entry cut-off times,
please contact your financial institution or intermediary
directly.
A Fund may reject any purchase order.
How the Funds
Calculate NAV Institutional Shares, and Corporate
Trust Shares
NAV is calculated by adding the total value of a Funds
investments and other assets, subtracting its liabilities, and
then dividing that figure by the number of outstanding shares of
the Fund.
In calculating NAV, each Fund generally values its investment
portfolio using the amortized cost valuation method, which is
described in detail in the SAI. If the Subadviser determines in
good faith that this method is unreliable during certain market
conditions or for other reasons, a Fund may value its portfolio
at market price or at fair value as determined in good faith
using methods approved by the Board of Trustees. Each Fund
expects its NAV to remain constant at $1.00 per share, although
the Fund cannot guarantee this.
The prices for many securities held by the Funds are provided by
independent pricing services approved by the Board.
Minimum
Purchases
To purchase Institutional Shares for the first time, you must
invest at least $5,000,000 for the Institutional Municipal Cash
Reserve Money Market Fund and $10,000,000 for the other
Institutional Money Market Funds. Institutions that have
multiple qualifying accounts (e.g., a pension plan and a
foundation) may aggregate those accounts to meet minimum
purchase requirements. A Fund may accept investments of smaller
amounts at its discretion.
Customer
Identification
Foreign
Investors
The Funds do not generally accept investments in Institutional
Shares or Corporate Trust Shares by
non-U.S. citizens
or entities. Investors in Institutional Shares or Corporate
Trust Shares generally must reside in the U.S. or its
territories (which includes U.S. military APO or FPO
addresses) and have a U.S. tax identification number.
Customer
Identification and Verification
To help the government fight the funding of terrorism and money
laundering activities, federal law requires all financial
institutions to obtain, verify, and record information that
identifies each person who opens an account.
When you open an account, you will be asked to provide your
name, residential street address, date of birth, Social Security
Number or tax identification number. You may also be asked for
other information that will allow us to identify you. Entities
are also required to provide additional documentation. This
information will be verified to ensure the identity of all
persons opening a mutual fund account.
In certain instances, the Funds are required to collect
documents to fulfill their legal obligation. Documents provided
in connection with your application will be used solely to
establish and verify a customers identity.
The Funds are required by law to reject your new account
application if the required identifying information is not
provided. Attempts to collect the missing information required
on the application will be performed by either contacting you
or, if applicable, your broker. If this information is unable to
be obtained within a timeframe established in the sole
discretion of the Funds, your application will be rejected.
Upon receipt of your application in proper form (or upon receipt
of all identifying information required on the application),
your investment will be accepted and your order will be
processed at the NAV next determined.
However, the Funds reserve the right to close your account at
the then-current days price if the Funds are unable to
verify your identity. Attempts to verify your identity will be
performed within a timeframe established in the sole discretion
of the Funds. If the Funds are unable to verify your identity,
the Funds reserve the right to liquidate your account at the
then-current days price and remit proceeds to you via
check. The Funds reserve the further right to hold your proceeds
until your original check clears the bank. In such an instance,
you may be subject to a gain or loss on Fund shares and will be
subject to corresponding tax implications.
Anti-Money
Laundering Program
Customer identification and verification is part of the
Funds overall obligation to deter money laundering
PURCHASING AND
SELLING FUND SHARES
under federal law. The Funds have adopted an anti-money
laundering compliance program designed to prevent the Funds from
being used for money laundering or the financing of terrorist
activities. In this regard, the Funds reserve the right to
(i) refuse, cancel or rescind any purchase or exchange
order, (ii) freeze any account
and/or
suspend account services, or (iii) involuntarily redeem
your account in cases of threatening conduct or suspected
fraudulent or illegal activity. These actions will be taken
when, in the sole discretion of Fund management, they are deemed
to be in the best interest of the Funds or in cases when the
Funds are requested or compelled to do so by governmental or law
enforcement authority.
How to Sell Your
Fund Shares
You may sell your shares on any Business Day by contacting your
financial institution or intermediary. Your financial
institution or intermediary will give you information about how
to sell your shares including any specific cut-off times
required.
Holders of Institutional Shares may sell shares by following the
procedures established when they opened their account or
accounts with the Funds or with their financial institution or
intermediary. Holders of Corporate Trust Shares may sell
shares on any Business Day by contacting their Intermediary. The
Intermediary will provide information about how to sell shares
including any specific cut-off times required. The sale price of
each share will be the NAV next determined after the Funds
receive your request in proper form.
Redemption orders must be received by the Funds on a Business
Day before 10:30 a.m., Eastern Time for the Institutional
Municipal Cash Reserve Money Market Fund, before 3:00 p.m.,
Eastern Time for the Institutional U.S. Government
Securities Money Market Fund and the Institutional
U.S. Treasury Securities Money Market Fund and before
5:00 p.m. Eastern Time for the Institutional Cash
Management Money Market Fund. Orders received after these times
will be executed the following Business Day.
A Medallion Signature
Guarantee¨
by a bank or other financial institution (a notarized
signature is not sufficient) is required to redeem shares:
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made payable to someone other than the registered shareholder;
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sent to an address or bank account other than the address or
bank account of record; or
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sent to an address or bank account of record that has been
changed within the last 15 calendar days.
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Other documentation may be required depending on the
registration of the account.
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Medallion Signature Guarantee: A Medallion Signature
Guarantee verifies the authenticity of your signature and helps
ensure that changes to your account are in fact authorized by
you. A Medallion Signature Guarantee may be obtained from a
domestic bank or trust company, broker, dealer, clearing agency,
savings association or other financial institution participating
in a Medallion Program recognized by the Securities Trading
Association. Signature guarantees from financial institutions
that do not reflect one of the following are not part of the
program and will not be accepted. The acceptable Medallion
programs are Securities Transfer Agents Medallion Program,
(STAMP), Stock Exchange Medallion Program, (SEMP), or the New
York Stock Exchange, Inc. Medallion Program, (NYSE MSP). Contact
your local financial adviser or institution for further
assistance.
|
|
Receiving Your
Money
Under normal circumstances, if a Fund receives your order before
the Funds cut-off time (as set forth under How to
Sell Your Fund Shares), the Fund will make
available to you the proceeds that same business day, by wire.
Otherwise, except as permitted by federal securities laws your
redemption proceeds will be paid within seven days after the
Fund receives the redemption request in good order.
Redemptions In
Kind
The Funds generally pay redemption proceeds in cash. However,
under unusual conditions that make the payment of cash unwise
(and for the protection of the Funds remaining
shareholders), the Funds might pay all or part of your
redemption proceeds in liquid securities with a market value
equal to the redemption price (redemption in kind). It is highly
unlikely that your shares would ever be redeemed in kind, but if
they were you would probably have to pay transaction costs to
sell the securities distributed to you, as well as taxes on any
capital gains from the sale as with any redemption.
Suspension of
Your Right to Sell Your Shares
A Fund may suspend your right to sell your shares if the NYSE
restricts trading, the SEC declares an
DIVIDENDS AND
DISTRIBUTIONS
emergency or for other reasons approved by the SEC. More
information about this is in the SAI.
Telephone
Transactions
Purchasing, selling and exchanging Fund shares over the
telephone is extremely convenient, but not without risk.
Although the Funds have certain safeguards and procedures to
confirm the identity of callers and the authenticity of
instructions, the Funds are not responsible for any losses or
costs incurred by following telephone instructions the Funds
reasonably believe to be genuine. If you or your financial
institution or intermediary transact with the Funds over the
telephone, you will generally bear the risk of any loss. The
Funds reserve the right to modify, suspend or terminate
telephone transaction privileges at any time.
To redeem shares by telephone:
|
|
|
redemption checks must be made payable to the registered
shareholder; and
|
|
|
redemption checks must be mailed to an address or wired to a
bank account of record that has been associated with the
shareholder account for at least 15 calendar days.
|
Market Timing
Policies and Procedures
The Funds are money market funds and seek to provide a high
degree of liquidity, current income and a stable net asset value
of $1.00 per share. The Funds are designed to serve as
short-term cash equivalent investments for shareholders and,
therefore, expect shareholders to engage in frequent purchases
and redemptions. Because of the inherently liquid nature of the
Funds investments, and money market instruments in
general, and the Funds intended purpose to serve as
short-term investment vehicles for shareholders, the Adviser has
informed the Board that it believes that it would not be in
shareholders best interests to place any limitations on
the frequency of shareholder purchases and redemptions into and
out of the Funds. As a result, the Board has not adopted a Fund
policy or procedures with respect to frequent purchases and
redemptions.
Distribution of
Fund Shares
From their own assets, the Adviser, the Subadviser or their
affiliates may make payments based on gross sales and current
assets to selected brokerage firms or institutions. The amount
of these payments may be substantial. The minimum aggregate
sales required for eligibility for such payments, and the
factors in selecting the brokerage firms and institutions to
which they will be made, are determined from time to time by the
Adviser or Subadviser. Furthermore, in addition to the fees that
may be paid by a Fund, the Adviser, the Subadviser or their
affiliates may pay fees from their own capital resources to
brokers, banks, financial advisers, retirement plan service
providers and other financial intermediaries, including
affiliates, for providing distribution-related or shareholder
services.
The Adviser, the Subadviser or their affiliates may pay fees
from their own capital resources to financial intermediaries to
compensate them for marketing expenses they incur or to pay for
the opportunity to have them distribute the Funds. The amount of
these payments is determined by the Adviser or the Subadviser
and may differ among financial intermediaries. Such payments may
provide incentives for financial intermediaries to make shares
of the Funds available to their customers, and may allow the
Funds greater access to such financial intermediaries and their
customers than would be the case if no payments were made. You
may wish to consider whether such arrangements exist when
evaluating any recommendation to purchase shares of the Funds.
Please refer to the SAI for more information regarding these
arrangements.
Shareholder
Servicing Plan
The Institutional U.S. Treasury Securities Money Market
Funds Shareholder Servicing Plan permits the Corporate
Trust Shares to pay banks, broker-dealers or other
financial institutions for shareholder support services they
provide, at a rate of up to 0.25% of the average daily net
assets of the Corporate Trust Shares. These services may
include, among other services, providing general shareholder
liaison services (including responding to shareholder
inquiries), providing information on shareholder investments,
and establishing and maintaining shareholder accounts and
records.
Dividends and
Distributions
Each Fund declares dividends daily and pay these dividends
monthly. Each Fund makes distributions of its net realized
capital gains, if any, at least annually. If you own shares on a
Funds record date, you will be entitled to receive the
distribution.
TAXES
You will receive dividends and distributions in the form of
additional Fund shares unless you elect to receive payment in
cash. To elect cash payment, you must notify the Funds in
writing prior to the date of the distribution. Your election
will be effective for dividends and distributions paid after the
Funds receive your written notice. To cancel your election,
simply send the Funds written notice.
Taxes
Please consult your tax advisor regarding your specific
questions about federal, state, and local income taxes.
Below the Funds have summarized some important tax issues
that affect the Funds and their shareholders. This summary is
based on current tax laws, which may change. More information on
taxes is in the SAI.
Dividends and distributions will accumulate on a tax-deferred
basis if you are investing any employer-sponsored retirement or
savings plan that qualifies for tax-advantaged treatment under
federal income tax laws. Generally, you will not owe taxes on
these distributions until you begin withdrawals from the plan.
Redemptions of Fund shares resulting in withdrawals from the
plan are subject to numerous complex and special tax rules and
may be subject to a penalty tax in the case of premature
withdrawals. If you have questions about the tax consequences of
withdrawals, you should consult your plan administrator, your
plans Summary Plan Description,
and/or your
tax advisor about the tax consequences of plan withdrawals.
Each Fund will distribute substantially all of its net
investment income and its net realized capital gains, if any, at
least annually. The dividends and distributions you receive may
be subject to federal, state and local taxation, depending upon
your tax situation. Distributions you receive from a Fund may be
taxable whether or not you reinvest them. Income distributions
are generally taxable as either ordinary income or qualified
dividend income. Each Fund will inform you of the amount of your
ordinary dividends. Each sale or exchange of Fund shares may
be a taxable event. For tax purposes, an exchange of Fund shares
for shares of a different RidgeWorth Fund is treated the same as
a sale. A transfer from one share class to another in the
same RidgeWorth Fund should not be a taxable event. Shareholders
of the Funds, however, should be aware that because the Funds
each expect to maintain a stable $1.00 net asset value per
share, they should not expect to realize any gain or loss on the
sale or exchange of Fund shares.
If you have a tax-advantaged or other retirement account you
will generally not be subject to federal taxation on income and
capital gain distributions until you begin receiving your
distributions from your retirement account. You should consult
your tax advisor regarding the rules governing your own
retirement plan.
Except for the Institutional Municipal Cash Reserve Money Market
Fund, the Funds expect to distribute primarily ordinary income
dividends currently taxable at a maximum rate of 35%.
The Institutional Municipal Cash Reserve Money Market Fund
intends to distribute federally tax-exempt income. This Fund may
invest a portion of its assets in securities that generate
taxable income for federal or state income taxes. Income exempt
from federal tax may be subject to state and local taxes. Any
capital gains distributed by this Fund may be taxable. This Fund
expects to pay exempt interest dividends that are
generally excludable from an investors gross income for
regular federal income tax purposes. However, the receipt of
exempt-interest dividends may cause recipients of Social
Security or Railroad Retirement benefits to be taxed on a
portion of such benefits. In addition, the receipt of
exempt-interest dividends may result in liability for federal
alternative minimum tax and for state (including state
alternative minimum tax) and local taxes, both for individual
and corporate shareholders. Corporate shareholders will be
required to take the interest on municipal securities into
account in determining their alternative minimum taxable income.
Many states grant tax-free status to dividends paid from
interest earned on direct obligations of the
U.S. Government, subject to certain limitations.
More information
about taxes is in the SAI.
FINANCIAL
HIGHLIGHTS
The financial highlights table is intended to help you
understand a Funds financial performance for the past
5 years or, if shorter, the period of the Funds
operations. Certain information reflects financial results for a
single Fund share. The total returns in the table represent the
rate that an investor would have earned (or lost) on an
investment in the Fund (assuming reinvestment of all dividends
and distributions). This financial information has been audited
by PricewaterhouseCoopers LLP. The Report of Independent
Registered Public Accounting Firm for each period shown, along
with the Funds financial statements and related notes, are
included in the Annual Reports to Shareholders for such periods.
The 2010 Annual Report is available upon request and without
charge by calling
1-888-784-3863
or on the Funds website at www.ridgeworth.com.
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
and
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
Expenses
|
|
Income
|
|
Average
|
|
|
Net Asset
|
|
|
|
Unrealized
|
|
|
|
Dividends
|
|
Total
|
|
Asset
|
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
Value,
|
|
Net
|
|
Gains
|
|
|
|
from Net
|
|
Dividends
|
|
Value,
|
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
|
Beginning
|
|
Investment
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
and
|
|
End of
|
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
|
of Period
|
|
Income
|
|
Investments
|
|
Operations
|
|
Income
|
|
Distributions
|
|
Period
|
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
Institutional Cash Management Money Market Fund
|
Institutional Shares
|
Year Ended March 31, 2010
|
|
$
|
1.00
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
1.00
|
|
|
|
0.19
|
%
|
|
$
|
2,961,071
|
|
|
|
0.19
|
%*
|
|
|
0.19
|
%
|
|
|
0.20
|
%*
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
|
|
|
|
0.02
|
|
|
|
(0.02
|
)
|
|
|
(0.02
|
)
|
|
|
1.00
|
|
|
|
1.85
|
|
|
|
3,546,083
|
|
|
|
0.18
|
*
|
|
|
1.87
|
|
|
|
0.19
|
*
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.05
|
|
|
|
|
|
|
|
0.05
|
|
|
|
(0.05
|
)
|
|
|
(0.05
|
)
|
|
|
1.00
|
|
|
|
4.75
|
**
|
|
|
4,095,460
|
|
|
|
0.16
|
|
|
|
4.62
|
**
|
|
|
0.17
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.05
|
|
|
|
|
|
|
|
0.05
|
|
|
|
(0.05
|
)
|
|
|
(0.05
|
)
|
|
|
1.00
|
|
|
|
5.17
|
|
|
|
3,829,060
|
|
|
|
0.16
|
|
|
|
5.06
|
|
|
|
0.16
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
(0.04
|
)
|
|
|
1.00
|
|
|
|
3.62
|
|
|
|
2,975,521
|
|
|
|
0.17
|
|
|
|
3.60
|
|
|
|
0.19
|
|
Institutional Municipal Cash Reserve Money Market Fund
|
Institutional Shares
|
Year Ended March 31, 2010
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00
|
|
|
|
0.29
|
|
|
|
66,616
|
|
|
|
0.21
|
*
|
|
|
0.28
|
|
|
|
0.26
|
*
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
|
|
|
|
0.02
|
|
|
|
(0.02
|
)
|
|
|
(0.02
|
)
|
|
|
1.00
|
|
|
|
1.61
|
|
|
|
79,732
|
|
|
|
0.21
|
*
|
|
|
1.59
|
|
|
|
0.24
|
*
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
3.26
|
|
|
|
131,163
|
|
|
|
0.20
|
|
|
|
3.06
|
|
|
|
0.22
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
3.42
|
|
|
|
116,482
|
|
|
|
0.20
|
|
|
|
3.35
|
|
|
|
0.23
|
|
Period Ended March 31, 2006(3)
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
|
|
|
|
0.02
|
|
|
|
(0.02
|
)
|
|
|
(0.02
|
)
|
|
|
1.00
|
|
|
|
1.79
|
|
|
|
125,982
|
|
|
|
0.19
|
|
|
|
2.78
|
|
|
|
0.23
|
|
Institutional U.S. Government Securities Money Market Fund
|
Institutional Shares
|
Year Ended March 31, 2010
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00
|
|
|
|
0.11
|
|
|
|
2,750,386
|
|
|
|
0.16
|
|
|
|
0.11
|
|
|
|
0.19
|
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
|
|
|
|
0.02
|
|
|
|
(0.02
|
)
|
|
|
(0.02
|
)
|
|
|
1.00
|
|
|
|
1.51
|
|
|
|
3,080,904
|
|
|
|
0.18
|
|
|
|
1.40
|
|
|
|
0.18
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
(0.04
|
)
|
|
|
1.00
|
|
|
|
4.54
|
|
|
|
2,387,698
|
|
|
|
0.18
|
|
|
|
4.15
|
|
|
|
0.19
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.05
|
|
|
|
|
|
|
|
0.05
|
|
|
|
(0.05
|
)
|
|
|
(0.05
|
)
|
|
|
1.00
|
|
|
|
5.04
|
|
|
|
889,213
|
|
|
|
0.19
|
|
|
|
4.93
|
|
|
|
0.19
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
3.51
|
|
|
|
951,775
|
|
|
|
0.21
|
|
|
|
3.48
|
|
|
|
0.21
|
|
Institutional U.S. Treasury Securities Money Market Fund
|
Institutional Shares
|
Year Ended March 31, 2010
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00
|
|
|
|
0.06
|
|
|
|
2,700,518
|
|
|
|
0.12
|
|
|
|
0.06
|
|
|
|
0.19
|
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
(0.01
|
)
|
|
|
1.00
|
|
|
|
0.99
|
|
|
|
2,629,798
|
|
|
|
0.17
|
|
|
|
0.81
|
|
|
|
0.18
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
(0.04
|
)
|
|
|
1.00
|
|
|
|
4.09
|
|
|
|
1,818,974
|
|
|
|
0.18
|
|
|
|
3.73
|
|
|
|
0.18
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.05
|
|
|
|
|
|
|
|
0.05
|
|
|
|
(0.05
|
)
|
|
|
(0.05
|
)
|
|
|
1.00
|
|
|
|
5.03
|
|
|
|
715,831
|
|
|
|
0.18
|
|
|
|
4.93
|
|
|
|
0.18
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
3.41
|
|
|
|
901,777
|
|
|
|
0.20
|
|
|
|
3.45
|
|
|
|
0.20
|
|
Corporate Trust Shares
|
Year Ended March 31, 2010
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
431,608
|
|
|
|
0.17
|
|
|
|
0.02
|
|
|
|
0.44
|
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
(0.01
|
)
|
|
|
1.00
|
|
|
|
0.77
|
|
|
|
489,170
|
|
|
|
0.40
|
|
|
|
0.82
|
|
|
|
0.43
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
(0.04
|
)
|
|
|
1.00
|
|
|
|
3.83
|
|
|
|
1,329,198
|
|
|
|
0.43
|
|
|
|
3.76
|
|
|
|
0.43
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.05
|
|
|
|
|
|
|
|
0.05
|
|
|
|
(0.05
|
)
|
|
|
(0.05
|
)
|
|
|
1.00
|
|
|
|
4.77
|
|
|
|
1,266,353
|
|
|
|
0.43
|
|
|
|
4.67
|
|
|
|
0.43
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
3.17
|
|
|
|
2,068,462
|
|
|
|
0.44
|
|
|
|
3.14
|
|
|
|
0.44
|
|
See
Notes to Financial Highlights.
NOTES TO
FINANCIAL HIGHLIGHTS
|
|
|
(1)
|
|
Not annualized for periods less
than one year.
|
|
(2)
|
|
Annualized for periods less than
one year.
|
|
(3)
|
|
Commenced operations on
August 2, 2005.
|
|
|
|
*
|
|
The Institutional Cash Management
Money Market Fund and the Institutional Municipal Cash Reserve
Money Market Funds net and gross expense ratios include
expenses related to the Funds participation in the U.S.
Department of Treasurys Temporary Guarantee Program for
money market funds as listed below.
|
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|
|
|
|
Year Ended
|
|
Year Ended
|
|
|
March 31, 2010
|
|
March 31, 2009
|
Institutional Cash Management Money Market Fund
|
|
|
0.02%
|
|
|
|
0.02%
|
|
Institutional Municipal Cash Reserve Money Market Fund
|
|
|
0.01%
|
|
|
|
0.02%
|
|
|
|
|
**
|
|
During the year ended
March 31, 2008, the Fund received certain payments by an
affiliate. Absent these payments, the total return and ratio of
net investment income to average net assets would have been
3.65% and 4.52%, respectively.
|
Amounts designated as are less than $0.005 or
have been rounded to $0.
PRIVACY
POLICY
RidgeWorth
Funds
Our Privacy
Policy
At RidgeWorth Funds, we recognize the sensitive nature of your
personal financial information and take every precaution to
protect your privacy. In providing services to you as an
individual who owns or is considering investing in shares of
RidgeWorth Funds, we collect certain nonpublic personal
information about you. Our policy is to safeguard this
information and keep it confidential, and to use or disclose it
only as necessary to provide services to you or as otherwise
required or permitted by law. When you entrust us with your
financial information, it will be used only within our strict
guidelines. Our privacy policy and practices apply equally to
nonpublic personal information about former shareholders and
individuals who have inquired about RidgeWorth Funds.
Information We
Collect
Nonpublic personal information is personally
identifiable financial information about you as an individual or
your family. The type of nonpublic personal information we have
about you may include the information you provide on your
account application; information you provide in telephone calls
or correspondence with us; information about your transactions
and holdings in RidgeWorth Funds, and information about how you
vote your shares.
Information We
Disclose
RidgeWorth Funds policy is to only disclose nonpublic
personal information about you to companies that provide
necessary services such as RidgeWorth Funds transfer
agent, distributor, administrator or investment adviser;
affiliates of RidgeWorth Funds, or as may otherwise be permitted
or required by law or authorized by you.
How We Safeguard
Your Information
We restrict access to nonpublic personal information about you
to those persons who are required to have certain information in
order to provide services to you, or who are permitted by law to
receive it. We have strict internal policies against
unauthorized disclosure or use of customer information. We
maintain customer information as mandated by financial
regulations, and policies and procedures are in place for
appropriate confidential destruction of all restricted access
data.
If you have any questions regarding our Privacy Policy,
please call 1-888-784-3863.
This is not part of the Prospectus.
|
|
|
Investment Adviser:
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|
RidgeWorth Investments
50 Hurt Plaza, Suite 1400
Atlanta, Georgia 30303
www.ridgeworth.com
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Investment Subadviser:
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|
StableRiver Capital Management LLC
50 Hurt Plaza, Suite 1300
Atlanta, GA 30303
www.stableriver.com
|
|
|
More information about the RidgeWorth Funds is available without
charge through the following:
Statement of Additional Information (SAI):
The SAI includes detailed information about the RidgeWorth
Funds. The SAI is on file with the SEC and is incorporated by
reference into this prospectus. This means that the SAI, for
legal purposes, is a part of this prospectus.
Annual and Semi-Annual Reports:
These reports list each Funds holdings and contain
information from the Funds managers about strategies and
recent market conditions and trends and their impact on Fund
performance. The reports also contain detailed financial
information about the Funds.
To Obtain an SAI, Annual or Semi-Annual Report, or More
Information:
|
|
Telephone: |
Shareholder Services
1-888-784-3863
|
Mail:
RidgeWorth Funds
3435 Stelzer Road
Columbus, Ohio 43219
Website: www.ridgeworth.com
SEC:
You can also obtain the SAI or the Annual and Semi-Annual
reports, as well as other information about the RidgeWorth
Funds, from the EDGAR Database on the SECs website at
http://www.sec.gov.
You may review and copy documents at the SEC Public Reference
Room in Washington, DC (for information on the operation of the
Public Reference Room, call
202-551-8090).
You may request documents by mail from the SEC, upon payment of
a duplicating fee, by writing to: Securities and Exchange
Commission, Public Reference Section, Washington, DC
20549-1520.
You may also obtain this information, upon payment of a
duplicating fee, by
e-mailing
the SEC at publicinfo@sec.gov.
The RidgeWorth Funds Investment Company Act registration
number is
811-06557.
Collective Strength Individual Insight is a federally registered
service mark of RidgeWorth Investments.
RFPRO-IMMCT-0810
|
|
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|
MONEY MARKET FUNDS A, C, & I SHARES PROSPECTUS
August 1, 2010 Investment Adviser: RidgeWorth Investments®
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Class A
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Class C
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Class I
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Shares
|
|
Shares
|
|
Shares
|
Money Market Funds
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Subadviser: StableRiver Capital Management LLC
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Prime Quality Money Market Fund
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SQIXX
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|
SQFXX
|
|
SQTXX
|
Tax-Exempt Money Market Fund
|
|
SEIXX
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|
|
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STTXX
|
U.S. Government Securities Money Market Fund
|
|
SUIXX
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|
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STUXX
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U.S. Treasury Money Market Fund
|
|
SATXX
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CUSXX
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Virginia Tax-Free Money Market Fund
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CIAXX
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CFMXX
|
The Securities and Exchange Commission has not approved or
disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal
offense.
RidgeWorth
Investments®
is the trade name of RidgeWorth Capital Management, Inc.
About
This Prospectus
RidgeWorth Funds is a mutual fund family that offers shares in
separate investment portfolios that have individual investment
goals and strategies. RidgeWorth Funds is an open-end management
investment company (commonly known as a mutual fund) established
under Massachusetts law as a Massachusetts business trust.
RidgeWorth Funds is required to comply with the Investment
Company Act of 1940 as well as other federal securities laws
that are applicable to all mutual funds. This prospectus gives
you important information about the A Shares, C Shares and I
Shares of the Money Market Funds (Funds) that you
should know before investing. Please read this prospectus and
keep it for future reference.
I Shares are offered exclusively to financial institutions and
intermediaries for their own accounts or for the accounts of
their customers.
This prospectus has been arranged into different sections so
that you can easily review this important information. For
detailed information about each Fund, please see:
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1
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Prime Quality Money
Market Fund
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4
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Tax-Exempt Money Market
Fund
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6
|
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U.S. Government
Securities Money Market Fund
|
|
|
|
9
|
|
U.S. Treasury Money
Market Fund
|
|
|
|
11
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Virginia Tax-Free Money
Market Fund
|
|
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|
14
|
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More Information About
Risk
|
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16
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More Information About
Averages
|
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16
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More Information About
Fund Investments
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16
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Third-Party Ratings
|
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16
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Information About
Portfolio Holdings
|
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16
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Management
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18
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Purchasing, Selling and
Exchanging Fund Shares
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25
|
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Market Timing Policies
and Procedures
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25
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Distribution of Fund
Shares
|
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26
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Dividends and
Distributions
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26
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Taxes
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27
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Financial Highlights
|
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|
Inside
Back Cover
|
|
Privacy Policy
|
|
|
|
Back
Cover
|
|
How to Obtain More
Information
About RidgeWorth Funds
|
August 1,
2010
PRIME QUALITY
MONEY MARKET FUND
Summary
Section
A Shares, C
Shares and I Shares
Investment
Objective
The Prime Quality Money Market Fund (the Fund) seeks
as high a level of current income as is consistent with
preservation of capital and liquidity. The Fund is a money
market fund that seeks to preserve the value of your investment
at $1.00 per share.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Shareholder
Fees
(fees paid directly from your
investment)
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|
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|
|
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|
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|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Deferred Sales Charge (as a percentage of net asset
value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
0.50%
|
|
|
|
0.50%
|
|
|
|
0.50%
|
|
Distribution (12b-1) Fees
|
|
|
0.15%
|
|
|
|
0.25%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.06%
|
|
|
|
0.06%
|
|
|
|
0.06%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.01%
|
|
|
|
0.01%
|
|
|
|
0.01%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.72%
|
|
|
|
0.82%
|
|
|
|
0.57%
|
|
The Adviser and, as applicable, certain other Fund service
providers, have voluntarily undertaken to reduce
and/or
subsidize certain expenses of the Fund to the extent necessary
to maintain a minimum annualized yield of 0.02% for all share
classes. This voluntary expense reduction
and/or
expense subsidy may be modified or discontinued at any time
without prior notice. There can be no assurance that this fee
reduction will be sufficient to avoid any loss.
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes
that your investment has a 5% return each year and that the
Funds operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions
your costs would be:
|
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|
|
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|
|
|
|
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|
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|
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|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
74
|
|
|
$
|
230
|
|
|
$
|
401
|
|
|
$
|
894
|
|
C Shares
|
|
$
|
184
|
|
|
$
|
262
|
|
|
$
|
455
|
|
|
$
|
1,014
|
|
I Shares
|
|
$
|
58
|
|
|
$
|
183
|
|
|
$
|
318
|
|
|
$
|
714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
74
|
|
|
$
|
230
|
|
|
$
|
401
|
|
|
$
|
894
|
|
C Shares
|
|
$
|
84
|
|
|
$
|
262
|
|
|
$
|
455
|
|
|
$
|
1,014
|
|
I Shares
|
|
$
|
58
|
|
|
$
|
183
|
|
|
$
|
318
|
|
|
$
|
714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Example does not reflect sales charges (loads) on reinvested
dividends and other distributions. If these sales charges
(loads) were included, your costs would be higher.
Principal
Investment Strategies
The Fund invests exclusively in high quality U.S. money
market instruments (including mortgage-backed securities and
other asset-backed securities) and foreign money market
instruments denominated in U.S. dollars. The Fund may
invest a portion of its assets in securities that are restricted
as to resale.
In selecting investments for purchase and sale, StableRiver
Capital Management LLC, the Funds subadviser
(StableRiver or the Subadviser), tries
to increase income without adding undue risk by analyzing
maturity, yields, market sectors and credit risk. As a money
market fund, the Fund follows strict rules about credit risk,
maturity and diversification of its investments.
The Fund may also invest in instruments issued by municipalities
and issuers that pay income exempt from federal income taxes and
are subject to the alternative minimum tax.
Principal
Investment Risks
Income Risk: An investment in the Fund is subject to
income risk, which is the possibility that the Funds yield
will decline due to falling interest rates.
PRIME QUALITY
MONEY MARKET FUND
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, reducing the Funds return. The
lower the rating of a debt security, the higher its credit risk.
Foreign Investment Risk: Dollar denominated securities of
foreign issuers involve special risks such as economic or
financial instability, lack of timely or reliable or financial
information and unfavorable political or legal developments.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Municipal Securities Risk: Litigation, legislation or
other political events, local business or economic conditions or
the bankruptcy of the issuer could have a significant effect on
an issuers ability to make payments of principal
and/or
interest or otherwise affect the value of such securities. The
value of the municipal securities may decline because of a
market perception that the issuer may not make payments on time.
These securities are subject to the economic conditions and
government policies of their respective state or municipality.
To the extent that the aggregate market value of the Funds
assets materially varies from the aggregate of the acquisition
prices of those assets, the Fund may not be able to maintain a
stable share price of $1.00. This risk typically is higher
during periods of rapidly changing interest rates or when issuer
credit quality generally is falling, and is made worse when the
Fund experiences significant redemption requests.
A Fund share is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
government agency. In addition, although a money market fund
seeks to keep a constant price per share of $1.00, you may lose
money by investing in the Fund.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. Sales
loads are not reflected in the bar chart and if these amounts
were reflected, returns would be less than those shown. The
Funds past performance does not indicate how the Fund will
perform in the future.
This bar chart shows the changes in performance of the
Funds A Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
1.51%
|
|
0.01%
|
(9/30/00)
|
|
(12/31/09)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was 0.01%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad
PRIME QUALITY
MONEY MARKET FUND
measure of market performance. To obtain information about the
Funds current yield, call 1-888-784-3863.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
|
0.06%
|
|
|
|
2.77%
|
|
|
|
2.55%
|
|
|
|
C Shares
|
|
|
0.04%
|
|
|
|
2.69%
|
|
|
|
2.27%
|
|
|
|
I Shares
|
|
|
0.16%
|
|
|
|
2.92%
|
|
|
|
2.72%
|
|
|
|
iMoneyNet, Inc. First Tier Retail Average
|
|
|
0.16%
|
|
|
|
2.68%
|
|
|
|
2.48%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver is the Funds subadviser.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
The minimum initial investment amounts for each share class are
shown below, although these minimums may be reduced or waived in
some cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account. Such tax-deferred
arrangements may be taxed later upon withdrawal of monies from
those arrangements.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
TAX-EXEMPT MONEY
MARKET FUND
Summary
Section
A Shares and I
Shares
Investment
Objective
The Tax-Exempt Money Market Fund (the Fund) seeks as
high a level of current income that is exempt from federal
income taxes, while preserving capital and liquidity. The Fund
is a money market fund that seeks to preserve the value of your
investment at $1.00 per share.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
0.44%
|
|
|
|
0.44%
|
|
Distribution (12b-1) Fees
|
|
|
0.15%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.06%
|
|
|
|
0.06%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.65%
|
|
|
|
0.50%
|
|
The Adviser and, as applicable, certain other Fund service
providers, have voluntarily undertaken to reduce
and/or
subsidize certain expenses of the Fund to the extent necessary
to maintain a minimum annualized yield of 0.02% for all share
classes. This voluntary expense reduction
and/or
expense subsidy may be modified or discontinued at any time
without prior notice. There can be no assurance that this fee
reduction will be sufficient to avoid any loss.
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes
that your investment has a 5% return each year and that the
Funds operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions
your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
66
|
|
|
$
|
208
|
|
|
$
|
362
|
|
|
$
|
810
|
|
I Shares
|
|
$
|
51
|
|
|
$
|
160
|
|
|
$
|
280
|
|
|
$
|
628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Investment Strategies
The Fund invests at least 80% of its net assets in money market
instruments issued by municipalities and issuers that pay income
exempt from federal income taxes. The Fund may also invest
significantly in shares of other suitable registered money
market funds. In addition, the Fund may invest up to 20% of its
net assets in securities subject to the alternative minimum tax.
The Fund may invest a portion of its assets in securities that
are restricted as to resale.
In selecting investments for purchase and sale, StableRiver
Capital Management LLC, the Funds subadviser
(StableRiver or the Subadviser),
analyzes the credit quality and structure of each security to
minimize risk. The Subadviser actively manages the Funds
average maturity based on current interest rates and the
Subadvisers outlook of the market. As a money market fund,
the Fund follows strict rules about credit risk, maturity and
diversification of its investments.
Principal
Investment Risks
Income Risk: An investment in the Fund is subject to
income risk, which is the possibility that the Funds yield
will decline due to falling interest rates.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, reducing the Funds return. The
lower the rating of a debt security, the higher its credit risk.
Municipal Securities Risk: Litigation, legislation or
other political events, local business or economic conditions or
the bankruptcy of the issuer could have a significant effect on
an issuers ability to make payments of principal
and/or
interest or otherwise affect the value of such securities. The
value of the municipal securities may decline because of a
market perception that the issuer may not make payments on time.
These securities are subject to the economic conditions and
government policies of their respective state or municipality.
To the extent that the aggregate market value of the Funds
assets materially varies from the aggregate of the acquisition
prices of those assets, the Fund may not be able to maintain a
stable share price of $1.00.
TAX-EXEMPT MONEY
MARKET FUND
This risk typically is higher during periods of rapidly changing
interest rates or when issuer credit quality generally is
falling, and is made worse when the Fund experiences significant
redemption requests.
A Fund share is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
government agency. In addition, although a money market fund
seeks to keep a constant price per share of $1.00, you may lose
money by investing in the Fund.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance does not indicate how the Fund will
perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
0.98%
|
|
0.03%
|
(6/30/09)
|
|
(12/31/09)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was 0.04%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. To obtain information about the Funds
current yield, call 1-888-784-3863.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
|
0.03%
|
|
|
|
1.85%
|
|
|
|
1.67%
|
|
|
|
I Shares
|
|
|
0.14%
|
|
|
|
1.99%
|
|
|
|
1.81%
|
|
|
|
iMoneyNet, Inc. Tax-Free Retail Average
|
|
|
0.14%
|
|
|
|
1.85%
|
|
|
|
1.66%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver is the Funds subadviser.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through financial
institutions or intermediaries that are authorized to place
transactions in Fund shares for their customers. Please contact
your financial institution or intermediary directly and follow
its procedures for fund share transactions. The Fund offers
I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of
the Fund.
The minimum initial investment amount for each share class
is shown below, although these minimums may be reduced or waived
in some cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Fund intends to distribute income that is exempt from
regular federal income tax. A portion of the Funds
distributions may be subject to federal income tax or to the
federal alternative minimum tax.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
U.S. GOVERNMENT
SECURITIES MONEY MARKET FUND
Summary
Section
A Shares
and I Shares
Investment
Objective
The U.S. Government Securities Money Market Fund (the
Fund) seeks as high a level of current income as is
consistent with the preservation of capital and the maintenance
of liquidity. The Fund is a money market fund that seeks to
preserve the value of your investment at $1.00 per share.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
0.55%
|
|
|
|
0.55%
|
|
Distribution (12b-1) Fees
|
|
|
0.15%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.05%
|
|
|
|
0.05%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.02%
|
|
|
|
0.02%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.77%
|
|
|
|
0.62%
|
|
The Adviser and, as applicable, certain other Fund service
providers, have voluntarily undertaken to reduce
and/or
subsidize certain expenses of the Fund to the extent necessary
to maintain a minimum annualized yield of 0.02% for all share
classes. This voluntary expense reduction
and/or
expense subsidy may be modified or discontinued at any time
without prior notice. There can be no assurance that this fee
reduction will be sufficient to avoid any loss.
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes
that your investment has a 5% return each year and that the
Funds operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions
your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
79
|
|
|
$
|
246
|
|
|
$
|
428
|
|
|
$
|
954
|
|
I Shares
|
|
$
|
63
|
|
|
$
|
199
|
|
|
$
|
346
|
|
|
$
|
774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Investment Strategies
The Fund invests exclusively in U.S. Treasury obligations,
obligations issued or guaranteed as to principal and interest by
agencies or instrumentalities of the U.S. Government,
repurchase agreements collateralized by these securities, and
shares of registered money market funds that invest in the
foregoing.
In selecting investments for purchase and sale, StableRiver
Capital Management LLC, the Funds subadviser
(StableRiver or the Subadviser), tries
to increase income without adding undue risk by analyzing
yields. The Subadviser actively manages the maturity of the Fund
and its portfolio to maximize the Funds yield based on
current market interest rates and the Subadvisers outlook
on the market. As a money market fund, the Fund follows strict
rules about credit risk, maturity and diversification of its
investments.
Principal
Investment Risks
Income Risk: An investment in the Fund is subject to
income risk, which is the possibility that the Funds yield
will decline due to falling interest rates.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
U.S. GOVERNMENT
SECURITIES MONEY MARKET FUND
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
To the extent that the aggregate market value of the Funds
assets materially varies from the aggregate of the acquisition
prices of those assets, the Fund may not be able to maintain a
stable share price of $1.00. This risk typically is higher
during periods of rapidly changing interest rates or when issuer
credit quality generally is falling, and is made worse when the
Fund experiences significant redemption requests.
A Fund share is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
government agency. In addition, although a money market fund
seeks to keep a constant price per share of $1.00, you may lose
money by investing in the Fund.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance does not indicate how the Fund will
perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
1.49%
|
|
0.01%
|
(12/31/00)
|
|
(12/31/09)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was 0.02%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. To obtain information about the Funds
current yield, call 1-888-784-3863.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
|
0.03%
|
|
|
|
2.54%
|
|
|
|
2.39%
|
|
|
|
I Shares
|
|
|
0.12%
|
|
|
|
2.68%
|
|
|
|
2.54%
|
|
|
|
iMoneyNet, Inc. Government & Agencies Retail Average
|
|
|
0.09%
|
|
|
|
2.57%
|
|
|
|
2.42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver is the Funds subadviser.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through financial
institutions or intermediaries that are authorized to place
transactions in Fund shares for their customers. Please contact
your financial institution or intermediary directly and follow
its procedures for fund share transactions. The Fund offers
I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of
the Fund.
The minimum initial investment amount for each share class
is shown below, although these minimums may be reduced or waived
in some cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account. Such tax-deferred
arrangements may be taxed later upon withdrawal of monies from
those arrangements.
U.S. GOVERNMENT
SECURITIES MONEY MARKET FUND
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
U.S. TREASURY
MONEY MARKET FUND
Summary
Section
A Shares
and I Shares
Investment
Objective
The U.S. Treasury Money Market Fund (the Fund)
seeks as high a level of current income as is consistent with
preservation of capital and liquidity. The Fund is a money
market fund that seeks to preserve the value of your investment
at $1.00 per share.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
0.55%
|
|
|
|
0.55%
|
|
Distribution (12b-1) Fees
|
|
|
0.15%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.05%
|
|
|
|
0.05%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.01%
|
|
|
|
0.01%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.76%
|
|
|
|
0.61%
|
|
The Adviser and, as applicable, certain other Fund service
providers, have voluntarily undertaken to reduce
and/or
subsidize certain expenses of the Fund to the extent necessary
to maintain a minimum annualized yield of 0.02% for all share
classes. This voluntary expense reduction
and/or
expense subsidy may be modified or discontinued at any time
without prior notice. There can be no assurance that this fee
reduction will be sufficient to avoid any loss.
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes
that your investment has a 5% return each year and that the
Funds operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions
your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
78
|
|
|
$
|
243
|
|
|
$
|
422
|
|
|
$
|
942
|
|
I Shares
|
|
$
|
62
|
|
|
$
|
195
|
|
|
$
|
340
|
|
|
$
|
762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Investment Strategies
The Fund invests exclusively in U.S. Treasury obligations,
repurchase agreements collateralized by obligations issued or
guaranteed by the U.S. Treasury, and shares of registered
money market funds that invest exclusively in the foregoing.
In selecting investments for purchase and sale, StableRiver
Capital Management LLC, the Funds subadviser
(StableRiver or the Subadviser) tries to
increase income without adding undue risk by analyzing yields
for various maturities. The Subadviser actively manages the
maturity of the Fund to maximize the Funds yield based on
current market interest rates and the Subadvisers outlook
on the market. As a money market fund, the Fund follows strict
rules about credit risk, maturity and diversification of its
investments.
Principal
Investment Risks
Income Risk: An investment in the Fund is subject to
income risk, which is the possibility that the Funds yield
will decline due to falling interest rates.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
To the extent that the aggregate market value of the Funds
assets materially varies from the aggregate of the acquisition
prices of those assets, the Fund may not be able to maintain a
stable share price of $1.00. This risk typically is higher
during periods of rapidly changing interest rates or when issuer
credit quality generally is falling, and is made worse when the
Fund experiences significant redemption requests.
A Fund share is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
government agency. In addition, although a money market fund
seeks to keep a constant price per share of $1.00, you may lose
money by investing in the Fund.
U.S. TREASURY
MONEY MARKET FUND
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance does not indicate how the Fund will
perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
1.46%
|
|
0.01%
|
(12/31/00)
|
|
(12/31/09)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
0.02%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. To obtain information about the Funds
current yield, call 1-888-784-3863.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
|
|
|
|
|
|
Inception of
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
A Shares*
|
|
|
A Shares
|
|
|
0.02%
|
|
|
|
2.35%
|
|
|
|
N/A
|
|
|
|
2.02%
|
|
|
|
I Shares
|
|
|
0.08%
|
|
|
|
2.49%
|
|
|
|
2.36%
|
|
|
|
N/A
|
|
|
|
iMoneyNet, Inc. Treasury & Repo Retail Average
|
|
|
0.02%
|
|
|
|
2.34%
|
|
|
|
2.25%
|
|
|
|
2.25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since inception of the A Shares on November 12, 2003.
Benchmark returns since October 31, 2003 (benchmark returns
available only on a month end basis).
|
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver is the Funds subadviser.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through financial
institutions or intermediaries that are authorized to place
transactions in Fund shares for their customers. Please contact
your financial institution or intermediary directly and follow
its procedures for fund share transactions. The Fund offers
I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of
the Fund.
The minimum initial investment amount for each share class is
shown below, although these minimums may be reduced or waived in
some cases. There are no minimums for subsequent investments.
|
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Class
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Dollar Amount
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A Shares
|
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$2,000
|
I Shares
|
|
None
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|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account. Such tax-deferred
arrangements may be taxed later upon withdrawal of monies from
those arrangements.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website site for more information.
VIRGINIA TAX-FREE
MONEY MARKET FUND
Summary
Section
A Shares
and I Shares
Investment
Objective
The Virginia Tax-Free Money Market Fund (the Fund)
seeks as high a level of current income that is exempt from
federal and Virginia income taxes, while preserving capital and
liquidity. The Fund is a money market fund that seeks to
preserve the value of your investment at $1.00 per share.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
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|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
0.40%
|
|
|
|
0.40%
|
|
Distribution (12b-1) Fees
|
|
|
0.15%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.07%
|
|
|
|
0.07%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.02%
|
|
|
|
0.02%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.64%
|
|
|
|
0.49%
|
|
The Adviser and, as applicable, certain other Fund service
providers, have voluntarily undertaken to reduce
and/or
subsidize certain expenses of the Fund to the extent necessary
to maintain a minimum annualized yield of 0.02% for all share
classes. This voluntary expense reduction
and/or
expense subsidy may be modified or discontinued at any time
without prior notice. There can be no assurance that this fee
reduction will be sufficient to avoid any loss.
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes
that your investment has a 5% return each year and that the
Funds operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions
your costs would be:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
65
|
|
|
$
|
205
|
|
|
$
|
357
|
|
|
$
|
798
|
|
I Shares
|
|
$
|
50
|
|
|
$
|
157
|
|
|
$
|
274
|
|
|
$
|
616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Investment Strategies
The Fund invests at least 80% of its assets in money market
instruments issued by municipalities and issuers that pay income
exempt from federal and Virginia income taxes. Issuers of these
securities can be located in Virginia, Puerto Rico and other
U.S. territories and possessions. The Fund may also
significantly invest in shares of other registered money market
funds that have the same principal investment strategy. In
addition, the Fund may invest up to 20% of its net assets in
money market instruments subject to the alternative minimum tax.
The Fund may invest a portion of its assets in securities that
are restricted as to resale.
In selecting investments for purchase and sale, StableRiver
Capital Management LLC, the Funds subadviser
(StableRiver or the Subadviser),
analyzes the credit quality and structure of each security to
minimize risk. The Subadviser actively manages the Funds
average maturity based on current interest rates and the
Subadvisers outlook of the market. As a money market fund,
the Fund follows strict rules about credit risk, maturity and
diversification of its investments.
Principal
Investment Risks
Income Risk: An investment in the Fund is subject to
income risk, which is the possibility that the Funds yield
will decline due to falling interest rates.
Concentration Risk: The Funds concentration of
investments in securities of issuers located in Virginia
subjects the Fund to economic and government policies within
Virginia.
Municipal Securities Risk: Litigation, legislation or
other political events, local business or economic conditions or
the bankruptcy of the issuer could have a significant effect on
an issuers ability to make payments of principal
and/or
interest or otherwise affect the value of such securities. The
value of the municipal securities may decline because of a
market perception that the issuer may not make payments on time.
These securities are subject to the economic conditions and
government policies of their respective state or municipality.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of
VIRGINIA TAX-FREE
MONEY MARKET FUND
interest or principal, or go bankrupt, reducing the Funds
return. The lower the rating of a debt security, the higher its
credit risk.
To the extent that the aggregate market value of the Funds
assets materially varies from the aggregate of the acquisition
prices of those assets, the Fund may not be able to maintain a
stable share price of $1.00. This risk typically is higher
during periods of rapidly changing interest rates or when issuer
credit quality generally is falling, and is made worse when the
Fund experiences significant redemption requests.
A Fund share is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
government agency. In addition, although a money market fund
seeks to keep a constant price per share of $1.00, you may lose
money by investing in the Fund.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance does not indicate how the Fund will
perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
0.98%
|
|
0.02%
|
(6/30/10)
|
|
(12/31/09)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was 0.04%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. To obtain information about the Funds
current yield, call 1-888-784-3863.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
|
0.03%
|
|
|
|
1.87%
|
|
|
|
1.68%
|
|
|
|
I Shares
|
|
|
0.14%
|
|
|
|
2.02%
|
|
|
|
1.85%
|
|
|
|
iMoneyNet, Inc. Tax-Free Retail Average
|
|
|
0.14%
|
|
|
|
1.85%
|
|
|
|
1.66%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
StableRiver is the Funds subadviser.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through financial
institutions or intermediaries that are authorized to place
transactions in Fund shares for their customers. Please contact
your financial institution or intermediary directly and follow
its procedures for fund share transactions. The Fund offers
I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of
the Fund.
The minimum initial investment amount for each share class
is shown below, although these minimums may be reduced or waived
in some cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Fund intends to distribute income that is exempt from
regular federal and Virginia income taxes. A portion of the
Funds distributions may be subject to Virginia or federal
income taxes or to the federal alternative minimum tax.
VIRGINIA TAX-FREE
MONEY MARKET FUND
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
MORE INFORMATION
ABOUT RISK
More Information
About Risk
Fixed Income
Risk
All Funds
The prices of a Funds fixed income securities respond to
economic developments, particularly interest rate changes, as
well as to perceptions about the creditworthiness of individual
issuers, including governments. Generally, a Funds fixed
income securities will decrease in value if interest rates rise
and vice versa.
Long-term debt securities generally are more sensitive to
changes in interest rates, usually making them more volatile
than short-term debt securities and thereby increasing risk.
Debt securities are also subject to credit risk, which is the
possibility than an issuer will fail to make timely payments of
interest or principal, or go bankrupt. The lower the ratings of
such debt securities, the greater their risks. In addition,
lower rated securities have higher risk characteristics, and
changes in economic conditions are likely to cause issuers of
these securities to be unable to meet their obligations.
Debt securities are also subject to income risk, which is the
possibility that falling interest rates will cause a Funds
income to decline. Income risk is generally higher for
short-term bonds.
An additional risk of debt securities is reinvestment risk,
which is the possibility that a Fund may not be able to reinvest
interest or dividends earned from an investment in such a way
that they earn the same rate of return as the invested funds
that generated them. For example, falling interest rates may
prevent bond coupon payments from earning the same rate of
return as the original bond. Furthermore, pre-funded loans and
issues may cause a Fund to reinvest those assets at a rate lower
than originally anticipated.
Foreign
Securities Risk
Prime Quality Money Market Fund
Investments in securities of foreign companies or governments
can be more volatile than investments in U.S. companies or
governments. Diplomatic, political, or economic developments,
including nationalization or appropriation, unique to a country
or region will affect those markets and their issuers. Foreign
securities markets generally have less trading volume and less
liquidity than U.S. markets.
Foreign companies or governments generally are not subject to
uniform accounting, auditing, and financial reporting standards
comparable to those applicable to domestic U.S. companies
or governments. Transaction costs are generally higher than
those in the U.S. and expenses for custodial arrangements
of foreign securities may be somewhat greater than typical
expenses for custodial arrangements of similar
U.S. securities. Some foreign governments levy withholding
taxes against dividend and interest income. Although in some
countries a portion of these taxes are recoverable, the
non-recovered portion will reduce the income received from the
securities comprising the portfolio.
Mortgage-Backed
and Asset-Backed Securities Risk
Prime Quality Money Market Fund
U. S. Government Securities Money Market Fund
Mortgage- and asset-backed securities are fixed income
securities representing an interest in a pool of underlying
mortgage or asset-backed secured and unsecured cashflow
producing assets such as automobile loans and leases, credit
card receivables and other financial assets. The risks
associated with these types of securities include:
(1) prepayment risk that could result in earlier or later
return of principal than expected and can lead to significant
fluctuations in the value and realized yield of the securities;
(2) liquidity/market risk which can result in higher than
expected changes in security valuation and transactions costs
especially in times of general market stress; and
(3) credit risk that is associated with the underlying
borrowers and can also be driven by general economic conditions
which can result in the loss of invested principal.
The value of some mortgage- or asset-backed securities may be
particularly sensitive to changes in prevailing interest rates.
Early repayment of principal on some mortgage-backed securities
may expose a Fund to a lower rate of return upon reinvestment of
principal. When interest rates rise, the value of these
securities generally will decline; however, when interest rates
are declining, the value of these securities with prepayment
features may not increase as much as other fixed income
securities. The rate of prepayments on underlying mortgages will
affect the price and volatility of a mortgage-backed security,
and may shorten or extend the effective maturity of the security
beyond what was anticipated at the time of purchase. If
unanticipated rates of prepayment on underlying mortgages
increase the effective maturity of a mortgage-related security,
the volatility of the security can be expected to increase. The
value of these securities may fluctuate in response to the
MORE INFORMATION
ABOUT RISK
markets perception of the creditworthiness of the issuers.
Additionally, although mortgage-backed securities are generally
supported by some form of government or private guarantee
and/or
insurance, there is no assurance that private guarantors or
insurers will meet their obligations.
Municipal
Securities Risk
Prime Quality Money Market Fund
Tax-Exempt Money Market Fund
Virginia Tax-Free Money Market Fund
Municipal securities can be significantly affected by political
changes as well as uncertainties in the municipal market related
to taxation, legislative changes or the rights of municipal
security holders. Because many municipal securities are issued
to finance similar projects, especially those relating to
education, health care, transportation and utilities, conditions
in those sectors can affect the overall municipal market. In
addition, changes in the financial condition of an individual
municipal insurer can affect the overall municipal market.
Municipal securities backed by current or anticipated revenues
from a specific project or specific assets can be negatively
affected by the discontinuance of the taxation supporting the
project or assets or the inability to collect revenues for the
project or from the assets. If the Internal Revenue Service
determines an issuer of a municipal security has not complied
with applicable tax requirements, interest from the security
could become taxable and the security could decline
significantly in value.
In addition, a Funds concentration of investments in
issuers located in a single state makes the Fund more
susceptible to adverse political or economic developments
affecting that state. The Fund also may be riskier than mutual
funds that buy securities of issuers in numerous states.
Regional
Risk
Prime Quality Money Market Fund
Tax-Exempt Money Market Fund
Virginia Tax-Free Money Market Fund
To the extent that a Funds investments are concentrated in
a specific geographic region, a Fund may be subject to the
political and other developments affecting that region. Regional
economies are often closely interrelated, and political and
economic developments affecting one region, country or state
often affect other regions, countries or states, thus subjecting
the Fund to additional risks.
Regulatory
Risk
All Funds
The Securities and Exchange Commission (the SEC)
recently amended the rules governing money market funds. In
addition, the SEC continues to review the regulation of such
funds. Any further changes by the SEC or additional legislative
developments may affect a Money Market Funds operations,
investment strategies, performance and yield.
Restricted
Security Risk
Prime Quality Money Market Fund
Tax-Exempt Money Market Fund
Virginia Tax-Free Money Market Fund
Restricted securities may increase the level of illiquidity in
the Fund during any period that qualified institutional buyers
become uninterested in purchasing these restricted securities.
The Adviser and Subadviser intend to invest only in restricted
securities that they believe present minimal liquidity risk.
Risk Information
Common to RidgeWorth Funds
Each Fund is a mutual fund. A mutual fund pools
shareholders money and, using professional investment
managers, invests it in securities.
Each Fund has its own investment goal and strategies for
reaching that goal. The Adviser invests Fund assets in a way
that it believes will help a Fund achieve its goal. Still,
investing in each Fund involves risk and there is no guarantee
that a Fund will achieve its goal. The Advisers or
Sub-Advisers judgments about the markets, the economy or
companies may not anticipate actual market movements, economic
conditions or company performance, and these judgments may
affect the return on your investment. In fact, no matter how
good a job the Adviser or
Sub-Adviser
does, you could lose money on your investment in a Fund, just as
you could with other investments. The value of your investment
in a Fund is based on the market prices of the securities the
Fund holds. These prices change daily due to economic and other
events that affect particular companies and other issuers. These
price movements, sometimes called volatility, may be greater or
lesser depending on the types of securities a Fund owns and the
markets in which they trade. The effect on a Fund of a change in
the value of a single security will depend on how widely the
Fund diversifies its holdings.
MANAGEMENT
Each Funds investment goal may be changed without
shareholder approval. Before investing, make sure that the
Funds goal matches your own.
The Funds are not managed to achieve tax efficiency, except for
the Tax Exempt Money Market and Virginia Tax-Free Money Market
Funds, which intend to distribute tax-exempt income.
More Information
About Averages
An average is a composite of mutual funds with similar
investment goals.
The iMoneyNet, Inc. First Tier Retail Average is a
widely-recognized composite of money market funds that invest in
securities rated in the highest category by at least two of the
recognized rating agencies. The number of funds in the Average
varies.
The iMoneyNet, Inc. Government & Agencies Retail
Average is a widely-recognized composite of money market funds
that invest in U.S. Treasury bills, repurchase agreements
or securities issued by agencies of the U.S. Government.
The number of funds in the Average varies.
The iMoneyNet, Inc. Tax-Free Retail Average is a widely
recognized composite of money market funds that invest in
short-term municipal securities, the income of which is exempt
from federal taxation. The number of funds in the Average varies.
The iMoneyNet, Inc. Treasury & Repo Retail Average is
a widely-recognized composite of money market funds that invest
in U.S. Treasury bills and repurchase agreements backed by
these securities. The number of funds in the Average varies.
More Information
About Fund Investments
This prospectus describes the Funds primary strategies,
and the Funds will normally invest in the types of securities
described in this prospectus. However, in addition to the
investments and strategies described in this prospectus, each
Fund also may invest in other securities, use other strategies
and engage in other investment practices. These investments and
strategies, as well as those described in this prospectus, are
described in detail in the Statement of Additional Information
(SAI).
Of course, a Fund cannot guarantee that it will achieve its
investment goal.
Each Fund may invest in other money market mutual funds for cash
management purposes. When a Fund invests in another mutual fund,
in addition to directly bearing expenses associated with its own
operations, it will bear a pro rata portion of the other mutual
funds expenses.
Further, during certain interest rate environments, the gross
yield of certain shares of money market funds may be less than
the related expenses of that class. In these instances,
shareholders of these Funds may not receive a monthly income
payment, or may receive a much smaller payment than during a
more typical interest rate environment.
Third-Party
Ratings
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund
|
|
S&P1
|
|
Moodys2
|
|
NAIC3
|
|
Prime Quality Money Market Fund
|
|
|
AAAm
|
|
|
|
Aaa
|
|
|
|
Class 1
Approved
|
|
U.S. Government Securities Money Market Fund
|
|
|
AAAm
|
|
|
|
Aaa
|
|
|
|
Class 1
Approved
|
|
U.S. Treasury Money Market Fund
|
|
|
AAAm
|
|
|
|
Aaa
|
|
|
|
U.S. Direct
Obligations/
Full Faith and
Credit Exempt
|
|
|
|
1
|
Standard & Poors Ratings Services
|
|
2
|
Moodys Investors Service
|
|
3
|
National Association of Insurance Commissioners
|
Information About
Portfolio Holdings
A description of the Funds policies and procedures with
respect to the circumstances under which the Funds disclose
their portfolio securities is available in the SAI.
Management
The Board of Trustees (the Board) is responsible for
the overall supervision and management of the business and
affairs of the Funds. The Board supervises the Adviser and
Subadviser and establishes policies that the Adviser and
Subadviser must follow in their fund related management
activities. The day-to-day operations of the Funds are the
responsibilities of the officers and various service
organizations retained by the Funds.
MANAGEMENT
Investment
Adviser
RidgeWorth Investments, 50 Hurt Plaza, Suite 1400,
Atlanta, Georgia 30303 (RidgeWorth or the
Adviser), serves as the investment adviser to the
Funds. In addition to being an investment adviser registered
with the Securities and Exchange Commission (the
SEC), RidgeWorth is a money-management holding
company with multiple style- focused investment boutiques. As of
June 30, 2010, the Adviser had approximately
$61.5 billion in assets under management. The Adviser is
responsible for overseeing the Subadviser to ensure compliance
with each Funds investment policies and guidelines and
monitors each Subadvisers adherence to its investment
style. The Adviser also executes transactions with respect to
specific securities selected by the Subadviser for purchase and
sale by the Funds. The Adviser pays the Subadviser out of the
fees it receives from the Funds.
The Adviser may use its affiliates as brokers for Fund
transactions.
An investment adviser has a fiduciary obligation to its clients
when the adviser has authority to vote their proxies. Under the
current contractual agreement, the Adviser is authorized to vote
proxies on behalf of each Fund. Information regarding the
Advisers, and thus each Funds, Proxy Voting Policies
and Procedures is provided in the SAI. A copy of the
Advisers Proxy Voting Policies and Procedures may be
obtained by contacting the Funds at 1-888-784-3863, or by
visiting www.ridgeworth.com.
For the fiscal year ended March 31, 2010, the following
Funds paid the Adviser advisory fees (after waivers) based on
the respective Funds average daily net assets of:
|
|
|
|
|
Prime Quality Money Market Fund
|
|
|
0.22%
|
|
Tax-Exempt Money Market Fund
|
|
|
0.21%
|
|
U.S. Government Securities Money Market Fund
|
|
|
0.17%
|
|
U.S. Treasury Money Market Fund
|
|
|
0.10%
|
|
Virginia Tax-Free Money Market Fund
|
|
|
0.20%
|
|
The following breakpoints are used in computing the advisory fee:
|
|
|
Average Daily Net Assets
|
|
Discount From Full Fee
|
|
First $1 billion
|
|
None Full Fee
|
Next $1.5 billion
|
|
5%
|
Next $2.5 billion
|
|
10%
|
Over $5 billion
|
|
20%
|
Based on average daily net assets as of March 31, 2010, the
asset levels of the following Funds had reached a breakpoint in
the advisory fee.* Had the Funds asset levels been lower,
the Adviser may have been entitled to receive maximum advisory
fees as follows:
|
|
|
|
|
Prime Quality Money Market Fund
|
|
|
0.55%
|
|
Tax-Exempt Money Market Fund
|
|
|
0.45%
|
|
|
|
* |
Fund expenses in the Annual Fund Operating
Expenses tables shown earlier in this prospectus reflect
the advisory breakpoints.
|
A discussion regarding the basis for the Boards approval
of the investment advisory agreement with the Adviser appears in
the Funds annual report to shareholders for the period
ended March 31, 2010.
Investment
Subadviser
The Subadviser is responsible for managing the portfolios of the
Funds on a day-to-day basis and selecting the specific
securities to buy, sell and hold for the Funds under the
supervision of the Adviser and the Board.
Information about the Subadviser and the individual portfolio
managers of the Funds is discussed below. The SAI provides
additional information regarding the portfolio managers
compensation, other accounts managed by the portfolio managers,
potential conflicts of interest and the portfolio managers
ownership of securities in the Funds.
StableRiver Capital Management LLC
(StableRiver)
50 Hurt Plaza, Suite 1400,
Atlanta, Georgia 30303
www.stableriver.com
StableRiver, a wholly-owned subsidiary of RidgeWorth, is an
investment adviser registered with the SEC. The firm was
established in 2008 after 23 years
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
functioning as RidgeWorths fixed income investment
management team. As of June 30, 2010, StableRiver had
approximately $27.3 billion in assets under management.
StableRiver focuses on delivering high-quality fixed income
strategies to institutional investors. As the name suggests,
StableRiver has a firmly established, steadfast investment
process that follows a predictable course of action
even in unpredictable market cycles. The firms
multi-faceted strategy employs top-down management with
bottom-up
security selection incorporating comprehensive risk management
and compliance systems.
StableRiver is responsible for managing the portfolios of the
Funds on a day-to-day basis and selecting the specific
securities to buy, sell and hold for the Funds under the
supervision of the Adviser and the Board. A discussion regarding
the basis for the Boards approval of the investment
subadvisory agreement appears in the Funds annual report
to shareholders for the period ending March 31, 2010.
Purchasing,
Selling and Exchanging Fund Shares
This section tells you how to purchase, sell (sometimes called
redeem) and exchange A Shares, C Shares, and I
Shares of the Funds. C Shares of the Prime Quality Money Market
Fund are available only through exchanges of C Shares of other
RidgeWorth Funds. C Shares of the Prime Quality Money Market
Fund (i) are subject to a 1% contingent deferred sales
charge (CDSC) if you redeem your shares within one
year of the date you purchased the original RidgeWorth
Fund C Shares and (ii) have higher annual expenses
than A Shares of the Prime Quality Money Market Fund. Investors
purchasing or selling shares through a pension or 401(k) plan
should also refer to their Plan documents.
Participants in retirement plans must contact their Employee
Benefits Office or their Plans Administrator for
information regarding the purchase, redemption or exchange of
shares. Plans may require separate documentation and the
plans policies and procedures may be different than those
described in this prospectus. Participants should contact their
employee benefits office or plan administrator for questions
about their specific accounts.
If your I Shares are held in a retirement plan account, the
rules and procedures you must follow as a plan participant
regarding the purchase, redemption or exchange of I Shares may
be different from those described in this prospectus. Review the
information you have about your retirement plan.
How to Purchase
Fund Shares
Purchasing A
Shares and C Shares
You may purchase A Shares and C Shares of the Funds through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for Fund share transactions. Your
financial institution or intermediary may charge a fee for its
services, in addition to the fees charged by a Fund. You will
also generally have to address your correspondence or questions
regarding a Fund to your financial institution or intermediary.
Your investment professional can assist you in opening a
brokerage account that will be used for purchasing shares of
RidgeWorth Funds.
Shareholders who purchase shares directly from the Funds may
purchase additional Fund shares by:
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Mail
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Telephone (1-888-784-3863)
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Wire
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Fax
(1-800-451-8377)
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Automated Clearing House (ACH)
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The Funds do not accept cash, credit card checks, third-party
checks, travelers checks, money orders, bank starter
checks, or checks drawn in a foreign currency, as payment for
Fund shares.
If you pay with a check or ACH transfer that does not clear or
if your payment is not received in a timely manner, your
purchase may be canceled. You will be responsible for any losses
or expenses incurred by the Fund or transfer agent, and the Fund
can redeem shares you own in this or another identically
registered RidgeWorth Funds account as reimbursement.
Purchasing I
Shares
The Funds offer I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. These accounts primarily consist of:
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assets of a bona fide trust,
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PURCHASING,
SELLING AND EXCHANGING FUND SHARES
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assets of a business entity possessing a tax identification
number,
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assets of an employee benefit plan,
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assets held within select fee-based programs, or
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assets held within certain non-discretionary intermediary
no-load platforms.
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Employee benefit plans generally include profit sharing, 401(k)
and 403(b) plans. Employee benefit plans generally do not
include IRAs; SIMPLE, SEP, SARSEP plans; plans covering
self-employed individuals and their employees or health savings
accounts unless you, as a customer of a financial institution or
intermediary, meet the Funds established criteria as
described above.
As a result, you, as a customer of a financial institution or
intermediary, may, under certain circumstances that meet the
Funds established criteria, be able to purchase I Shares
through accounts made with select financial institutions or
intermediaries. I Shares will be held of record by (in the name
of) your financial institution or intermediary. Depending upon
the terms of your account, you may have, or be given, the right
to vote your I Shares. Financial institutions or intermediaries
may impose eligibility requirements for each of their clients or
customers investing in the Funds, including investment minimum
requirements, which may differ from those imposed by the Funds.
Please contact your financial institution or intermediary for
complete details for purchasing I Shares.
I Shares may also be purchased directly from the Funds by
officers, directors or trustees, and employees and their
immediate families (strictly limited to current spouses/domestic
partners and dependent children) of:
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RidgeWorth Funds,
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Subadvisers to the RidgeWorth Funds, or
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SunTrust Banks, Inc. and its subsidiaries.
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Validation of current employment/service will be required upon
establishment of the account. The Funds, in their sole
discretion, may determine if an applicant qualifies for this
program.
In-Kind
Purchases I Shares
Payment for I Shares of a Fund may, in the discretion of the
Adviser, be made in the form of securities that are permissible
investments for such Fund. In connection with an in-kind
securities payment, a Fund will require, among other things,
that the securities (a) meet the investment objectives and
policies of the Fund; (b) are acquired for investment and
not for resale; (c) are liquid securities that are not
restricted as to transfer either by law or liquidity of markets;
(d) have a value that is readily ascertainable (e.g., by a
listing on a nationally recognized securities exchange); and
(e) are valued on the day of purchase in accordance with
the pricing methods used by the Fund. For further information
about this form of payment, please call 1-888-784-3863.
When Can You
Purchase Shares? A Shares, C Shares and I
Shares
The Funds are open for business on days when the New York Stock
Exchange (the NYSE) is open for regular trading and
the Federal Reserve Bank of New York (the Fed) is
open for settlement (a Business Day). The RidgeWorth
Funds reserve the right to open one or more Funds on days that
the principal bond markets (as recommended by SIFMA (Securities
Industry and Financial Markets Association)) are open and the
Fed is open for settlement even if the NYSE is closed. Each Fund
calculates its net asset value per share (NAV) once
each Business Day at the close of regular trading on the NYSE
(normally 4:00 p.m. Eastern Time).
For you to be eligible to receive dividends declared on the day
you submit your purchase order, a Fund or its authorized agent
must receive your purchase order in proper form before the time
shown in the table below and must receive federal funds (readily
available funds) before 6:00 p.m. Eastern Time.
Otherwise, your purchase order will be effective the following
Business Day, as long as the Fund receives federal funds before
calculating its NAV the following day.
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Time
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Fund
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(Eastern Time)
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Tax-Exempt Money Market Fund
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10:30 a.m.
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Virginia Tax-Free Money Market Fund
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10:30 a.m.
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Prime Quality Money Market Fund
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3:00 p.m.
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U.S. Government Securities Money Market Fund
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3:00 p.m.
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U.S. Treasury Money Market Fund
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3:00 p.m.
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The time at which transactions and shares are priced and the
time until which orders are accepted may be changed if the NYSE
closes early or if the principal bond markets close early on
days when the NYSE is closed. For those Funds that open on days
when the NYSE is closed, these times will be the time the
principal bond markets close.
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
The Funds will not accept orders that request a particular day
or price for the transaction or any other special conditions.
You may be required to transmit your purchase sale and
exchange orders to your financial institutions or intermediaries
at an earlier time for your transaction to become effective that
day. This allows the financial institution or intermediary time
to process your order and transmit it to the transfer agent in
time to meet the above stated Fund cut-off times. For more
information about how to purchase, sell or exchange Fund shares,
including a specific financial institutions or
intermediarys internal order entry cut-off times, please
contact your financial institution or intermediary directly.
A Fund may reject any purchase order.
How the Funds
Calculate NAV A Shares, C Shares, and I
Shares
NAV is calculated by adding the total value of a Funds
investments and other assets, subtracting its liabilities, and
then dividing that figure by the number of outstanding shares of
the Fund.
In calculating NAV, each Fund generally values its investment
portfolio using the amortized cost valuation method, which is
described in detail in the SAI. If the Subadviser determines in
good faith that this method is unreliable during certain market
conditions or for other reasons, a Fund may value its portfolio
at market price or at fair value as determined in good faith
using methods approved by the Board of Trustees. Each Fund
expects its NAV to remain constant at $1.00 per share, although
the Fund cannot guarantee this.
The prices for many securities held by the Funds are provided by
independent pricing services approved by the Board.
Minimum/Maximum
Purchases A Shares, C Shares and I Shares
To purchase A Shares or C Shares for the first time, you must
invest in any Fund at least $2,000 dollars in any Fund.
Purchases of C Shares of the Prime Quality Money Market Fund
requested in an amount of $1,000,000 or more will automatically
be made in A Shares of that Fund.
Your subsequent investments must be made in amounts of at least
$1,000. The Funds may accept investments of smaller amounts for
either class of shares at its discretion.
For investors who qualify to purchase I Shares, there are no
minimum or maximum requirements for initial or subsequent
purchases.
Systematic
Investment Plan A Shares and C Shares
If you have a checking or savings account with a bank, you may
purchase A Shares and C Shares automatically through regular
deductions from your bank account. With a $500 minimum initial
investment, you may begin regularly-scheduled investments of $50
or more once or twice a month. If you are buying C Shares, you
should plan on investing at least $5,000 per Fund during the
first two years. The Funds may close your account if you do not
meet this minimum investment requirement at the end of two years.
Customer
Identification
Foreign
Investors
To purchase A Shares and C Shares of the Funds, you must be a
U.S. citizen, a U.S. resident alien, or a
U.S. entity, with a U.S. tax identification number,
and reside in the U.S. or its territories (which includes
U.S. military APO or FPO addresses). If you owned shares on
July 31, 2006, you may keep your account open even if you
do not reside in the U.S. or its territories, but you may
not make additional purchases or exchanges.
The Funds do not generally accept investments in I Shares by
non-U.S. citizens
or entities. Investors in I Shares generally must reside in the
U.S. or its territories (which includes U.S. military
APO or FPO addresses) and have a U.S. tax identification
number.
Customer
Identification and Verification
To help the government fight the funding of terrorism and money
laundering activities, federal law requires all financial
institutions to obtain, verify, and record information that
identifies each person who opens an account.
When you open an account, you will be asked to provide your
name, residential street address, date of birth, Social Security
Number or tax identification number. You may also be asked for
other information that will allow us to identify you. Entities
are also required to provide additional documentation. This
information will be verified to ensure the identity of all
persons opening a mutual fund account.
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
In certain instances, the Funds are required to collect
documents to fulfill their legal obligation. Documents provided
in connection with your application will be used solely to
establish and verify a customers identity.
The Funds are required by law to reject your new account
application if the required identifying information is not
provided. Attempts to collect the missing information required
on the application will be performed by either contacting you
or, if applicable, your broker. If this information is unable to
be obtained within a timeframe established in the sole
discretion of the Funds, your application will be rejected.
Upon receipt of your application in proper form (or upon receipt
of all identifying information required on the application),
your investment will be accepted and your order will be
processed at the NAV next determined.
However, the Funds reserve the right to close your account at
the then-current days price if the Funds are unable to
verify your identity. Attempts to verify your identity will be
performed within a timeframe established in the sole discretion
of the Funds. If the Funds are unable to verify your identity,
the Funds reserve the right to liquidate your account at the
then-current days price and remit proceeds to you via
check. The Funds reserve the further right to hold your proceeds
until your original check clears the bank. In such an instance,
you may be subject to a gain or loss on Fund shares and will be
subject to corresponding tax implications.
Anti-Money
Laundering Program
Customer identification and verification is part of the
Funds overall obligation to deter money laundering under
federal law. The Funds have adopted an anti-money laundering
compliance program designed to prevent the Funds from being used
for money laundering or the financing of terrorist activities.
In this regard, the Funds reserve the right to (i) refuse,
cancel or rescind any purchase or exchange order,
(ii) freeze any account
and/or
suspend account services, or (iii) involuntarily redeem
your account in cases of threatening conduct or suspected
fraudulent or illegal activity. These actions will be taken
when, in the sole discretion of Fund management, they are deemed
to be in the best interest of the Funds or in cases when the
Funds are requested or compelled to do so by governmental or law
enforcement authority.
Sales
Charges C Shares
Contingent
Deferred Sales Charges (CDSC)
C Shares
You do not pay a sales charge when you purchase C Shares. The
offering price of C Shares is simply the next calculated NAV.
But, if you sell your shares within the first year after your
purchase, you will pay a CDSC equal to 1% of either (1) the
NAV of the shares at the time of purchase, or (2) NAV of
the shares next calculated after the Funds receive your sale
request, whichever is less. The Funds will use the
first-in,
first-out (FIFO) method to determine the holding period. So, you
never pay a CDSC on any increase in your investment above the
initial offering price. The CDSC does not apply to shares you
purchase through reinvestment of dividends or distributions or
to exchanges of C Shares of one Fund for C Shares of another
Fund.
Waiver of
CDSC
The CDSC will be waived if you sell your C Shares for the
following reasons:
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Death or Post-purchase Disablement (as defined in
Section 72(m)(7) of the Internal Revenue Code)
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You are shareholder/joint shareholder or participant/beneficiary
of certain retirement plans;
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You die or become disabled after the account is opened;
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Redemption must be made within 1 year of such
death/disability;
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The Funds must be notified in writing of such death/disability
at time of redemption request;
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The Funds must be provided with satisfactory evidence of death
(death certificate) or disability (doctors certificate
specifically referencing disability as defined in 72(m)(7)
referenced above).
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Shares purchased through dividend and capital gains reinvestment.
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Participation in the Systematic Withdrawal Plan described below:
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Withdrawal not to exceed 10% of the current balance of a Fund in
a 12 month period, the 10% amount will be calculated as of
the date of the initial Systematic Withdrawal Plan and
recalculated annually on the 12 month anniversary date.
Shares purchased through dividend or capital gains reinvestment,
although not subject
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PURCHASING,
SELLING AND EXCHANGING FUND SHARES
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to the CDSC, will be included in calculating the account value
and 10% limitation amount;
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If the total of all Fund account withdrawals (Systematic
Withdrawal Plan or otherwise) exceeds the 10% limit within the
12 month period following the initial calculation date, the
entire Systematic Withdrawal Plan for the period will be subject
to the applicable sales charge, in the initial year of a
Systematic Withdrawal Plan, the withdrawal limitation period
shall begin 12 months before the initial Systematic
Withdrawal Plan payment;
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To qualify for the CDSC waiver under the Systematic Withdrawal
Plan a Fund account must have a minimum of $25,000 at Systematic
Withdrawal Plan inception and must also reinvest dividends and
capital gains distributions.
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Required mandatory minimum withdrawals made after
701/2
under any retirement plan qualified under IRS Code
Section 401, 408 or 403(b) or resulting from the tax free
return of an excess distribution to an Individual Retirement
Account (IRA). Satisfactory qualified plan documentation to
support any waiver includes employer letter (separation from
services) and plan administrator certificate (certain
distributions under plan requirements).
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Permitted exchanges of shares, except if shares acquired by
exchange are then redeemed within the period during which a CDSC
would apply to the initial shares purchased.
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Exchanges in connection with plans of Fund reorganizations such
as mergers and acquisitions.
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To take advantage of any of these waivers, you must qualify in
advance. To see if you qualify, please call your investment
professional or other investment representative. These waivers
are subject to change or elimination at any time at the
discretion of the Funds.
The C Shares CDSC will be waived for certain retirement plan
providers that have entered into administrative agreements with
the Funds. Please see the SAI for more information on this
program.
Offering Price of
Fund Shares A Shares, C Shares, and I
Shares
The offering price of A Shares is the NAV next calculated after
the transfer agent receives your request, in proper form, plus
any front-end sales charge. The offering price of C Shares and I
Shares is simply the next calculated NAV.
You can also obtain this information about sales charges, rights
of accumulation and letters of intent on the Funds website
at www.ridgeworthfunds.com.
How to Sell Your
Fund Shares
You may sell your shares on any Business Day by contacting your
financial institution or intermediary. Your financial
institution or intermediary will give you information about how
to sell your shares including any specific cut-off times
required.
Selling A Shares
and C Shares
If you own your A Shares or C Shares through an account with a
broker or other financial institution or intermediary, contact
that broker, financial institution or intermediary to sell your
shares. Your broker, financial institution or intermediary may
charge a fee for its services, in addition to the fees charged
by the Funds.
Shareholders who purchased shares directly from the Funds may
sell their Fund Shares by:
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Mail
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Telephone (1-888-784-3863)
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Wire
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Fax
(1-800-451-8377)
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ACH
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Selling I
Shares
You may sell your I Shares on any Business Day by contacting
your financial institution or intermediary. Your financial
institution or intermediary will give you information about how
to sell your shares including any specific cut-off times
required.
Holders of I Shares may sell shares by following the procedures
established when they opened their account or accounts with the
Funds or with their financial institution or intermediary. The
sale price of each share will be the next NAV determined after
the Funds receive your request in proper form.
Redemption orders must be received by the Prime Quality Money
Market Fund on any Business Day before 3:00 p.m., Eastern
Time. Orders received after 3:00 p.m., Eastern Time will be
executed the following Business Day.
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
A Medallion
Signature
Guarantee¨
A Shares, C Shares and I Shares
A Medallion Signature Guarantee by a bank or other
financial institution (a notarized signature is not sufficient)
is required to redeem shares:
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made payable to someone other than the registered shareholder;
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sent to an address or bank account other than the address or
bank account of record; or
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sent to an address or bank account of record that has been
changed within the last 15 calendar days.
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Other documentation may be required depending on the
registration of the account.
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Medallion Signature Guarantee: A Medallion Signature
Guarantee verifies the authenticity of your signature and helps
ensure that changes to your account are in fact authorized by
you. A Medallion Signature Guarantee may be obtained from a
domestic bank or trust company, broker, dealer, clearing agency,
savings association or other financial institution participating
in a Medallion Program recognized by the Securities Trading
Association. Signature guarantees from financial institutions
that do not reflect one of the following are not part of the
program and will not be accepted. The acceptable Medallion
programs are Securities Transfer Agents Medallion Program,
(STAMP), Stock Exchange Medallion Program, (SEMP), or the New
York Stock Exchange, Inc. Medallion Program, (NYSE MSP). Contact
your local financial adviser or institution for further
assistance.
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Sale Price of
Fund Shares A Shares, C Shares and
I Shares
The sale price of each share will be the next NAV determined
after the Funds receive your request, in proper form, less, in
the case of C Shares, any applicable CDSC.
Redemption orders must be received by the Funds on a Business
Day before 10:30 a.m., Eastern Time for the Tax-Exempt
Money Market Fund and the Virginia Tax-Free Money Market Fund or
before 3:00 p.m., Eastern Time for the Prime Quality Money
Market Fund, the U.S. Government Securities Money Market
Fund and the U.S. Treasury Money Market Fund. Orders
received after these times will be executed the following
Business Day.
Systematic
Withdrawal Plan A Shares and C Shares
If you have at least $10,000 in your account, you may use the
systematic withdrawal plan. Under the plan you may arrange
monthly, quarterly, semi-annual or annual automatic withdrawals
of at least $50 from any Fund. The proceeds of each withdrawal
will be mailed to you by check or, if you have a checking or
savings account with a bank, may be electronically transferred
to your account. Please check with your bank. Withdrawals under
the Systematic Withdrawal Plan may be subject to a CDSC unless
they meet the requirements described above under Waiver of
the CDSC.
Receiving Your
Money A Shares, C Shares and I Shares
Under normal circumstances, if a Fund receives your order before
the Funds cut-off time (as set forth under How to
Sell Your Fund Shares), the Fund will make
available to you the proceeds that same business day, by wire.
Otherwise, except as permitted by federal securities laws your
redemption proceeds will be paid within seven days after the
Fund receives the redemption request in good order.
Redemptions In
Kind A Shares, C Shares and I Shares
The Funds generally pay redemption proceeds in cash. However,
under unusual conditions that make the payment of cash unwise
(and for the protection of the Funds remaining
shareholders), the Funds might pay all or part of your
redemption proceeds in liquid securities with a market value
equal to the redemption price (redemption in kind). It is highly
unlikely that your shares would ever be redeemed in kind, but if
they were you would probably have to pay transaction costs to
sell the securities distributed to you, as well as taxes on any
capital gains from the sale as with any redemption.
Involuntary Sales
of Your Shares A Shares and C Shares
If your account balance drops below the required minimum as a
result of redemptions you may be required to sell your shares.
The account balance minimums are:
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Class
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Dollar Amount
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A Shares
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$2,000
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C Shares
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$5,000 ($2,000 for IRA or other tax qualified accounts)
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PURCHASING,
SELLING AND EXCHANGING FUND SHARES
But, the Funds will always give you at least 60 days
written notice to give you time to add to your account and avoid
the sale of your shares.
Suspension of
Your Right to Sell Your Shares A Shares,
C Shares and I Shares
A Fund may suspend your right to sell your shares if the NYSE
restricts trading, the SEC declares an emergency or for other
reasons approved by the SEC. More information about this is in
the SAI.
How to Exchange
Your Shares A Shares and
C Shares
You may exchange your A Shares or C Shares on any Business Day
by contacting the Funds or your financial institution or
intermediary by mail or telephone. Exchange requests must be for
an amount of at least $1,000.
The exchange privilege is not intended as a vehicle for
short-term trading. Excessive exchange activity may interfere
with Fund management and may have an adverse effect on all
shareholders. In order to limit excessive exchange activity and
in other circumstances where it is in the best interests of a
Fund, all Funds reserve the right to revise or terminate the
exchange privilege, limit the amount or number of exchanges or
reject any exchange or restrict or refuse purchases if
(1) a Fund or its manager(s) believes the Fund would be
harmed or unable to invest effectively, or (2) a Fund
receives or anticipates orders that may dramatically affect the
Fund as outlined under Market Timing Policies and
Procedures below.
If you recently purchased shares by check, or through ACH,
you may not be able to exchange your shares until your funds
have cleared (which may take up to 15 calendar days from your
date of purchase). This exchange privilege may be changed or
canceled at any time upon 60 days notice.
Exchanges
When you exchange shares, you are really selling your shares of
one Fund and buying shares of another RidgeWorth Fund. So, your
sale price and purchase price will be based on the NAV next
calculated after the Funds receive your exchange requests, in
proper form.
A
Shares
You may exchange A Shares of any Fund for A Shares of any other
RidgeWorth Fund. If you exchange shares that you purchased
without a sales charge or with a lower sales charge into a
RidgeWorth Fund with a sales charge or with a higher sales
charge, the exchange is subject to a sales charge equal to the
difference between the lower and higher applicable sales
charges. If you exchange shares into a RidgeWorth Fund with the
same, lower or no sales charge there is no sales charge for the
exchange.
The amount of your exchange must meet any initial or subsequent
purchase minimums applicable to the RidgeWorth Fund into which
you are making the exchange.
C
Shares
You may exchange C Shares of any Fund for C Shares of any other
RidgeWorth Fund. For purposes of computing the CDSC applicable
to C Shares, the length of time you have owned your shares will
be measured from the original date of purchase and will not be
affected by any exchange.
Telephone
Transactions A Shares, C Shares and I
Shares
Purchasing, selling and exchanging Fund shares over the
telephone is extremely convenient, but not without risk.
Although the Funds have certain safeguards and procedures to
confirm the identity of callers and the authenticity of
instructions, the Funds are not responsible for any losses or
costs incurred by following telephone instructions the Funds
reasonably believe to be genuine. If you or your financial
institution or intermediary transact with the Funds over the
telephone, you will generally bear the risk of any loss. The
Funds reserve the right to modify, suspend or terminate
telephone transaction privileges at any time.
To redeem shares by telephone:
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redemption checks must be made payable to the registered
shareholder; and
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redemption checks must be mailed to an address or wired to a
bank account of record that has been associated with the
shareholder account for at least 15 calendar days.
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MARKET TIMING
POLICIES AND PROCEDURES
Market Timing
Policies and Procedures
Each Fund is a money market fund and seeks to provide a high
degree of liquidity, current income and a stable net asset value
of $1.00 per share. Each Fund is designed to serve as short-term
cash equivalent investments for shareholders and, therefore,
expect shareholders to engage in frequent purchases and
redemptions. Because of the inherently liquid nature of the
Funds investments, and money market instruments in
general, and the Funds intended purpose to serve as
short-term investment vehicles for shareholders, the Adviser has
informed the Board that it believes that it would not be in
shareholders best interests to place any limitations on
the frequency of shareholder purchases and redemptions into and
out of the Funds. As a result, the Board has not adopted a Fund
policy or procedures with respect to frequent purchases and
redemptions.
Distribution of
Fund Shares
The A Shares and C Shares of each Fund have each adopted a
distribution plan that allows the Fund to pay distribution and
service fees for the sale and distribution of its shares, and
for services provided to shareholders. Because these fees are
paid out of a Funds assets continuously, over time these
fees will increase the cost of your investment and may cost you
more than paying other types of sales charges.
While C Shares are sold without any initial sales charge, the
distributor may pay at the time of sale up to 1% of the amount
invested to broker-dealers and other financial intermediaries
who sell C Shares. Through the distribution plan, the
distributor is reimbursed for these payments, as well as other
distribution related services provided by the distributor.
For A Shares, each Funds distribution plan authorizes
payment of up to the amount shown under Maximum Fee
in the table that follows. Currently, however, the Board has
only approved payment of up to the amount shown under
Current Approved Fee in the table that follows. Fees
are shown as a percentage of average daily net assets of the
Funds A Shares.
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|
|
Current
|
|
|
Maximum
|
|
Approved
|
|
|
Fee
|
|
Fee
|
Prime Quality Money Market Fund
|
|
|
0.20%
|
|
|
|
0.15%
|
|
Tax-Exempt Money Market Fund
|
|
|
0.15%
|
|
|
|
0.15%
|
|
U.S. Government Securities Money Market Fund
|
|
|
0.17%
|
|
|
|
0.15%
|
|
U.S. Treasury Money Market Fund
|
|
|
0.15%
|
|
|
|
0.15%
|
|
Virginia Tax-Free Money Market Fund
|
|
|
0.20%
|
|
|
|
0.15%
|
|
For C Shares of the Prime Quality Money Market Fund, the maximum
distribution fee is 0.25% of the average daily net assets of the
Funds C Shares.
The Funds may provide financial assistance in connection with
pre-approved seminars, conferences and advertising to the extent
permitted by applicable state or self-regulatory agencies, such
as the Financial Industry Regulatory Authority.
From their own assets, the Adviser, the Subadviser or their
affiliates may make payments based on gross sales and current
assets to selected brokerage firms or institutions. The amount
of these payments may be substantial. The minimum aggregate
sales required for eligibility for such payments, and the
factors in selecting the brokerage firms and institutions to
which they will be made, are determined from time to time by the
Adviser or Subadviser. Furthermore, in addition to the fees that
may be paid by a Fund, the Adviser, the Subadviser or their
affiliates may pay fees from their own capital resources to
brokers, banks, financial advisers, retirement plan service
providers and other financial intermediaries, including
affiliates, for providing distribution-related or shareholder
services.
The Adviser, the Subadviser or their affiliates may pay fees
from their own capital resources to financial intermediaries to
compensate them for marketing expenses they incur or to pay for
the opportunity to have them distribute the Funds. The amount of
these payments is determined by the Adviser or the Subadviser
and may differ among financial intermediaries. Such payments may
provide incentives for financial intermediaries to make shares
of the Funds available to their customers, and may allow the
Funds greater access to such financial intermediaries and their
customers than would be the case if no payments were made. You
may wish to consider whether such arrangements exist when
evaluating any recommendation to purchase shares of the Funds.
Please refer to the SAI for more information regarding these
arrangements.
DIVIDENDS AND
DISTRIBUTIONS AND TAXES
Dividends and
Distributions
Each Fund declares dividends daily and pay these dividends
monthly. Each Fund makes distributions of its net realized
capital gains, if any, at least annually. If you own shares on a
Funds record date, you will be entitled to receive the
distribution.
You will receive dividends and distributions in the form of
additional Fund shares unless you elect to receive payment in
cash. To elect cash payment, you must notify the Funds in
writing prior to the date of the distribution. Your election
will be effective for dividends and distributions paid after the
Funds receive your written notice. To cancel your election,
simply send the Funds written notice.
401(k) Plan participants will receive dividends and
distributions in the form of additional Fund shares if the
participant owns shares of the Fund on the date the dividend or
distribution is allocated by the Plan. Therefore, a participant
will not receive a dividend or distribution if the participant
does not own shares of the Fund on the date the dividend or
distribution is allocated.
Taxes
Please consult your tax advisor regarding your specific
questions about federal, state, and local income taxes.
Below the Funds have summarized some important tax issues that
affect the Funds and their shareholders. This summary is based
on current tax laws, which may change. More information on taxes
is in the SAI.
Dividends and distributions will accumulate on a tax-deferred
basis if you are investing through a 401(k) Plan or any other
employer-sponsored retirement or savings plan that qualifies for
tax-advantaged treatment under federal income tax laws.
Generally, you will not owe taxes on these distributions until
you begin withdrawals from the plan. Redemptions of Fund shares
resulting in withdrawals from the plan are subject to numerous
complex and special tax rules and may be subject to a penalty
tax in the case of premature withdrawals. If you have questions
about the tax consequences of 401(k) Plan withdrawals, you
should consult your tax advisor or plan administrator.
Each Fund will distribute substantially all of its net
investment income and its net realized capital gains, if any, at
least annually. The dividends and distributions you receive may
be subject to federal, state and local taxation, depending upon
your tax situation. Distributions you receive from a Fund may be
taxable whether or not you reinvest them. Income distributions
are generally taxable at ordinary income tax rates and will not
qualify for the reduced rates applicable to qualified dividend
income. Each Fund will inform you of the amount of your ordinary
income dividends. Each sale or exchange of Fund shares may be
a taxable event; however, because the Funds expect to maintain a
stable $1.00 net asset value per share, you should not
expect to realize any gain or loss on the sale or exchange of
your Fund shares. A transfer from one share class to another in
the same RidgeWorth Fund should not be a taxable event.
If you have a tax-advantaged or other retirement account you
will generally not be subject to federal taxation on income and
capital gain distributions until you begin receiving your
distributions from your retirement account. You should consult
your tax advisor regarding the rules governing your own
retirement plan.
The Tax-Exempt Money Market Fund and Virginia Tax-Free Money
Market Fund intend to distribute federally tax-exempt income.
Both of these Funds may invest a portion of their assets in
securities that generate taxable income for federal or state
income taxes. Income exempt from federal tax may be subject to
state and local taxes. Any capital gains distributed by these
Funds may be taxable. These Funds expect to pay exempt
interest dividends that are generally excludable from an
investors gross income for regular federal income tax
purposes. However, the receipt of exempt-interest dividends may
cause recipients of Social Security or Railroad Retirement
benefits to be taxed on a portion of such benefits. In addition,
the receipt of exempt-interest dividends may result in liability
for federal alternative minimum tax and for state (including
state alternative minimum tax) and local taxes, both for
individual and corporate shareholders.
The Prime Quality Money Market Fund, the U.S. Government
Securities Money Market Fund and the U.S. Treasury Money
Market Fund expect to distribute primarily ordinary income. In
addition, a significant portion of each of these three
Funds distributions may represent interest earned on
U.S. obligations. Many states grant tax-free status to
dividends paid from interest earned on direct obligations of the
U.S. Government, subject to certain limitations. Many
states grant tax-free status to dividends paid from interest
earned on direct obligations of the U.S. Government,
subject to certain limitations.
More information
about taxes is in the SAI.
FINANCIAL
HIGHLIGHTS
The financial highlights table is intended to help you
understand a Funds financial performance for the past
5 years. Certain information reflects financial results for
a single Fund share. The total returns in the table represent
the rate that an investor would have earned (or lost) on an
investment in the Fund (assuming reinvestment of all dividends
and distributions). This financial information has been audited
by PricewaterhouseCoopers LLP. The Report of Independent
Registered Public Accounting Firm for each period shown, along
with the Funds financial statements and related notes, are
included in the Annual Reports to Shareholders for such periods.
The 2010 Annual Report is available upon request and without
charge by calling 1-888-784-3863 or on the Funds website
at www.ridgeworth.com.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
|
Expenses
|
|
Income
|
|
Average
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
Prime Quality Money Market Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
1.00
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
1.00
|
|
|
|
0.09
|
%
|
|
$
|
2,381,233
|
|
|
|
0.31
|
%
|
|
|
0.10
|
%
|
|
|
0.59
|
%
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
|
|
|
|
0.02
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
1.00
|
|
|
|
1.55
|
(a)
|
|
|
3,448,997
|
|
|
|
0.55
|
|
|
|
1.55
|
(a)
|
|
|
0.55
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
1.00
|
|
|
|
4.46
|
(b)
|
|
|
3,834,993
|
|
|
|
0.52
|
|
|
|
4.34
|
(b)
|
|
|
0.52
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.05
|
|
|
|
|
|
|
|
0.05
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
1.00
|
|
|
|
4.83
|
|
|
|
3,248,781
|
|
|
|
0.53
|
|
|
|
4.73
|
|
|
|
0.53
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
3.25
|
|
|
|
2,976,881
|
|
|
|
0.58
|
|
|
|
3.19
|
|
|
|
0.61
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
2,492,632
|
|
|
|
0.39
|
|
|
|
0.02
|
|
|
|
0.74
|
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
1.00
|
|
|
|
1.40
|
(a)
|
|
|
3,822,051
|
|
|
|
0.69
|
|
|
|
1.51
|
(a)
|
|
|
0.70
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
1.00
|
|
|
|
4.30
|
(b)
|
|
|
6,523,136
|
|
|
|
0.67
|
|
|
|
4.21
|
(b)
|
|
|
0.67
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.05
|
|
|
|
|
|
|
|
0.05
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
1.00
|
|
|
|
4.67
|
|
|
|
5,917,224
|
|
|
|
0.68
|
|
|
|
4.59
|
|
|
|
0.68
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
3.08
|
|
|
|
4,011,561
|
|
|
|
0.74
|
|
|
|
3.16
|
|
|
|
0.76
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
1,135
|
|
|
|
0.39
|
|
|
|
0.02
|
|
|
|
0.84
|
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
1.00
|
|
|
|
1.31
|
(a)
|
|
|
2,246
|
|
|
|
0.78
|
|
|
|
1.45
|
(a)
|
|
|
0.79
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
1.00
|
|
|
|
4.20
|
(b)
|
|
|
4,129
|
|
|
|
0.77
|
|
|
|
4.11
|
(b)
|
|
|
0.77
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
1.00
|
|
|
|
4.57
|
|
|
|
3,733
|
|
|
|
0.78
|
|
|
|
4.47
|
|
|
|
0.78
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
3.01
|
|
|
|
3,991
|
|
|
|
0.82
|
|
|
|
2.81
|
|
|
|
1.10
|
|
Tax-Exempt Money Market Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00
|
|
|
|
0.11
|
|
|
|
1,539,158
|
|
|
|
0.27
|
|
|
|
0.11
|
|
|
|
0.51
|
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
1.00
|
|
|
|
1.20
|
|
|
|
1,568,626
|
|
|
|
0.48
|
|
|
|
1.18
|
|
|
|
0.50
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
2.94
|
|
|
|
1,573,560
|
|
|
|
0.48
|
|
|
|
2.85
|
|
|
|
0.48
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
3.15
|
|
|
|
1,157,688
|
|
|
|
0.48
|
|
|
|
3.10
|
|
|
|
0.48
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
|
|
|
|
0.02
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
1.00
|
|
|
|
2.27
|
|
|
|
1,172,717
|
|
|
|
0.50
|
|
|
|
2.25
|
|
|
|
0.53
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
213,399
|
|
|
|
0.37
|
|
|
|
0.02
|
|
|
|
0.66
|
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
1.00
|
|
|
|
1.05
|
|
|
|
358,910
|
|
|
|
0.63
|
|
|
|
1.07
|
|
|
|
0.65
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
2.78
|
|
|
|
590,345
|
|
|
|
0.63
|
|
|
|
2.75
|
|
|
|
0.63
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
3.00
|
|
|
|
594,416
|
|
|
|
0.63
|
|
|
|
2.95
|
|
|
|
0.63
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
|
|
|
|
0.02
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
1.00
|
|
|
|
2.12
|
|
|
|
671,164
|
|
|
|
0.65
|
|
|
|
2.10
|
|
|
|
0.68
|
|
See Notes to Financial
Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
|
Expenses
|
|
Income
|
|
Average
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
U.S. Government Securities Money Market Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
1.00
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
1.00
|
|
|
|
0.07
|
%
|
|
$
|
729,297
|
|
|
|
0.22
|
%
|
|
|
0.07
|
%
|
|
|
0.60
|
%
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
1.00
|
|
|
|
1.16
|
|
|
|
879,234
|
|
|
|
0.57
|
|
|
|
1.32
|
|
|
|
0.58
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
1.00
|
|
|
|
4.12
|
|
|
|
2,108,351
|
|
|
|
0.58
|
|
|
|
3.71
|
|
|
|
0.58
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.05
|
|
|
|
|
|
|
|
0.05
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
1.00
|
|
|
|
4.62
|
|
|
|
691,145
|
|
|
|
0.59
|
|
|
|
4.56
|
|
|
|
0.59
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
3.07
|
|
|
|
413,893
|
|
|
|
0.62
|
|
|
|
2.99
|
|
|
|
0.65
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2010Ù
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
180,878
|
|
|
|
0.30
|
|
|
|
0.02
|
|
|
|
0.75
|
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
1.00
|
|
|
|
1.01
|
|
|
|
344,238
|
|
|
|
0.72
|
|
|
|
0.96
|
|
|
|
0.74
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
1.00
|
|
|
|
3.96
|
|
|
|
333,593
|
|
|
|
0.74
|
|
|
|
3.86
|
|
|
|
0.74
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
1.00
|
|
|
|
4.46
|
|
|
|
257,949
|
|
|
|
0.74
|
|
|
|
4.37
|
|
|
|
0.74
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
2.91
|
|
|
|
253,648
|
|
|
|
0.77
|
|
|
|
2.91
|
|
|
|
0.80
|
|
U.S. Treasury Money Market Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00
|
|
|
|
0.05
|
|
|
|
796,213
|
|
|
|
0.15
|
|
|
|
0.06
|
|
|
|
0.60
|
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
1.00
|
|
|
|
0.75
|
|
|
|
1,238,400
|
|
|
|
0.41
|
|
|
|
0.72
|
|
|
|
0.58
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
1.00
|
|
|
|
3.67
|
|
|
|
1,130,334
|
|
|
|
0.58
|
|
|
|
3.57
|
|
|
|
0.59
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.05
|
|
|
|
|
|
|
|
0.05
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
1.00
|
|
|
|
4.61
|
|
|
|
1,025,065
|
|
|
|
0.58
|
|
|
|
4.50
|
|
|
|
0.58
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
2.99
|
|
|
|
1,650,172
|
|
|
|
0.60
|
|
|
|
2.98
|
|
|
|
0.63
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
329,380
|
|
|
|
0.17
|
|
|
|
0.02
|
|
|
|
0.75
|
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
1.00
|
|
|
|
0.61
|
|
|
|
262,284
|
|
|
|
0.48
|
|
|
|
0.31
|
|
|
|
0.73
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
3.52
|
|
|
|
101,460
|
|
|
|
0.73
|
|
|
|
3.03
|
|
|
|
0.74
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
1.00
|
|
|
|
4.45
|
|
|
|
31,554
|
|
|
|
0.73
|
|
|
|
4.41
|
|
|
|
0.73
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
2.84
|
|
|
|
12,366
|
|
|
|
0.75
|
|
|
|
3.12
|
|
|
|
0.76
|
|
Virginia Tax-Free Money Market Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00
|
|
|
|
0.11
|
|
|
|
162,341
|
|
|
|
0.28
|
|
|
|
0.11
|
|
|
|
0.50
|
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
1.00
|
|
|
|
1.25
|
|
|
|
202,553
|
|
|
|
0.46
|
|
|
|
1.28
|
|
|
|
0.47
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
2.97
|
|
|
|
294,937
|
|
|
|
0.44
|
|
|
|
2.91
|
|
|
|
0.45
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
3.14
|
|
|
|
230,191
|
|
|
|
0.45
|
|
|
|
3.09
|
|
|
|
0.45
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
|
|
|
|
0.02
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
1.00
|
|
|
|
2.33
|
|
|
|
226,319
|
|
|
|
0.46
|
|
|
|
2.28
|
|
|
|
0.46
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
152,538
|
|
|
|
0.38
|
|
|
|
0.02
|
|
|
|
0.65
|
|
Year Ended March 31, 2009
|
|
|
1.00
|
|
|
|
0.01
|
|
|
|
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
1.00
|
|
|
|
1.09
|
|
|
|
237,685
|
|
|
|
0.61
|
|
|
|
1.17
|
|
|
|
0.62
|
|
Year Ended March 31, 2008
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
2.82
|
|
|
|
418,242
|
|
|
|
0.59
|
|
|
|
2.75
|
|
|
|
0.60
|
|
Year Ended March 31, 2007
|
|
|
1.00
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
1.00
|
|
|
|
2.98
|
|
|
|
378,541
|
|
|
|
0.60
|
|
|
|
2.94
|
|
|
|
0.60
|
|
Year Ended March 31, 2006
|
|
|
1.00
|
|
|
|
0.02
|
|
|
|
|
|
|
|
0.02
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
1.00
|
|
|
|
2.16
|
|
|
|
303,752
|
|
|
|
0.62
|
|
|
|
2.12
|
|
|
|
0.68
|
|
See Notes to Financial
Highlights.
NOTES TO
FINANCIAL HIGHLIGHTS
|
|
|
(1)
|
|
Total return excludes sales charge.
Not annualized for periods less than one year.
|
|
|
|
(2)
|
|
Annualized for periods less than
one year.
|
|
|
|
(a)
|
|
During the year ended
March 31, 2009 the Fund received certain payments by an
affiliate. These payments had no impact to the ratio of net
investment income to average net assets. Absent these payments,
the total return would have been 0.55%, 0.40% and 0.31% for
I Shares, A Shares and C Shares, respectively.
|
|
|
|
(b)
|
|
During the year ended
March 31, 2008, the Fund received certain payments by an
affiliate. Absent these payments, the ratio of net investment
income to average net assets would have been 4.14% for I Shares,
4.01% for A Shares and 3.91% for C Shares. There was no impact
to the total return as a result of these payments.
|
Amounts designated as are $0 or have been
rounded to $0.
PRIVACY
POLICY
RidgeWorth
Funds
Our Privacy
Policy
At RidgeWorth Funds, we recognize the sensitive nature of your
personal financial information and take every precaution to
protect your privacy. In providing services to you as an
individual who owns or is considering investing in shares of
RidgeWorth Funds, we collect certain nonpublic personal
information about you. Our policy is to safeguard this
information and keep it confidential, and to use or disclose it
only as necessary to provide services to you or as otherwise
required or permitted by law. When you entrust us with your
financial information, it will be used only within our strict
guidelines. Our privacy policy and practices apply equally to
nonpublic personal information about former shareholders and
individuals who have inquired about RidgeWorth Funds.
Information We
Collect
Nonpublic personal information is personally
identifiable financial information about you as an individual or
your family. The type of nonpublic personal information we have
about you may include the information you provide on your
account application; information you provide in telephone calls
or correspondence with us; information about your transactions
and holdings in RidgeWorth Funds, and information about how you
vote your shares.
Information We
Disclose
RidgeWorth Funds policy is to only disclose nonpublic
personal information about you to companies that provide
necessary services such as RidgeWorth Funds transfer
agent, distributor, administrator or investment adviser;
affiliates of RidgeWorth Funds, or as may otherwise be permitted
or required by law or authorized by you.
How We Safeguard
Your Information
We restrict access to nonpublic personal information about you
to those persons who are required to have certain information in
order to provide services to you, or who are permitted by law to
receive it. We have strict internal policies against
unauthorized disclosure or use of customer information. We
maintain customer information as mandated by financial
regulations, and policies and procedures are in place for
appropriate confidential destruction of all restricted access
data.
If you have any questions regarding our Privacy Policy,
please call 1-888-784-3863.
This is not part of the Prospectus.
|
|
|
Investment Adviser:
|
|
|
RidgeWorth Investments
50 Hurt Plaza, Suite 1400
Atlanta, Georgia 30303
www.ridgeworth.com
|
|
|
|
|
|
Investment Subadviser:
|
|
|
StableRiver Capital Management LLC
50 Hurt Plaza, Suite 1300
Atlanta, GA 30303
www.stableriver.com
|
|
|
More information about the RidgeWorth Funds is available without
charge through the following:
Statement of Additional Information (SAI):
The SAI includes detailed information about the RidgeWorth
Funds. The SAI is on file with the SEC and is incorporated by
reference into this prospectus. This means that the SAI, for
legal purposes, is a part of this prospectus.
Annual and Semi-Annual Reports:
These reports list each Funds holdings and contain
information from the Funds managers about strategies and
recent market conditions and trends and their impact on Fund
performance. The reports also contain detailed financial
information about the Funds.
To Obtain an SAI, Annual or Semi-Annual Report, or More
Information:
|
|
Telephone: |
Shareholder Services
1-888-784-3863
|
Mail:
RidgeWorth Funds
3435 Stelzer Road
Columbus, Ohio 43219
Website: www.ridgeworth.com
SEC:
You can also obtain the SAI or the Annual and Semi-Annual
reports, as well as other information about the RidgeWorth
Funds, from the EDGAR Database on the SECs website at
http://www.sec.gov.
You may review and copy documents at the SEC Public Reference
Room in Washington, DC (for information on the operation of the
Public Reference Room, call
202-551-8090).
You may request documents by mail from the SEC, upon payment of
a duplicating fee, by writing to: Securities and Exchange
Commission, Public Reference Section, Washington, DC
20549-1520.
You may also obtain this information, upon payment of a
duplicating fee, by
e-mailing
the SEC at publicinfo@sec.gov.
The RidgeWorth Funds Investment Company Act registration
number is
811-06557.
Collective Strength Individual Insight is a federally registered
service mark of RidgeWorth Investments.
RFPRO-MM-0810
|
|
|
|
|
EQUITY FUNDS A, C, & I SHARES PROSPECTUS
August 1, 2010 Investment Adviser: RidgeWorth Investments®
|
|
|
|
|
|
|
|
|
|
Class A
|
|
Class C
|
|
Class I
|
|
|
Shares
|
|
Shares
|
|
Shares
|
Value Funds
|
|
|
|
|
|
|
Subadviser: Ceredex Value Advisors LLC
|
|
|
|
|
|
|
Large Cap Value Equity Fund
|
|
SVIIX
|
|
SVIFX
|
|
STVTX
|
Mid-Cap Value Equity Fund
|
|
SAMVX
|
|
SMVFX
|
|
SMVTX
|
Small Cap Value Equity Fund
|
|
SASVX
|
|
STCEX
|
|
SCETX
|
|
|
|
|
|
|
|
Core Funds
|
|
|
|
|
|
|
Subadviser: IronOak Advisors LLC
|
|
|
|
|
|
|
Large Cap Core Equity Fund
|
|
CFVIX
|
|
CVIBX
|
|
CRVAX
|
Mid-Cap Core Equity Fund
|
|
SCAIX
|
|
SCMEX
|
|
SAGTX
|
|
|
|
|
|
|
|
Growth Funds
|
|
|
|
|
|
|
Subadviser: Silvant Capital Management LLC
|
|
|
|
|
|
|
Large Cap Growth Stock Fund
|
|
STCIX
|
|
STCFX
|
|
STCAX
|
Select Large Cap Growth Stock Fund
|
|
SXSAX
|
|
STTFX
|
|
STTAX
|
Small Cap Growth Stock Fund
|
|
SCGIX
|
|
SSCFX
|
|
SSCTX
|
|
|
|
|
|
|
|
Subadviser: Zevenbergen Capital Investments LLC
|
|
|
|
|
|
|
Aggressive Growth Stock Fund
|
|
SAGAX
|
|
|
|
SCATX
|
Emerging Growth Stock Fund
|
|
SCEAX
|
|
|
|
SEGTX
|
|
|
|
|
|
|
|
International/Quantitative Funds
|
|
|
|
|
|
|
Subadviser: Certium Asset Management LLC
|
|
|
|
|
|
|
International Equity Fund
|
|
SCIIX
|
|
|
|
STITX
|
International Equity Index Fund
|
|
SIIIX
|
|
|
|
SIEIX
|
Large Cap Quantitative Equity Fund
|
|
SQEAX
|
|
|
|
SQETX
|
|
|
|
|
|
|
|
130/30 Funds
|
|
|
|
|
|
|
Subadviser: Alpha Equity Management LLC
|
|
|
|
|
|
|
International Equity 130/30 Fund
|
|
SIELX
|
|
|
|
SCEIX
|
Real Estate 130/30 Fund
|
|
SREGX
|
|
|
|
SRIEX
|
U.S. Equity 130/30 Fund
|
|
SUEAX
|
|
|
|
SUEIX
|
The Securities and Exchange Commission has not approved or
disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal
offense.
RidgeWorth
Investments®
is the trade name of RidgeWorth Capital Management, Inc.
About
This Prospectus
RidgeWorth Funds is a mutual fund family that offers shares in
separate investment portfolios that have individual investment
goals and strategies. RidgeWorth Funds is an open-end management
investment company (commonly known as a mutual fund) established
under Massachusetts law as a Massachusetts business trust.
RidgeWorth Funds is required to comply with the Investment
Company Act of 1940 as well as other federal securities laws
that are applicable to all mutual funds. This prospectus gives
you important information about the A Shares, C Shares and I
Shares of the Equity Funds (Funds) that you should
know before investing. Please read this prospectus and keep it
for future reference.
A Shares, C Shares and I Shares have different expenses and
other characteristics, allowing you to choose the class that
best suits your needs. You should consider the amount you want
to invest, how long you plan to have it invested, and whether
you plan to make additional investments.
A Shares
|
|
|
$2,000 minimum initial investment
|
C Shares
|
|
|
Contingent deferred sales charge
|
|
|
|
$5,000 minimum initial investment
|
I Shares are offered exclusively to financial
institutions and intermediaries for their own accounts or for
the accounts of their customers.
This prospectus has been arranged into different sections so
that you can easily review this important information. For
detailed information about each Fund, please see:
|
|
|
|
|
|
1
|
|
Value Funds
|
|
|
|
1
|
|
Large Cap Value Equity
Fund
|
|
|
|
4
|
|
Mid-Cap Value Equity Fund
|
|
|
|
7
|
|
Small Cap Value Equity
Fund
|
|
|
|
10
|
|
Core Funds
|
|
|
|
10
|
|
Large Cap Core Equity Fund
|
|
|
|
13
|
|
Mid-Cap Core Equity Fund
|
|
|
|
16
|
|
Growth Funds
|
|
|
|
16
|
|
Large Cap Growth Stock
Fund
|
|
|
|
19
|
|
Select Large Cap Growth
Stock Fund
|
|
|
|
22
|
|
Small Cap Growth Stock
Fund
|
|
|
|
25
|
|
Aggressive Growth Stock
Fund
|
|
|
|
28
|
|
Emerging Growth Stock Fund
|
|
|
|
31
|
|
International/Quantitative
Funds
|
|
|
|
31
|
|
International Equity Fund
|
|
|
|
34
|
|
International Equity
Index Fund
|
|
|
|
37
|
|
Large Cap Quantitative
Equity Fund
|
|
|
|
40
|
|
130/30 Funds
|
|
|
|
40
|
|
International Equity
130/30 Fund
|
|
|
|
44
|
|
Real Estate 130/30 Fund
|
|
|
|
48
|
|
U.S. Equity 130/30 Fund
|
|
|
|
52
|
|
More Information About
Risk
|
|
|
|
56
|
|
More Information About
Indices
|
|
|
|
58
|
|
More Information About
Fund Investments
|
|
|
|
58
|
|
Information About
Portfolio Holdings
|
|
|
|
58
|
|
Management
|
|
|
|
62
|
|
Purchasing, Selling and
Exchanging Fund Shares
|
|
|
|
70
|
|
Market Timing Policies
and Procedures
|
|
|
|
71
|
|
Distribution of Fund
Shares
|
|
|
|
72
|
|
Shareholder Servicing
Plans
|
|
|
|
73
|
|
Dividends and
Distributions
|
|
|
|
73
|
|
Taxes
|
|
|
|
75
|
|
Financial Highlights
|
|
|
|
Inside
Back Cover
|
|
Privacy Policy
|
|
|
|
Back
Cover
|
|
How to Obtain More
Information
About RidgeWorth Funds
|
August 1,
2010
LARGE CAP VALUE
EQUITY FUND
Summary
Section
A Shares, C
Shares and I Shares
Investment
Objective
The Large Cap Value Equity Fund (the Fund) seeks
capital appreciation. As a secondary goal, the Fund also seeks
current income.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
0.77%
|
|
|
|
0.77%
|
|
|
|
0.77%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.05%
|
|
|
|
0.05%
|
|
|
|
0.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.12%
|
|
|
|
1.82%
|
|
|
|
0.82%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
683
|
|
|
$
|
911
|
|
|
$
|
1,156
|
|
|
$
|
1,860
|
|
C Shares
|
|
$
|
285
|
|
|
$
|
573
|
|
|
$
|
985
|
|
|
$
|
2,137
|
|
I Shares
|
|
$
|
84
|
|
|
$
|
262
|
|
|
$
|
455
|
|
|
$
|
1,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
683
|
|
|
$
|
911
|
|
|
$
|
1,156
|
|
|
$
|
1,860
|
|
C Shares
|
|
$
|
185
|
|
|
$
|
573
|
|
|
$
|
985
|
|
|
$
|
2,137
|
|
I Shares
|
|
$
|
84
|
|
|
$
|
262
|
|
|
$
|
455
|
|
|
$
|
1,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 105% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in U.S. traded equity securities of large cap
companies. U.S. traded equity securities may include
American Depositary Receipts (ADRs). Ceredex Value
Advisors LLC (the Subadviser) considers large cap
companies to be companies with market capitalizations similar to
those of companies in the Russell
1000®
Value Index. As of July 1, 2010, the market capitalization
range of companies in the Russell
1000®
Value Index was between approximately $684 million and
$269 billion.
In selecting investments for purchase and sale, the Subadviser
chooses companies that it believes are undervalued in the market
relative to the industry sector and the companys own
valuation history. The Subadviser evaluates potential catalysts
that may cause an upward re-rating of the stocks
valuation. Additionally, the common stocks purchased for the
Fund generally pay dividends at the time of purchase
LARGE CAP VALUE
EQUITY FUND
or are expected to pay dividends soon after their purchase.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization companies may be
less flexible in evolving markets or unable to implement change
as quickly as smaller capitalization companies.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
Style Risk (Value): A value investing style may be out of
favor in the marketplace. The potential value of a security as
perceived by the Subadviser may never be realized by the market.
ADR Risk: Because the Fund may invest in ADRs, it is
subject to some of the same risks as direct investments in
foreign companies. These include the risk that political and
economic events unique to a country or region will affect those
markets and their issuers.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
15.26%
|
|
-19.89%
|
(6/30/09)
|
|
(9/30/02)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -4.82%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax
LARGE CAP VALUE
EQUITY FUND
returns are shown for only the I Shares. After-tax returns for
other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
17.11%
|
|
|
|
0.64%
|
|
|
|
2.95%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
22.46%
|
|
|
|
1.13%
|
|
|
|
2.83%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
24.65%
|
|
|
|
2.15%
|
|
|
|
3.92%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
24.23%
|
|
|
|
1.17%
|
|
|
|
3.14%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
16.47%
|
|
|
|
1.65%
|
|
|
|
3.12%
|
|
|
|
Russell
1000®
Value Index (reflects no deduction for fees, expenses or taxes)
|
|
|
19.69%
|
|
|
|
-0.25%
|
|
|
|
2.47%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Ceredex Value Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. Mills Riddick, CFA, President and Chief Investment
Officer of the Subadviser, has managed the Fund since April 1995.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of the
Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
MID-CAP VALUE
EQUITY FUND
Summary
Section
A Shares, C
Shares and I Shares
Investment
Objective
The Mid-Cap Value Equity Fund (the Fund) seeks
capital appreciation. As a secondary goal, the Fund also seeks
current income.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
1.00%
|
|
|
|
1.00%
|
|
|
|
1.00%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.05%
|
|
|
|
0.05%
|
|
|
|
0.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.35%
|
|
|
|
2.05%
|
|
|
|
1.05%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
705
|
|
|
$
|
978
|
|
|
$
|
1,272
|
|
|
$
|
2,105
|
|
C Shares
|
|
$
|
308
|
|
|
$
|
643
|
|
|
$
|
1,103
|
|
|
$
|
2,379
|
|
I Shares
|
|
$
|
107
|
|
|
$
|
334
|
|
|
$
|
579
|
|
|
$
|
1,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
705
|
|
|
$
|
978
|
|
|
$
|
1,272
|
|
|
$
|
2,105
|
|
C Shares
|
|
$
|
208
|
|
|
$
|
643
|
|
|
$
|
1,103
|
|
|
$
|
2,379
|
|
I Shares
|
|
$
|
107
|
|
|
$
|
334
|
|
|
$
|
579
|
|
|
$
|
1,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 195% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in U.S. traded equity securities of mid-cap
companies. U.S. traded equity securities may include
American Depositary Receipts (ADRs). Ceredex Value
Advisors LLC (the Subadviser) considers mid-cap
companies to be companies with market capitalizations similar to
those of companies in the Russell
Midcap®
Index. As of July 1, 2010, the market capitalization range
of companies in the Russell
Midcap®
Index was between approximately $684 million and
$13.8 billion.
In selecting investments for purchase and sale, the Subadviser
chooses companies that it believes are undervalued in the market
relative to the industry sector and the companys own
valuation history. The Subadviser evaluates potential catalysts
that may cause an upward re-rating of the stocks
valuation. Additionally, the common stocks purchased for the
Fund generally pay dividends at the time of purchase
MID-CAP VALUE
EQUITY FUND
or are expected to pay dividends soon after their purchase.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
Style Risk (Value): A value investing style may be out of
favor in the marketplace. The potential value of a security as
perceived by the Subadviser may never be realized by the market.
ADR Risk: Because the Fund may invest in ADRs, it is
subject to some of the same risks as direct investments in
foreign companies. These include the risk that political and
economic events unique to a country or region will affect those
markets and their issuers.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
24.79%
|
|
-23.38%
|
(9/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -0.10%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax
MID-CAP VALUE
EQUITY FUND
returns are shown for only the I Shares. After-tax returns for
other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
5 Years
|
|
Inception*
|
|
|
A Shares Returns Before Taxes
|
|
|
38.07%
|
|
|
|
4.62%
|
|
|
|
8.52%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
44.73%
|
|
|
|
5.17%
|
|
|
|
6.19%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
46.98%
|
|
|
|
6.17%
|
|
|
|
7.08%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
46.66%
|
|
|
|
3.50%
|
|
|
|
5.22%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
30.87%
|
|
|
|
4.14%
|
|
|
|
5.32%
|
|
|
|
Russell
Midcap®
Value Index (reflects no deduction for fees, expenses or taxes)
|
|
|
34.21%
|
|
|
|
1.98%
|
|
|
|
N/A
|
|
|
|
Since Inception of the C and I Shares
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
7.34%
|
|
|
|
Since Inception of the A Shares
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
6.78%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since inception of the C Shares and I Shares on
November 30, 2001 and the A Shares on October 27,
2003.
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Ceredex Value Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. Don Wordell, CFA, Managing Director of the Subadviser,
has managed the Fund since its inception in November 2001.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of the
Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
SMALL CAP VALUE
EQUITY FUND
Summary
Section
A Shares, C
Shares and I Shares
Investment
Objective
The Small Cap Value Equity Fund (the Fund) seeks
capital appreciation. As a secondary goal, the Fund also seeks
current income.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
1.15%
|
|
|
|
1.15%
|
|
|
|
1.15%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.07%
|
|
|
|
0.07%
|
|
|
|
0.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.52%
|
|
|
|
2.22%
|
|
|
|
1.22%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
721
|
|
|
$
|
1,028
|
|
|
$
|
1,356
|
|
|
$
|
2,283
|
|
C Shares
|
|
$
|
325
|
|
|
$
|
694
|
|
|
$
|
1,190
|
|
|
$
|
2,554
|
|
I Shares
|
|
$
|
124
|
|
|
$
|
387
|
|
|
$
|
670
|
|
|
$
|
1,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
721
|
|
|
$
|
1,028
|
|
|
$
|
1,356
|
|
|
$
|
2,283
|
|
C Shares
|
|
$
|
225
|
|
|
$
|
694
|
|
|
$
|
1,190
|
|
|
$
|
2,554
|
|
I Shares
|
|
$
|
124
|
|
|
$
|
387
|
|
|
$
|
670
|
|
|
$
|
1,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 62% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in U.S. traded equity securities of small cap
companies. U.S. traded equity securities may include
American Depositary Receipts (ADRs). Ceredex Value
Advisors LLC (the Subadviser) considers small cap
companies to be companies with market capitalizations between
$50 million and $3 billion or with market
capitalizations similar to those of companies in the Russell
2000®
Value Index. As of July 1, 2010, the market capitalization
range of companies in the Russell
2000®
Value Index was between approximately $49 million and
$2 billion.
In selecting investments for purchase and sale, the Subadviser
chooses companies that it believes are undervalued in the market
relative to the industry sector and the companys own
valuation history. The Subadviser evaluates potential catalysts
that may cause an upward re-rating of the stocks
valuation. Additionally, the common stocks purchased for the
SMALL CAP VALUE
EQUITY FUND
Fund generally pay dividends at the time of purchase or are
expected to pay dividends soon after their purchase.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
Style Risk (Value): A value investing style may be out of
favor in the marketplace. The potential value of a security as
perceived by the Subadviser may never be realized by the market.
ADR Risk: Because the Fund may invest in ADRs, it is
subject to some of the same risks as direct investments in
foreign companies. These include the risk that political and
economic events unique to a country or region will affect those
markets and their issuers.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. A Shares were
offered beginning on October 9, 2003. Performance prior to
October 9, 2003, with respect to A Shares, is that of I
Shares of the Fund, and has not been adjusted to reflect A Share
expenses. If it had been, performance would have been lower.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
19.65%
|
|
-26.62%
|
(9/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was 1.52%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax
SMALL CAP VALUE
EQUITY FUND
returns are shown for only the I Shares. After-tax returns for
other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
27.84%
|
|
|
|
2.79%
|
|
|
|
10.67%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
33.67%
|
|
|
|
3.82%
|
|
|
|
10.75%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
36.04%
|
|
|
|
4.29%
|
|
|
|
11.54%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
35.89%
|
|
|
|
1.51%
|
|
|
|
9.75%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
23.57%
|
|
|
|
3.31%
|
|
|
|
10.00%
|
|
|
|
Russell
2000®
Value Index (reflects no deduction for fees, expenses or taxes)
|
|
|
20.58%
|
|
|
|
-0.01%
|
|
|
|
8.27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Ceredex Value Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. Brett Barner, CFA, Managing Director of the Subadviser,
has managed the Fund since its inception in August 1994.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of the
Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
LARGE CAP CORE
EQUITY FUND
Summary
Section
A Shares, C
Shares and I Shares
Investment
Objective
The Large Cap Core Equity Fund (the Fund) seeks
long-term capital appreciation. As a secondary goal, the Fund
also seeks current income.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage
of the value of your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
0.85%
|
|
|
|
0.85%
|
|
|
|
0.85%
|
|
Distribution (12b-1) Fees
|
|
|
0.25%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.07%
|
|
|
|
0.07%
|
|
|
|
0.07%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.01%
|
|
|
|
0.01%
|
|
|
|
0.01%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.18%
|
|
|
|
1.93%
|
|
|
|
0.93%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
688
|
|
|
$
|
928
|
|
|
$
|
1,187
|
|
|
$
|
1,924
|
|
C Shares
|
|
$
|
296
|
|
|
$
|
606
|
|
|
$
|
1,042
|
|
|
$
|
2,254
|
|
I Shares
|
|
$
|
95
|
|
|
$
|
296
|
|
|
$
|
515
|
|
|
$
|
1,143
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
688
|
|
|
$
|
928
|
|
|
$
|
1,187
|
|
|
$
|
1,924
|
|
C Shares
|
|
$
|
196
|
|
|
$
|
606
|
|
|
$
|
1,042
|
|
|
$
|
2,254
|
|
I Shares
|
|
$
|
95
|
|
|
$
|
296
|
|
|
$
|
515
|
|
|
$
|
1,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 81% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in common stocks and other U.S. traded equity
securities of large cap companies. U.S. traded equity
securities may include American Depositary Receipts
(ADRs). IronOak Advisors LLC (the
Subadviser) considers large cap companies to be
companies with market capitalizations similar to those of
companies in the S&P 500 Index. As of July 1, 2010,
the market capitalization range of companies in the S&P 500
Index was between approximately $1 billion and
$269 billion.
The Subadviser believes that a portfolio of stocks with
attractive fundamental characteristics purchased at a reasonable
valuation will provide above average returns over time. In
selecting investments for purchase and sale, the Subadviser
chooses companies that, in its opinion, offer above average
stock appreciation potential relative to other companies in the
same economic sector. The Subadviser uses
LARGE CAP CORE
EQUITY FUND
sector-specific factors to highlight companies whose
characteristics are currently attractive versus market peers.
The Subadviser performs fundamental research to evaluate
securities for the portfolio. The Subadvisers approach
attempts to identify a well-defined investment
thesis (what it believes a companys prospects may be
over the next 12 to 18 months) based on competitive
positioning, business model, and potential catalysts and risks.
The Subadviser seeks securities with an attractive risk/return
profile, improving fundamentals and earnings outlook, and
relative financial strength and flexibility. The Subadviser may
sell a security when the investment thesis is realized, the
investment thesis breaks down, or a more attractive alternative
presents itself.
The Subadviser believes a diversified approach to portfolio
management is a critical component of the overall investment
process.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization companies may be
less flexible in evolving markets or unable to implement change
as quickly as smaller capitalization companies.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
ADR Risk: Because the Fund may invest in ADRs, it is
subject to some of the same risks as direct investments in
foreign companies. These include the risk that political and
economic events unique to a country or region will affect those
markets and their issuers.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
15.73%
|
|
-22.03%
|
(6/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -8.03%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
LARGE CAP CORE
EQUITY FUND
shown for only the I Shares. After-tax returns for other classes
will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
21.16%
|
|
|
|
-0.59%
|
|
|
|
0.70%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
26.73%
|
|
|
|
-0.14%
|
|
|
|
0.54%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
29.00%
|
|
|
|
0.86%
|
|
|
|
1.52%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
28.72%
|
|
|
|
-0.12%
|
|
|
|
0.84%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
19.15%
|
|
|
|
0.75%
|
|
|
|
1.21%
|
|
|
|
S&P 500 Index (reflects no deduction for fees, expenses or
taxes)
|
|
|
26.46%
|
|
|
|
0.42%
|
|
|
|
-0.95%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
IronOak Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. Jeffrey E. Markunas, CFA, President and Chief
Investment Officer of the Subadviser, has managed the Fund since
its inception in September 1992.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of
the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
MID-CAP CORE
EQUITY FUND
Summary
Section
A Shares, C
Shares and I Shares
Investment
Objective
The Mid-Cap Core Equity Fund (the Fund) seeks
capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65 of
the Funds prospectus and Rights of Accumulation on page 84
of the Funds Statement of Additional Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
|
Management Fees
|
|
|
1.00%
|
|
|
|
1.00%
|
|
|
|
1.00%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.11%
|
|
|
|
0.11%
|
|
|
|
0.11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.41%
|
|
|
|
2.11%
|
|
|
|
1.11%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
710
|
|
|
$
|
996
|
|
|
$
|
1,302
|
|
|
$
|
2,169
|
|
C Shares
|
|
$
|
314
|
|
|
$
|
661
|
|
|
$
|
1,134
|
|
|
$
|
2,441
|
|
I Shares
|
|
$
|
113
|
|
|
$
|
353
|
|
|
$
|
612
|
|
|
$
|
1,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
710
|
|
|
$
|
996
|
|
|
$
|
1,302
|
|
|
$
|
2,169
|
|
C Shares
|
|
$
|
214
|
|
|
$
|
661
|
|
|
$
|
1,134
|
|
|
$
|
2,441
|
|
I Shares
|
|
$
|
113
|
|
|
$
|
353
|
|
|
$
|
612
|
|
|
$
|
1,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 91% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in common stocks and other U.S. traded equity
securities of mid-cap companies. U.S. traded equity
securities may include American Depositary Receipts
(ADRs). IronOak Advisors LLC (the
Subadviser) considers mid-cap companies to be
companies with market capitalizations similar to those of
companies in the Russell
Midcap®
Index. As of July 1, 2010, the market capitalization range
of companies in the Russell
Midcap®
Index was between approximately $684 million and
$13.8 billion.
The Subadviser believes that a portfolio of stocks with
attractive fundamental characteristics purchased at a reasonable
valuation will provide above average returns over time. In
selecting investments for purchase and sale, the Subadviser
chooses companies that, in its opinion, offer above average
stock appreciation potential relative to other companies in the
same economic sector.
MID-CAP CORE
EQUITY FUND
The Subadviser uses sector-specific factors to highlight
companies whose characteristics are currently attractive versus
market peers. The Subadviser performs fundamental research to
evaluate securities for the portfolio. The Subadvisers
approach attempts to identify a well-defined investment
thesis (what it believes a companys prospects may be
over the next 12 to 18 months) based on competitive
positioning, business model, and potential catalysts and risks.
The Subadviser seeks securities with an attractive risk/return
profile, improving fundamentals and earnings outlook, and
relative financial strength and flexibility. The Subadviser may
sell a security when the investment thesis is realized, the
investment thesis breaks down, or a more attractive alternative
presents itself.
The Subadviser believes a diversified approach to portfolio
management is a critical component of the overall investment
process.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
ADR Risk: Because the Fund may invest in ADRs, it is
subject to some of the same risks as direct investments in
foreign companies. These include the risk that political and
economic events unique to a country or region will affect those
markets and their issuers.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
23.24%
|
|
-27.09%
|
(12/31/01)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -2.36%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
MID-CAP CORE
EQUITY FUND
shown for only the I Shares. After-tax returns for other classes
will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
27.17%
|
|
|
|
-0.38%
|
|
|
|
0.25%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
32.87%
|
|
|
|
0.12%
|
|
|
|
0.19%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
35.19%
|
|
|
|
1.12%
|
|
|
|
1.23%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
35.04%
|
|
|
|
0.09%
|
|
|
|
0.13%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
23.03%
|
|
|
|
0.91%
|
|
|
|
0.72%
|
|
|
|
Russell
Midcap®
Index (reflects no deduction for fees, expenses or taxes)
|
|
|
40.48%
|
|
|
|
2.43%
|
|
|
|
4.98%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
IronOak Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. Charles B. Arrington, CFA, Director of the Subadviser,
has managed the Fund since August 2008 after having co-managed
the Fund since January 2007.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of
the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
LARGE CAP GROWTH
STOCK FUND
Summary
Section
A Shares, C
Shares and I Shares
Investment
Objective
The Large Cap Growth Stock Fund (the Fund) seeks
capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on
page 65 of the Funds prospectus and Rights of Accumulation
on page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
0.97%
|
|
|
|
0.97%
|
|
|
|
0.97%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.07%
|
|
|
|
0.07%
|
|
|
|
0.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.34%
|
|
|
|
2.04%
|
|
|
|
1.04%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
704
|
|
|
$
|
975
|
|
|
$
|
1,267
|
|
|
$
|
2,095
|
|
C Shares
|
|
$
|
307
|
|
|
$
|
640
|
|
|
$
|
1,098
|
|
|
$
|
2,369
|
|
I Shares
|
|
$
|
106
|
|
|
$
|
331
|
|
|
$
|
574
|
|
|
$
|
1,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
704
|
|
|
$
|
975
|
|
|
$
|
1,267
|
|
|
$
|
2,095
|
|
C Shares
|
|
$
|
207
|
|
|
$
|
640
|
|
|
$
|
1,098
|
|
|
$
|
2,369
|
|
I Shares
|
|
$
|
106
|
|
|
$
|
331
|
|
|
$
|
574
|
|
|
$
|
1,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 62% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in common stocks and other U.S. traded equity
securities of large cap companies. U.S. traded equity
securities may include American Depositary Receipts
(ADRs). Silvant Capital Management LLC (the
Subadviser) considers large cap companies to be
companies with market capitalizations similar to those of
companies in the Russell
1000®
Growth Index. As of July 1, 2010, the market capitalization
range of companies in the Russell
1000®
Growth Index was between approximately $684 million and
$269 billion. The Subadviser will seek out securities it
believes have strong business fundamentals, such as revenue
growth, improving cash flows, increasing margins and positive
earning trends.
In selecting investments for purchase and sale, the Subadviser
chooses companies that it believes have above average growth
potential to beat expectations. The Subadviser applies
proprietary quantitative
LARGE CAP GROWTH
STOCK FUND
models to rank stocks based on improving fundamentals,
valuation, capital deployment and efficiency and sentiment or
behavior factors. It then performs in-depth fundamental analysis
to determine the quality and sustainability of expectations to
determine whether or not the company is poised to beat
expectations. The Subadviser uses a
bottom-up
process based on company fundamentals. Risk controls are in
place to assist in maintaining a portfolio that is diversified
by sector and minimizes unintended risks relative to the primary
benchmark.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Style Risk (Growth Stock): Growth stocks typically are
sensitive to market movements because their market prices tend
to reflect future expectations. When it appears those
expectations will not be met, the prices of growth stocks
typically fall.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization companies may be
less flexible in evolving markets or unable to implement change
as quickly as smaller capitalization companies.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
ADR Risk: Because the Fund may invest in ADRs, it is
subject to some of the same risks as direct investments in
foreign companies. These include the risk that political and
economic events unique to a country or region will affect those
markets and their issuers.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
14.85%
|
|
-21.73%
|
(9/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -7.71%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
LARGE CAP GROWTH
STOCK FUND
shown for only the I Shares. After-tax returns for other classes
will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
24.91%
|
|
|
|
-1.43%
|
|
|
|
-1.71%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
30.83%
|
|
|
|
-0.90%
|
|
|
|
-1.67%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
33.03%
|
|
|
|
0.09%
|
|
|
|
-0.63%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
32.94%
|
|
|
|
-0.92%
|
|
|
|
-1.53%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
21.54%
|
|
|
|
0.17%
|
|
|
|
-0.58%
|
|
|
|
Russell
1000®
Growth Index (reflects no deduction for fees, expenses or taxes)
|
|
|
37.21%
|
|
|
|
1.63%
|
|
|
|
-3.99%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Silvant Capital Management LLC is the Funds subadviser.
Portfolio
Management
Mr. Christopher Guinther, President and Chief Investment
Officer of the Subadviser, and Mr. Michael A.
Sansoterra, Managing Director of the Subadviser, have co-managed
the Fund since March 2007.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of
the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
SELECT LARGE CAP
GROWTH STOCK FUND
Summary
Section
A Shares, C
Shares and I Shares
Investment
Objective
The Select Large Cap Growth Stock Fund (the Fund)
seeks long-term capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
0.85%
|
|
|
|
0.85%
|
|
|
|
0.85%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.11%
|
|
|
|
0.11%
|
|
|
|
0.11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.26%
|
|
|
|
1.96%
|
|
|
|
0.96%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
696
|
|
|
$
|
952
|
|
|
$
|
1,227
|
|
|
$
|
2,010
|
|
C Shares
|
|
$
|
299
|
|
|
$
|
615
|
|
|
$
|
1,057
|
|
|
$
|
2,285
|
|
I Shares
|
|
$
|
98
|
|
|
$
|
306
|
|
|
$
|
531
|
|
|
$
|
1,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem your
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
696
|
|
|
$
|
952
|
|
|
$
|
1,227
|
|
|
$
|
2,010
|
|
C Shares
|
|
$
|
199
|
|
|
$
|
615
|
|
|
$
|
1,057
|
|
|
$
|
2,285
|
|
I Shares
|
|
$
|
98
|
|
|
$
|
306
|
|
|
$
|
531
|
|
|
$
|
1,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 65% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in common stocks and other U.S. traded equity
securities of large cap companies. U.S. traded equity
securities may include American Depositary Receipts
(ADRs). Silvant Capital Management LLC (the
Subadviser) considers large cap companies to be
companies with market capitalizations similar to those of
companies in the Russell
1000®
Growth Index. As of July 1, 2010, the market capitalization
range of companies in the Russell
1000®
Growth Index was between approximately $684 million and
$269 billion.
The Subadviser applies proprietary quantitative models to rank
stocks based on improving fundamentals, valuation, capital
deployment and efficiency and sentiment or behavior factors. The
Subadviser then uses fundamental research to select the
portfolio of stocks it believes has the best current risk/return
characteristics. In selecting investments for purchase and sale,
the Subadviser seeks
SELECT LARGE CAP
GROWTH STOCK FUND
companies with strong current earnings, growth in revenue,
improving profitability, strong balance sheet, strong current
and projected business fundamentals, and reasonable valuation.
The Subadviser believes in executing a very disciplined and
objective investment process in controlling risk through a
broadly diversified portfolio. Generally, the Fund will hold 40
securities or less.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds common stocks may
fluctuate drastically from day to day.
Style Risk (Growth Stock): Growth stocks typically are
sensitive to market movements because their market prices tend
to reflect future expectations. When it appears those
expectations will not be met, the prices of growth stocks
typically fall.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization companies may be
less flexible in evolving markets or unable to implement change
as quickly as smaller capitalization companies.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
ADR Risk: Because the Fund may invest in ADRs, it is
subject to some of the same risks as direct investments in
foreign companies. These include the risk that political and
economic events unique to a country or region will affect those
markets and their issuers.
Limited Number of Holdings Risk: Because the Fund targets
holdings of a more limited number of stocks, performance may be
more volatile than a similar fund with a greater number of
holdings or the Funds respective benchmark.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. A Shares were
offered beginning October 14, 2003. Performance prior to
October 14, 2003 with respect to the A Shares is that of I
Shares of the Fund, and has not been adjusted to reflect A Share
expenses. If it had been, performance would have been lower.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
13.51%
|
|
-20.29%
|
(9/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -9.19%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those
SELECT LARGE CAP
GROWTH STOCK FUND
shown. After-tax returns shown are not relevant to investors who
hold their Fund shares through tax deferred arrangements, such
as 401(k) plans or individual retirement accounts. After-tax
returns are shown for only the I Shares. After-tax returns for
other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
24.13%
|
|
|
|
0.23%
|
|
|
|
-3.09%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
29.63%
|
|
|
|
0.70%
|
|
|
|
-3.34%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
31.97%
|
|
|
|
1.71%
|
|
|
|
-2.34%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
31.92%
|
|
|
|
1.67%
|
|
|
|
-2.36%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
20.82%
|
|
|
|
1.46%
|
|
|
|
-1.95%
|
|
|
|
Russell
1000®
Growth Index (reflects no deduction for fees, expenses or taxes)
|
|
|
37.21%
|
|
|
|
1.63%
|
|
|
|
-3.99%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Silvant Capital Management LLC is the Funds subadviser.
Portfolio
Management
Mr. Christopher Guinther, President and Chief Investment
Officer of the Subadviser, and Mr. Michael A. Sansoterra,
Managing Director of the Subadviser, have co-managed the Fund
since March 2007. Mr. Joe Ransom, CFA, Managing Director of
the Subadviser, has co-managed the Fund since March 2007 after
managing the Fund since January 2007.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of the
Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
SMALL CAP GROWTH
STOCK FUND
Summary
Section
A Shares, C
Shares and I Shares
Investment
Objective
The Small Cap Growth Stock Fund (the Fund) seeks
long-term capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65 of
the Funds prospectus and Rights of Accumulation on page 84
of the Funds Statement of Additional Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
|
|
None
|
|
Maximum Deferred Sales Charge (load) (as a % of net asset value)
|
|
|
None
|
|
|
|
1.00%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
C Shares
|
|
I Shares
|
Management Fees
|
|
|
1.15%
|
|
|
|
1.15%
|
|
|
|
1.15%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
1.00%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.07%
|
|
|
|
0.07%
|
|
|
|
0.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.52%
|
|
|
|
2.22%
|
|
|
|
1.22%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
721
|
|
|
$
|
1,028
|
|
|
$
|
1,356
|
|
|
$
|
2,283
|
|
C Shares
|
|
$
|
325
|
|
|
$
|
694
|
|
|
$
|
1,190
|
|
|
$
|
2,554
|
|
I Shares
|
|
$
|
124
|
|
|
$
|
387
|
|
|
$
|
670
|
|
|
$
|
1,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
You would pay the following expenses if you did not redeem
your shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
721
|
|
|
$
|
1,028
|
|
|
$
|
1,356
|
|
|
$
|
2,283
|
|
C Shares
|
|
$
|
225
|
|
|
$
|
694
|
|
|
$
|
1,190
|
|
|
$
|
2,554
|
|
I Shares
|
|
$
|
124
|
|
|
$
|
387
|
|
|
$
|
670
|
|
|
$
|
1,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 103% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in U.S. traded equity securities of small cap
companies. U.S. traded equity securities may include
American Depositary Receipts (ADRs). Silvant Capital
Management LLC (the Subadviser) considers small cap
companies to be companies with market capitalizations similar to
those of companies in the Russell
2000®
Growth Index. As of July 1, 2010, the market capitalization
range of companies in the Russell
2000®
Growth Index was between approximately $20,000 and
$2.6 billion.
In selecting investments for purchase and sale, the Subadviser
chooses companies that it believes have above average growth
potential to beat expectations as a result of strong business
fundamentals, such as revenue growth, improving cash flows,
increasing margins and positive earning trends. The Subadviser
applies proprietary quantitative models to rank stocks based on
improving fundamentals, valuation, capital deployment and
efficiency and sentiment or behavior
SMALL CAP GROWTH
STOCK FUND
factors. It then performs in-depth fundamental analysis to
determine the quality and sustainability of expectations to
determine whether or not the company is poised to beat
expectations. The Subadviser uses a
bottom-up
process based on company fundamentals. Risk controls are in
place to assist in maintaining a portfolio that is diversified
by sector and minimizes unintended risks relative to the primary
benchmark.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Style Risk (Growth Stock): Growth stocks typically are
sensitive to market movements because their market prices tend
to reflect future expectations. When it appears those
expectations will not be met, the prices of growth stocks
typically fall.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
ADR Risk: Because the Fund may invest in ADRs, it is
subject to some of the same risks as direct investments in
foreign companies. These include the risk that political and
economic events unique to a country or region will affect those
markets and their issuers.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
24.19%
|
|
-28.61%
|
(6/30/03)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -5.24%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
SMALL CAP GROWTH
STOCK FUND
shown for only the I Shares. After-tax returns for other classes
will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
24.34%
|
|
|
|
-2.35%
|
|
|
|
2.64%
|
|
|
|
C Shares Returns Before Taxes
|
|
|
30.03%
|
|
|
|
-1.86%
|
|
|
|
2.55%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
32.30%
|
|
|
|
-0.89%
|
|
|
|
3.59%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
32.30%
|
|
|
|
-2.52%
|
|
|
|
2.25%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
21.00%
|
|
|
|
-0.85%
|
|
|
|
2.87%
|
|
|
|
Russell
2000®
Growth Index (reflects no deduction for fees, expenses or taxes)
|
|
|
34.47%
|
|
|
|
0.87%
|
|
|
|
-1.37%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Silvant Capital Management LLC is the Funds subadviser.
Portfolio
Management
Mr. Christopher Guinther, President and Chief Investment
Officer of the Subadviser, has co-managed the Fund since March
2007 after managing the Fund since February 2007.
Mr. Michael A. Sansoterra, Managing Director of the
Subadviser, has co-managed the Fund since March 2007.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A and C Shares of the Fund through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for fund share transactions. The Fund
offers I Shares to financial institutions and intermediaries for
their own accounts or for the accounts of customers for whom
they may act as fiduciary agent, investment adviser, or
custodian. Please consult your financial institution or
intermediary to find out about how to purchase I Shares of the
Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
C Shares
|
|
$5,000 ($2,000 for IRA or other tax qualified accounts)
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
AGGRESSIVE GROWTH
STOCK FUND
Summary
Section
A Shares and I
Shares
Investment
Objective
The Aggressive Growth Stock Fund (the Fund) seeks
long-term capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
1.10%
|
|
|
|
1.10%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.11%
|
|
|
|
0.11%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.51%
|
|
|
|
1.21%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
720
|
|
|
$
|
1,025
|
|
|
$
|
1,351
|
|
|
$
|
2,273
|
|
I Shares
|
|
$
|
123
|
|
|
$
|
384
|
|
|
$
|
665
|
|
|
$
|
1,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 27% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in common stocks and other U.S. traded equity
securities. U.S. traded equity securities may include
American Depositary Receipts (ADRs). The Fund may
invest in companies of any size.
The Fund invests primarily in common stocks of companies that
exhibit strong growth characteristics. In selecting investments
for purchase and sale, Zevenbergen Capital Investments LLC (the
Subadviser) uses a fundamental research approach to
identify companies with favorable prospects for future revenue,
earnings,
and/or cash
flow growth. Growth drivers are identified for each
company and become critical to the ongoing evaluation process.
Industry growth dynamics, company competitive positioning,
pricing flexibility, and diversified product offerings are
evaluated, providing the foundation for further fundamental
research to determine the weighting of the Funds
investments. Generally the Fund will hold a limited number of
securities.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
AGGRESSIVE GROWTH
STOCK FUND
Limited Number of Holdings Risk: Because the Fund targets
holdings of a more limited number of stocks, performance may be
more volatile than a similar fund with a greater number of
holdings or the Funds respective benchmark.
Style Risk (Growth Stock): Growth stocks typically are
sensitive to market movements because their market prices tend
to reflect future expectations. When it appears those
expectations will not be met, the prices of growth stocks
typically fall.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
ADR Risk: Because the Fund may invest in ADRs, it is
subject to some of the same risks as direct investments in
foreign companies. These include the risk that political and
economic events unique to a country or region will affect those
markets and their issuers.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
23.29%
|
|
-27.98%
|
(6/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -7.83%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
AGGRESSIVE GROWTH
STOCK FUND
shown for only the I Shares. After-tax returns for other classes
will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
|
|
|
|
Inception on
|
|
|
1 Year
|
|
5 Years
|
|
February 23, 2004
|
|
|
A Shares Returns Before Taxes
|
|
|
46.68%
|
|
|
|
2.63%
|
|
|
|
3.36%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
56.24%
|
|
|
|
4.15%
|
|
|
|
4.74%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
56.24%
|
|
|
|
3.97%
|
|
|
|
4.59%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
36.56%
|
|
|
|
3.55%
|
|
|
|
4.07%
|
|
|
|
Russell
3000®
Growth Index (reflects no deduction for fees, expenses or taxes)
|
|
|
37.01%
|
|
|
|
1.58%
|
|
|
|
2.10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Zevenbergen Capital Investments LLC is the Funds
subadviser.
Portfolio
Management
Ms. Nancy Zevenbergen, CFA, CIC, President and Chief
Investment Officer of the Subadviser, Ms. Brooke de
Boutray, CFA, CIC, Managing Director, Portfolio Manager and
Analyst of the Subadviser, and Ms. Leslie Tubbs, CFA, CIC,
Managing Director, Portfolio Manager and Analyst of the
Subadviser, have co-managed the Fund since its inception in
February 2004.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through financial
institutions or intermediaries that are authorized to place
transactions in Fund shares for their customers. Please contact
your financial institution or intermediary directly and follow
its procedures for fund share transactions. The Fund offers I
Shares to financial institutions and intermediaries for their
own accounts or for the accounts of customers for whom they may
act as fiduciary agent, investment adviser, or custodian. Please
consult your financial institution or intermediary to find out
about how to purchase I Shares of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
EMERGING GROWTH
STOCK FUND
Summary
Section
A Shares and I
Shares
Investment
Objective
The Emerging Growth Stock Fund (the Fund) seeks
long-term capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
1.10%
|
|
|
|
1.10%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.14%
|
|
|
|
0.14%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.54%
|
|
|
|
1.24%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
723
|
|
|
$
|
1,033
|
|
|
$
|
1,366
|
|
|
$
|
2,304
|
|
I Shares
|
|
$
|
126
|
|
|
$
|
393
|
|
|
$
|
681
|
|
|
$
|
1,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 87% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in common stocks and other U.S. traded equity
securities. U.S. traded equity securities may include
American Depositary Receipts (ADRs). The Fund
invests primarily in stocks of small and mid-cap growth
companies. Zevenbergen Capital Investments LLC (the
Subadviser) considers small and mid-cap growth
companies to be primarily companies with market capitalizations
from $300 million up to the highest capitalization of those
companies included in the Russell
Midcap®
Growth Index (and as annually reconstituted.) As of July 1,
2010, the highest capitalization of a company in the Russell
Midcap®
Growth Index was approximately $13.8 billion. The
Subadviser emphasizes initial investment in companies with
market capitalizations of $5 billion or less.
In selecting investments for purchase and sale, the Subadviser
looks for companies that exhibit strong growth characteristics.
Using a fundamental research approach, the Subadviser identifies
companies with favorable prospects for future revenue, earnings,
and/or cash
flow growth. Growth drivers are identified for each
company and become critical to the ongoing evaluation process.
Industry growth dynamics, company competitive positioning,
pricing flexibility, and diversified product offerings are
evaluated, providing the foundation for further fundamental
research to determine the weighting of the Funds
investments. Generally, the Fund will hold a limited number of
securities.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to
EMERGING GROWTH
STOCK FUND
use as a substitute for a purchase or sale of a position in the
underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Limited Number of Holdings Risk: Because the Fund targets
holdings of a more limited number of stocks, performance may be
more volatile than a similar fund with a greater number of
holdings or the Funds respective benchmark.
Style Risk (Growth Stock): Growth stocks typically are
sensitive to market movements because their market prices tend
to reflect future expectations. When it appears those
expectations will not be met, the prices of growth stocks
typically fall.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
ADR Risk: Because the Fund may invest in ADRs, it is
subject to some of the same risks as direct investments in
foreign companies. These include the risk that political and
economic events unique to a county or region will affect those
markets and their issuers.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
29.24%
|
|
-35.52
|
(6/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was 0.09%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
EMERGING GROWTH
STOCK FUND
shown for only the I Shares. After-tax returns for other classes
will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
|
|
|
|
Inception on
|
|
|
1 Year
|
|
5 Years
|
|
February 23, 2004
|
|
|
A Shares Returns Before Taxes
|
|
|
49.08%
|
|
|
|
2.89%
|
|
|
|
2.16%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
58.73%
|
|
|
|
4.42%
|
|
|
|
3.53%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
58.73%
|
|
|
|
3.74%
|
|
|
|
2.96%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
38.17%
|
|
|
|
3.54%
|
|
|
|
2.81%
|
|
|
|
Russell
Midcap®
Growth Index (reflects no deduction for fees, expenses or taxes)
|
|
|
46.29%
|
|
|
|
2.40%
|
|
|
|
4.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Zevenbergen Capital Investments LLC is the Funds
subadviser.
Portfolio
Management
Ms. Nancy Zevenbergen, CFA, CIC, President and Chief
Investment Officer of the Subadviser, Ms. Brooke de
Boutray, CFA, CIC, Managing Director, Portfolio Manager and
Analyst of the Subadviser, and Ms. Leslie Tubbs, CFA, CIC,
Managing Director, Portfolio Manager and Analyst of the
Subadviser, have co-managed the Fund since its inception in
February 2004.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through financial
institutions or intermediaries that are authorized to place
transactions in Fund shares for their customers. Please contact
your financial institution or intermediary directly and follow
its procedures for fund share transactions. The Fund offers I
Shares to financial institutions and intermediaries for their
own accounts or for the accounts of customers for whom they may
act as fiduciary agent, investment adviser, or custodian. Please
consult your financial institution or intermediary to find out
about how to purchase I Shares of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
International/Quantitative
Funds
|
|
31
|
INTERNATIONAL
EQUITY FUND
Summary
Section
A Shares and I
Shares
Investment
Objective
The International Equity Fund (the Fund) seeks
long-term capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
1.15%
|
|
|
|
1.15%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.16%
|
|
|
|
0.16%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.61%
|
|
|
|
1.31%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
729
|
|
|
$
|
1,054
|
|
|
$
|
1,401
|
|
|
$
|
2,376
|
|
I Shares
|
|
$
|
133
|
|
|
$
|
415
|
|
|
$
|
718
|
|
|
$
|
1,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 95% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in common stocks and other equity securities of
foreign companies. The Funds investments are diversified
among at least three foreign countries. The Fund may also invest
in exchange-traded funds (ETFs). The Fund invests
primarily in developed countries, but may invest in countries
with emerging markets.
In selecting investments for purchase and sale, Certium Asset
Management LLC (the Subadviser) seeks to identify
stocks with positive earnings trends and attractive valuations.
Fundamental analysis is used to determine those companies that
are projected to have sustainability of earnings and global
industry positioning. The Subadvisers goal is to find
companies with top management, quality products and sound
financial positions, or a history of consistent growth in cash
flows, sales, operating profits, returns on equity and returns
on invested capital. Risk controls are in place to assist in
maintaining a portfolio that is diversified by security type and
industry sector and invested across multiple countries.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
|
|
|
32
|
|
International/Quantitative
Funds
|
INTERNATIONAL
EQUITY FUND
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization companies may be
less flexible in evolving markets or unable to implement change
as quickly as smaller capitalization companies.
Foreign Investment Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments.
These risks are increased for investments in emerging markets.
The Fund is also subject to the risk that foreign common stocks
may underperform other segments of the equity market or the
equity market as a whole.
Foreign Currency Risk: Changes in foreign currency
exchange rates will affect the value of what the fund owns and
the price of the Funds shares. Generally, when the
U.S. dollar rises in value against a foreign currency, an
investment in that country loses value because that currency is
worth fewer U.S. dollars. Currency trends are unpredictable
and currency rates may fluctuate significantly for a number of
reasons, including changes in interest rates, intervention (or
failure to intervene) by U.S. or foreign governments or
central banks, or by currency controls or political developments.
Exchange Traded Fund Risk: The risk of owning shares
of an ETF generally reflects the risk of owning the underlying
securities the ETF is designed to track. Liquidity in an ETF
could result in more volatility than ownership of the underlying
portfolio of securities. In addition, because of ETF management
expenses, compared to owning the underlying securities directly,
it may be more costly to own an ETF.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
30.56%
|
|
-25.93%
|
(6/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -14.31%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
|
|
|
International/Quantitative
Funds
|
|
33
|
INTERNATIONAL
EQUITY FUND
shown for only the I Shares. After-tax returns for other classes
will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
36.12%
|
|
|
|
1.29%
|
|
|
|
1.17%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
44.93%
|
|
|
|
2.78%
|
|
|
|
2.10%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
45.07%
|
|
|
|
2.00%
|
|
|
|
1.35%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
29.62%
|
|
|
|
2.46%
|
|
|
|
1.64%
|
|
|
|
MSCI EAFE Index (reflects no deduction for fees, expenses or
taxes)
|
|
|
31.78%
|
|
|
|
3.54%
|
|
|
|
1.17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Certium Asset Management LLC is the Funds subadviser.
Portfolio
Management
Mr. Chad Deakins, CFA, President and Chief Investment
Officer of the Subadviser, has managed the Fund since May 2000.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through financial
institutions or intermediaries that are authorized to place
transactions in Fund shares for their customers. Please contact
your financial institution or intermediary directly and follow
its procedures for fund share transactions. The Fund offers I
Shares to financial institutions and intermediaries for their
own accounts or for the accounts of customers for whom they may
act as fiduciary agent, investment adviser, or custodian. Please
consult your financial institution or intermediary to find out
about how to purchase I Shares of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
34
|
|
International/Quantitative
Funds
|
INTERNATIONAL
EQUITY INDEX FUND
Summary
Section
A Shares and I
Shares
Investment
Objective
The International Equity Index Fund (the Fund) seeks
investment results that correspond to the performance of the
MSCI EAFE Index (GDP Weighted) Net Dividend (the
Index).
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
|
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
|
|
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
|
|
Management Fees
|
|
|
0.49%
|
|
|
|
0.49%
|
|
|
|
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
None
|
|
|
|
|
|
Other Expenses
|
|
|
0.15%
|
|
|
|
0.15%
|
|
|
|
|
|
Acquired Fund Fees and Expenses
|
|
|
0.04%
|
|
|
|
0.04%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.98%
|
|
|
|
0.68%
|
|
|
|
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
669
|
|
|
$
|
869
|
|
|
$
|
1,086
|
|
|
$
|
1,707
|
|
I Shares
|
|
$
|
69
|
|
|
$
|
218
|
|
|
$
|
379
|
|
|
$
|
847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 36% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in equity securities of foreign companies. The Fund
may also invest in exchange-traded funds (ETFs).
In selecting investments for purchase and sale, Certium Asset
Management LLC (the Subadviser) uses statistical
analysis in an attempt to track the Index. The Subadviser
chooses companies included in the Index, which is an index of
equity securities of companies located in Europe, Australasia
and the Far East. While the Fund is structured to have overall
investment characteristics similar to those of the Index, it
selects a sample of securities within the Index using a
statistical process. Therefore, the Fund will not hold all
securities included in the Index.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
|
|
|
International/Quantitative
Funds
|
|
35
|
INTERNATIONAL
EQUITY INDEX FUND
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Foreign Investment Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments.
These risks are increased for investments in emerging markets.
The Fund is also subject to the risk that foreign equity
securities may underperform other segments of the equity market
or the equity market as a whole.
Foreign Currency Risk: Changes in foreign currency
exchange rates will affect the value of what the fund owns and
the price of the Funds shares. Generally, when the
U.S. dollar rises in value against a foreign currency, an
investment in that country loses value because that currency is
worth fewer U.S. dollars. Currency trends are unpredictable
and currency rates may fluctuate significantly for a number of
reasons, including changes in interest rates, intervention (or
failure to intervene) by U.S. or foreign governments or
central banks, or by currency controls or political developments.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization companies may be
less flexible in evolving markets or unable to implement change
as quickly as smaller capitalization companies.
Exchange Traded Fund Risk: The risk of owning shares
of an ETF generally reflects the risk of owning the underlying
securities the ETF is designed to track. Liquidity in an ETF
could result in more volatility than ownership of the underlying
portfolio of securities. In addition, because of ETF management
expenses, compared to owning the underlying securities directly,
it may be more costly to own an ETF.
Tracking Error Risk: In addition to the above mentioned
risks, the Subadviser may not be able to match the performance
of the Funds benchmark.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
24.69%
|
|
-21.58%
|
(6/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -15.99%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
|
|
|
36
|
|
International/Quantitative
Funds
|
INTERNATIONAL
EQUITY INDEX FUND
shown for only the I Shares. After-tax returns for other classes
will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
A Shares Returns Before Taxes
|
|
|
21.21%
|
|
|
|
1.43%
|
|
|
|
-0.57%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
28.97%
|
|
|
|
2.91%
|
|
|
|
0.40%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
28.20%
|
|
|
|
2.28%
|
|
|
|
-0.03%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
19.43%
|
|
|
|
2.32%
|
|
|
|
0.20%
|
|
|
|
MSCI EAFE Index (GDP Weighted), Net Dividend (reflects no
deduction for fees, expenses or taxes)
|
|
|
30.38%
|
|
|
|
3.30%
|
|
|
|
1.31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Certium Asset Management LLC is the Funds subadviser.
Portfolio
Management
Mr. Chad Deakins, CFA, President and Chief Investment
Officer of the Subadviser, has co-managed the Fund since March
2005, after managing the Fund since 1999. Mr. Matthew
Welden, Director of the Subadviser, has co-managed the Fund
since April 2008.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through financial
institutions or intermediaries that are authorized to place
transactions in Fund shares for their customers. Please contact
your financial institution or intermediary directly and follow
its procedures for fund share transactions. The Fund offers I
Shares to financial institutions and intermediaries for their
own accounts or for the accounts of customers for whom they may
act as fiduciary agent, investment adviser, or custodian. Please
consult your financial institution or intermediary to find out
about how to purchase I Shares of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Fund will distribute substantially all of its net investment
income and its net realized capital gains, if any, at least
annually. The Funds distributions are generally taxable,
and will be taxed as ordinary income or capital gains unless you
are investing through a tax-deferred arrangement, such as a
401(k) plan or an individual retirement account.
Payments to
Broker Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other
financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of Fund
shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial
intermediarys website for more information.
|
|
|
International/Quantitative
Funds
|
|
37
|
LARGE CAP
QUANTITATIVE EQUITY FUND
Summary
Section
A Shares and I
Shares
Investment
Objective
The Large Cap Quantitative Equity Fund (the Fund)
seeks long-term capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
0.85%
|
|
|
|
0.85%
|
|
Distribution (12b-1) Fees
|
|
|
0.25%
|
|
|
|
None
|
|
Other Expenses
|
|
|
0.23%
|
|
|
|
0.23%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.33%
|
|
|
|
1.08%
|
|
Fee Waivers
and/or
Expense Reimbursements(1)
|
|
|
(0.10)%
|
|
|
|
(0.10)%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waivers
and/or
Expense Reimbursements
|
|
|
1.23%
|
|
|
|
0.98%
|
|
|
|
(1) |
The Adviser and the Subadviser have contractually agreed to
waive fees and reimburse expenses until at least August 1,
2011 in order to keep Total Annual Fund Operating Expenses
(excluding, as applicable, taxes, brokerage commissions,
substitute dividend expenses on securities sold short,
extraordinary expenses and acquired fund fees and expenses) from
exceeding 1.22% and 0.97% for the A and I Shares,
respectively. This agreement shall terminate upon the
termination of the Investment Advisory Agreement between
RidgeWorth Funds and the Adviser, or it may be terminated upon
written notice to the Adviser by RidgeWorth Funds.
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
693
|
|
|
$
|
963
|
|
|
$
|
1,253
|
|
|
$
|
2,076
|
|
I Shares
|
|
$
|
100
|
|
|
$
|
334
|
|
|
$
|
586
|
|
|
$
|
1,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 523% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in common stocks and other U.S. traded equity
securities of large cap companies. U.S. traded equity
securities may include American Depositary Receipts
(ADRs). Certium Asset Management LLC (the
Subadviser) considers large cap companies to be
companies with market capitalizations similar to those of
companies in the S&P 500 Index. As of July 1, 2010,
the market capitalization range of companies in the S&P 500
Index was between approximately $1 billion and
$269 billion. The Fund may also invest in small and mid-cap
companies so long as the Subadviser determines they have growth
potential.
In selecting investments for purchase and sale, the Subadviser
uses disciplined quantitative modeling to objectively and
consistently identify what the models
|
|
|
38
|
|
International/Quantitative
Funds
|
LARGE CAP
QUANTITATIVE EQUITY FUND
determine to be the most attractive companies across the market
and within each sector. The quantitative factors within the
sector model are weighted based on their historical ability to
be predictive within each sector. In some sectors, attractive
stocks are selected based on a narrow range of factors. In other
sectors, a broad range of factors may be used to identify
attractive stocks.
This approach is based on the philosophy that a stock selection
method that evaluates multiple quantitative factors is superior
to a less rigorous approach.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization companies may be
less flexible in evolving markets or unable to implement change
as quickly as smaller capitalization companies.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
ADR Risk: Because the Fund may invest in ADRs, it is
subject to some of the same risks as direct investments in
foreign companies. These include the risk that political and
economic events unique to a country or region will affect those
markets and their issuers.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
17.61%
|
|
-19.88%
|
(9/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -5.10%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
|
|
|
International/Quantitative
Funds
|
|
39
|
LARGE CAP
QUANTITATIVE EQUITY FUND
shown for only the I Shares. After-tax returns for other classes
will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
5 Years
|
|
Inception*
|
|
|
A Shares Returns Before Taxes
|
|
|
15.76%
|
|
|
|
-1.49%
|
|
|
|
2.18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares Returns Before Taxes
|
|
|
23.28%
|
|
|
|
-0.05%
|
|
|
|
5.42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
22.94%
|
|
|
|
-1.43%
|
|
|
|
3.90%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
15.52%
|
|
|
|
-0.56%
|
|
|
|
4.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S&P 500 Index (reflects no deduction for fees, expenses or
taxes)
|
|
|
26.46%
|
|
|
|
0.42%
|
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since Inception of the A Shares
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
3.28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since Inception of the I Shares
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
4.21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since Inception of the A Shares on October 8, 2003, and
the I Shares on August 7, 2003.
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Certium Asset Management LLC is the Funds subadviser.
Portfolio
Management
Mr. Chad Deakins, CFA, President and Chief Investment
Officer of the Subadviser, has managed the Fund since October
2007.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through financial
institutions or intermediaries that are authorized to place
transactions in Fund shares for their customers. Please contact
your financial institution or intermediary directly and follow
its procedures for fund share transactions. The Fund offers I
Shares to financial institutions and intermediaries for their
own accounts or for the accounts of customers for whom they may
act as fiduciary agent, investment adviser, or custodian. Please
consult your financial institution or intermediary to find out
about how to purchase I Shares of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
INTERNATIONAL
EQUITY 130/30 FUND
Summary
Section
A Shares and I
Shares
Investment
Objective
The International Equity 130/30 Fund (the Fund)
seeks long-term capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
1.25%
|
|
|
|
1.25%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
None
|
|
Other Expenses
|
|
|
|
|
|
|
|
|
Dividend Expense on Short Sales
|
|
|
2.02%
|
|
|
|
1.46%
|
|
Other Operating Expenses
|
|
|
0.23%
|
|
|
|
0.23%
|
|
|
|
|
|
|
|
|
|
|
Total Other Expenses
|
|
|
2.25%
|
|
|
|
1.69%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
3.80%
|
|
|
|
2.94%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
935
|
|
|
$
|
1,669
|
|
|
$
|
2,420
|
|
|
$
|
4,379
|
|
I Shares
|
|
$
|
297
|
|
|
$
|
910
|
|
|
$
|
1,548
|
|
|
$
|
3,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 628% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in common stocks and other equity securities of
non-U.S. companies.
The Fund may invest in companies of any size and in both
developed and emerging markets. The Fund may also invest in
exchange-traded funds (ETFs).
In selecting investments for purchase and sale, Alpha Equity
Management LLC (the Subadviser) uses a proprietary
quantitative process. The stock selection model emphasizes
characteristics such as relative value, analyst sentiment,
earnings quality, long-term price momentum, and short-term price
reversal. The Fund holds a diversified portfolio to reduce
stock-specific risk. Portfolio construction is driven by the
Subadvisers daily assessment of expected return,
transaction cost, and risk for each of the securities in the
Funds investment universe. The Subadviser focuses on
bottom-up
stock selection and does not emphasize macro forecasts of
overall market returns, growth versus value returns, or large
capitalization versus small capitalization returns.
The Fund pursues its investment goal by establishing long and
short positions in equity securities. The Fund normally takes
long positions in stocks that the Subadviser believes have the
highest utility and normally takes short positions in stocks
that it believes have the lowest utility. Utility is defined as
an
INTERNATIONAL
EQUITY 130/30 FUND
individual securitys expected return from its exposure to
the return factors in the stock selection model less expected
transaction costs and risk penalties. The Fund normally holds
long positions in equity securities with an aggregate value of
approximately 130% (within a range of 100% to 150%) of its net
assets. In addition, the Fund normally establishes short
positions in equity securities with a market value of
approximately 30% (within a range of 0% to 50%) of its net
assets. The Fund is generally managed to be 100% net long. When
the Fund establishes a long position, it purchases the security
outright. When the Fund establishes a short position, it sells a
security that it does not own and settles the sale by borrowing
the same stock from a lender. To close out the short position,
the Fund subsequently buys back the same security in the market
and returns it to the lender. The Fund makes money on a short
position if the market price of the security goes down after the
short sale. Conversely, if the price of the stock goes up after
the short sale, the Fund will lose money on that position
because it will have to pay more to replace the borrowed
security that it received when it sold the security short. When
borrowing a security for delivery to a buyer, the Fund also may
be required to pay a fee and other transaction costs, which
would increase the cost of the security sold short.
The Fund typically uses the cash generated from the short sale
to purchase additional securities, which allows the Fund to
maintain long positions in excess of 100% of the Funds net
assets. Alternatively, the Fund may achieve the same result by
borrowing money from banks and using the proceeds to purchase
additional securities. Each of these investment techniques is
known as leverage.
When the Fund enters into a short sale, it is required to pledge
assets as collateral to secure the Funds obligation to
cover the short position held by the broker.
Until the Fund replaces a borrowed security, it is also required
to maintain a segregated account of cash or liquid assets with a
broker or custodian to cover the Funds short position.
Securities held in a segregated account cannot be sold while the
position they are covering is outstanding, unless they are
replaced with similar securities. This may limit the Funds
investment flexibility, as well as its ability to meet
redemption requests or other current obligations.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Foreign Investment Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments.
These risks are increased for investments in emerging markets.
The Fund is also subject to the risk that foreign common stocks
may underperform other segments of the equity market or the
equity market as a whole.
Foreign Currency Risk: Changes in foreign currency
exchange rates will affect the value of what the fund owns and
the price of the Funds shares. Generally, when the
U.S. dollar rises in value against a foreign currency, an
investment in that country loses value because that currency is
worth fewer U.S. dollars. Currency trends are unpredictable
and currency rates may fluctuate significantly for a number of
reasons, including changes in interest rates, intervention (or
failure to intervene) by U.S. or foreign governments or
central banks, or by currency controls or political developments.
Short Sales Risk: If the price of a stock goes up after a
short sale, the Fund will lose money because it will have to pay
more to replace the borrowed stock than it received when it sold
the stock short. The amount of loss on a short sale is
theoretically unlimited, as there is no maximum attainable price
of the shorted security.
Leverage Risk: The Funds short sales effectively
leverage the Funds assets. It is possible that the Fund
may lose money on both long and short positions at the same
time. The Funds assets that are used as collateral to
secure the short sales may decrease in value while the short
positions are outstanding, which may force the Fund to use its
other assets to increase the collateral. Leverage also creates
interest expense that may decrease the Funds overall
returns.
Borrowing Risk: If the Fund borrows money from banks for
investment purposes, the Funds borrowing activities will
amplify any increase or decrease in the Funds net asset
value. The interest which the Fund
INTERNATIONAL
EQUITY 130/30 FUND
must pay on borrowed money will reduce and may eliminate any net
investment profits.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization companies may be
less flexible in evolving markets or unable to implement change
as quickly as smaller capitalization companies.
Exchange Traded Fund Risk: The risk of owning shares
of an ETF generally reflects the risk of owning the underlying
securities the ETF is designed to track. Liquidity in an ETF
could result in more volatility than ownership of the underlying
portfolio of securities. In addition, because of ETF management
expenses, compared to owning the underlying securities directly,
it may be more costly to own an ETF.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. A Shares were
offered beginning on July 2, 2008. A Share performance
prior to July 2, 2008 is that of I Shares of the Fund,
and has not been adjusted to reflect A Share expenses. If it had
been, performance would have been lower.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
36.27%
|
|
-28.77%
|
(6/30/09)
|
|
(9/30/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -11.94%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
INTERNATIONAL
EQUITY 130/30 FUND
shown for only the I Shares. After-tax returns for other classes
will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
Inception*
|
|
|
A Shares Returns Before Taxes
|
|
|
39.42%
|
|
|
|
-20.65%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
48.33%
|
|
|
|
-18.15%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
48.22%
|
|
|
|
-18.21%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
32.20%
|
|
|
|
-15.11%
|
|
|
|
FTSE All-World Index ex-US (reflects no deduction for fees,
expenses or taxes)
|
|
|
43.33%
|
|
|
|
-11.42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since inception of the I Shares on December 26, 2007.
Benchmark returns since December 31, 2007 (benchmark
returns available only on a month end basis).
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Alpha Equity Management LLC is the Funds subadviser.
Portfolio
Management
Mr. Kevin Means, CFA, Managing Partner and Chief Investment
Officer of the Subadviser, Mr. Vince Fioramonti, CFA,
Partner and Director of Trading and Portfolio Operations of the
Subadviser, and Mr. Neil Kochen, CFA, Partner, Chief Risk
Officer and Asset Allocation Strategist of the Subadviser, have
co-managed the Fund since its inception December 2007.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through financial
institutions or intermediaries that are authorized to place
transactions in Fund shares for their customers. Please contact
your financial institution or intermediary directly and follow
its procedures for fund share transactions. The Fund offers I
Shares to financial institutions and intermediaries for their
own accounts or for the accounts of customers for whom they may
act as fiduciary agent, investment adviser, or custodian. Please
consult your financial institution or intermediary to find out
about how to purchase I Shares of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
REAL ESTATE
130/30 FUND
Summary
Section
A Shares and I
Shares
Investment
Objective
The Real Estate 130/30 Fund (the Fund) seeks
long-term capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
Management Fees
|
|
|
1.25%
|
|
|
|
1.25%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
None
|
|
Other Expenses
|
|
|
|
|
|
|
|
|
Dividend Expense on Short Sales
|
|
|
0.77%
|
|
|
|
0.76%
|
|
Other Operating Expenses
|
|
|
0.79%
|
|
|
|
0.79%
|
|
|
|
|
|
|
|
|
|
|
Total Other Expenses
|
|
|
1.56%
|
|
|
|
1.55%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
3.11%
|
|
|
|
2.80%
|
|
Fee Waivers and/or Expense
Reimbursements(1)
|
|
|
(0.59)%
|
|
|
|
(0.59)%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waivers
and/or Expense Reimbursements
|
|
|
2.52%
|
|
|
|
2.21%
|
|
|
|
(1) |
The Adviser and the Subadviser have contractually agreed to
waive fees and reimburse expenses until at least August 1,
2011 in order to keep Total Annual Operating Expenses
(excluding, as applicable, taxes, brokerage commissions,
substitute dividend expenses on securities sold short,
extraordinary expenses and acquired fund fees and expenses) from
exceeding 1.75% and 1.45% for the A and I Shares,
respectively. This agreement shall terminate upon the
termination of the Investment Advisory Agreement between
RidgeWorth Funds and the Adviser, or it may be terminated upon
written notice to the Adviser by RidgeWorth Funds.
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
815
|
|
|
$
|
1,428
|
|
|
$
|
2,063
|
|
|
$
|
3,760
|
|
I Shares
|
|
$
|
224
|
|
|
$
|
812
|
|
|
$
|
1,427
|
|
|
$
|
3,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 704% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in common stocks of REITs and companies principally
engaged in the real estate industry. Alpha Equity Management LLC
(the Subadviser) considers a company to be
principally engaged in the real estate industry if it derives at
least 50% of its revenues from the ownership, construction,
management, financing or sale of commercial, industrial or
residential real estate or has at least 50% of its assets in
such real estate. The Fund may invest in companies of any size
and may also invest in exchange-traded funds (ETFs).
In selecting investments for purchase and sale, the Subadviser
uses a proprietary quantitative process. The stock selection
model emphasizes characteristics such as relative value, analyst
sentiment, earnings quality, long-term price momentum, and
short-term
REAL ESTATE
130/30 FUND
price reversal. Portfolio construction is driven by the
Subadvisers daily assessment of expected return,
transaction costs, and risk for each of the securities in the
Funds investment universe. The Subadviser focuses on
bottom-up
stock selection and does not emphasize macro forecasts of
overall market returns, growth versus value returns, or large
capitalization versus small capitalization returns.
The Fund pursues its investment goal by establishing long and
short positions in equity securities. The Fund normally takes
long positions in stocks that the Subadviser believes have the
highest utility and normally takes short positions in stocks
that it believes have the lowest utility. Utility is defined as
an individual securitys expected return from its exposure
to the return factors in the stock selection model less expected
transaction costs and risk penalties. The Fund normally holds
long positions in equity securities with an aggregate value of
approximately 130% (within a range of 100% to 150%) of its net
assets. In addition, the Fund normally establishes short
positions in equity securities with a market value of
approximately 30% (within a range of 0% to 50%) of its net
assets. The Fund is generally managed to be 100% net long. When
the Fund establishes a long position, it purchases the security
outright. When the Fund establishes a short position, it sells a
security that it does not own and settles the sale by borrowing
the same stock from a lender. To close out the short position,
the Fund subsequently buys back the same security in the market
and returns it to the lender. The Fund makes money on a short
position if the market price of the security goes down after the
short sale. Conversely, if the price of the stock goes up after
the short sale, the Fund will lose money on that position
because it will have to pay more to replace the borrowed
security that it received when it sold the security short. When
borrowing a security for delivery to a buyer, the Fund also may
be required to pay a fee and other transaction costs, which
would increase the cost of the security sold short.
The Fund typically uses the cash generated from the short sale
to purchase additional securities, which allows the Fund to
maintain long positions in excess of 100% of the Funds net
assets. Alternatively, the Fund may achieve the same result by
borrowing money from banks and using the proceeds to purchase
additional securities. Each of these investment techniques is
known as leverage.
When the Fund enters into a short sale, it is required to pledge
assets as collateral to secure the Funds obligation to
cover the short position held by the broker.
Until the Fund replaces a borrowed security, it is also required
to maintain a segregated account of cash or liquid assets with a
broker or custodian to cover the Funds short position.
Securities held in a segregated account cannot be sold while the
position they are covering is outstanding, unless they are
replaced with similar securities. This may limit the Funds
investment flexibility, as well as its ability to meet
redemption requests or other current obligations.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Real Estate Risk: An investment in the Fund may be
subject to many of the same risks as a direct investment in real
estate and the real estate owned by the companies in which it
invests. These risks include changes in economic conditions,
interest rates, credit risk, property values, property tax
increases, overbuilding and increased competition, increasing
vacancies or declining rents, environmental contamination,
zoning and natural disasters.
Industry Concentration Risk: Because the Fund
concentrates its investments in the real estate industry, the
Funds performance may be subject to greater risks and
market fluctuations than a portfolio investing in a broader
range of securities. An investment in the Fund will be closely
linked to the performance of the real estate markets.
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Short Sales Risk: If the price of a stock goes up after a
short sale, the Fund will lose money because it will have to pay
more to replace the borrowed stock than it received when it sold
the stock short. The amount of loss on a short sale is
theoretically unlimited, as there is no maximum attainable price
of the shorted security.
Leverage Risk: The Funds short sales effectively
leverage the Funds assets. It is possible that the Fund
may lose money on both long and short positions at the same
time. The Funds assets that are
REAL ESTATE
130/30 FUND
used as collateral to secure the short sales may decrease in
value while the short positions are outstanding, which may force
the Fund to use its other assets to increase the collateral.
Leverage also creates interest expense that may decrease the
Funds overall returns.
Borrowing Risk: If the Fund borrows money from banks for
investment purposes, the Funds borrowing activities will
amplify any increase or decrease in the Funds net asset
value. The interest which the Fund must pay on borrowed money
will reduce and may eliminate any net investment profits.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of the equity market or
the equity market as a whole and can be more volatile than
stocks of a larger company. Smaller companies may be newer or
less established and may have limited resources, products and
markets. They may be less liquid.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization companies may be
less flexible in evolving markets or unable to implement change
as quickly as smaller capitalization companies.
Exchange Traded Fund Risk: The risk of owning shares
of an ETF generally reflects the risk of owning the underlying
securities the ETF is designed to track. Liquidity in an ETF
could result in more volatility than ownership of the underlying
portfolio of securities. In addition, because of ETF management
expenses, compared to owning the underlying securities directly,
it may be more costly to own an ETF.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Non-Diversification Risk: The Fund is non-diversified,
which means that it may invest in the securities of relatively
few issuers. As a result, the Fund may be more susceptible to a
single adverse economic or regulatory occurrence affecting one
or more of these issuers, and may experience increased
volatility due to its investments in those securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. A Shares were
offered beginning on May 20, 2009. A Share performance
prior to May 20, 2009 is that of I Shares of the Fund,
and has not been adjusted to reflect A Share expenses. If it had
been, performance would have been lower.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
29.48%
|
|
-37.69%
|
(9/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was 6.28%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
REAL ESTATE
130/30 FUND
shown for only the I Shares. After-tax returns for other classes
will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
Inception*
|
|
|
A Shares Returns Before Taxes
|
|
|
11.06%
|
|
|
|
-16.85%
|
|
|
|
I Shares Returns Before Taxes
|
|
|
18.15%
|
|
|
|
-14.24%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
17.00%
|
|
|
|
-15.62%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
11.73%
|
|
|
|
-12.74%
|
|
|
|
FTSE NAREIT Equity REITs Index (reflects no deduction for fees,
expenses or taxes)
|
|
|
27.99%
|
|
|
|
-10.72%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since inception of the I Shares on December 26, 2007.
Benchmark returns since December 31, 2007 (benchmark
returns available only on a month end basis).
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Alpha Equity Management LLC is the Funds subadviser.
Portfolio
Management
Mr. Kevin Means, CFA, Managing Partner and Chief Investment
Officer of the Subadviser, Mr. Vince Fioramonti, CFA,
Partner and Director of Trading and Portfolio Operations of the
Subadviser, and Mr. Neil Kochen, CFA, Partner, Chief Risk
Officer and Asset Allocation Strategist of the Subadviser, have
co-managed the Fund since its inception in December 2007.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through financial
institutions or intermediaries that are authorized to place
transactions in Fund shares for their customers. Please contact
your financial institution or intermediary directly and follow
its procedures for fund share transactions. The Fund offers I
Shares to financial institutions and intermediaries for their
own accounts or for the accounts of customers for whom they may
act as fiduciary agent, investment adviser, or custodian. Please
consult your financial institution or intermediary to find out
about how to purchase I Shares of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
|
|
|
Class
|
|
Dollar Amount
|
|
|
A Shares
|
|
$2,000
|
I Shares
|
|
None
|
|
|
|
|
|
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
U.S. EQUITY
130/30 FUND
Summary
Section
A Shares and I
Shares
Investment
Objective
The U.S. Equity 130/30 Fund (the Fund) seeks
long-term capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund. You may qualify for sales
charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in RidgeWorth Funds. More
information about these and other discounts is available from
your financial professional and in Sales Charges on page 65
of the Funds prospectus and Rights of Accumulation on
page 84 of the Funds Statement of Additional
Information.
Shareholder
Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
|
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of
offering price)
|
|
|
5.75%
|
|
|
|
None
|
|
|
|
|
|
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
A Shares
|
|
I Shares
|
|
Management Fees
|
|
|
1.10%
|
|
|
|
1.10%
|
|
Distribution (12b-1) Fees
|
|
|
0.30%
|
|
|
|
None
|
|
Other Expenses
|
|
|
|
|
|
|
|
|
Dividend Expense on Short Sales
|
|
|
0.60%
|
|
|
|
0.60%
|
|
Other Operating Expenses
|
|
|
0.97%
|
|
|
|
0.97%
|
|
|
|
|
|
|
|
|
|
|
Total Other Expenses
|
|
|
1.57%
|
|
|
|
1.57%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
2.97%
|
|
|
|
2.67%
|
|
Fee Waivers and/or Expense
Reimbursements(1)
|
|
|
(0.77)%
|
|
|
|
(0.77)%
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waivers
and/or Expense Reimbursements
|
|
|
2.20%
|
|
|
|
1.90%
|
|
|
|
(1) |
The Adviser and the Subadviser have contractually agreed to
waive fees and reimburse expenses until at least August 1,
2011 in order to keep Total Annual Operating Expenses
(excluding, as applicable, taxes, brokerage commissions,
substitute dividend expenses on securities sold short,
extraordinary expenses and acquired fund fees and expenses) from
exceeding 1.60% and 1.30% for the A and I Shares, respectively.
This agreement shall terminate upon the termination of the
Investment Advisory Agreement between RidgeWorth Funds and the
Adviser, or it may be terminated upon written notice to the
Adviser by RidgeWorth Funds.
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
A Shares
|
|
$
|
785
|
|
|
$
|
1,373
|
|
|
$
|
1,984
|
|
|
$
|
3,624
|
|
I Shares
|
|
$
|
193
|
|
|
$
|
756
|
|
|
$
|
1,346
|
|
|
$
|
2,946
|
|
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Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent
fiscal year, the Funds portfolio turnover rate was 382% of
the average value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in common stocks and other U.S. traded equity
securities. U.S. traded equity securities may include
American Depositary Receipts (ADRs). The Fund may
invest in companies of any size and may also invest in
exchange-traded funds (ETFs).
In selecting investments for purchase and sale, Alpha Equity
Management LLC (the Subadviser) uses a proprietary
quantitative process. The stock selection model emphasizes
characteristics such as relative value, analyst sentiment,
earnings quality, long-term price momentum, and short-term price
reversal. The Subadviser considers for selection companies with
market capitalizations similar to those of companies in the
S&P 500 Index. As of July 1, 2010, the market
capitalization range of companies in the S&P 500
U.S. EQUITY
130/30 FUND
Index was between approximately $1 billion and
$269 billion. The Fund holds a diversified portfolio to
reduce stock-specific risk. Portfolio construction is driven by
the Subadvisers daily assessment of expected return,
transaction cost, and risk for each of the securities in the
Funds investment universe. The Subadviser focuses on
bottom-up
stock selection and does not emphasize macro forecasts of
overall market returns, growth versus value returns, or large
capitalization versus small capitalization returns.
The Fund pursues its investment goal by establishing long and
short positions in equity securities. The Fund normally takes
long positions in stocks that the Subadviser believes have the
highest utility and normally takes short positions in stocks
that it believes have the lowest utility. Utility is defined as
an individual securitys expected return from its exposure
to the return factors in the stock selection model less expected
transaction costs and risk penalties. The Fund normally holds
long positions in equity securities with an aggregate value of
approximately 130% (within a range of 100% to 150%) of its net
assets. In addition, the Fund normally establishes short
positions in equity securities with a market value of
approximately 30% (within a range of 0% to 50%) of its net
assets. When the Fund establishes a long position, it purchases
the security outright. The Fund is generally managed to be 100%
net long. When the Fund establishes a short position, it sells a
security that it does not own and settles the sale by borrowing
the same stock from a lender. To close out the short position,
the Fund subsequently buys back the same security in the market
and returns it to the lender. The Fund makes money on a short
position if the market price of the security goes down after the
short sale. Conversely, if the price of the stock goes up after
the short sale, the Fund will lose money on that position
because it will have to pay more to replace the borrowed
security that it received when it sold the security short. When
borrowing a security for delivery to a buyer, the Fund also may
be required to pay a fee and other transaction costs, which
would increase the cost of the security sold short.
The Fund typically uses the cash generated from the short sale
to purchase additional securities, which allows the Fund to
maintain long positions in excess of 100% of the Funds net
assets. Alternatively, the Fund may achieve the same result by
borrowing money from banks and using the proceeds to purchase
additional securities. Each of these investment techniques is
known as leverage.
When the Fund enters into a short sale, it is required to pledge
assets as collateral to secure the Funds obligation to
cover the short position held by the broker.
Until the Fund replaces a borrowed security, it is also required
to maintain a segregated account of cash or liquid assets with a
broker or custodian to cover the Funds short position.
Securities held in a segregated account cannot be sold while the
position they are covering is outstanding, unless they are
replaced with similar securities. This may limit the Funds
investment flexibility, as well as its ability to meet
redemption requests or other current obligations.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as futures, options and swaps) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as market risk.
Principal
Investment Risks
Equity Risk: Stock prices may fall over short or extended
periods of time. The value of the Funds securities may
fluctuate drastically from day to day.
Short Sales Risk: If the price of a stock goes up after a
short sale, the Fund will lose money because it will have to pay
more to replace the borrowed stock than it received when it sold
the stock short. The amount of loss on a short sale is
theoretically unlimited, as there is no maximum attainable price
of the shorted security.
Leverage Risk: The Funds short sales effectively
leverage the Funds assets. It is possible that the Fund
may lose money on both long and short positions at the same
time. The Funds assets that are used as collateral to
secure the short sales may decrease in value while the short
positions are outstanding, which may force the Fund to use its
other assets to increase the collateral. Leverage also creates
interest expense that may decrease the Funds overall
returns.
Borrowing Risk: If the Fund borrows money from banks for
investment purposes, the Funds borrowing activities will
amplify any increase or decrease in the Funds net asset
value. The interest which the Fund must pay on borrowed money
will reduce and may eliminate any net investment profits.
Smaller Company Risk: Small and mid-cap stocks tend to
perform differently from other segments of
U.S. EQUITY
130/30 FUND
the equity market or the equity market as a whole and can be
more volatile than stocks of a larger company. Smaller companies
may be newer or less established and may have limited resources,
products and markets. They may be less liquid.
Large Company Risk: Large cap stocks can perform
differently from other segments of the equity market or the
equity market as a whole. Large capitalization companies may be
less flexible in evolving markets or unable to implement change
as quickly as smaller capitalization companies.
ADR Risk: Because the Fund may invest in ADRs, it is
subject to some of the same risks as direct investments in
foreign companies. These include the risk that political and
economic events unique to a country or region will affect those
markets and their issuers.
Exchange Traded Fund Risk: The risks of owning
shares of an ETF generally reflect the risks of owning the
underlying securities the ETF is designed to track. Liquidity in
an ETF could result in more volatility than ownership of the
underlying portfolio of securities. In addition, because of ETF
management expenses, compared to owning the underlying
securities directly, it may be more costly to own an ETF.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. As of
December 31, 2009, A Shares were not operational.
Performance prior to the commencement of operations of the A
Shares is that of I Shares of the Fund, and has not been
adjusted to reflect A Shares expenses. If it had been,
performance would have been lower.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
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Best Quarter
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Worst Quarter
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17.54%
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-19.88%
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(6/30/09)
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(12/31/08)
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* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was -3.00%.
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This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. These returns reflect applicable sales
charges and assume shareholders redeem all of their shares at
the end of the period indicated. After-tax returns are
calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state
and local taxes. Your actual after-tax returns will depend on
your tax situation and may differ from those shown. After-tax
returns shown are not relevant to investors who hold their Fund
shares through tax deferred arrangements, such as 401(k) plans
or individual retirement accounts. After-tax returns are
U.S. EQUITY
130/30 FUND
shown for only the I Shares. After-tax returns for other classes
will vary.
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Since
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1 Year
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Inception*
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A Shares Returns Before Taxes
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21.26%
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-12.55%
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I Shares Returns Before Taxes
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29.89%
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-9.12%
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I Shares Returns After Taxes on Distributions
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29.70%
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-9.25%
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I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
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19.66%
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-7.71%
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S&P 500 Index (reflects no deduction for fees, expenses or
taxes)
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26.46%
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-11.53%
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* |
Since inception of the I Shares on December 26, 2007.
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Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Alpha Equity Management LLC is the Funds subadviser.
Portfolio
Management
Mr. Kevin Means, CFA, Managing Partner and Chief Investment
Officer of the Subadviser, Mr. Vince Fioramonti, CFA,
Partner and Director of Trading and Portfolio Operations of the
Subadviser, and Mr. Neil Kochen, CFA, Partner, Chief Risk
Officer and Asset Allocation Strategist of the Subadviser, have
co-managed
the Fund since its inception in December 2007.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A Shares of the Fund through financial
institutions or intermediaries that are authorized to place
transactions in Fund shares for their customers. Please contact
your financial institution or intermediary directly and follow
its procedures for fund share transactions. The Fund offers I
Shares to financial institutions and intermediaries for their
own accounts or for the accounts of customers for whom they may
act as fiduciary agent, investment adviser, or custodian. Please
consult your financial institution or intermediary to find out
about how to purchase I Shares of the Fund.
The minimum initial investment amounts for each class are shown
below, although these minimums may be reduced or waived in some
cases. There are no minimums for subsequent investments.
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Class
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Dollar Amount
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A Shares
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$2,000
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I Shares
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None
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Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
MORE INFORMATION
ABOUT RISK
More Information
About Risk
Borrowing
Risk
All 130/30 Funds
A Fund may borrow cash
and/or
securities subject to certain limits which may amplify the
effect of any increase or decrease in the value of portfolio
securities or the net asset value of a Fund. Money borrowed will
be subject to interest costs. Interest costs on borrowings may
fluctuate due to changing rates of interest and may partially
offset or exceed the return earned on borrowed funds. Under
adverse market conditions, a Fund may have to sell portfolio
securities to meet interest or principal payments at a time when
fundamental investment considerations would not favor such sales.
Derivatives
Risk
All Funds
A derivative is a financial contract whose value adjusts in
accordance with the value of one or more underlying assets,
reference rates or indices. Derivatives (such as credit linked
notes, futures, options, inverse floaters, swaps and warrants)
may be used to attempt to achieve investment objectives or to
offset certain investment risks. These positions may be
established for hedging, substitution of a position in the
underlying asset, or for speculation purposes. Hedging involves
making an investment (e.g., in a futures contract) to reduce the
risk of adverse price movements in an already existing
investment position. Risks associated with the use of
derivatives include those associated with hedging and leveraging
activities:
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The success of a hedging strategy may depend on an ability to
predict movements in the prices of individual securities,
fluctuations in markets, and movements in interest rates.
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A Fund may experience losses over certain market movements that
exceed losses experienced by a fund that does not use
derivatives.
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There may be an imperfect or no correlation between the changes
in market value of the securities held by a Fund and the prices
of derivatives used to hedge those positions.
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There may not be a liquid secondary market for derivatives.
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Trading restrictions or limitations may be imposed by an
exchange.
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Government regulations may restrict trading in derivatives.
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The other party to an agreement (e.g., options or swaps) may
default; however, in certain circumstances, such counter-party
risk may be reduced by the creditworthiness of the counterparty
and/or using
an exchange as an intermediary.
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Because premiums or totals paid or received on derivatives are
small in relation to the market value of the underlying
investments, buying and selling derivatives can be more
speculative than investing directly in securities. In addition,
many types of derivatives have limited investment lives and may
expire or necessitate being sold at inopportune times.
The use of derivatives may cause a Fund to recognize higher
amounts of short-term capital gains, which are generally taxed
to shareholders at ordinary income tax rates.
Credit default swaps may involve greater risks than if a Fund
had invested in the asset directly. A Fund may be more exposed
to credit risk. In addition, a Fund may experience losses if the
Funds investment subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Total return swaps could result in losses if
their reference index, security or investments do not perform as
anticipated.
Leverage may cause a Fund to be more volatile than if the Fund
had not been leveraged. This is because leverage tends to
exaggerate the effect of any increase or decrease on the value
of a Funds portfolio securities. To limit leveraging risk,
a Fund observes asset segregation requirements to fully cover
its future obligations. By setting aside assets equal only to
its net obligations under certain derivative instruments, a Fund
will have the ability to employ leverage to a greater extent
than if it were required to segregate assets equal to the full
notional value of such derivative instruments.
Emerging Markets
Risk
International Equity 130/30 Fund
International Equity Fund
International Equity Index Fund
Emerging market countries are countries that the World Bank or
the United Nations considers to be emerging or developing.
Emerging markets may be more likely to experience political
turmoil or rapid changes in market or economic conditions than
more developed countries. In addition, the financial stability
MORE INFORMATION
ABOUT RISK
of issuers (including governments) in emerging market countries
may be more precarious than in other countries. As a result,
there will tend to be an increased risk of price volatility
associated with investments in emerging market countries, which
may be magnified by currency fluctuations relative to the
U.S. dollar. Governments of some emerging market countries
have defaulted on their bonds and may do so in the future.
Equity
Risk
All Funds
Equity securities include public and privately issued equity
securities, common and preferred stocks, warrants, rights to
subscribe to common stock and convertible securities, as well as
instruments that attempt to track the price movement of equity
indices. Individual companies may report poor results or be
negatively affected by industry
and/or
economic trends and developments. The prices of securities
issued by such companies may suffer a decline in response. These
factors contribute to price volatility, which is the principal
risk of investing in funds that primarily hold equity
securities. Historically, the equity market has moved in cycles
and investments in equity securities and equity derivatives in
general are subject to market risks that may cause their prices
to fluctuate over time. The value of securities convertible into
equity securities, such as warrants or convertible debt, is also
affected by prevailing interest rates, the credit quality of the
issuer and any call provision. Fluctuations in the value of
equity securities in which a mutual fund invests will cause a
funds net asset value to fluctuate. An investment in a
portfolio of equity securities may be more suitable for
long-term investors who can bear the risk of these share price
fluctuations.
Exchange Traded
Fund Risk
All Funds
The Funds may purchase shares of exchange-traded funds
(ETFs) to gain exposure to a particular portion of
the market. ETFs are investment companies that are bought and
sold on a securities exchange. ETFs may track a securities
index, a particular market sector, or a particular segment of a
securities index or market sector. ETFs, like mutual funds, have
expenses associated with their operation, including advisory
fees. When the Fund invests in an ETF, in addition to directly
bearing expenses associated with its own operations, it will
bear a pro rata portion of the ETFs expense. The risks of
owning shares of an ETF generally reflect the risks of owning
the underlying securities the ETF is designed to track, although
lack of liquidity in an ETF could result in being more volatile
than the underlying portfolio of securities. In addition,
because of ETF expenses, compared to owning the underlying
securities directly, it may be more costly to own shares of an
ETF.
Foreign
Securities Risk
All Funds
Investments in securities of foreign companies or governments
can be more volatile than investments in U.S. companies or
governments. Diplomatic, political, or economic developments,
including nationalization or appropriation, unique to a country
or region will affect those markets and their issuers. Foreign
securities markets generally have less trading volume and less
liquidity than U.S. markets.
The value of securities denominated in foreign currencies, and
of dividends from such securities, can change significantly when
foreign currencies strengthen or weaken relative to the
U.S. dollar. As a result, changes in the value of those
currencies compared to the U.S. dollar may affect
(positively or negatively) the value of a Funds
investment. Foreign currency exchange rates may fluctuate
significantly. They are determined by supply and demand in the
foreign exchange markets, the relative merits of investments in
different countries, actual or perceived changes in interest
rates, and other complex factors. Currency exchange rates also
can be affected unpredictably by intervention (or the failure to
intervene) by U.S. or foreign governments or central banks
or by currency controls or political developments. Currency
movements may happen separately from and in response to events
that do not otherwise affect the value of the security in the
issuers home country.
Foreign companies or governments generally are not subject to
uniform accounting, auditing, and financial reporting standards
comparable to those applicable to domestic U.S. companies
or governments. Transaction costs are generally higher than
those in the U.S. and expenses for custodial arrangements
of foreign securities may be somewhat greater than typical
expenses for custodial arrangements of similar
U.S. securities. Some foreign governments levy withholding
taxes against dividend and interest income. Although in some
countries a portion of these taxes are recoverable, the
non-recovered portion will reduce the income received from the
securities comprising the portfolio.
MORE INFORMATION
ABOUT RISK
Foreign Currency
Risk
All Funds
Non-U.S. securities
often trade in currencies other than the U.S. dollar.
Changes in currency exchange rates may affect a Funds net
asset value, the value of dividends and interest earned, and
gains and losses realized on the sale of securities. An increase
in the strength of the U.S. dollar relative to these other
currencies may cause the value of the Fund to decline. Certain
currencies may be particularly volatile, and
non-U.S. governments
may intervene in the currency markets, causing a decline in
value or liquidity in the Funds
non-U.S. holdings
whose value is tied to that particular currency.
Large Company
Risk
Aggressive Growth Stock Fund
All 130/30 Funds
International Equity Fund
International Equity Index Fund
Large Cap Core Equity Fund
Large Cap Growth Stock Fund
Large Cap Quantitative Equity Fund
Large Cap Value Equity Fund
Mid-Cap Core Equity Fund
Mid-Cap Value Equity Fund
Select Large Cap Growth Stock Fund
Large cap stocks can perform differently from other segments of
the equity market or the equity market as a whole. Companies
with large capitalization tend to go in and out of favor based
on market and economic conditions and, while they can be less
volatile than companies with smaller market capitalizations,
they may also be less flexible in evolving markets or unable to
implement change as quickly as their smaller counterparts.
Accordingly the value of large cap stocks may not rise to the
same extent as the value of small or mid-cap companies under
certain market conditions or during certain periods.
Leverage
Risk
All 130/30 Funds
Leverage occurs when a Fund increases its assets available for
investment using borrowings or similar transactions. Due to the
fact that short sales involve borrowing securities and then
selling them, a Funds short sales effectively leverage the
Funds assets. It is possible that the Fund may lose money
on both long positions and short positions at the same time. The
use of leverage may make any change in a Funds net asset
value even greater and thus result in increased volatility of
returns. A Funds assets that are used as collateral to
secure the short sales may decrease in value while the short
positions are outstanding, which may force the Fund to use its
other assets to increase the collateral. Leverage also creates
interest expense that may lower a Funds overall returns.
Lastly, there is no guarantee that a leveraging strategy will be
successful.
Real Estate
Risk
Real Estate 130/30 Fund
Investments in real estate related securities are subject to
risks similar to those associated with direct ownership of real
estate, and an investment in the Fund will be closely linked to
the performance of the real estate markets. These risks include,
among others, declines in the value of real estate; risks
related to general and local economic conditions; possible lack
of availability of mortgage funds; overbuilding; extended
vacancies of properties; defaults by borrowers or tenants,
particularly during an economic downturn; increasing
competition; increases in property taxes and operating expenses;
changes in zoning laws; losses due to costs resulting from the
clean-up of
environmental problems; liability to third parties for damages
resulting from environmental problems; casualty or condemnation
losses; limitations on rents; changes in market and
sub-market
values and the appeal of properties to tenants; and changes in
interest rates.
In addition to the risks associated with investing in securities
of real estate companies and real estate related companies, real
estate investment trust (REITs) are subject to
certain additional risks. Equity REITs may be affected by
changes in the value of the underlying properties owned by the
trusts, and mortgage REITs may be affected by the quality of any
credit extended. Further, REITs are dependent upon specialized
management skills and may have their investments in relatively
few properties, or in a small geographic area or a single
property type. REITs are also subject to heavy cash flow
dependency, defaults by borrowers and self-liquidation. In
addition, REITs could possibly fail to qualify for tax free
pass-through of income under the Internal Revenue Code (the
Code) or to maintain their exemptions from
registration under the Investment Company Act of 1940. The
failure of a company to qualify as a REIT under federal tax law
may have adverse consequences to the Fund. The above factors may
also adversely affect a borrowers or a lessees
ability to meet its
MORE INFORMATION
ABOUT RISK
obligations to the REIT. In the event of a default by a borrower
or lessee, the REIT may experience delays in enforcing its
rights as a mortgagee or lessor and may incur substantial costs
associated with protecting its investments. In addition, REITs
have their own expense and the Fund will bear a proportionate
share of those expenses.
Real estate companies tend to be small to medium-sized
companies. Real estate company shares, like other smaller
company shares, can be more volatile than, and perform
differently from, larger company shares. There may be less
trading in a smaller companys shares, which means that buy
and sell transactions in those shares could have a larger impact
on the shares price than is the case with larger company
shares.
Regional
Risk
International Equity 130/30 Fund
International Equity Fund
International Equity Index Fund
To the extent that a Funds investments are concentrated in
a specific geographic region, a Fund may be subject to the
political and other developments affecting that region. Regional
economies are often closely interrelated, and political and
economic developments affecting one region, country or state
often affect other regions, countries or states, thus subjecting
the Fund to additional risks.
Restricted
Security Risk
All Funds
Restricted securities may increase the level of illiquidity in
the Fund during any period that qualified institutional buyers
become uninterested in purchasing these restricted securities.
The Adviser and Subadviser intend to invest only in restricted
securities that they believe present minimal liquidity risk.
Securities
Lending Risk
All Funds
A Fund may lend securities to approved borrowers, such as
broker-dealers, to earn additional income. Risks include the
potential insolvency of the borrower that could result in delays
in recovering securities and capital losses. Additionally,
losses could result from the reinvestment of collateral received
on loaned securities in investments that default or do not
perform well. It is also possible that if a security on loan is
sold and a Fund is unable to timely recall the security, the
Fund may be required to repurchase the security in the market
place, which may result in a potential loss to shareholders.
There is a risk that the Fund may not be able to recall
securities on loan in sufficient time to vote on material proxy
matters. In addition, as a general practice, a Fund will not
recall securities on loan solely to receive income payments,
which could result in an increase of a Funds tax
obligation that is subsequently passed on to its shareholders.
Short Sales
Risk
All 130/30 Funds
A short sale is the sale by a Fund of a security which has been
borrowed from a third party on the expectation that the market
price will decline. Short sales involve additional costs and
risk. If a security sold short increases in price, the Fund may
have to cover its short position at a higher price than the
short sale price, resulting in a loss. Therefore, short sales
involve the risk that losses may be exaggerated, potentially
losing more money than the actual cost of the investment, or a
theoretically unlimited loss, as there is no maximum attainable
price of the shorted security. Also, there is the risk that the
third party to the short sale may fail to honor its contract
terms, causing a loss to the Fund. The Fund may not initiate a
short sale unless it is able to borrow the security and must
then deliver the security to the buyer to complete the
transaction. The Fund may not be able to borrow a security that
it wishes to short or the lender of the securities may, at any
time, recall the loaned security which would force the Fund to
purchase the security in the open market at the then current
price. In addition, the Fund may not be able to close out a
short position at a profit or an acceptable price and may have
to sell long positions to cover accumulated losses in the short
portfolio. Thus, the Fund may not be able to successfully
implement its short sale strategy due to the limited
availability of desired securities or for other reasons.
The Fund must normally repay to the lender an amount equal to
any dividends or interest that accrues while the loan is
outstanding. The amount of any gain will be decreased, and the
amount of any loss increased, by the amount of the premium,
dividends, interest or expenses the Fund may be required to pay
in connection with the short sale. Also, the lender of a
security may terminate the loan at a time when the Fund is
unable to borrow the same security from another lender for
delivery. In that case, the Fund would need to purchase a
replacement
MORE INFORMATION
ABOUT INDICES
security at the then current market price or buy in
by paying the lender with securities purchased in the open
market or with an amount equal to the cost of purchasing the
securities.
Until the Fund replaces a borrowed security, it is required to
maintain a segregated account of cash or liquid assets with a
broker or custodian to cover the Funds short position.
Securities held in a segregated account cannot be sold while the
position they are covering is outstanding, unless they are
replaced with similar securities. Additionally, the Fund must
maintain sufficient liquid assets (less any additional
collateral held by the broker),
marked-to-market
daily, to cover the short sale obligation. This may limit the
Funds investment flexibility, as well as its ability to
meet redemption requests or other current obligations.
Smaller Company
Risk
All Funds
Small and mid-capitalization companies may be either established
or newer companies. Smaller companies may offer greater
opportunities for gain. They also involve a greater risk of loss
because they may be more vulnerable to adverse business or
economic events, particularly those companies that have been in
operation for less than three years. Smaller company securities
may trade in lower volumes or there may be less information
about the company which may cause the investments to be more
volatile or to have less liquidity than larger company
investments. They may have unseasoned management or may rely on
the efforts of particular members of their management team to a
great degree causing turnover in management to pose a greater
risk. Smaller sized companies may have more limited access to
resources, product lines, and financial resources. Small and
mid-sized companies typically reinvest a large proportion of
their earnings in their business and may not pay dividends or
make interest payments for some time, particularly if they are
newer companies.
Tracking Error
Risk
International Equity Index Fund
Factors such as Fund expenses, imperfect correlation between the
Funds investments and those of its benchmarks, rounding of
share prices, changes to the benchmark, regulatory policies, and
leverage, may affect its ability to achieve perfect correlation.
The magnitude of any tracking error may be affected by a higher
portfolio turnover rate. Because an index is just a composite of
the prices of the securities it represents rather than an actual
portfolio of those securities, an index will have no expenses.
As a result, the Fund, which will have expenses such as taxes,
custody, management fees and other operational costs, and
brokerage, may not achieve its investment objective of
accurately correlating to an index.
Risk Information
Common to RidgeWorth Funds
Each Fund is a mutual fund. A mutual fund pools
shareholders money and, using professional investment
managers, invests it in securities.
Each Fund has its own investment goal and strategies for
reaching that goal. The Adviser invests Fund assets in a way
that it believes will help a Fund achieve its goal. Still,
investing in each Fund involves risk and there is no guarantee
that a Fund will achieve its goal. The Advisers or
Sub-Advisers
judgments about the markets, the economy or companies may not
anticipate actual market movements, economic conditions or
company performance, and these judgments may affect the return
on your investment. In fact, no matter how good a job the
Adviser or
Sub-Adviser
does, you could lose money on your investment in a Fund, just as
you could with other investments. The value of your investment
in a Fund is based on the market prices of the securities the
Fund holds. These prices change daily due to economic and other
events that affect particular companies and other issuers. These
price movements, sometimes called volatility, may be greater or
lesser depending on the types of securities a Fund owns and the
markets in which they trade. The effect on a Fund of a change in
the value of a single security will depend on how widely the
Fund diversifies its holdings.
Except for the Real Estate 130/30 Fund, each Funds
investment goal may be changed without shareholder approval.
Before investing, make sure that the Funds goal matches
your own.
The Funds are not managed to achieve tax efficiency.
More Information
About Indices
An index measures the market prices of a specific group of
securities in a particular market or market sector. You cannot
invest directly in an index. Unlike a mutual fund, an index does
not have an investment adviser and does not pay any commissions
or expenses. If an index had expenses, its performance would be
lower.
MORE INFORMATION
ABOUT INDICES
FTSE All-World Index ex-US is part of a range of indexes
designed to help U.S. investors benchmark their
international investments. The index comprises Large (84%) and
Mid (16%) cap stocks providing coverage of Developed and
Emerging Markets (46 countries) excluding the US. The index is
derived from the FTSE Global Equity Index Series (GEIS), which
covers 98% of the worlds investable market capitalization.
FTSE NAREIT Equity REITs Index is a capitalization-weighted
index of investment trusts that spans the commercial real estate
space across the U.S. economy.
Morgan Stanley Capital International Europe Australasia and Far
East (MSCI EAFE) Index is a free float-adjusted
market capitalization index that is designed to measure the
equity market performance of developed markets, excluding the
U.S. & Canada. The MSCI EAFE Index consists of 21
developed market country indices.
Morgan Stanley Capital International Europe Australasia and Far
East (MSCI EAFE) Index (GDP Weighted) is a
widely-recognized, market capitalization index that measures
market equity performance based upon indices from 21 foreign and
developed countries. The country weighting of the Index is
calculated using the gross domestic product of each of the
various countries and then with respect of the market
capitalization of the various companies operating in each
country. The MSCI EAFE Index (GDP Weighted) Net Dividend
measures the market performance including both price performance
and income from dividend payments.
Russell
3000®
Index measures the performance of the largest 3000
U.S. companies representing approximately 98% of the
investable U.S. equity market.
Russell
3000®
Index comprises several subset indices based on market
capitalization and investment style (growth or value).
Russell
3000®
Growth Index measures the performance of the broad growth
segment of the U.S. equity universe. It includes those
Russell 3000 companies with higher
price-to-book
ratios and higher forecasted growth values.
Russell
2000®
Index, measures the performance of the small-cap segment of the
U.S. equity universe. The Russell 2000 Index is a subset of
the Russell 3000 Index.
Russell
2000®
Value Index measures the performance of small-cap value segment
of the U.S. equity universe. It includes those Russell
2000 companies with lower
price-to-book
ratios and lower forecasted growth values.
Russell
2000®
Growth Index measures the performance of the small-cap growth
segment of the U.S. equity universe. It includes those
Russell 2000 companies with higher
price-to-value
ratios and higher forecasted growth values.
Russell
1000®
Index is a subset of the Russell
3000®
Index and includes approximately 1000 of the largest securities
based on a combination of their market cap and current index
membership.
Russell
1000®
Value Index measures the performance of the large-cap value
segment of the U.S. equity universe. It includes those
Russell 1000 companies with lower
price-to-book
ratios and lower expected growth values.
Russell
1000®
Growth Index measures the performance of the large-cap growth
segment of the U.S. equity universe. It includes those
Russell 1000 companies with higher
price-to-book
ratios and higher forecasted growth values.
Russell
Midcap®
Index measures the performance of the mid-cap segment of the
U.S. equity universe. The Russell Midcap Index is a subset
of the Russell
1000®
Index. It includes approximately 800 of the smallest securities
based on a combination of their market cap and current index
membership. The Russell
Midcap®
Index represents approximately 31% of the total market
capitalization of the Russell 1000 companies their market
cap and current index membership.
Russell
Midcap®
Value Index is a measure of the performance of the mid-cap value
segment of the U.S. equity universe. It includes those
Russell
Midcap®
Index companies with lower
price-to-book
ratios and lower forecasted growth values.
Russell
Midcap®
Growth Index measures the performance of the mid-cap growth
segment of the U.S. equity universe. It includes those
Russell Midcap Index companies with higher
price-to-book
ratios and higher forecasted growth values.
S&P 500 Index is widely regarded as a gauge of the
U.S. equities market, this index includes 500 leading
companies in leading industries of the U.S. economy.
Although the S&P 500 focuses on the large cap segment of
the market, with approximately 75% coverage of
U.S. equities, it is also an ideal proxy for the total
market.
MANAGEMENT
More Information
About Fund Investments
This prospectus describes the Funds primary strategies,
and the Funds will normally invest in the types of securities
described in this prospectus. However, in addition to the
investments and strategies described in this prospectus, each
Fund also may invest in other securities, use other strategies
and engage in other investment practices. These investments and
strategies, as well as those described in this prospectus, are
described in detail in the Statement of Additional Information
(SAI).
The investments and strategies described in this prospectus are
those that the Funds use under normal conditions. During unusual
economic or market conditions, or for temporary defensive or
liquidity purposes, each Fund may invest up to 100% of its
assets in cash, money market instruments, repurchase agreements
and short-term obligations. The Small Cap Value Equity Fund also
may invest in investment grade fixed income securities and mid-
to large cap common stocks that would not ordinarily be
consistent with the Funds objective. A Fund (will do so
only if the Adviser or Subadviser believes that the risk of loss
outweighs the opportunity for capital gains or higher income. Of
course, a Fund cannot guarantee that it will achieve its
investment goal.
Each Fund may invest in other mutual funds for cash management
purposes. When a Fund invests in another mutual fund, in
addition to directly bearing expenses associated with its own
operations, it will bear a pro rata portion of the other mutual
funds expenses.
Information About
Portfolio Holdings
A description of the Funds policies and procedures with
respect to the circumstances under which the Funds disclose
their portfolio securities is available in the SAI.
Management
The Board of Trustees (the Board) is responsible for
the overall supervision and management of the business and
affairs of the Funds. The Board supervises the Adviser and
Subadvisers and establishes policies that the Adviser and
Subadvisers must follow in their fund related management
activities. The
day-to-day
operations of the Funds are the responsibilities of the officers
and various service organizations retained by the Funds.
Investment
Adviser
RidgeWorth Investments, 50 Hurt Plaza, Suite 1400,
Atlanta, Georgia 30303 (RidgeWorth or the
Adviser), serves as the investment adviser to the
Funds. In addition to being an investment adviser registered
with the Securities and Exchange Commission (the
SEC), RidgeWorth is a money-management holding
company with multiple style- focused investment boutiques. As of
June 30, 2010, the Adviser had approximately
$61.5 billion in assets under management. The Adviser is
responsible for overseeing the Subadvisers to ensure compliance
with each Funds investment policies and guidelines and
monitors each Subadvisers adherence to its investment
style. The Adviser also executes transactions with respect to
specific securities selected by the Subadvisers (excluding Alpha
Equity Management LLC and Zevenbergen Capital Investments
LLC) for purchase and sale by the Funds. The Adviser pays
the Subadvisers out of the fees it receives from the Funds.
The Adviser may use its affiliates as brokers for Fund
transactions.
An investment adviser has a fiduciary obligation to its clients
when the adviser has authority to vote their proxies. Under the
current contractual agreement, the Adviser is authorized to vote
proxies on behalf of each Fund. Information regarding the
Advisers, and thus each Funds, Proxy Voting Policies
and Procedures is provided in the SAI. A copy of the
Advisers Proxy Voting Policies and Procedures may be
obtained by contacting the Funds at 1-888-784-3863, or by
visiting www.ridgeworth.com.
For the fiscal year ended March 31, 2010, the following
Funds paid the Adviser advisory fees (after
MANAGEMENT
waivers) based on the respective Funds average daily net
assets of:
|
|
|
|
|
Aggressive Growth Stock Fund
|
|
|
1.10%
|
|
Emerging Growth Stock Fund
|
|
|
1.07%
|
|
International Equity 130/30 Fund
|
|
|
1.25%
|
|
International Equity Fund
|
|
|
1.10%
|
|
International Equity Index Fund
|
|
|
0.49%
|
|
Large Cap Core Equity Fund
|
|
|
0.84%
|
|
Large Cap Growth Stock Fund
|
|
|
0.93%
|
|
Large Cap Quantitative Equity Fund
|
|
|
0.75%
|
|
Large Cap Value Equity Fund
|
|
|
0.77%
|
|
Mid-Cap Core Equity Fund
|
|
|
1.00%
|
|
Mid-Cap Value Equity Fund
|
|
|
1.00%
|
|
Real Estate 130/30 Fund
|
|
|
0.65%
|
|
Select Large Cap Growth Stock Fund
|
|
|
0.85%
|
|
Small Cap Growth Stock Fund
|
|
|
1.15%
|
|
Small Cap Value Equity Fund
|
|
|
1.15%
|
|
U.S. Equity 130/30 Fund
|
|
|
0.34%
|
|
The Adviser and the Subadvisor have contractually agreed to
waive fees and reimburse expenses until at least August 1,
2011 in order to keep total annual operating expenses of each
Fund from exceeding the applicable expense cap below. If at any
point before August 1, 2013, total annual operating
expenses are less than the expense cap, the Adviser may retain
the difference to recapture any of the prior waivers or
reimbursements.
|
|
|
|
|
|
|
Share
|
|
Expense
|
Fund
|
|
Class
|
|
Limitation
|
International Equity 130/30 Fund
|
|
I
|
|
1.55%
|
|
|
A
|
|
1.85%
|
Real Estate 130/30 Fund
|
|
I
|
|
1.45%
|
|
|
A
|
|
1.75%
|
U.S. Equity 130/30 Fund
|
|
I
|
|
1.30%
|
|
|
A
|
|
1.60%
|
Large Cap Quantitative Equity
|
|
I
|
|
0.97%
|
|
|
A
|
|
1.22%
|
Emerging Growth Stock Fund
|
|
I
|
|
1.24%
|
|
|
A
|
|
1.54%
|
The following breakpoints are used in computing the advisory fee:
|
|
|
Average Daily Net Assets
|
|
Discount From Full Fee
|
|
First $500 million
|
|
None Full Fee
|
Next $500 million
|
|
5%
|
Over $1 billion
|
|
10%
|
Based on average daily net assets as of March 31, 2010, the
asset levels of the following Funds had reached a breakpoint in
the advisory fee.* Had the Funds asset levels been lower,
the Adviser may have been entitled to receive maximum advisory
fees as follows:
|
|
|
|
|
International Equity Index Fund
|
|
|
0.50%
|
|
Large Cap Value Equity Fund
|
|
|
0.80%
|
|
|
|
* |
Fund expenses in the Annual Fund Operating
Expenses tables shown earlier in this prospectus reflect
the advisory breakpoints.
|
A discussion regarding the basis for the Boards approval
of the investment advisory agreement with the Adviser appears in
the Funds annual report to shareholders for the period
ended March 31, 2010.
Investment
Subadvisers
The Subadvisers are responsible for managing the portfolios of
the Funds on a
day-to-day
basis and selecting the specific securities to buy, sell and
hold for the Funds under the supervision of the Adviser and the
Board. A discussion regarding the basis for the Boards
approval of the investment subadvisory agreements appears in the
Funds annual report to shareholders for the period ended
March 31, 2010.
Information about the Subadvisers and the individual portfolio
managers of the Funds is discussed below. The SAI provides
additional information regarding the portfolio managers
compensation, other accounts managed by the portfolio managers,
potential conflicts of interest and the portfolio managers
ownership of securities in the Funds.
Alpha Equity Management LLC (Alpha Equity) 90
State House Square, Suite 1100, Hartford,
Connecticut 06103 and 405 Park Avenue,
Suite 803, New York, New York, 10022
www.alphaequityllc.com
Alpha Equity, a minority-owned subsidiary of RidgeWorth, is an
investment adviser registered with the SEC. The firm was
established in 2007 through a transaction in which its
predecessor organization, founded in 2000, transferred its
investment advisory business to Alpha Equity. Alpha Equity
serves as subadviser to the RidgeWorth 130/30 Funds. As
of June 30, 2010, Alpha Equity had approximately
$154 million in assets under management.
Alpha Equity is one of the pioneers in active extension (130/30)
products. The firm specializes in quantitative
MANAGEMENT
strategies engineered to generate alpha through all market
cycles. It has developed a track record in international, real
estate and domestic short-extension strategies. Alpha Equity
selects, buys and sells securities for the 130/30 Funds under
the supervision of the Adviser and the Board.
Alpha Equity employs a team approach in managing the Funds. Each
of the individuals primarily responsible for the
day-to-day
management of the Funds has particular areas of expertise in
which they contribute to the management of the Funds. All of the
Funds utilize a similar set of highly structured and disciplined
investment processes which determine the holdings within a fund
and therefore its investment performance. All members of the
investment team make significant contributions to the investment
processes that guide all Funds.
Mr. Kevin Means, CFA, is the founder of Alpha Equity and
its predecessor and has been Managing Partner and Chief
Investment Officer of Alpha Equity and its predecessor since
February 2000. As Chief Investment Officer, Mr. Means is
responsible for designing the various investment processes,
disciplines and models used to guide portfolio management
decisions. Mr. Means has co-managed the International
Equity 130/30 Fund, the U.S. Equity 130/30 Fund
and the Real Estate 130/30 Fund since each
Funds respective inception. He has more than 23 years
of investment experience.
Mr. Vince Fioramonti, CFA, has been Partner and Director of
Trading and Portfolio Operations of Alpha Equity and its
predecessor since November 2002. As Director of Trading and
Portfolio Operations, Mr. Fioramonti is responsible for
designing the various processes used to optimize portfolios,
evaluate trade ideas, implement trades, and process trade
settlement information in a highly automated fashion.
Mr. Fioramonti has co-managed the International Equity
130/30 Fund, the U.S. Equity 130/30 Fund and the
Real Estate 130/30 Fund since each Funds respective
inception. He has more than 22 years of investment
experience.
Mr. Neil Kochen, CFA, has been Partner, Chief Risk Officer,
and Asset Allocation Strategist of Alpha Equity and its
predecessor since March, 2006. Mr. Kochen has co-managed
the International Equity 130/30 Fund, the
U.S. Equity 130/30 Fund and the Real Estate
130/30 Fund since each Funds inception. Prior to
joining Alpha Equity, Mr. Kochen served as Chief Investment
Officer Equities and Chief Risk Officer with ING Aeltus
Investment Management, Inc. from January 2000 until June 2004.
He has more than 25 years of investment experience.
Ceredex Value Advisors LLC (Ceredex)
300 South Orange Avenue, Suite 1600,
Orlando, Florida 32801
www.ceredexvalue.com
Ceredex, a wholly-owned subsidiary of RidgeWorth, is an
investment adviser registered with the SEC. The firm was
established in 2008 after 19 years functioning as
RidgeWorths value style investment management team. As of
June 30, 2010, Ceredex had approximately $3.3 billion
in assets under management.
Ceredex is a value equity asset management firm that seeks to
identify catalysts that may lead to appreciation in undervalued,
dividend-paying stocks.
The following individuals are primarily responsible for the
day-to-day
management of the following Funds.
Mr. Mills Riddick, CFA, currently serves as President and
Chief Investment Officer of Ceredex and served as Managing
Director of the Adviser since July 2000. He has managed the
Large Cap Value Equity Fund since April 1995. He has more
than 28 years of investment experience.
Mr. Brett Barner, CFA, currently serves as Managing
Director of Ceredex and served as Managing Director of the
Adviser since July 2000. He has managed the Small Cap Value
Equity Fund since its inception. He has more than
25 years of investment experience.
Mr. Don Wordell, CFA, currently serves as Managing Director
of Ceredex and served as Director of the Adviser since December
2005. He has managed the Mid-Cap Value Equity Fund since
December 2003, after co-managing the Fund since its inception.
He has more than 14 years of investment experience.
Certium Asset Management LLC (Certium)
50 Hurt Plaza, Suite 1400, Atlanta, Georgia 30303
www.certiumllc.com
Certium, a wholly-owned subsidiary of RidgeWorth, is an
investment adviser registered with the SEC. The firm was
established in 2008 after 13 years functioning as
RidgeWorths international and
MANAGEMENT
quantitative equity investment management team. As of
June 30, 2010, Certium had approximately $1.5 billion
in assets under management.
Certium is an institutional investment management firm focused
on passive, quantitative and active strategies which provide
clients with risk-controlled exposure to equity markets.
The following individuals are primarily responsible for the
day-to-day
management of the following Funds.
Mr. Chad Deakins, CFA, currently serves as President and
Chief Investment Officer of Certium and served as Managing
Director of the Adviser since May 2000. He has co-managed the
International Equity Index Fund since March 2005, after
managing the Fund since 1999. He has managed the Large Cap
Quantitative Equity Fund since October 2007 and the
International Equity Fund since May 2000. He has more
than 15 years of investment experience.
Mr. Matthew Welden currently serves as Director of Certium
and served as a Director of the Adviser since July 2006 after
having served as an Equity Trader from August 1999 to June 2006.
He has co-managed the International Equity Index Fund
since April 2008. He has more than 11 years of
investment experience.
IronOak Advisors LLC (IronOak)
919 East Main Street, Richmond Virginia 23219
www.ironoakadvisors.com
IronOak, a wholly-owned subsidiary of RidgeWorth, is an
investment adviser registered with the SEC. The firm was
established in 2008 after 21 years functioning as
RidgeWorths core style investment management team. As of
June 30, 2010, IronOak had approximately $865 million
in assets under management.
IronOak specializes in core equity strategies for institutional
investors. Its portfolio managers purchase stocks considered to
be on sale under prevailing market conditions,
regardless of whether they are growth or value, and build core
portfolios that are positioned to benefit from opportunities
they believe are overlooked.
The following individuals are primarily responsible for the
day-to-day
management of the following Funds.
Mr. Jeffrey E. Markunas, CFA, currently serves as President
and Chief Investment Officer of IronOak and served as Managing
Director of the Adviser since July 2000. He has managed the
Large Cap Core Equity Fund since its inception. He has
more than 26 years of investment experience.
Mr. Charles B. Arrington, CFA, currently serves as Director
of IronOak and served as Director of the Adviser since January
2006, after serving as Vice President since 1997. He has managed
the Mid-Cap Core Equity Fund since August 2008 after
having co-managed the Fund since January 2007. He has more than
27 years of investment experience.
Silvant Capital Management LLC (Silvant) 50 Hurt
Plaza, Suite 1400, Atlanta, Georgia 30303
www.silvantcapital.com
Silvant, a wholly-owned subsidiary of RidgeWorth, is an
investment adviser registered with the SEC. The firm was
established in 2008 after 24 years functioning as
RidgeWorths growth style investment management team. As of
June 30, 2010, Silvant had approximately $3.4 billion
in assets under management.
Silvant focuses on managing growth equity products for a diverse
range of institutional clients. Its philosophy is that
consistent outperformance can be delivered by an investment
process which is grounded in fundamental analysis and includes
sophisticated risk management and stock selection techniques.
Silvants investment team seeks to generate performance
(alpha) through
bottom-up
stock selection, minimizing the potential impact of unintended
style bias, sector bets, or macroeconomic risks relative to the
primary benchmark.
The following individuals are primarily responsible for the
day-to-day
management of the following Funds.
Mr. Christopher Guinther currently serves as President and
Chief Investment Officer of Silvant and served as Managing
Director of the Adviser since February 2007. Prior to joining
the Adviser, Mr. Guinther served as Institutional Small Cap
Growth Portfolio Manager of Northern Trust Bank from
September 2005 to January 2007, Small Cap Growth Portfolio
Manager of Principal Financial Group from September 2003 to
August 2005, and as One Groups Small Cap Growth Co-Mutual
Fund Manager of Banc One Investment Advisers from January
1996 to March 2003. He has co-managed the Large Cap Growth
Stock Fund and, the Select Large Cap Growth Stock Fund
since March 2007 and the
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
Small Cap Growth Stock Fund since February 2007. He has
more than 19 years of investment experience.
Mr. Joe Ransom, CFA, currently serves as Managing Director
of Silvant and served as Managing Director of the Adviser since
June 2000. He has co-managed the Select Large Cap Growth
Stock Fund since March 2007 after managing the Fund since
January 2007. He has more than 37 years of investment
experience.
Mr. Michael A. Sansoterra currently serves as Managing
Director of Silvant and served as Director of the Adviser since
March 2007. Prior to joining the Adviser, Mr. Sansoterra
served as Large Cap Diversified Growth Portfolio Manager and
Senior Equity Analyst of Principal Global Investors from
February 2003 through March 2007. He has co-managed the Large
Cap Growth Stock Fund, the Select Large Cap Growth Stock
Fund and the Small Cap Growth Stock Fund since March
2007. He has more than 15 years of investment experience.
Zevenbergen Capital Investments LLC (ZCI) 601
Union Street, Seattle, Washington 98101
www.zci.com
ZCI, a minority-owned subsidiary of RidgeWorth, is an investment
adviser registered with the SEC. The firm was established in
1987 and serves as
sub-adviser
to the RidgeWorth Aggressive Growth and Emerging Growth Funds.
As of June 30, 2010, ZCI had approximately
$1.9 billion in assets under management.
ZCI specializes in aggressive growth-equity investment advisory
services for separately managed portfolios and mutual funds.
ZCIs investment philosophy and stock selection process,
unchanged since its inception, operates under the principle that
revenue, cash flow and earnings growth are the key determinants
of long-term stock price appreciation. ZCI selects, buys and
sells securities for the Aggressive Growth Stock Fund and the
Emerging Growth Stock Fund.
The following individuals are primarily responsible for the
day-to-day
management of the Aggressive Growth Stock Fund and the
Emerging Growth Stock Fund.
Ms. Nancy Zevenbergen, CFA, CIC, has served as President
and Chief Investment Officer of ZCI since January 1987. She has
co-managed the Funds since each Funds respective
inception. She has more than 28 years of investment
experience.
Ms. Brooke de Boutray, CFA, CIC, has served as Managing
Director, Portfolio Manager and Analyst of ZCI since 1992. She
has co-managed the Funds since each Funds respective
inception. She has more than 27 years of investment
experience.
Ms. Leslie Tubbs, CFA, CIC, has served as Managing
Director, Portfolio Manager and Analyst for ZCI since 1995. She
has co-managed the Funds since each Funds respective
inception. She has more than 15 years of investment
experience.
Purchasing,
Selling and Exchanging Fund Shares
This section tells you how to purchase sell (sometimes called
redeem) and exchange A Shares, C Shares
and I Shares of the Funds.
How to Purchase
Fund Shares
Purchasing A
Shares and C Shares
You may purchase A Shares and C Shares of the Funds through
financial institutions or intermediaries that are authorized to
place transactions in Fund shares for their customers. Please
contact your financial institution or intermediary directly and
follow its procedures for Fund share transactions. Your
financial institution or intermediary may charge a fee for its
services, in addition to the fees charged by a Fund. You will
also generally have to address your correspondence or questions
regarding a Fund to your financial institution or intermediary.
Your investment professional can assist you in opening a
brokerage account that will be used for purchasing shares of
RidgeWorth Funds.
Shareholders who purchase shares directly from the Funds may
purchase additional Fund shares by:
|
|
|
Mail
|
|
|
Telephone (1-888-784-3863)
|
|
|
Wire
|
|
|
Fax
(1-800-451-8377)
|
|
|
Automated Clearing House (ACH)
|
The Funds do not accept cash, credit card checks, third-party
checks, travelers checks, money orders, bank starter
checks, or checks drawn in a foreign currency, as payment for
Fund shares.
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
If you pay with a check or ACH transfer that does not clear or
if your payment is not received in a timely manner, your
purchase may be canceled. You will be responsible for any losses
or expenses incurred by the Fund or transfer agent, and the Fund
can redeem shares you own in this or another identically
registered RidgeWorth Funds account as reimbursement.
Purchasing I
Shares
The Funds offer I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. These accounts primarily consist of:
|
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assets of a bona fide trust,
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assets of a business entity possessing a tax identification
number,
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assets of an employee benefit plan,
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assets held within select fee-based programs, or
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assets held within certain non-discretionary intermediary
no-load platforms.
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Employee benefit plans generally include profit sharing, 401(k)
and 403(b) plans. Employee benefit plans generally do not
include IRAs; SIMPLE, SEP, SARSEP plans; plans covering
self-employed individuals and their employees or health savings
accounts unless you, as a customer of a financial institution or
intermediary, meet the Funds established criteria as
described above.
As a result, you, as a customer of a financial institution or
intermediary, may, under certain circumstances that meet the
Funds established criteria, be able to purchase I Shares
through accounts made with select financial institutions or
intermediaries. I Shares will be held of record by (in the name
of) your financial institution or intermediary. Depending upon
the terms of your account, you may have, or be given, the right
to vote your I Shares. Financial institutions or intermediaries
may impose eligibility requirements for each of their clients or
customers investing in the Funds, including investment minimum
requirements, which may differ from those imposed by the Funds.
Please contact your financial institution or intermediary for
complete details for purchasing I Shares.
I Shares may also be purchased directly from the Funds by
officers, directors or trustees, and employees and their
immediate families (strictly limited to current spouses/domestic
partners and dependent children) of:
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RidgeWorth Funds,
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Subadvisers to the RidgeWorth Funds, or
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SunTrust Banks, Inc. and its subsidiaries.
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Validation of current employment/service will be required upon
establishment of the account. The Funds, in their sole
discretion, may determine if an applicant qualifies for this
program.
In-Kind
Purchases I Shares
Payment for I Shares of a Fund may, in the discretion of the
Adviser, be made in the form of securities that are permissible
investments for such Fund. In connection with an in-kind
securities payment, a Fund will require, among other things,
that the securities (a) meet the investment objectives and
policies of the Fund; (b) are acquired for investment and
not for resale; (c) are liquid securities that are not
restricted as to transfer either by law or liquidity of markets;
(d) have a value that is readily ascertainable (e.g., by a
listing on a nationally recognized securities exchange); and
(e) are valued on the day of purchase in accordance with
the pricing methods used by the Fund. For further information
about this form of payment, please call 1-888-784-3863.
When Can You
Purchase Shares? A Shares, C Shares, and, I
Shares
The Funds are open for business on days when the New York Stock
Exchange (the NYSE) is open for regular trading (a
Business Day). Each Fund calculates its net asset
value per share (NAV) once each Business Day at the
close of regular trading on the NYSE (normally 4:00 p.m.
Eastern Time).
If a Fund or its authorized agent receives your purchase or
redemption request in proper form before 4:00 p.m., Eastern
Time, your transaction will be priced at that Business
Days NAV. If your request is received after
4:00 p.m., it will be priced at the next Business
Days NAV.
The time at which transactions and shares are priced and the
time until which orders are accepted may be changed if the NYSE
closes early.
The Funds will not accept orders that request a particular day
or price for the transaction or any other special conditions.
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
You may be required to transmit your purchase sale and
exchange orders to your financial institutions or intermediaries
at an earlier time for your transaction to become effective that
day. This allows the financial institution or intermediary time
to process your order and transmit it to the transfer agent in
time to meet the above stated Fund cut-off times. For more
information about how to purchase, sell or exchange Fund shares,
including a specific financial institutions or
intermediarys internal order entry cut-off times, please
contact your financial institution or intermediary directly.
A Fund may reject any purchase order.
How the Funds
Calculate NAV A Shares, C Shares and I
Shares
NAV is calculated by adding the total value of a Funds
investments and other assets, subtracting its liabilities, and
then dividing that figure by the number of outstanding shares of
the Fund.
In calculating NAV, each Fund generally values its investment
portfolio at market price. If market prices are not readily
available or a Fund reasonably believes that market prices or
amortized cost valuation method are unreliable, such as in the
case of a security value that has been materially affected by
events occurring after the relevant market closes, a Fund is
required to price those securities at fair value as determined
in good faith using methods approved by the Board. A Funds
determination of a securitys fair value price often
involves the consideration of a number of subjective factors,
and is therefore subject to the unavoidable risk that the value
that a Fund assigns to a security may be higher or lower than
the securitys value would be if a reliable market
quotation for the security was readily available.
Although the Funds, except the International Equity Fund,
International Equity Index Fund and the International Equity
130/30 Fund, invest primarily in the stocks of
U.S. companies that are traded on U.S. exchanges,
there may be limited circumstances in which a Fund would price
securities at fair value for example, if the
exchange on which a portfolio security is principally traded
closed early or if trading in a particular security was halted
during the day and did not resume prior to the time a Fund
calculated its NAV.
With respect to
non-U.S. securities
held by a Fund, the Fund may take factors influencing specific
markets or issues into consideration in determining the fair
value of a
non-U.S. security.
International securities markets may be open on days when the
U.S. markets are closed. In such cases, the value of any
international securities owned by a Fund may be significantly
affected on days when investors cannot buy or sell shares. In
addition, due to the difference in times between the close of
the international markets and the time a Fund prices its shares,
the value the Fund assigns to securities generally will not be
the same as the primary markets or exchanges. In determining
fair value prices, a Fund may consider the performance of
securities on their primary exchanges, foreign currency
appreciation/depreciation, securities market movements in the
U.S., or other relevant information as related to the securities.
The prices for many securities held by the Funds are provided by
independent pricing services approved by the Board.
Minimum/Maximum
Purchases A Shares, C Shares and I Shares
To purchase A Shares or C Shares for the first time, you must
invest in any Fund at least:
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Class
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Dollar Amount
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A Shares
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$2,000
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C Shares
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$5,000 ($2,000 for IRA or other tax qualified accounts)
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Purchases of C Shares of a Fund requested in an amount of
$1,000,000 or more will automatically be made in A Shares of
that Fund.
Your subsequent investments must be made in amounts of at least
$1,000. The Funds may accept investments of smaller amounts for
either class of shares at its discretion.
For investors who qualify to purchase I Shares, there are no
minimum or maximum requirements for initial or subsequent
purchases.
Systematic
Investment Plan A Shares and C Shares
If you have a checking or savings account with a bank, you may
purchase A Shares and C Shares automatically through regular
deductions from your bank account. With a $500 minimum initial
investment, you may begin regularly-scheduled investments of $50
or more once or twice a month. If you are buying C Shares, you
should plan on investing at least $5,000 per Fund during the
first two years. The Funds may close your account if you do not
meet this minimum investment requirement at the end of two years.
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
Customer
Identification
Foreign
Investors
To purchase A Shares, C Shares the Funds, you must be a
U.S. citizen, a U.S. resident alien, or a
U.S. entity, with a U.S. tax identification number,
and reside in the U.S. or its territories (which includes
U.S. military APO or FPO addresses). If you owned shares on
July 31, 2006, you may keep your account open even if you
do not reside in the U.S. or its territories, but you may
not make additional purchases or exchanges.
The Funds do not generally accept investments in I Shares, by
non-U.S. citizens
or entities. Investors in I Shares generally must reside in the
U.S. or its territories (which includes U.S. military
APO or FPO addresses) and have a U.S. tax identification
number.
Customer
Identification and Verification
To help the government fight the funding of terrorism and money
laundering activities, federal law requires all financial
institutions to obtain, verify, and record information that
identifies each person who opens an account.
When you open an account, you will be asked to provide your
name, residential street address, date of birth, Social Security
Number or tax identification number. You may also be asked for
other information that will allow us to identify you. Entities
are also required to provide additional documentation. This
information will be verified to ensure the identity of all
persons opening a mutual fund account.
In certain instances, the Funds are required to collect
documents to fulfill their legal obligation. Documents provided
in connection with your application will be used solely to
establish and verify a customers identity.
The Funds are required by law to reject your new account
application if the required identifying information is not
provided. Attempts to collect the missing information required
on the application will be performed by either contacting you
or, if applicable, your broker. If this information is unable to
be obtained within a timeframe established in the sole
discretion of the Funds, your application will be rejected.
Upon receipt of your application in proper form (or upon receipt
of all identifying information required on the application),
your investment will be accepted and your order will be
processed at the NAV next determined.
However, the Funds reserve the right to close your account at
the then-current days price if the Funds are unable to
verify your identity. Attempts to verify your identity will be
performed within a timeframe established in the sole discretion
of the Funds. If the Funds are unable to verify your identity,
the Funds reserve the right to liquidate your account at the
then-current days price and remit proceeds to you via
check. The Funds reserve the further right to hold your proceeds
until your original check clears the bank. In such an instance,
you may be subject to a gain or loss on Fund shares and will be
subject to corresponding tax implications.
Anti-Money
Laundering Program
Customer identification and verification is part of the
Funds overall obligation to deter money laundering under
federal law. The Funds have adopted an anti-money laundering
compliance program designed to prevent the Funds from being used
for money laundering or the financing of terrorist activities.
In this regard, the Funds reserve the right to (i) refuse,
cancel or rescind any purchase or exchange order,
(ii) freeze any account
and/or
suspend account services, or (iii) involuntarily redeem
your account in cases of threatening conduct or suspected
fraudulent or illegal activity. These actions will be taken
when, in the sole discretion of Fund management, they are deemed
to be in the best interest of the Funds or in cases when the
Funds are requested or compelled to do so by governmental or law
enforcement authority.
Sales
Charges A Shares and C Shares
Front-End Sales
Charges A Shares
The offering price of A Shares is the NAV next calculated after
a Fund receives your request in proper form, plus the front-end
sales charge.
The amount of any front-end sales charge included in your
offering price varies, depending on the amount of your investment
Value Equity Funds
Large Cap Value Equity Fund
Mid-Cap Value Equity Fund
Small Cap Value Equity Fund
Core Equity Funds
Large Cap Core Equity Fund
Mid-Cap Core Equity Fund
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
Growth Equity Funds
Aggressive Growth Stock Fund
Emerging Growth Stock Fund
Large Cap Growth Stock Fund
Select Large Cap Growth Stock Fund
Small Cap Growth Stock Fund
International and Alternative Funds
International Equity Fund
International Equity Index Fund
Large Cap Quantitative Equity Fund
International Equity 130/30 Fund
Real Estate 130/30 Fund
U.S. Equity 130/30 Fund
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Your Sales
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Your Sales
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Charge as a
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Charge as a
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Percentage
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Percentage of
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of Offering
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Your Net
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If Your Investment is:
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Price*
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Investment
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Less than $50,000
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5.75%
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6.10%
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$50,000 but less than $100,000
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4.75%
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4.99%
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$100,000 but less than $250,000
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3.75%
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3.90%
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$250,000 but less than $500,000
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2.50%
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2.56%
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$500,000 but less than $1,000,000
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2.00%
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2.04%
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$1,000,000 and over
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None
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None
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* |
The Distributor may pay a percentage of the offering price as
a commission to broker-dealers. Merrill Lynch Pierce
Fenner & Smith, Inc. (Merrill Lynch)
receives an additional 0.25% of the front-end sales charge of
A Shares of certain Funds. While investments over
$1,000,000 are not subject to a front-end sales charge, the
Distributor may pay dealer commissions ranging from 0.25% to
1.00%.
|
Investments of $1,000,000 or more. You do not pay an
initial sales charge when you buy $1,000,000 or more of A Shares
(excluding A Shares of RidgeWorth Money Market Funds) in either
a single investment or through our rights of accumulation,
letter of intent, or combined purchase/quantity discount
programs. However, you will pay a deferred sales charge of 1.00%
if you redeem any of these A Shares within one year of purchase.
The deferred sales charge is calculated based on the lesser of
(1) the NAV of the shares at the time of purchase or
(2) NAV of the shares next calculated after the Fund
receives your redemption request. The deferred sales charge does
not apply to shares you purchase through reinvestment of
dividends or capital gains distributions.
Waiver of
Front-End Sales Charge A Shares
The front-end sales charge will be waived on A Shares purchased:
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through reinvestment of dividends and distributions;
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through an account managed by an affiliate of the Adviser;
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by persons repurchasing shares they redeemed within the last
180 days (see Repurchase of A Shares);
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by employees, and members of their immediate family (spouse,
domestic partner, mother, father,
mother-in-law,
father-in-law,
and children (including step-children) under the age of
21 years), of the Adviser and its affiliates;
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by current RidgeWorth Funds shareholders reinvesting
distributions from qualified employee benefit retirement plans
and rollovers from individual retirement accounts (IRAs);
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by persons investing an amount less than or equal to the value
of an account distribution when an account for which a bank
affiliated with the Adviser acted in a fiduciary,
administrative, custodial or investment advisory capacity is
closed; or
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through dealers, retirement plans, asset allocation and wrap
programs and financial institutions that, under their dealer
agreements with the Distributor or otherwise, do not receive any
portion of the front-end sales charge; or
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by Trustees of the RidgeWorth Funds.
|
Repurchase of A
Shares
You may repurchase any amount of A Shares of any Fund at NAV
(without the normal front-end sales charge), up to the limit of
the value of any amount of A Shares (other than those which were
purchased with reinvested dividends and distributions) that you
redeemed within the past 180 days. In effect, this allows
you to reacquire shares that you may have had to redeem, without
re-paying the front-end sales charge. Such repurchases may be
subject to special tax rules. See the section on Taxes in the
SAI for more information. To exercise this privilege, the Funds
must receive your purchase order within 180 days of your
redemption. In addition, you must notify the Fund when you
send in your purchase order that you are repurchasing shares.
PURCHASING,
SELLING AND EXCHANGING FUND SHARES
Reduced Sales
Charges A Shares
Rights of Accumulation. You may take into account your
accumulated holdings in all share classes of RidgeWorth Funds to
determine the initial sales charge you pay on each purchase of A
Shares. In calculating the appropriate sales charge rate, this
right allows you to add the market value (at the close of
business on the day of the current purchase) of your existing
holdings in any class of shares to the amount of A Shares you
are currently purchasing. The Funds may amend or terminate this
right at any time. Please see the SAI for details.
Letter of Intent. A Letter of Intent allows you to
purchase shares over a
13-month
period and receive the same sales charge as if you had purchased
all the shares at the same time.
The Funds will hold a certain portion of your investment in
escrow until you fulfill your commitment. Please see the SAI for
details.
Combined Purchase/Quantity Discount Privilege. When
calculating the appropriate sales charge rate, the Funds will
combine same day purchases of shares of any class made by you,
your spouse, domestic partner and your minor children (under
age 21). This combination also applies to A Shares you
purchase with a Letter of Intent.
You can also obtain this information about sales charges, rights
of accumulation and Letters of Intent on the Funds website
at www.ridgeworth.com.
Contingent
Deferred Sales Charges (CDSC)
C Shares
You do not pay a sales charge when you purchase C Shares. The
offering price of C Shares is simply the next calculated NAV.
But, if you sell your shares within the first year after your
purchase, you will pay a CDSC equal to 1% of either (1) the
NAV of the shares at the time of purchase, or (2) NAV of
the shares next calculated after the Funds receive your sale
request, whichever is less. The Funds will use the
first-in,
first-out (FIFO) method to determine the holding period. So, you
never pay a CDSC on any increase in your investment above the
initial offering price. The CDSC does not apply to shares you
purchase through reinvestment of dividends or distributions or
to exchanges of C Shares of one Fund for C Shares of another
Fund.
Waiver of
CDSC
The CDSC will be waived if you sell your C Shares for the
following reasons:
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Death or Post-purchase Disablement (as defined in
Section 72(m)(7) of the Internal Revenue Code)
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You are shareholder/joint shareholder or participant/beneficiary
of certain retirement plans;
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You die or become disabled after the account is opened;
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Redemption must be made within 1 year of such
death/disability;
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The Funds must be notified in writing of such death/disability
at time of redemption request;
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The Funds must be provided with satisfactory evidence of death
(death certificate) or disability (doctors certificate
specifically referencing disability as defined in 72(m)(7)
referenced above).
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Shares purchased through dividend and capital gains reinvestment.
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Participation in the Systematic Withdrawal Plan described below:
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Withdrawal not to exceed 10% of the current balance of a Fund
in a 12 month period, the 10% amount will be calculated as
of the date of the initial Systematic Withdrawal Plan and
recalculated annually on the 12 month anniversary date.
Shares purchased through dividend or capital gains reinvestment,
although not subject to the CDSC, will be included in
calculating the account value and 10% limitation amount;
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If the total of all Fund account withdrawals (Systematic
Withdrawal Plan or otherwise) exceeds the 10% limit within the
12 month period following the initial calculation date, the
entire Systematic Withdrawal Plan for the period will be subject
to the applicable sales charge, in the initial year of a
Systematic Withdrawal Plan, the withdrawal limitation period
shall begin 12 months before the initial Systematic
Withdrawal Plan payment;
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To qualify for the CDSC waiver under the Systematic Withdrawal
Plan a Fund account must have a minimum of $25,000 at Systematic
Withdrawal Plan inception and must also reinvest dividends and
capital gains distributions.
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Required mandatory minimum withdrawals made after
701/2
under any retirement plan qualified under IRS Code
Section 401, 408 or 403(b) or resulting from the tax free
return of an excess distribution to
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PURCHASING,
SELLING AND EXCHANGING FUND SHARES
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an Individual Retirement Account (IRA). Satisfactory qualified
plan documentation to support any waiver includes employer
letter (separation from services) and plan administrator
certificate (certain distributions under plan requirements).
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Permitted exchanges of shares, except if shares acquired by
exchange are then redeemed within the period during which a CDSC
would apply to the initial shares purchased.
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Exchanges in connection with plans of Fund reorganizations such
as mergers and acquisitions.
|
To take advantage of any of these waivers, you must qualify in
advance. To see if you qualify, please call your investment
professional or other investment representative. These waivers
are subject to change or elimination at any time at the
discretion of the Funds.
The C Shares CDSC will be waived for certain retirement
plan providers that have entered into administrative agreements
with the Funds. Please see the SAI for more information on this
program.
Offering Price of
Fund Shares A Shares, C Shares and I
Shares
The offering price of A Shares is the NAV next calculated after
the transfer agent receives your request, in proper form, plus
any front-end sales charge. The offering price of C Shares and I
Shares is simply the next calculated NAV.
You can also obtain this information about sales charges, rights
of accumulation and letters of intent on the Funds website
at www.ridgeworth.com.
How to Sell Your
Fund Shares
Selling A Shares
and C Shares
If you own your A Shares or C Shares through an account with a
broker or other financial institution or intermediary, contact
that broker, financial institution or intermediary to sell your
shares. Your broker, financial institution or intermediary may
charge a fee for its services, in addition to the fees charged
by the Funds.
Shareholders who purchased shares directly from the Funds may
sell their Fund Shares by:
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Mail
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Telephone (1-888-784-3863)
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Wire
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Fax
(1-800-451-8377)
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ACH
|
Selling I
Shares
You may sell your I Shares on any Business Day by contacting
your financial institution or intermediary. Your financial
institution or intermediary will give you information about how
to sell your shares including any specific cut-off times
required.
Holders of I Shares may sell shares by following the procedures
established when they opened their account or accounts with the
Funds or with their financial institution or intermediary. The
sale price of each share will be the next NAV determined after
the Funds receive your request in proper form.
Medallion
Signature
Guarantee¨
A Shares, C Shares I Shares
A Medallion Signature Guarantee by a bank or other
financial institution (a notarized signature is not sufficient)
is required to redeem shares:
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made payable to someone other than the registered shareholder;
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sent to an address or bank account other than the address or
bank account of record; or
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sent to an address or bank account of record that has been
changed within the last 15 calendar days.
|
Other documentation may be required depending on the
registration of the account.
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¨
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Medallion Signature Guarantee: A Medallion Signature
Guarantee verifies the authenticity of your signature and helps
ensure that changes to your account are in fact authorized by
you. A Medallion Signature Guarantee may be obtained from a
domestic bank or trust company, broker, dealer, clearing agency,
savings association or other financial institution participating
in a Medallion Program recognized by the Securities Trading
Association. Signature guarantees from financial institutions
that do not reflect one of the following are not part of the
program and will not be accepted. The acceptable Medallion
programs are Securities Transfer Agents Medallion Program,
(STAMP), Stock Exchange Medallion Program, (SEMP), or the New
York Stock Exchange, Inc. Medallion Program, (NYSE MSP). Contact
your local financial adviser or institution for further
assistance.
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PURCHASING,
SELLING AND EXCHANGING FUND SHARES
Sale Price of
Fund Shares A Shares, C Shares and
I Shares
The sale price of each share will be the next NAV determined
after the Funds receive your request, in proper form, less, in
the case of C Shares, any applicable CDSC.
Systematic
Withdrawal Plan A Shares and C Shares
If you have at least $10,000 in your account, you may use the
systematic withdrawal plan. Under the plan you may arrange
monthly, quarterly, semi-annual or annual automatic withdrawals
of at least $50 from any Fund. The proceeds of each withdrawal
will be mailed to you by check or, if you have a checking or
savings account with a bank, may be electronically transferred
to your account. Please check with your bank. Withdrawals under
the Systematic Withdrawal Plan may be subject to a CDSC unless
they meet the requirements described above under Waiver of
the CDSC.
Receiving Your
Money A Shares, C Shares and I Shares
Normally, the Funds will send your sale proceeds within five
Business Days after the Funds receive your request, but a Fund
may take up to seven days to pay the sale proceeds if making
immediate payments would adversely affect the Fund (for example,
to allow the Fund to raise capital in the case of a large
redemption). Your proceeds from the sale of A Shares, or C
Shares can be wired to your bank account (subject to a fee) or
sent to you by check. If you recently purchased your A Shares
or C Shares by check or through ACH, redemption proceeds may not
be available until your funds have cleared (which may take up to
15 calendar days from your date of purchase).
Redemptions In
Kind A Shares, C Shares and I Shares
The Funds generally pay redemption proceeds in cash. However,
under unusual conditions that make the payment of cash unwise
(and for the protection of the Funds remaining
shareholders), the Funds might pay all or part of your
redemption proceeds in liquid securities with a market value
equal to the redemption price (redemption in kind). It is highly
unlikely that your shares would ever be redeemed in kind, but if
they were you would probably have to pay transaction costs to
sell the securities distributed to you, as well as taxes on any
capital gains from the sale as with any redemption.
Involuntary Sales
of Your Shares A Shares and C Shares
If your account balance drops below the required minimum as a
result of redemptions you may be required to sell your shares.
The account balance minimums are:
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Class
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Dollar Amount
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A Shares
|
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$2,000
|
C Shares
|
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$5,000 ($2,000 for IRA accounts or other tax qualified accounts)
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But, the Funds will always give you at least 60 days
written notice to give you time to add to your account and avoid
the sale of your shares.
Suspension of
Your Right to Sell Your Shares A Shares, C
Shares and I Shares
A Fund may suspend your right to sell your shares if the NYSE
restricts trading, the SEC declares an emergency or for other
reasons approved by the SEC. More information about this is in
the SAI.
How to Exchange
Your Shares A Shares and C Shares
You may exchange your A Shares or C Shares on any Business Day
by contacting the Funds or your financial institution or
intermediary by mail or telephone. Exchange requests must be for
an amount of at least $1,000.
The exchange privilege is not intended as a vehicle for
short-term trading. Excessive exchange activity may interfere
with Fund management and may have an adverse effect on all
shareholders. In order to limit excessive exchange activity and
in other circumstances where it is in the best interests of a
Fund, all Funds reserve the right to revise or terminate the
exchange privilege, limit the amount or number of exchanges or
reject any exchange or restrict or refuse purchases if
(1) a Fund or its manager(s) believes the Fund would be
harmed or unable to invest effectively, or (2) a Fund
receives or anticipates orders that may dramatically affect the
Fund as outlined under Market Timing Policies and
Procedures below.
If you recently purchased shares by check, or through ACH,
you may not be able to exchange your shares until your funds
have cleared (which may take up to 15 calendar days from your
date of purchase). This exchange privilege may be changed or
canceled at any time upon 60 days notice.
MARKET TIMING
POLICIES AND PROCEDURES
Exchanges
When you exchange shares, you are really selling your shares of
one Fund and buying shares of another RidgeWorth Fund. So, your
sale price and purchase price will be based on the NAV next
calculated after the Funds receive your exchange requests, in
proper form.
A
Shares
You may exchange A Shares of any Fund for A Shares of any other
RidgeWorth Fund. If you exchange shares that you purchased
without a sales charge or with a lower sales charge into a
RidgeWorth Fund with a sales charge or with a higher sales
charge, the exchange is subject to a sales charge equal to the
difference between the lower and higher applicable sales
charges. If you exchange shares into a RidgeWorth Fund with the
same, lower or no sales charge there is no sales charge for the
exchange.
The amount of your exchange must meet any initial or subsequent
purchase minimums applicable to the RidgeWorth Fund into which
you are making the exchange.
C
Shares
You may exchange C Shares of any Fund for C Shares of any other
RidgeWorth Fund. For purposes of computing the CDSC applicable
to C Shares, the length of time you have owned your shares will
be measured from the original date of purchase and will not be
affected by any exchange.
Telephone
Transactions A Shares, C Shares and I
Shares
Purchasing, selling and exchanging Fund shares over the
telephone is extremely convenient, but not without risk.
Although the Funds have certain safeguards and procedures to
confirm the identity of callers and the authenticity of
instructions, the Funds are not responsible for any losses or
costs incurred by following telephone instructions the Funds
reasonably believe to be genuine. If you or your financial
institution or intermediary transact with the Funds over the
telephone, you will generally bear the risk of any loss. The
Funds reserve the right to modify, suspend or terminate
telephone transaction privileges at any time.
To redeem shares by telephone:
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redemption checks must be made payable to the registered
shareholder; and
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redemption checks must be mailed to an address or wired to a
bank account of record that has been associated with the
shareholder account for at least 15 calendar days.
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Market Timing
Policies and Procedures
The Funds are intended for long-term investment purposes only
and discourage shareholders from engaging in market
timing or other types of excessive short-term trading.
This frequent trading into and out of the Funds may present
risks to the Funds long-term shareholders, all of which
could adversely affect shareholder returns. The risks posed by
frequent trading include interfering with the efficient
implementation of the Funds investment strategies,
triggering the recognition of taxable gains and losses on the
sale of Fund investments, requiring the Funds to maintain higher
cash balances to meet redemption requests, and experiencing
increased transaction costs. A Fund that invests a significant
amount of its assets in overseas markets is particularly
susceptible to the risk of certain investors using a strategy
known as time-zone arbitrage. Investors using this strategy
attempt to take advantage of the differences in value of foreign
securities that might result from events that occur between the
close of the foreign securities market on which a foreign
security is traded and the time at which the Fund calculates its
NAV.
The Funds
and/or their
service providers will take steps reasonably designed to detect
and deter frequent trading by shareholders pursuant to the
Funds policies and procedures described in this prospectus
and approved by the Funds Board. The Funds seek to
discourage short-term trading by using fair value pricing
procedures to fair value certain investments under some
circumstances. For purposes of applying these policies, the
Funds service providers may consider the trading history
of accounts under common ownership or control. The Funds
policies and procedures include:
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Shareholders are restricted from making more than one (1)
round trip into and out of a Fund within
14 days or more than two (2) round trips within
any continuous 90 day period. If a shareholder exceeds
either round trip restriction, he or she may be
deemed a Market Timer, and the Funds
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DISTRIBUTION OF
FUND SHARES
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and/or their service providers may, at their discretion, reject
any additional purchase orders. The Funds define a round trip as
a purchase into a Fund by a shareholder, followed by a
subsequent redemption out of the Fund. Anyone considered to be a
Market Timer by the Funds, the Adviser, the Subadviser or a
shareholder servicing agent may be notified in writing of their
designation as a Market Timer.
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The Funds reserve the right to reject any purchase request by
any investor or group of investors for any reason without prior
notice, including, in particular, if the Funds or their Adviser
reasonably believes that the trading activity would be harmful
or disruptive to the Funds.
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The Funds
and/or their
service providers seek to apply these policies to the best of
their abilities uniformly and in a manner they believe is
consistent with the interests of the Funds long-term
shareholders.
Although these policies are designed to deter frequent trading,
none of these measures alone nor all of them taken together
eliminate the possibility that frequent trading in the Funds
will occur, particularly with respect to trades placed by
shareholders that invest in the Funds through omnibus
arrangements maintained by brokers, retirement plan accounts and
other financial intermediaries. Purchase and redemption
transactions submitted to the Funds by these intermediaries
reflect the transactions of multiple beneficial owners whose
individual transactions are not automatically disclosed to the
Funds. Therefore, the Funds rely in large part on the
intermediaries who maintain omnibus arrangements (which may
represent a majority of Fund shares) to aid in the Funds
efforts to detect and deter short-term trading. The Funds
monitor trading activity at the omnibus account level and look
for activity that indicates potential short-term trading. If
they detect suspicious trading activity, the Funds contact the
intermediaries to determine whether the short-term trading
policy has been violated and may request and receive personal
identifying information and transaction histories for some or
all beneficial owners to make this determination. If a Fund
believes that a shareholder has violated the short-term trading
policy, it will take further steps to prevent any future
short-term trading by such shareholder in accordance with the
policy. The Funds cannot guarantee the accuracy of the
information provided by the intermediaries and may not always be
able to track short-term trading effected through these
intermediaries. A Fund has the right to terminate an
intermediarys ability to invest in a Fund if excessive
trading activity persists and a Fund or its Adviser or
Subadviser reasonably believes that such termination would be in
the best interests of long-term shareholders. In addition to the
Funds market timing policies and procedures described
above, you may be subject to the market timing policies and
procedures of the intermediary through which you invest. Please
consult with your intermediary for additional information
regarding its frequent trading restrictions.
Distribution of
Fund Shares
From their own assets, the Adviser, the Subadviser or their
affiliates may make payments based on gross sales and current
assets to selected brokerage firms or institutions. The amount
of these payments may be substantial. The minimum aggregate
sales required for eligibility for such payments, and the
factors in selecting the brokerage firms and institutions to
which they will be made, are determined from time to time by the
Adviser or Subadviser. Furthermore, in addition to the fees that
may be paid by a Fund, the Adviser, the Subadviser or their
affiliates may pay fees from their own capital resources to
brokers, banks, financial advisers, retirement plan service
providers and other financial intermediaries, including
affiliates, for providing distribution-related or shareholder
services.
The Adviser, the Subadviser or their affiliates may pay fees
from their own capital resources to financial intermediaries to
compensate them for marketing expenses they incur or to pay for
the opportunity to have them distribute the Funds. The amount of
these payments is determined by the Adviser or the Subadviser
and may differ among financial intermediaries. Such payments may
provide incentives for financial intermediaries to make shares
of the Funds available to their customers, and may allow the
Funds greater access to such financial intermediaries and their
customers than would be the case if no payments were made. You
may wish to consider whether such arrangements exist when
evaluating any recommendation to purchase shares of the Funds.
Please refer to the SAI for more information regarding these
arrangements.
Distribution of Fund Shares
The A Shares and C Shares of each Fund have each adopted a
distribution plan that allows the Fund to pay distribution and
service fees for the sale and distribution of its shares, and
for services provided to shareholders. Because these fees are
paid out of a
SHAREHOLDER
SERVICING PLANS
Funds assets continuously, over time these fees will
increase the cost of your investment and may cost you more than
paying other types of sales charges.
While C Shares are sold without any initial sales charge, the
distributor may pay at the time of sale up to 1% of the amount
invested to broker-dealers and other financial intermediaries
who sell C Shares. Through the distribution plan, the
distributor is reimbursed for these payments, as well as other
distribution related services provided by the distributor.
For A Shares, each Funds distribution plan authorizes
payment of up to the amount shown under Maximum Fee
in the table that follows. Merrill Lynch may receive an
additional 0.25% payment at the time of sale related to
C Shares of certain Funds. Currently, however, the Board
has only approved payment of up to the amount shown under
Current Approved Fee in the table that follows. Fees
are shown as a percentage of average daily net assets of the
Funds A Shares.
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Current
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Maximum
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Approved
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Fee
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Fee
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Value Funds
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Large Cap Value Equity Fund
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0.33%
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0.30%
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Mid-Cap Value Equity Fund
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0.35%
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0.30%
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Small Cap Value Equity Fund
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0.33%
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0.30%
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Core Funds
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Large Cap Core Equity Fund
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0.25%
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0.25%
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Mid-Cap Core Equity Fund
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0.35%
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0.30%
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Growth Funds
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Large Cap Growth Stock Fund
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0.35%
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0.30%
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Select Large Cap Growth Stock Fund
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0.35%
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0.30%
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Small Cap Growth Stock Fund
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0.35%
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0.30%
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Aggressive Growth Stock Fund
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0.35%
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0.30%
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Emerging Growth Stock Fund
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0.35%
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0.30%
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International/Quantitative Funds
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International Equity Fund
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0.33%
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0.30%
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International Equity Index Fund
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0.35%
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0.30%
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Large Cap Quantitative Equity Fund
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0.25%
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0.25%
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130/30 Funds
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International Equity 130/30 Fund
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0.35%
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0.30%
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Real Estate 130/30 Fund
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0.35%
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0.30%
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U.S. Equity 130/30 Fund
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0.35%
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0.30%
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For C Shares, the maximum distribution fee is 1.00% of the
average daily net assets of each Fund.
The Funds may provide financial assistance in connection with
pre-approved seminars, conferences and advertising to the extent
permitted by applicable state or self-regulatory agencies, such
as the Financial Industry Regulatory Authority.
From their own assets, the Adviser, the Subadviser or their
affiliates may make payments based on gross sales and current
assets to selected brokerage firms or institutions. The amount
of these payments may be substantial. The minimum aggregate
sales required for eligibility for such payments, and the
factors in selecting the brokerage firms and institutions to
which they will be made, are determined from time to time by the
Adviser or Subadviser. Furthermore, in addition to the fees that
may be paid by a Fund, the Adviser, the Subadviser or their
affiliates may pay fees from their own capital resources to
brokers, banks, financial advisers, retirement plan service
providers and other financial intermediaries, including
affiliates, for providing distribution-related or shareholder
services.
The Adviser, the Subadviser or their affiliates may pay fees
from their own capital resources to financial intermediaries to
compensate them for marketing expenses they incur or to pay for
the opportunity to have them distribute the Funds. The amount of
these payments is determined by the Adviser or the Subadviser
and may differ among financial intermediaries. Such payments may
provide incentives for financial intermediaries to make shares
of the Funds available to their customers, and may allow the
Funds greater access to such financial intermediaries and their
customers than would be the case if no payments were made. You
may wish to consider whether such arrangements exist when
evaluating any recommendation to purchase shares of the Funds.
Please refer to the SAI for more information regarding these
arrangements.
Shareholder
Servicing Plans
With respect to the A Shares and I Shares of certain of the
Funds, the A Shares and I Shares Shareholder Servicing Plan
permits the A Shares and I Shares of that Fund to pay financial
service firms for shareholder support services they provide, at
a rate of up to 0.15% of the average daily net assets of each of
the A Shares and I Shares of that Fund. The shareholder support
services may include, among others, providing general
shareholder liaison services (including responding to
shareholder inquiries), providing information on shareholder
investments, and establishing and maintaining shareholder
accounts and records.
DIVIDENDS AND
DISTRIBUTIONS AND TAXES
Dividends and
Distributions
Each of the International Equity 130/30 Fund, the International
Equity Fund, and International Equity Index Fund and distributes
its net investment income annually. Each other Equity Fund
distributes its net investment income quarterly. Each Fund makes
distributions of its net realized capital gains, if any, at
least annually. If you own Fund shares on a Funds record
date, you will be entitled to receive the distribution.
You will receive dividends and distributions in the form of
additional Fund shares unless you elect to receive payment in
cash. To elect cash payment, you must notify the Funds in
writing prior to the date of the distribution. Your election
will be effective for dividends and distributions paid after the
Funds receive your written notice. To cancel your election,
simply send the Funds written notice.
401(k) Plan participants will receive dividends and
distributions in the form of additional Fund shares if the
participant owns shares of the Fund on the date the dividend or
distribution is allocated by the Plan. Therefore, a participant
will not receive a dividend or distribution if the participant
does not own shares of the Fund on the date the dividend or
distribution is allocated.
Taxes
Please consult your tax advisor regarding your specific
questions about federal, state, and local income taxes.
Below the Funds have summarized some important tax issues that
affect the Funds and their shareholders. This summary is based
on current tax laws, which may change. More information on taxes
is in the SAI.
Dividends and distributions will accumulate on a tax-deferred
basis if you are investing through a 401(k) Plan or any other
employer-sponsored retirement or savings plan that qualifies for
tax-advantaged treatment under federal income tax laws.
Generally, you will not owe taxes on these distributions until
you begin withdrawals from the plan. Redemptions of Fund shares
resulting in withdrawals from the plan are subject to numerous
complex and special tax rules and may be subject to a penalty
tax in the case of premature withdrawals. If you have questions
about the tax consequences of 401(k) Plan withdrawals, you
should consult your tax advisor or plan administrator.
Each Fund will distribute substantially all of its net
investment income and its net realized capital gains, if any, at
least annually. The dividends and distributions you receive may
be subject to federal, state and local taxation, depending upon
your tax situation. Distributions you receive from a Fund may be
taxable whether or not you reinvest them. Income distributions
are generally taxable as either ordinary income or qualified
dividend income. Dividends that are qualified dividend income
are eligible for the reduced maximum rate to individuals of 15%
(lower rates apply to individuals in lower tax brackets) to the
extent that the Fund receives qualified dividend income. Capital
gains distributions are generally taxable at the rates
applicable to long-term capital gains. Long-term capital gains
are currently taxed at a maximum rate of 15%. Absent further
legislation, the maximum 15% tax rate on qualified dividend
income and long-term capital gains will cease to apply to
taxable years beginning after December 31, 2010. A high
portfolio turnover rate and a Funds or an Underlying
Funds use of certain derivatives may cause a Fund to
recognize higher amounts of short-term capital gains, which are
generally taxed to shareholders at ordinary income tax rates.
Because the International Equity 130/30 Fund, the Real Estate
130/30 Fund and the U.S. Equity 130/30 Fund will have both
long and short positions in equity securities, each Fund
anticipates that a smaller portion of its income dividends will
be qualified dividend income eligible for taxation a the
long-term capital gains rate than if each Fund held only long
positions in equity securities. Each sale or exchange of Fund
shares may be a taxable event. For tax purposes, an exchange of
Fund shares for shares of a different RidgeWorth Fund is treated
the same as a sale. A transfer from one share class to another
in the same RidgeWorth Fund should not be a taxable event.
The Fund will inform you of the amount of your ordinary income
dividends, qualified dividend income, and capital gain
distributions shortly after the close of each calendar year.
With respect to the Real Estate 130/30 Fund, the Fund may at
times find it necessary to reclassify income after it issues
your tax reporting statement. This can result from rules in the
Internal Revenue Code that effectively prevent regulated
investment companies such as the Fund and REITs in which the
Fund invests from ascertaining with certainty until after the
calendar year end, the final amount and character of
distributions the Fund has received on its investments during
the prior calendar year. Prior to issuing your statement, the
Fund makes every effort to search for reclassified income to
reduce the number of corrected forms mailed to shareholders.
However, when necessary, the Fund will send you a
DIVIDENDS AND
DISTRIBUTIONS AND TAXES
corrected
Form 1099-DIV
on or about February 28 to reflect reclassified information. If
you receive a corrected
Form 1099-DIV,
use the information on this Form, and not the information on
your original statement, in completing your tax returns.
For non-US investors in the Real Estate 130/30 Fund, such
investors may also be subject to U.S. estate tax on their
investment in the Fund. They also have special certification
requirements that, if not met, can subject them to backup
withholding on any dividends, distributions and redemption
proceeds that they receive from the Fund. Each of these subjects
is discussed in greater detail in the Distributions and
Taxes
Non-U.S. investors
section of the SAI.
The Real Estate 130/30 Fund may invest in equity securities of
corporations that invest in U.S. real property, including
REITs. The Foreign Investment in Real Property Tax Act of 1980
(FIRPTA) makes a
non-U.S. person
subject to U.S. tax on disposition of a U.S. real
property interest as if he or she were a U.S. person. Under
a look-through rule, if the Fund is classified as a
qualified investment entity, Fund distributions from
short- or long-term capital gains that are attributable to gain
from the sale or disposition of a U.S. real property
interest and which are paid to
non-U.S. investors
that own more than 5% of a class of Fund shares at any time
during the one-year period ending on the date of the
distribution may be subject to U.S. withholding tax at a
rate of 35%. You might also, in this case, be required to file a
nonresident U.S. income tax return. Even if you do not own
more than 5% of a class of Fund shares, Fund distributions to
you that are attributable to gain from the sale or disposition
of a U.S. real property interest will be taxable as
ordinary dividends (rather than as short- or long-term capital
gains) subject to withholding at a 30% or lower treaty rate. The
Fund will be classified as a qualified investment
entity if, in general, more than 50% of its assets consist
of interests in U.S. REITs and U.S. real property
holding corporations (e.g., a U.S. corporation more than
50% of the assets of which are interests in U.S. real
estate).
For a more detailed discussion on investment in U.S. real
property, including the circumstances under which a sale or
redemption of Fund shares may result in FIRPTA gain to you, see
the section, Distributions and Taxes
Non-U.S. investors
Investments in U.S. real property in the SAI.
If you have a tax-advantaged or other retirement account you
will generally not be subject to federal taxation on income and
capital gain distributions until you begin receiving your
distributions from your retirement account. You should consult
your tax advisor regarding the rules governing your own
retirement plan.
The International Equity Fund, the International Equity Index
Fund and the International Equity 130/30 Fund may be able to
pass along a tax credit for foreign income taxes they pay. In
such event, each Fund will provide you with the information
necessary to reflect such foreign taxes on your federal income
tax return.
More information
about taxes is in the SAI.
FINANCIAL
HIGHLIGHTS
The financial highlights table is intended to help you
understand a Funds financial performance for the past
5 years or, if shorter, the period of the Funds
operations. Certain information reflects financial results for a
single Fund share. The total returns in the table represent the
rate that an investor would have earned (or lost) on an
investment in the Fund (assuming reinvestment of all dividends
and distributions). This financial information has been audited
by PricewaterhouseCoopers LLP. The Report of Independent
Registered Public Accounting Firm for each period shown, along
with the Funds financial statements and related notes, are
included in the Annual Reports to Shareholders for such periods.
The 2010 Annual Report is available upon request and without
charge by calling 1-888-784-3863 or on the Funds website
at www.ridgeworth.com.
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Ratio of
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Net
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Net
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Ratio of
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Investment
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Ratio of
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Realized
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Net
|
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Income
|
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Expenses to
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and
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|
|
|
Distributions
|
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Net
|
|
|
|
|
Expenses
|
|
(Loss)
|
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Average
|
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|
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Net Asset
|
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Net
|
|
Unrealized
|
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|
|
Dividends
|
|
from
|
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Total
|
|
Asset
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|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
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|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
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Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
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Total
|
End of
|
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Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
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|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
|
Return(1)
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
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Rate(3)
|
Aggressive Growth Stock Fund
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I Shares
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|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
7.73
|
|
|
$
|
(0.08
|
)(a)
|
|
$
|
5.21
|
|
|
$
|
5.13
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
12.86
|
|
|
|
66.36
|
%
|
$
|
108,754
|
|
|
|
1.21
|
%
|
|
|
(0.77
|
)%
|
|
|
1.21
|
%
|
|
|
27
|
%
|
Year Ended March 31, 2009
|
|
|
12.03
|
|
|
|
(0.09
|
)
|
|
|
(3.99
|
)
|
|
|
(4.08
|
)
|
|
|
|
|
|
|
(0.22
|
)
|
|
|
(0.22
|
)
|
|
|
7.73
|
|
|
|
(33.89
|
)
|
|
152,030
|
|
|
|
1.16
|
|
|
|
(0.72
|
)
|
|
|
1.16
|
|
|
|
27
|
|
Year Ended March 31, 2008
|
|
|
12.64
|
|
|
|
(0.09
|
)(a)
|
|
|
(0.11
|
)
|
|
|
(0.20
|
)
|
|
|
|
|
|
|
(0.41
|
)
|
|
|
(0.41
|
)
|
|
|
12.03
|
|
|
|
(2.12
|
)
|
|
306,709
|
|
|
|
1.16
|
|
|
|
(0.70
|
)
|
|
|
1.16
|
|
|
|
59
|
|
Year Ended March 31, 2007
|
|
|
12.24
|
|
|
|
(0.09
|
)(a)
|
|
|
0.49
|
|
|
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.64
|
|
|
|
3.27
|
|
|
323,303
|
|
|
|
1.17
|
|
|
|
(0.79
|
)
|
|
|
1.17
|
|
|
|
49
|
|
Year Ended March 31, 2006
|
|
|
9.89
|
|
|
|
(0.07
|
)(a)
|
|
|
2.42
|
|
|
|
2.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.24
|
|
|
|
23.77
|
|
|
254,412
|
|
|
|
1.19
|
|
|
|
(0.61
|
)
|
|
|
1.23
|
|
|
|
30
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.61
|
|
|
|
(0.13
|
)(a)
|
|
|
5.14
|
|
|
|
5.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.62
|
|
|
|
65.83
|
|
|
2,502
|
|
|
|
1.52
|
|
|
|
(1.12
|
)
|
|
|
1.52
|
|
|
|
27
|
|
Year Ended March 31, 2009
|
|
|
11.88
|
|
|
|
(0.12
|
)
|
|
|
(3.93
|
)
|
|
|
(4.05
|
)
|
|
|
|
|
|
|
(0.22
|
)
|
|
|
(0.22
|
)
|
|
|
7.61
|
|
|
|
(34.06
|
)
|
|
416
|
|
|
|
1.46
|
|
|
|
(1.01
|
)
|
|
|
1.46
|
|
|
|
27
|
|
Year Ended March 31, 2008
|
|
|
12.53
|
|
|
|
(0.13
|
)(a)
|
|
|
(0.11
|
)
|
|
|
(0.24
|
)
|
|
|
|
|
|
|
(0.41
|
)
|
|
|
(0.41
|
)
|
|
|
11.88
|
|
|
|
(2.46
|
)
|
|
893
|
|
|
|
1.46
|
|
|
|
(0.99
|
)
|
|
|
1.46
|
|
|
|
59
|
|
Year Ended March 31, 2007
|
|
|
12.16
|
|
|
|
(0.12
|
)(a)
|
|
|
0.49
|
|
|
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.53
|
|
|
|
3.04
|
|
|
553
|
|
|
|
1.47
|
|
|
|
(1.10
|
)
|
|
|
1.47
|
|
|
|
49
|
|
Year Ended March 31, 2006
|
|
|
9.84
|
|
|
|
(0.10
|
)(a)
|
|
|
2.42
|
|
|
|
2.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.16
|
|
|
|
23.58
|
|
|
331
|
|
|
|
1.50
|
|
|
|
(0.94
|
)
|
|
|
1.55
|
|
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging Growth Stock Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
6.43
|
|
|
|
(0.07
|
)(a)
|
|
|
4.87
|
|
|
|
4.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.23
|
|
|
|
74.65
|
|
|
19,793
|
|
|
|
1.20
|
|
|
|
(0.82
|
)
|
|
|
1.24
|
|
|
|
87
|
|
Year Ended March 31, 2009
|
|
|
11.08
|
|
|
|
(0.06
|
)(a)
|
|
|
(4.33
|
)
|
|
|
(4.39
|
)
|
|
|
|
|
|
|
(0.26
|
)
|
|
|
(0.26
|
)
|
|
|
6.43
|
|
|
|
(39.58
|
)
|
|
66,005
|
|
|
|
1.17
|
|
|
|
(0.68
|
)
|
|
|
1.17
|
|
|
|
71
|
|
Year Ended March 31, 2008
|
|
|
12.97
|
|
|
|
(0.10
|
)(a)
|
|
|
(0.41
|
)
|
|
|
(0.51
|
)
|
|
|
|
|
|
|
(1.38
|
)
|
|
|
(1.38
|
)
|
|
|
11.08
|
|
|
|
(6.29
|
)
|
|
116,703
|
|
|
|
1.17
|
|
|
|
(0.71
|
)
|
|
|
1.17
|
|
|
|
117
|
|
Year Ended March 31, 2007
|
|
|
12.83
|
|
|
|
(0.10
|
)(a)
|
|
|
0.24
|
|
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.97
|
|
|
|
1.09
|
|
|
111,078
|
|
|
|
1.17
|
|
|
|
(0.85
|
)
|
|
|
1.18
|
|
|
|
103
|
|
Year Ended March 31, 2006
|
|
|
9.38
|
|
|
|
(0.09
|
)(a)
|
|
|
3.54
|
|
|
|
3.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.83
|
|
|
|
36.78
|
|
|
48,369
|
|
|
|
1.20
|
|
|
|
(0.84
|
)
|
|
|
1.24
|
|
|
|
107
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
6.31
|
|
|
|
(0.11
|
)(a)
|
|
|
4.79
|
|
|
|
4.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.99
|
|
|
|
74.17
|
|
|
563
|
|
|
|
1.52
|
|
|
|
(1.20
|
)
|
|
|
1.64
|
|
|
|
87
|
|
Year Ended March 31, 2009
|
|
|
10.92
|
|
|
|
(0.09
|
)(a)
|
|
|
(4.26
|
)
|
|
|
(4.35
|
)
|
|
|
|
|
|
|
(0.26
|
)
|
|
|
(0.26
|
)
|
|
|
6.31
|
|
|
|
(39.80
|
)
|
|
150
|
|
|
|
1.47
|
|
|
|
(1.00
|
)
|
|
|
1.47
|
|
|
|
71
|
|
Year Ended March 31, 2008
|
|
|
12.83
|
|
|
|
(0.14
|
)(a)
|
|
|
(0.39
|
)
|
|
|
(0.53
|
)
|
|
|
|
|
|
|
(1.38
|
)
|
|
|
(1.38
|
)
|
|
|
10.92
|
|
|
|
(6.52
|
)
|
|
632
|
|
|
|
1.47
|
|
|
|
(1.01
|
)
|
|
|
1.47
|
|
|
|
117
|
|
Year Ended March 31, 2007
|
|
|
12.74
|
|
|
|
(0.14
|
)(a)
|
|
|
0.23
|
|
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.83
|
|
|
|
0.71
|
|
|
615
|
|
|
|
1.48
|
|
|
|
(1.16
|
)
|
|
|
1.49
|
|
|
|
103
|
|
Year Ended March 31, 2006
|
|
|
9.34
|
|
|
|
(0.13
|
)(a)
|
|
|
3.53
|
|
|
|
3.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.74
|
|
|
|
36.30
|
|
|
227
|
|
|
|
1.51
|
|
|
|
(1.16
|
)
|
|
|
1.55
|
|
|
|
107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Equity 130/30 Fund(4)(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
4.08
|
|
|
|
0.08
|
|
|
|
2.70
|
|
|
|
2.78
|
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
(0.11
|
)
|
|
|
6.75
|
|
|
|
68.36
|
|
|
123,661
|
|
|
|
2.94
|
|
|
|
1.22
|
|
|
|
2.94
|
|
|
|
628
|
|
Year Ended March 31, 2009
|
|
|
8.69
|
|
|
|
0.04
|
(a)
|
|
|
(4.63
|
)
|
|
|
(4.59
|
)
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
4.08
|
|
|
|
(52.80
|
)
|
|
69,523
|
|
|
|
2.82
|
|
|
|
0.77
|
|
|
|
2.87
|
|
|
|
491
|
|
Period Ended March 31, 2008
|
|
|
10.00
|
|
|
|
(0.01
|
)
|
|
|
(1.30
|
)
|
|
|
(1.31
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.69
|
|
|
|
(13.10
|
)
|
|
4,343
|
|
|
|
3.29
|
|
|
|
(0.58
|
)
|
|
|
7.38
|
(b)
|
|
|
120
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
4.08
|
|
|
|
0.07
|
|
|
|
2.70
|
|
|
|
2.77
|
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
(0.08
|
)
|
|
|
6.77
|
|
|
|
67.87
|
|
|
3
|
|
|
|
3.65
|
|
|
|
2.34
|
|
|
|
3.65
|
|
|
|
628
|
|
Period Ended March 31, 2009
|
|
|
8.09
|
|
|
|
|
|
|
|
(4.00
|
)
|
|
|
(4.00
|
)
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
4.08
|
|
|
|
(49.40
|
)
|
|
10
|
|
|
|
3.13
|
|
|
|
(0.12
|
)
|
|
|
3.17
|
|
|
|
491
|
|
See Notes to Financial
Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Investment
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Income
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
|
Expenses
|
|
(Loss)
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
International Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
6.38
|
|
|
$
|
0.11
|
(a)
|
|
$
|
4.28
|
|
|
$
|
4.39
|
|
|
$
|
(0.06
|
)
|
|
$
|
|
|
|
$
|
(0.06
|
)
|
|
$
|
10.71
|
|
|
|
68.80
|
(c)%
|
|
$
|
273,819
|
|
|
|
1.25
|
%
|
|
|
1.17
|
%
|
|
|
1.30
|
%
|
|
|
95
|
%
|
Year Ended March 31, 2009
|
|
|
13.77
|
|
|
|
0.35
|
|
|
|
(7.28
|
)
|
|
|
(6.93
|
)
|
|
|
(0.25
|
)
|
|
|
(0.21
|
)
|
|
|
(0.46
|
)
|
|
|
6.38
|
|
|
|
(50.68
|
)
|
|
|
185,862
|
|
|
|
1.24
|
|
|
|
2.93
|
|
|
|
1.25
|
|
|
|
193
|
|
Year Ended March 31, 2008
|
|
|
16.83
|
|
|
|
0.34
|
(a)
|
|
|
(0.76
|
)
|
|
|
(0.42
|
)
|
|
|
(0.34
|
)
|
|
|
(2.30
|
)
|
|
|
(2.64
|
)
|
|
|
13.77
|
|
|
|
(4.16
|
)
|
|
|
1,089,572
|
|
|
|
1.21
|
|
|
|
2.06
|
|
|
|
1.21
|
|
|
|
141
|
|
Year Ended March 31, 2007
|
|
|
14.49
|
|
|
|
0.20
|
|
|
|
2.41
|
|
|
|
2.61
|
|
|
|
(0.27
|
)
|
|
|
|
|
|
|
(0.27
|
)
|
|
|
16.83
|
|
|
|
18.21
|
|
|
|
1,165,510
|
|
|
|
1.22
|
|
|
|
1.31
|
|
|
|
1.22
|
|
|
|
81
|
|
Year Ended March 31, 2006
|
|
|
11.77
|
|
|
|
0.16
|
|
|
|
2.72
|
|
|
|
2.88
|
|
|
|
(0.16
|
)
|
|
|
|
|
|
|
(0.16
|
)
|
|
|
14.49
|
|
|
|
24.47
|
#
|
|
|
926,845
|
|
|
|
1.31
|
|
|
|
1.40
|
|
|
|
1.32
|
|
|
|
59
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
6.32
|
|
|
|
0.09
|
(a)
|
|
|
4.22
|
|
|
|
4.31
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
10.59
|
|
|
|
68.22
|
(c)
|
|
|
8,104
|
|
|
|
1.55
|
|
|
|
0.68
|
|
|
|
1.59
|
|
|
|
95
|
|
Year Ended March 31, 2009
|
|
|
13.61
|
|
|
|
0.33
|
|
|
|
(7.21
|
)
|
|
|
(6.88
|
)
|
|
|
(0.20
|
)
|
|
|
(0.21
|
)
|
|
|
(0.41
|
)
|
|
|
6.32
|
|
|
|
(50.84
|
)
|
|
|
3,580
|
|
|
|
1.54
|
|
|
|
2.71
|
|
|
|
1.54
|
|
|
|
193
|
|
Year Ended March 31, 2008
|
|
|
16.67
|
|
|
|
0.28
|
(a)
|
|
|
(0.74
|
)
|
|
|
(0.46
|
)
|
|
|
(0.30
|
)
|
|
|
(2.30
|
)
|
|
|
(2.60
|
)
|
|
|
13.61
|
|
|
|
(4.45
|
)
|
|
|
12,288
|
|
|
|
1.51
|
|
|
|
1.70
|
|
|
|
1.51
|
|
|
|
141
|
|
Year Ended March 31, 2007
|
|
|
14.34
|
|
|
|
0.16
|
|
|
|
2.40
|
|
|
|
2.56
|
|
|
|
(0.23
|
)
|
|
|
|
|
|
|
(0.23
|
)
|
|
|
16.67
|
|
|
|
18.00
|
|
|
|
14,277
|
|
|
|
1.52
|
|
|
|
1.05
|
|
|
|
1.52
|
|
|
|
81
|
|
Year Ended March 31, 2006
|
|
|
11.64
|
|
|
|
0.11
|
|
|
|
2.70
|
|
|
|
2.81
|
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
(0.11
|
)
|
|
|
14.34
|
|
|
|
24.15
|
#
|
|
|
11,805
|
|
|
|
1.62
|
|
|
|
1.14
|
|
|
|
1.63
|
|
|
|
59
|
|
International Equity Index Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
8.75
|
|
|
|
0.34
|
|
|
|
4.03
|
|
|
|
4.37
|
|
|
|
(0.40
|
)
|
|
|
|
|
|
|
(0.40
|
)
|
|
|
12.72
|
|
|
|
49.93
|
|
|
|
839,582
|
|
|
|
0.64
|
|
|
|
2.46
|
|
|
|
0.64
|
|
|
|
36
|
|
Year Ended March 31, 2009
|
|
|
17.82
|
|
|
|
0.60
|
|
|
|
(9.05
|
)
|
|
|
(8.45
|
)
|
|
|
(0.62
|
)
|
|
|
|
|
|
|
(0.62
|
)
|
|
|
8.75
|
|
|
|
(47.89
|
)
|
|
|
726,931
|
|
|
|
0.61
|
|
|
|
3.63
|
|
|
|
0.61
|
|
|
|
47
|
|
Year Ended March 31, 2008
|
|
|
18.64
|
|
|
|
0.53
|
|
|
|
(0.86
|
)
|
|
|
(0.33
|
)
|
|
|
(0.49
|
)
|
|
|
|
|
|
|
(0.49
|
)
|
|
|
17.82
|
|
|
|
(2.03
|
)
|
|
|
958,514
|
|
|
|
0.59
|
|
|
|
2.74
|
|
|
|
0.59
|
|
|
|
13
|
|
Year Ended March 31, 2007
|
|
|
15.81
|
|
|
|
0.35
|
|
|
|
2.84
|
|
|
|
3.19
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
(0.36
|
)
|
|
|
18.64
|
|
|
|
20.27
|
|
|
|
994,685
|
|
|
|
0.61
|
|
|
|
1.99
|
|
|
|
0.61
|
|
|
|
8
|
|
Year Ended March 31, 2006
|
|
|
12.83
|
|
|
|
0.25
|
|
|
|
2.94
|
|
|
|
3.19
|
|
|
|
(0.21
|
)
|
|
|
|
|
|
|
(0.21
|
)
|
|
|
15.81
|
|
|
|
25.06
|
#
|
|
|
774,008
|
|
|
|
0.76
|
|
|
|
1.84
|
|
|
|
0.78
|
|
|
|
7
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
8.69
|
|
|
|
0.25
|
|
|
|
4.05
|
|
|
|
4.30
|
|
|
|
(0.38
|
)
|
|
|
|
|
|
|
(0.38
|
)
|
|
|
12.61
|
|
|
|
49.46
|
|
|
|
5,998
|
|
|
|
0.94
|
|
|
|
1.72
|
|
|
|
0.94
|
|
|
|
36
|
|
Year Ended March 31, 2009
|
|
|
17.67
|
|
|
|
0.52
|
|
|
|
(8.93
|
)
|
|
|
(8.41
|
)
|
|
|
(0.57
|
)
|
|
|
|
|
|
|
(0.57
|
)
|
|
|
8.69
|
|
|
|
(48.04
|
)
|
|
|
2,533
|
|
|
|
0.91
|
|
|
|
3.48
|
|
|
|
0.91
|
|
|
|
47
|
|
Year Ended March 31, 2008
|
|
|
18.49
|
|
|
|
0.46
|
|
|
|
(0.84
|
)
|
|
|
(0.38
|
)
|
|
|
(0.44
|
)
|
|
|
|
|
|
|
(0.44
|
)
|
|
|
17.67
|
|
|
|
(2.29
|
)
|
|
|
6,052
|
|
|
|
0.89
|
|
|
|
2.40
|
|
|
|
0.89
|
|
|
|
13
|
|
Year Ended March 31, 2007
|
|
|
15.66
|
|
|
|
0.28
|
|
|
|
2.84
|
|
|
|
3.12
|
|
|
|
(0.29
|
)
|
|
|
|
|
|
|
(0.29
|
)
|
|
|
18.49
|
|
|
|
20.03
|
|
|
|
5,921
|
|
|
|
0.91
|
|
|
|
1.69
|
|
|
|
0.91
|
|
|
|
8
|
|
Year Ended March 31, 2006
|
|
|
12.69
|
|
|
|
0.25
|
|
|
|
2.87
|
|
|
|
3.12
|
|
|
|
(0.15
|
)
|
|
|
|
|
|
|
(0.15
|
)
|
|
|
15.66
|
|
|
|
24.74
|
#
|
|
|
8,666
|
|
|
|
1.09
|
|
|
|
1.58
|
|
|
|
1.12
|
|
|
|
7
|
|
Large Cap Core Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
8.98
|
|
|
|
0.12
|
|
|
|
4.03
|
|
|
|
4.15
|
|
|
|
(0.12
|
)
|
|
|
|
|
|
|
(0.12
|
)
|
|
|
13.01
|
|
|
|
46.42
|
|
|
|
422,673
|
|
|
|
0.83
|
|
|
|
1.04
|
|
|
|
0.92
|
|
|
|
81
|
|
Year Ended March 31, 2009
|
|
|
14.25
|
|
|
|
0.19
|
|
|
|
(5.28
|
)
|
|
|
(5.09
|
)
|
|
|
(0.18
|
)
|
|
|
|
|
|
|
(0.18
|
)
|
|
|
8.98
|
|
|
|
(35.88
|
)
|
|
|
361,038
|
|
|
|
0.87
|
|
|
|
1.35
|
|
|
|
0.88
|
|
|
|
89
|
|
Year Ended March 31, 2008
|
|
|
17.79
|
|
|
|
0.21
|
|
|
|
(1.81
|
)
|
|
|
(1.60
|
)
|
|
|
(0.21
|
)(d)
|
|
|
(1.73
|
)
|
|
|
(1.94
|
)(d)
|
|
|
14.25
|
|
|
|
(10.32
|
)
|
|
|
1,239,965
|
|
|
|
0.86
|
|
|
|
1.23
|
|
|
|
0.86
|
|
|
|
78
|
|
Year Ended March 31, 2007
|
|
|
17.20
|
|
|
|
0.25
|
|
|
|
1.87
|
|
|
|
2.12
|
|
|
|
(0.26
|
)
|
|
|
(1.27
|
)
|
|
|
(1.53
|
)
|
|
|
17.79
|
|
|
|
12.51
|
|
|
|
1,554,971
|
|
|
|
0.85
|
|
|
|
1.41
|
|
|
|
0.85
|
|
|
|
58
|
|
Year Ended March 31, 2006
|
|
|
16.07
|
|
|
|
0.18
|
|
|
|
1.83
|
|
|
|
2.01
|
|
|
|
(0.18
|
)
|
|
|
(0.70
|
)
|
|
|
(0.88
|
)
|
|
|
17.20
|
|
|
|
12.76
|
|
|
|
1,396,362
|
|
|
|
0.90
|
|
|
|
1.15
|
|
|
|
0.90
|
|
|
|
55
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
9.08
|
|
|
|
0.09
|
|
|
|
4.08
|
|
|
|
4.17
|
|
|
|
(0.10
|
)
|
|
|
|
|
|
|
(0.10
|
)
|
|
|
13.15
|
|
|
|
46.11
|
|
|
|
21,511
|
|
|
|
1.08
|
|
|
|
0.79
|
|
|
|
1.17
|
|
|
|
81
|
|
Year Ended March 31, 2009
|
|
|
14.40
|
|
|
|
0.14
|
|
|
|
(5.31
|
)
|
|
|
(5.17
|
)
|
|
|
(0.15
|
)
|
|
|
|
|
|
|
(0.15
|
)
|
|
|
9.08
|
|
|
|
(36.02
|
)
|
|
|
17,254
|
|
|
|
1.12
|
|
|
|
1.13
|
|
|
|
1.12
|
|
|
|
89
|
|
Year Ended March 31, 2008
|
|
|
17.97
|
|
|
|
0.17
|
|
|
|
(1.84
|
)
|
|
|
(1.67
|
)
|
|
|
(0.17
|
)(d)
|
|
|
(1.73
|
)
|
|
|
(1.90
|
)(d)
|
|
|
14.40
|
|
|
|
(10.60
|
)
|
|
|
35,341
|
|
|
|
1.11
|
|
|
|
0.97
|
|
|
|
1.11
|
|
|
|
78
|
|
Year Ended March 31, 2007
|
|
|
17.36
|
|
|
|
0.20
|
|
|
|
1.89
|
|
|
|
2.09
|
|
|
|
(0.21
|
)
|
|
|
(1.27
|
)
|
|
|
(1.48
|
)
|
|
|
17.97
|
|
|
|
12.25
|
|
|
|
46,878
|
|
|
|
1.10
|
|
|
|
1.19
|
|
|
|
1.10
|
|
|
|
58
|
|
Year Ended March 31, 2006
|
|
|
16.21
|
|
|
|
0.14
|
|
|
|
1.85
|
|
|
|
1.99
|
|
|
|
(0.14
|
)
|
|
|
(0.70
|
)
|
|
|
(0.84
|
)
|
|
|
17.36
|
|
|
|
12.50
|
|
|
|
45,851
|
|
|
|
1.15
|
|
|
|
0.90
|
|
|
|
1.15
|
|
|
|
55
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
8.84
|
|
|
|
|
|
|
|
3.97
|
|
|
|
3.97
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
12.76
|
|
|
|
44.99
|
|
|
|
26,275
|
|
|
|
1.83
|
|
|
|
0.04
|
|
|
|
1.92
|
|
|
|
81
|
|
Year Ended March 31, 2009
|
|
|
14.03
|
|
|
|
0.05
|
|
|
|
(5.17
|
)
|
|
|
(5.12
|
)
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
(0.07
|
)
|
|
|
8.84
|
|
|
|
(36.51
|
)
|
|
|
21,571
|
|
|
|
1.87
|
|
|
|
0.38
|
|
|
|
1.87
|
|
|
|
89
|
|
Year Ended March 31, 2008
|
|
|
17.56
|
|
|
|
0.04
|
|
|
|
(1.79
|
)
|
|
|
(1.75
|
)
|
|
|
(0.05
|
)(d)
|
|
|
(1.73
|
)
|
|
|
(1.78
|
)(d)
|
|
|
14.03
|
|
|
|
(11.27
|
)
|
|
|
46,342
|
|
|
|
1.86
|
|
|
|
0.23
|
|
|
|
1.86
|
|
|
|
78
|
|
Year Ended March 31, 2007
|
|
|
17.00
|
|
|
|
0.08
|
|
|
|
1.84
|
|
|
|
1.92
|
|
|
|
(0.09
|
)
|
|
|
(1.27
|
)
|
|
|
(1.36
|
)
|
|
|
17.56
|
|
|
|
11.40
|
|
|
|
68,436
|
|
|
|
1.85
|
|
|
|
0.42
|
|
|
|
1.85
|
|
|
|
58
|
|
Year Ended March 31, 2006
|
|
|
15.89
|
|
|
|
0.02
|
|
|
|
1.81
|
|
|
|
1.83
|
|
|
|
(0.02
|
)
|
|
|
(0.70
|
)
|
|
|
(0.72
|
)
|
|
|
17.00
|
|
|
|
11.69
|
|
|
|
78,348
|
|
|
|
1.90
|
|
|
|
0.15
|
|
|
|
1.90
|
|
|
|
55
|
|
See Notes to Financial
Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Investment
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Income
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
(Loss)
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
|
Total
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
|
Return(1)
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
Large Cap Growth Stock Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
6.57
|
|
|
$
|
0.01
|
|
|
$
|
3.02
|
|
|
$
|
3.03
|
|
|
$
|
(0.01
|
)
|
|
$
|
|
|
|
$
|
(0.01
|
)
|
|
$
|
9.59
|
|
|
|
46.20
|
%
|
$
|
443,918
|
|
|
|
0.99
|
%
|
|
|
0.19
|
%
|
|
|
1.04
|
%
|
|
|
62
|
%
|
Year Ended March 31, 2009
|
|
|
9.95
|
|
|
|
0.04
|
|
|
|
(3.33
|
)
|
|
|
(3.29
|
)
|
|
|
(0.04
|
)
|
|
|
(0.05
|
)
|
|
|
(0.09
|
)
|
|
|
6.57
|
|
|
|
(33.16
|
)
|
|
439,356
|
|
|
|
0.99
|
|
|
|
0.54
|
|
|
|
1.03
|
|
|
|
85
|
|
Year Ended March 31, 2008
|
|
|
12.86
|
|
|
|
0.05
|
|
|
|
0.49
|
|
|
|
0.54
|
|
|
|
(0.05
|
)
|
|
|
(3.40
|
)
|
|
|
(3.45
|
)
|
|
|
9.95
|
|
|
|
0.92
|
|
|
633,291
|
|
|
|
1.00
|
|
|
|
0.45
|
|
|
|
1.01
|
|
|
|
109
|
|
Year Ended March 31, 2007
|
|
|
12.83
|
|
|
|
0.06
|
(a)
|
|
|
0.58
|
|
|
|
0.64
|
|
|
|
(0.06
|
)
|
|
|
(0.55
|
)
|
|
|
(0.61
|
)
|
|
|
12.86
|
|
|
|
5.08
|
|
|
1,105,504
|
|
|
|
0.98
|
|
|
|
0.48
|
|
|
|
0.98
|
|
|
|
79
|
|
Year Ended March 31, 2006
|
|
|
12.22
|
|
|
|
0.03
|
(a)
|
|
|
0.86
|
|
|
|
0.89
|
|
|
|
(0.02
|
)
|
|
|
(0.26
|
)
|
|
|
(0.28
|
)
|
|
|
12.83
|
|
|
|
7.33
|
|
|
1,296,236
|
|
|
|
1.06
|
|
|
|
0.22
|
|
|
|
1.07
|
|
|
|
74
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
6.11
|
|
|
|
(0.01
|
)
|
|
|
2.81
|
|
|
|
2.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.91
|
|
|
|
45.90
|
|
|
44,994
|
|
|
|
1.29
|
|
|
|
(0.11
|
)
|
|
|
1.34
|
|
|
|
62
|
|
Year Ended March 31, 2009
|
|
|
9.27
|
|
|
|
0.02
|
|
|
|
(3.11
|
)
|
|
|
(3.09
|
)
|
|
|
(0.02
|
)
|
|
|
(0.05
|
)
|
|
|
(0.07
|
)
|
|
|
6.11
|
|
|
|
(33.40
|
)
|
|
35,431
|
|
|
|
1.30
|
|
|
|
0.19
|
|
|
|
1.33
|
|
|
|
85
|
|
Year Ended March 31, 2008
|
|
|
12.19
|
|
|
|
0.02
|
|
|
|
0.49
|
|
|
|
0.51
|
|
|
|
(0.03
|
)
|
|
|
(3.40
|
)
|
|
|
(3.43
|
)
|
|
|
9.27
|
|
|
|
0.68
|
|
|
66,115
|
|
|
|
1.30
|
|
|
|
0.16
|
|
|
|
1.31
|
|
|
|
109
|
|
Year Ended March 31, 2007
|
|
|
12.20
|
|
|
|
0.02
|
(a)
|
|
|
0.56
|
|
|
|
0.58
|
|
|
|
(0.04
|
)
|
|
|
(0.55
|
)
|
|
|
(0.59
|
)
|
|
|
12.19
|
|
|
|
4.69
|
|
|
80,848
|
|
|
|
1.28
|
|
|
|
0.18
|
|
|
|
1.28
|
|
|
|
79
|
|
Year Ended March 31, 2006
|
|
|
11.66
|
|
|
|
(0.03
|
)(a)
|
|
|
0.83
|
|
|
|
0.80
|
|
|
|
|
|
|
|
(0.26
|
)
|
|
|
(0.26
|
)
|
|
|
12.20
|
|
|
|
6.97
|
|
|
104,733
|
|
|
|
1.50
|
|
|
|
(0.22
|
)
|
|
|
1.50
|
|
|
|
74
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
5.49
|
|
|
|
(0.06
|
)
|
|
|
2.51
|
|
|
|
2.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.94
|
|
|
|
44.63
|
|
|
17,516
|
|
|
|
1.99
|
|
|
|
(0.81
|
)
|
|
|
2.04
|
|
|
|
62
|
|
Year Ended March 31, 2009
|
|
|
8.37
|
|
|
|
(0.04
|
)
|
|
|
(2.78
|
)
|
|
|
(2.82
|
)
|
|
|
(0.01
|
)
|
|
|
(0.05
|
)
|
|
|
(0.06
|
)
|
|
|
5.49
|
|
|
|
(33.77
|
)
|
|
14,046
|
|
|
|
2.00
|
|
|
|
(0.52
|
)
|
|
|
2.03
|
|
|
|
85
|
|
Year Ended March 31, 2008
|
|
|
11.36
|
|
|
|
(0.06
|
)
|
|
|
0.48
|
|
|
|
0.42
|
|
|
|
(0.01
|
)
|
|
|
(3.40
|
)
|
|
|
(3.41
|
)
|
|
|
8.37
|
|
|
|
(0.08
|
)
|
|
27,949
|
|
|
|
2.00
|
|
|
|
(0.54
|
)
|
|
|
2.01
|
|
|
|
109
|
|
Year Ended March 31, 2007
|
|
|
11.46
|
|
|
|
(0.06
|
)(a)
|
|
|
0.52
|
|
|
|
0.46
|
|
|
|
(0.01
|
)
|
|
|
(0.55
|
)
|
|
|
(0.56
|
)
|
|
|
11.36
|
|
|
|
3.96
|
|
|
37,356
|
|
|
|
1.98
|
|
|
|
(0.52
|
)
|
|
|
1.98
|
|
|
|
79
|
|
Year Ended March 31, 2006
|
|
|
11.04
|
|
|
|
(0.09
|
)(a)
|
|
|
0.77
|
|
|
|
0.68
|
|
|
|
|
|
|
|
(0.26
|
)
|
|
|
(0.26
|
)
|
|
|
11.46
|
|
|
|
6.27
|
|
|
51,883
|
|
|
|
2.07
|
|
|
|
(0.79
|
)
|
|
|
2.08
|
|
|
|
74
|
|
Large Cap Quantitative Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.22
|
|
|
|
0.17
|
|
|
|
3.32
|
|
|
|
3.49
|
|
|
|
(0.16
|
)
|
|
|
|
|
|
|
(0.16
|
)
|
|
|
10.55
|
|
|
|
48.74
|
|
|
20,284
|
|
|
|
0.80
|
|
|
|
1.41
|
|
|
|
1.07
|
|
|
|
523
|
|
Year Ended March 31, 2009
|
|
|
11.58
|
|
|
|
0.11
|
|
|
|
(4.37
|
)
|
|
|
(4.26
|
)
|
|
|
(0.10
|
)
|
|
|
|
|
|
|
(0.10
|
)
|
|
|
7.22
|
|
|
|
(36.93
|
)
|
|
51,282
|
|
|
|
0.95
|
|
|
|
0.94
|
|
|
|
0.97
|
|
|
|
500
|
|
Year Ended March 31, 2008
|
|
|
14.08
|
|
|
|
0.09
|
(a)
|
|
|
(0.85
|
)
|
|
|
(0.76
|
)
|
|
|
(0.09
|
)(d)
|
|
|
(1.65
|
)
|
|
|
(1.74
|
)(d)
|
|
|
11.58
|
|
|
|
(6.68
|
)
|
|
235,925
|
|
|
|
0.92
|
|
|
|
0.63
|
|
|
|
0.92
|
|
|
|
399
|
|
Year Ended March 31, 2007
|
|
|
13.75
|
|
|
|
0.07
|
(a)
|
|
|
0.69
|
|
|
|
0.76
|
|
|
|
(0.06
|
)
|
|
|
(0.37
|
)
|
|
|
(0.43
|
)
|
|
|
14.08
|
|
|
|
5.63
|
|
|
309,126
|
|
|
|
0.92
|
|
|
|
0.48
|
|
|
|
0.92
|
|
|
|
450
|
|
Year Ended March 31, 2006
|
|
|
13.25
|
|
|
|
0.01
|
(a)
|
|
|
1.55
|
|
|
|
1.56
|
|
|
|
|
|
|
|
(1.06
|
)
|
|
|
(1.06
|
)
|
|
|
13.75
|
|
|
|
12.17
|
|
|
284,727
|
|
|
|
0.99
|
|
|
|
0.07
|
|
|
|
1.02
|
|
|
|
432
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.15
|
|
|
|
0.13
|
|
|
|
3.31
|
|
|
|
3.44
|
|
|
|
(0.15
|
)
|
|
|
|
|
|
|
(0.15
|
)
|
|
|
10.44
|
|
|
|
48.42
|
|
|
569
|
|
|
|
0.93
|
|
|
|
1.30
|
|
|
|
1.33
|
|
|
|
523
|
|
Year Ended March 31, 2009
|
|
|
11.47
|
|
|
|
0.08
|
|
|
|
(4.32
|
)
|
|
|
(4.24
|
)
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
(0.08
|
)
|
|
|
7.15
|
|
|
|
(37.10
|
)
|
|
268
|
|
|
|
1.21
|
|
|
|
0.69
|
|
|
|
1.22
|
|
|
|
500
|
|
Year Ended March 31, 2008
|
|
|
13.97
|
|
|
|
0.05
|
(a)
|
|
|
(0.84
|
)
|
|
|
(0.79
|
)
|
|
|
(0.06
|
)(d)
|
|
|
(1.65
|
)
|
|
|
(1.71
|
)(d)
|
|
|
11.47
|
|
|
|
(6.96
|
)
|
|
830
|
|
|
|
1.17
|
|
|
|
0.37
|
|
|
|
1.17
|
|
|
|
399
|
|
Year Ended March 31, 2007
|
|
|
13.65
|
|
|
|
0.03
|
(a)
|
|
|
0.69
|
|
|
|
0.72
|
|
|
|
(0.03
|
)
|
|
|
(0.37
|
)
|
|
|
(0.40
|
)
|
|
|
13.97
|
|
|
|
5.38
|
|
|
944
|
|
|
|
1.17
|
|
|
|
0.24
|
|
|
|
1.17
|
|
|
|
450
|
|
Year Ended March 31, 2006
|
|
|
13.18
|
|
|
|
(0.02
|
)(a)
|
|
|
1.55
|
|
|
|
1.53
|
|
|
|
|
|
|
|
(1.06
|
)
|
|
|
(1.06
|
)
|
|
|
13.65
|
|
|
|
11.90
|
|
|
1,181
|
|
|
|
1.23
|
|
|
|
(0.17
|
)
|
|
|
1.27
|
|
|
|
432
|
|
Large Cap Value Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.99
|
|
|
|
0.17
|
|
|
|
3.72
|
|
|
|
3.89
|
|
|
|
(0.17
|
)
|
|
|
|
|
|
|
(0.17
|
)
|
|
|
11.71
|
|
|
|
49.03
|
|
|
1,288,962
|
|
|
|
0.81
|
|
|
|
1.67
|
|
|
|
0.82
|
|
|
|
105
|
|
Year Ended March 31, 2009
|
|
|
12.35
|
|
|
|
0.25
|
|
|
|
(4.36
|
)
|
|
|
(4.11
|
)
|
|
|
(0.25
|
)
|
|
|
|
|
|
|
(0.25
|
)
|
|
|
7.99
|
|
|
|
(33.65
|
)
|
|
998,608
|
|
|
|
0.82
|
|
|
|
2.50
|
|
|
|
0.82
|
|
|
|
114
|
|
Year Ended March 31, 2008
|
|
|
15.13
|
|
|
|
0.28
|
|
|
|
(1.16
|
)
|
|
|
(0.88
|
)
|
|
|
(0.28
|
)
|
|
|
(1.62
|
)
|
|
|
(1.90
|
)
|
|
|
12.35
|
|
|
|
(7.07
|
)
|
|
898,491
|
|
|
|
0.83
|
|
|
|
1.93
|
|
|
|
0.83
|
|
|
|
116
|
|
Year Ended March 31, 2007
|
|
|
13.85
|
|
|
|
0.23
|
|
|
|
1.85
|
|
|
|
2.08
|
|
|
|
(0.23
|
)
|
|
|
(0.57
|
)
|
|
|
(0.80
|
)
|
|
|
15.13
|
|
|
|
15.26
|
|
|
893,491
|
|
|
|
0.83
|
|
|
|
1.62
|
|
|
|
0.83
|
|
|
|
95
|
|
Year Ended March 31, 2006
|
|
|
12.59
|
|
|
|
0.23
|
|
|
|
1.26
|
|
|
|
1.49
|
|
|
|
(0.23
|
)
|
|
|
|
|
|
|
(0.23
|
)
|
|
|
13.85
|
|
|
|
11.93
|
|
|
766,547
|
|
|
|
0.85
|
|
|
|
1.74
|
|
|
|
0.86
|
|
|
|
104
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.96
|
|
|
|
0.14
|
|
|
|
3.71
|
|
|
|
3.85
|
|
|
|
(0.15
|
)
|
|
|
|
|
|
|
(0.15
|
)
|
|
|
11.66
|
|
|
|
48.59
|
|
|
33,805
|
|
|
|
1.11
|
|
|
|
1.37
|
|
|
|
1.12
|
|
|
|
105
|
|
Year Ended March 31, 2009
|
|
|
12.30
|
|
|
|
0.24
|
|
|
|
(4.36
|
)
|
|
|
(4.12
|
)
|
|
|
(0.22
|
)
|
|
|
|
|
|
|
(0.22
|
)
|
|
|
7.96
|
|
|
|
(33.83
|
)
|
|
24,385
|
|
|
|
1.12
|
|
|
|
2.17
|
|
|
|
1.12
|
|
|
|
114
|
|
Year Ended March 31, 2008
|
|
|
15.08
|
|
|
|
0.24
|
|
|
|
(1.16
|
)
|
|
|
(0.92
|
)
|
|
|
(0.24
|
)
|
|
|
(1.62
|
)
|
|
|
(1.86
|
)
|
|
|
12.30
|
|
|
|
(7.37
|
)
|
|
47,400
|
|
|
|
1.13
|
|
|
|
1.63
|
|
|
|
1.13
|
|
|
|
116
|
|
Year Ended March 31, 2007
|
|
|
13.82
|
|
|
|
0.19
|
|
|
|
1.83
|
|
|
|
2.02
|
|
|
|
(0.19
|
)
|
|
|
(0.57
|
)
|
|
|
(0.76
|
)
|
|
|
15.08
|
|
|
|
14.81
|
|
|
62,390
|
|
|
|
1.13
|
|
|
|
1.32
|
|
|
|
1.13
|
|
|
|
95
|
|
Year Ended March 31, 2006
|
|
|
12.56
|
|
|
|
0.19
|
|
|
|
1.26
|
|
|
|
1.45
|
|
|
|
(0.19
|
)
|
|
|
|
|
|
|
(0.19
|
)
|
|
|
13.82
|
|
|
|
11.61
|
|
|
67,845
|
|
|
|
1.16
|
|
|
|
1.43
|
|
|
|
1.17
|
|
|
|
104
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.87
|
|
|
|
0.07
|
|
|
|
3.65
|
|
|
|
3.72
|
|
|
|
(0.10
|
)
|
|
|
|
|
|
|
(0.10
|
)
|
|
|
11.49
|
|
|
|
47.43
|
|
|
19,823
|
|
|
|
1.81
|
|
|
|
0.67
|
|
|
|
1.82
|
|
|
|
105
|
|
Year Ended March 31, 2009
|
|
|
12.16
|
|
|
|
0.16
|
|
|
|
(4.31
|
)
|
|
|
(4.15
|
)
|
|
|
(0.14
|
)
|
|
|
|
|
|
|
(0.14
|
)
|
|
|
7.87
|
|
|
|
(34.28
|
)
|
|
15,410
|
|
|
|
1.82
|
|
|
|
1.46
|
|
|
|
1.82
|
|
|
|
114
|
|
Year Ended March 31, 2008
|
|
|
14.92
|
|
|
|
0.14
|
|
|
|
(1.14
|
)
|
|
|
(1.00
|
)
|
|
|
(0.14
|
)
|
|
|
(1.62
|
)
|
|
|
(1.76
|
)
|
|
|
12.16
|
|
|
|
(7.93
|
)
|
|
29,329
|
|
|
|
1.83
|
|
|
|
0.92
|
|
|
|
1.83
|
|
|
|
116
|
|
Year Ended March 31, 2007
|
|
|
13.68
|
|
|
|
0.09
|
|
|
|
1.81
|
|
|
|
1.90
|
|
|
|
(0.09
|
)
|
|
|
(0.57
|
)
|
|
|
(0.66
|
)
|
|
|
14.92
|
|
|
|
14.04
|
|
|
40,223
|
|
|
|
1.83
|
|
|
|
0.62
|
|
|
|
1.83
|
|
|
|
95
|
|
Year Ended March 31, 2006
|
|
|
12.43
|
|
|
|
0.09
|
|
|
|
1.25
|
|
|
|
1.34
|
|
|
|
(0.09
|
)
|
|
|
|
|
|
|
(0.09
|
)
|
|
|
13.68
|
|
|
|
10.86
|
|
|
44,257
|
|
|
|
1.85
|
|
|
|
0.74
|
|
|
|
1.86
|
|
|
|
104
|
|
See Notes to Financial
Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Investment
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Income
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
(Loss)
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
|
Total
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
|
Return(1)
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
Mid-Cap Core Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
6.24
|
|
|
$
|
0.06
|
|
|
$
|
3.66
|
|
|
$
|
3.72
|
|
|
$
|
(0.05
|
)
|
|
$
|
|
|
|
$
|
(0.05
|
)
|
|
$
|
9.91
|
|
|
|
59.77
|
%
|
$
|
85,806
|
|
|
|
1.02
|
%
|
|
|
0.63
|
%
|
|
|
1.11
|
%
|
|
|
91
|
%
|
Year Ended March 31, 2009
|
|
|
11.26
|
|
|
|
0.09
|
|
|
|
(4.60
|
)
|
|
|
(4.51
|
)
|
|
|
(0.08
|
)
|
|
|
(0.43
|
)
|
|
|
(0.51
|
)
|
|
|
6.24
|
|
|
|
(40.27
|
)
|
|
74,341
|
|
|
|
1.09
|
|
|
|
0.91
|
|
|
|
1.09
|
|
|
|
52
|
|
Year Ended March 31, 2008
|
|
|
13.89
|
|
|
|
0.08
|
(a)
|
|
|
(1.28
|
)
|
|
|
(1.20
|
)
|
|
|
(0.09
|
)
|
|
|
(1.34
|
)
|
|
|
(1.43
|
)
|
|
|
11.26
|
|
|
|
(9.73
|
)
|
|
185,543
|
|
|
|
1.07
|
|
|
|
0.56
|
|
|
|
1.07
|
|
|
|
58
|
|
Year Ended March 31, 2007
|
|
|
13.67
|
|
|
|
0.06
|
|
|
|
1.21
|
|
|
|
1.27
|
|
|
|
(0.06
|
)
|
|
|
(0.99
|
)
|
|
|
(1.05
|
)
|
|
|
13.89
|
|
|
|
9.59
|
|
|
333,976
|
|
|
|
1.07
|
|
|
|
0.43
|
|
|
|
1.07
|
|
|
|
189
|
|
Year Ended March 31, 2006
|
|
|
12.03
|
|
|
|
0.07
|
|
|
|
2.26
|
|
|
|
2.33
|
|
|
|
(0.07
|
)
|
|
|
(0.62
|
)
|
|
|
(0.69
|
)
|
|
|
13.67
|
|
|
|
19.68
|
|
|
410,459
|
|
|
|
1.12
|
|
|
|
0.63
|
|
|
|
1.13
|
|
|
|
138
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
5.91
|
|
|
|
0.03
|
|
|
|
3.45
|
|
|
|
3.48
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
9.36
|
|
|
|
59.07
|
|
|
5,073
|
|
|
|
1.31
|
|
|
|
0.33
|
|
|
|
1.41
|
|
|
|
91
|
|
Year Ended March 31, 2009
|
|
|
10.70
|
|
|
|
0.06
|
|
|
|
(4.36
|
)
|
|
|
(4.30
|
)
|
|
|
(0.06
|
)
|
|
|
(0.43
|
)
|
|
|
(0.49
|
)
|
|
|
5.91
|
|
|
|
(40.41
|
)
|
|
3,592
|
|
|
|
1.39
|
|
|
|
0.63
|
|
|
|
1.39
|
|
|
|
52
|
|
Year Ended March 31, 2008
|
|
|
13.28
|
|
|
|
0.04
|
(a)
|
|
|
(1.22
|
)
|
|
|
(1.18
|
)
|
|
|
(0.06
|
)
|
|
|
(1.34
|
)
|
|
|
(1.40
|
)
|
|
|
10.70
|
|
|
|
(10.02
|
)
|
|
8,614
|
|
|
|
1.37
|
|
|
|
0.29
|
|
|
|
1.37
|
|
|
|
58
|
|
Year Ended March 31, 2007
|
|
|
13.12
|
|
|
|
0.02
|
|
|
|
1.16
|
|
|
|
1.18
|
|
|
|
(0.03
|
)
|
|
|
(0.99
|
)
|
|
|
(1.02
|
)
|
|
|
13.28
|
|
|
|
9.28
|
|
|
11,773
|
|
|
|
1.37
|
|
|
|
0.12
|
|
|
|
1.37
|
|
|
|
189
|
|
Year Ended March 31, 2006
|
|
|
11.57
|
|
|
|
0.03
|
|
|
|
2.17
|
|
|
|
2.20
|
|
|
|
(0.03
|
)
|
|
|
(0.62
|
)
|
|
|
(0.65
|
)
|
|
|
13.12
|
|
|
|
19.32
|
|
|
16,009
|
|
|
|
1.47
|
|
|
|
0.25
|
|
|
|
1.48
|
|
|
|
138
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
5.27
|
|
|
|
(0.02
|
)
|
|
|
3.08
|
|
|
|
3.06
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
8.32
|
|
|
|
58.03
|
|
|
4,197
|
|
|
|
2.01
|
|
|
|
(0.37
|
)
|
|
|
2.11
|
|
|
|
91
|
|
Year Ended March 31, 2009
|
|
|
9.66
|
|
|
|
(0.01
|
)
|
|
|
(3.92
|
)
|
|
|
(3.93
|
)
|
|
|
(0.03
|
)
|
|
|
(0.43
|
)
|
|
|
(0.46
|
)
|
|
|
5.27
|
|
|
|
(40.84
|
)
|
|
3,203
|
|
|
|
2.09
|
|
|
|
(0.08
|
)
|
|
|
2.09
|
|
|
|
52
|
|
Year Ended March 31, 2008
|
|
|
12.16
|
|
|
|
(0.05
|
)(a)
|
|
|
(1.09
|
)
|
|
|
(1.14
|
)
|
|
|
(0.02
|
)
|
|
|
(1.34
|
)
|
|
|
(1.36
|
)
|
|
|
9.66
|
|
|
|
(10.62
|
)
|
|
7,308
|
|
|
|
2.07
|
|
|
|
(0.41
|
)
|
|
|
2.07
|
|
|
|
58
|
|
Year Ended March 31, 2007
|
|
|
12.15
|
|
|
|
(0.01
|
)
|
|
|
1.01
|
|
|
|
1.00
|
|
|
|
|
|
|
|
(0.99
|
)
|
|
|
(0.99
|
)
|
|
|
12.16
|
|
|
|
8.51
|
|
|
10,854
|
|
|
|
2.07
|
|
|
|
(0.58
|
)
|
|
|
2.07
|
|
|
|
189
|
|
Year Ended March 31, 2006
|
|
|
10.81
|
|
|
|
|
|
|
|
1.96
|
|
|
|
1.96
|
|
|
|
|
|
|
|
(0.62
|
)
|
|
|
(0.62
|
)
|
|
|
12.15
|
|
|
|
18.44
|
|
|
13,499
|
|
|
|
2.13
|
|
|
|
(0.42
|
)
|
|
|
2.14
|
|
|
|
138
|
|
Mid-Cap Value Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
6.45
|
|
|
|
0.11
|
|
|
|
4.73
|
|
|
|
4.84
|
|
|
|
(0.12
|
)
|
|
|
|
|
|
|
(0.12
|
)
|
|
|
11.17
|
|
|
|
75.36
|
|
|
803,168
|
|
|
|
1.03
|
|
|
|
1.11
|
|
|
|
1.04
|
|
|
|
195
|
|
Year Ended March 31, 2009
|
|
|
9.58
|
|
|
|
0.14
|
(a)
|
|
|
(3.13
|
)
|
|
|
(2.99
|
)
|
|
|
(0.14
|
)
|
|
|
|
|
|
|
(0.14
|
)
|
|
|
6.45
|
|
|
|
(31.46
|
)
|
|
231,035
|
|
|
|
1.07
|
|
|
|
1.76
|
|
|
|
1.07
|
|
|
|
213
|
|
Year Ended March 31, 2008
|
|
|
13.02
|
|
|
|
0.19
|
(a)
|
|
|
(1.18
|
)
|
|
|
(0.99
|
)
|
|
|
(0.18
|
)(e)
|
|
|
(2.27
|
)(e)
|
|
|
(2.45
|
)(e)
|
|
|
9.58
|
|
|
|
(9.75
|
)
|
|
257,978
|
|
|
|
1.06
|
|
|
|
1.52
|
|
|
|
1.06
|
|
|
|
221
|
|
Year Ended March 31, 2007
|
|
|
13.14
|
|
|
|
0.14
|
|
|
|
2.04
|
|
|
|
2.18
|
|
|
|
(0.13
|
)
|
|
|
(2.17
|
)
|
|
|
(2.30
|
)
|
|
|
13.02
|
|
|
|
17.47
|
|
|
278,949
|
|
|
|
1.06
|
|
|
|
1.08
|
|
|
|
1.06
|
|
|
|
196
|
|
Year Ended March 31, 2006
|
|
|
12.27
|
|
|
|
0.13
|
|
|
|
2.15
|
|
|
|
2.28
|
|
|
|
(0.13
|
)
|
|
|
(1.28
|
)
|
|
|
(1.41
|
)
|
|
|
13.14
|
|
|
|
19.49
|
|
|
243,534
|
|
|
|
1.13
|
|
|
|
1.03
|
|
|
|
1.16
|
|
|
|
169
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
6.42
|
|
|
|
0.09
|
|
|
|
4.70
|
|
|
|
4.79
|
|
|
|
(0.10
|
)
|
|
|
|
|
|
|
(0.10
|
)
|
|
|
11.11
|
|
|
|
74.87
|
|
|
36,756
|
|
|
|
1.32
|
|
|
|
0.70
|
|
|
|
1.34
|
|
|
|
195
|
|
Year Ended March 31, 2009
|
|
|
9.53
|
|
|
|
0.12
|
(a)
|
|
|
(3.12
|
)
|
|
|
(3.00
|
)
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
(0.11
|
)
|
|
|
6.42
|
|
|
|
(31.64
|
)
|
|
2,912
|
|
|
|
1.37
|
|
|
|
1.36
|
|
|
|
1.37
|
|
|
|
213
|
|
Year Ended March 31, 2008
|
|
|
12.97
|
|
|
|
0.12
|
(a)
|
|
|
(1.14
|
)
|
|
|
(1.02
|
)
|
|
|
(0.15
|
)(e)
|
|
|
(2.27
|
)(e)
|
|
|
(2.42
|
)(e)
|
|
|
9.53
|
|
|
|
(10.03
|
)
|
|
7,774
|
|
|
|
1.36
|
|
|
|
1.04
|
|
|
|
1.36
|
|
|
|
221
|
|
Year Ended March 31, 2007
|
|
|
13.10
|
|
|
|
0.11
|
|
|
|
2.03
|
|
|
|
2.14
|
|
|
|
(0.10
|
)
|
|
|
(2.17
|
)
|
|
|
(2.27
|
)
|
|
|
12.97
|
|
|
|
17.11
|
|
|
3,362
|
|
|
|
1.36
|
|
|
|
0.78
|
|
|
|
1.36
|
|
|
|
196
|
|
Year Ended March 31, 2006
|
|
|
12.24
|
|
|
|
0.09
|
|
|
|
2.14
|
|
|
|
2.23
|
|
|
|
(0.09
|
)
|
|
|
(1.28
|
)
|
|
|
(1.37
|
)
|
|
|
13.10
|
|
|
|
19.09
|
|
|
2,435
|
|
|
|
1.46
|
|
|
|
0.72
|
|
|
|
1.49
|
|
|
|
169
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
6.38
|
|
|
|
0.02
|
|
|
|
4.67
|
|
|
|
4.69
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
11.02
|
|
|
|
73.71
|
|
|
5,853
|
|
|
|
2.03
|
|
|
|
0.13
|
|
|
|
2.04
|
|
|
|
195
|
|
Year Ended March 31, 2009
|
|
|
9.47
|
|
|
|
0.06
|
(a)
|
|
|
(3.10
|
)
|
|
|
(3.04
|
)
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
6.38
|
|
|
|
(32.09
|
)
|
|
1,949
|
|
|
|
2.07
|
|
|
|
0.72
|
|
|
|
2.07
|
|
|
|
213
|
|
Year Ended March 31, 2008
|
|
|
12.91
|
|
|
|
0.07
|
(a)
|
|
|
(1.18
|
)
|
|
|
(1.11
|
)
|
|
|
(0.06
|
)(e)
|
|
|
(2.27
|
)(e)
|
|
|
(2.33
|
)(e)
|
|
|
9.47
|
|
|
|
(10.72
|
)
|
|
4,049
|
|
|
|
2.06
|
|
|
|
0.57
|
|
|
|
2.06
|
|
|
|
221
|
|
Year Ended March 31, 2007
|
|
|
13.06
|
|
|
|
0.02
|
|
|
|
2.01
|
|
|
|
2.03
|
|
|
|
(0.01
|
)
|
|
|
(2.17
|
)
|
|
|
(2.18
|
)
|
|
|
12.91
|
|
|
|
16.27
|
|
|
6,269
|
|
|
|
2.06
|
|
|
|
0.07
|
|
|
|
2.06
|
|
|
|
196
|
|
Year Ended March 31, 2006
|
|
|
12.21
|
|
|
|
0.02
|
|
|
|
2.13
|
|
|
|
2.15
|
|
|
|
(0.02
|
)
|
|
|
(1.28
|
)
|
|
|
(1.30
|
)
|
|
|
13.06
|
|
|
|
18.47
|
|
|
6,366
|
|
|
|
2.03
|
|
|
|
0.13
|
|
|
|
2.17
|
|
|
|
169
|
|
See Notes to Financial
Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Investment
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Income
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
(Loss)
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
|
Total
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
|
Return(1)
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
Real Estate 130/30 Fund(4)(5)
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
4.17
|
|
|
$
|
0.17
|
|
|
$
|
3.24
|
|
|
$
|
3.41
|
|
|
$
|
(0.17
|
)
|
|
$
|
|
|
|
$
|
(0.17
|
)
|
|
$
|
7.41
|
|
|
|
82.75
|
%
|
$
|
13,493
|
|
|
|
1.28
|
%
|
|
|
3.20
|
%
|
|
|
2.80
|
%
|
|
|
704
|
%
|
Year Ended March 31, 2009
|
|
|
10.28
|
|
|
|
0.20
|
|
|
|
(5.94
|
)
|
|
|
(5.74
|
)
|
|
|
(0.22
|
)(d)
|
|
|
(0.15
|
)
|
|
|
(0.37
|
)(d)
|
|
|
4.17
|
|
|
|
(56.69
|
)
|
|
4,567
|
|
|
|
3.53
|
|
|
|
1.92
|
|
|
|
4.87
|
|
|
|
404
|
|
Period Ended March 31, 2008
|
|
|
10.00
|
|
|
|
0.10
|
|
|
|
0.25
|
|
|
|
0.35
|
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
(0.07
|
)
|
|
|
10.28
|
|
|
|
3.47
|
|
|
5,173
|
|
|
|
2.48
|
|
|
|
1.74
|
|
|
|
3.42
|
(b)
|
|
|
70
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended March 31, 2010
|
|
|
4.80
|
|
|
|
0.16
|
|
|
|
2.60
|
|
|
|
2.76
|
|
|
|
(0.16
|
)
|
|
|
|
|
|
|
(0.16
|
)
|
|
|
7.40
|
|
|
|
58.31
|
|
|
158
|
|
|
|
1.23
|
|
|
|
3.05
|
|
|
|
2.79
|
|
|
|
704
|
|
Select Large Cap Growth Stock Fund
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
19.74
|
|
|
|
0.04
|
|
|
|
8.03
|
|
|
|
8.07
|
|
|
|
(0.02
|
)(f)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
27.79
|
|
|
|
40.93
|
|
|
114,100
|
|
|
|
0.96
|
|
|
|
0.18
|
|
|
|
0.96
|
|
|
|
65
|
|
Year Ended March 31, 2009
|
|
|
28.32
|
|
|
|
0.09
|
|
|
|
(8.60
|
)
|
|
|
(8.51
|
)
|
|
|
(0.07
|
)(d)
|
|
|
|
|
|
|
(0.07
|
)(d)
|
|
|
19.74
|
|
|
|
(30.06
|
)
|
|
95,540
|
|
|
|
0.95
|
|
|
|
0.45
|
|
|
|
0.96
|
|
|
|
65
|
|
Year Ended March 31, 2008
|
|
|
26.92
|
|
|
|
0.08
|
(a)
|
|
|
1.35
|
|
|
|
1.43
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
28.32
|
|
|
|
5.30
|
|
|
96,704
|
|
|
|
0.94
|
|
|
|
0.28
|
|
|
|
0.95
|
|
|
|
62
|
|
Year Ended March 31, 2007
|
|
|
25.83
|
|
|
|
0.15
|
(a)
|
|
|
0.99
|
|
|
|
1.14
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
26.92
|
|
|
|
4.42
|
|
|
98,027
|
|
|
|
0.97
|
|
|
|
0.59
|
|
|
|
0.98
|
|
|
|
160
|
|
Year Ended March 31, 2006
|
|
|
24.14
|
|
|
|
|
|
|
|
1.82
|
|
|
|
1.82
|
|
|
|
(0.13
|
)
|
|
|
|
|
|
|
(0.13
|
)
|
|
|
25.83
|
|
|
|
7.54
|
|
|
74,481
|
|
|
|
1.07
|
|
|
|
0.21
|
|
|
|
1.08
|
|
|
|
82
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
19.54
|
|
|
|
(0.03
|
)
|
|
|
7.97
|
|
|
|
7.94
|
|
|
|
(0.01
|
)(f)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
27.47
|
|
|
|
40.65
|
|
|
244
|
|
|
|
1.25
|
|
|
|
(0.10
|
)
|
|
|
1.26
|
|
|
|
65
|
|
Year Ended March 31, 2009
|
|
|
28.06
|
|
|
|
0.02
|
|
|
|
(8.52
|
)
|
|
|
(8.50
|
)
|
|
|
(0.02
|
)(d)
|
|
|
|
|
|
|
(0.02
|
)(d)
|
|
|
19.54
|
|
|
|
(30.28
|
)
|
|
175
|
|
|
|
1.25
|
|
|
|
0.04
|
|
|
|
1.25
|
|
|
|
65
|
|
Year Ended March 31, 2008
|
|
|
26.73
|
|
|
|
|
(a)
|
|
|
1.33
|
|
|
|
1.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28.06
|
|
|
|
4.98
|
|
|
556
|
|
|
|
1.24
|
|
|
|
|
|
|
|
1.25
|
|
|
|
62
|
|
Year Ended March 31, 2007
|
|
|
25.67
|
|
|
|
0.07
|
(a)
|
|
|
0.99
|
|
|
|
1.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26.73
|
|
|
|
4.13
|
|
|
371
|
|
|
|
1.28
|
|
|
|
0.26
|
|
|
|
1.29
|
|
|
|
160
|
|
Year Ended March 31, 2006
|
|
|
24.02
|
|
|
|
(0.05
|
)
|
|
|
1.78
|
|
|
|
1.73
|
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
(0.08
|
)
|
|
|
25.67
|
|
|
|
7.21
|
|
|
468
|
|
|
|
1.39
|
|
|
|
(0.11
|
)
|
|
|
1.41
|
|
|
|
82
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
17.99
|
|
|
|
(0.19
|
)
|
|
|
7.30
|
|
|
|
7.11
|
|
|
|
|
(f)
|
|
|
|
|
|
|
|
|
|
|
25.10
|
|
|
|
39.52
|
|
|
19,040
|
|
|
|
1.96
|
|
|
|
(0.81
|
)
|
|
|
1.96
|
|
|
|
65
|
|
Year Ended March 31, 2009
|
|
|
25.98
|
|
|
|
(0.14
|
)
|
|
|
(7.85
|
)
|
|
|
(7.99
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17.99
|
|
|
|
(30.75
|
)
|
|
15,237
|
|
|
|
1.95
|
|
|
|
(0.59
|
)
|
|
|
1.95
|
|
|
|
65
|
|
Year Ended March 31, 2008
|
|
|
24.93
|
|
|
|
(0.20
|
)(a)
|
|
|
1.25
|
|
|
|
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25.98
|
|
|
|
4.21
|
|
|
26,596
|
|
|
|
1.95
|
|
|
|
(0.74
|
)
|
|
|
1.95
|
|
|
|
62
|
|
Year Ended March 31, 2007
|
|
|
24.11
|
|
|
|
(0.11
|
)(a)
|
|
|
0.93
|
|
|
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24.93
|
|
|
|
3.40
|
|
|
32,895
|
|
|
|
1.98
|
|
|
|
(0.44
|
)
|
|
|
1.99
|
|
|
|
160
|
|
Year Ended March 31, 2006
|
|
|
22.67
|
|
|
|
(0.11
|
)
|
|
|
1.57
|
|
|
|
1.46
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
24.11
|
|
|
|
6.46
|
|
|
48,412
|
|
|
|
2.07
|
|
|
|
(0.80
|
)
|
|
|
2.08
|
|
|
|
82
|
|
Small Cap Growth Stock Fund
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
8.52
|
|
|
|
(0.09
|
)
|
|
|
4.89
|
|
|
|
4.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13.32
|
|
|
|
56.34
|
|
|
358,947
|
|
|
|
1.22
|
|
|
|
(0.76
|
)
|
|
|
1.22
|
|
|
|
103
|
|
Year Ended March 31, 2009
|
|
|
13.53
|
|
|
|
(0.04
|
)
|
|
|
(4.97
|
)
|
|
|
(5.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.52
|
|
|
|
(37.03
|
)
|
|
273,548
|
|
|
|
1.21
|
|
|
|
(0.30
|
)
|
|
|
1.21
|
|
|
|
157
|
|
Year Ended March 31, 2008
|
|
|
20.61
|
|
|
|
(0.11
|
)(a)
|
|
|
(0.33
|
)
|
|
|
(0.44
|
)
|
|
|
|
|
|
|
(6.64
|
)(d)
|
|
|
(6.64
|
)(d)
|
|
|
13.53
|
|
|
|
(7.09
|
)
|
|
490,675
|
|
|
|
1.19
|
|
|
|
(0.57
|
)
|
|
|
1.20
|
|
|
|
126
|
|
Year Ended March 31, 2007
|
|
|
23.65
|
|
|
|
(0.11
|
)(a)
|
|
|
(1.74
|
)
|
|
|
(1.85
|
)
|
|
|
|
|
|
|
(1.19
|
)
|
|
|
(1.19
|
)
|
|
|
20.61
|
|
|
|
(7.80
|
)
|
|
845,570
|
|
|
|
1.16
|
|
|
|
(0.51
|
)
|
|
|
1.16
|
|
|
|
139
|
|
Year Ended March 31, 2006
|
|
|
19.99
|
|
|
|
(0.14
|
)(a)
|
|
|
5.46
|
|
|
|
5.32
|
|
|
|
|
|
|
|
(1.66
|
)
|
|
|
(1.66
|
)
|
|
|
23.65
|
|
|
|
27.55
|
|
|
1,641,681
|
|
|
|
1.17
|
|
|
|
(0.66
|
)
|
|
|
1.18
|
|
|
|
98
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
8.08
|
|
|
|
(0.12
|
)
|
|
|
4.63
|
|
|
|
4.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.59
|
|
|
|
55.82
|
|
|
11,517
|
|
|
|
1.52
|
|
|
|
(1.06
|
)
|
|
|
1.52
|
|
|
|
103
|
|
Year Ended March 31, 2009
|
|
|
12.88
|
|
|
|
(0.08
|
)
|
|
|
(4.72
|
)
|
|
|
(4.80
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.08
|
|
|
|
(37.27
|
)
|
|
8,294
|
|
|
|
1.51
|
|
|
|
(0.60
|
)
|
|
|
1.51
|
|
|
|
157
|
|
Year Ended March 31, 2008
|
|
|
19.96
|
|
|
|
(0.16
|
)(a)
|
|
|
(0.28
|
)
|
|
|
(0.44
|
)
|
|
|
|
|
|
|
(6.64
|
)(d)
|
|
|
(6.64
|
)(d)
|
|
|
12.88
|
|
|
|
(7.33
|
)
|
|
16,490
|
|
|
|
1.49
|
|
|
|
(0.87
|
)
|
|
|
1.50
|
|
|
|
126
|
|
Year Ended March 31, 2007
|
|
|
23.02
|
|
|
|
(0.17
|
)(a)
|
|
|
(1.70
|
)
|
|
|
(1.87
|
)
|
|
|
|
|
|
|
(1.19
|
)
|
|
|
(1.19
|
)
|
|
|
19.96
|
|
|
|
(8.06
|
)
|
|
24,320
|
|
|
|
1.46
|
|
|
|
(0.81
|
)
|
|
|
1.46
|
|
|
|
139
|
|
Year Ended March 31, 2006
|
|
|
19.56
|
|
|
|
(0.21
|
)(a)
|
|
|
5.33
|
|
|
|
5.12
|
|
|
|
|
|
|
|
(1.66
|
)
|
|
|
(1.66
|
)
|
|
|
23.02
|
|
|
|
27.13
|
##
|
|
59,896
|
|
|
|
1.51
|
|
|
|
(1.00
|
)
|
|
|
1.54
|
|
|
|
98
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.10
|
|
|
|
(0.17
|
)
|
|
|
4.05
|
|
|
|
3.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.98
|
|
|
|
54.65
|
|
|
8,827
|
|
|
|
2.22
|
|
|
|
(1.76
|
)
|
|
|
2.22
|
|
|
|
103
|
|
Year Ended March 31, 2009
|
|
|
11.38
|
|
|
|
(0.15
|
)
|
|
|
(4.13
|
)
|
|
|
(4.28
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.10
|
|
|
|
(37.61
|
)
|
|
6,567
|
|
|
|
2.21
|
|
|
|
(1.30
|
)
|
|
|
2.21
|
|
|
|
157
|
|
Year Ended March 31, 2008
|
|
|
18.46
|
|
|
|
(0.27
|
)(a)
|
|
|
(0.17
|
)
|
|
|
(0.44
|
)
|
|
|
|
|
|
|
(6.64
|
)(d)
|
|
|
(6.64
|
)(d)
|
|
|
11.38
|
|
|
|
(7.98
|
)
|
|
14,323
|
|
|
|
2.20
|
|
|
|
(1.57
|
)
|
|
|
2.21
|
|
|
|
126
|
|
Year Ended March 31, 2007
|
|
|
21.53
|
|
|
|
(0.29
|
)(a)
|
|
|
(1.59
|
)
|
|
|
(1.88
|
)
|
|
|
|
|
|
|
(1.19
|
)
|
|
|
(1.19
|
)
|
|
|
18.46
|
|
|
|
(8.68
|
)
|
|
21,545
|
|
|
|
2.16
|
|
|
|
(1.51
|
)
|
|
|
2.16
|
|
|
|
139
|
|
Year Ended March 31, 2006
|
|
|
18.51
|
|
|
|
(0.33
|
)(a)
|
|
|
5.01
|
|
|
|
4.68
|
|
|
|
|
|
|
|
(1.66
|
)
|
|
|
(1.66
|
)
|
|
|
21.53
|
|
|
|
26.27
|
##
|
|
36,242
|
|
|
|
2.18
|
|
|
|
(1.67
|
)
|
|
|
2.18
|
|
|
|
98
|
|
See Notes to Financial
Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Investment
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Income
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
(Loss)
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
|
Total
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
|
Return(1)
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
Small Cap Value Equity Fund
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
7.57
|
|
|
$
|
0.11
|
|
|
$
|
4.20
|
|
|
$
|
4.31
|
|
|
$
|
(0.12
|
)
|
|
$
|
|
|
|
$
|
(0.12
|
)
|
|
$
|
11.76
|
|
|
|
57.15
|
%
|
$
|
612,490
|
|
|
|
1.21
|
%
|
|
|
1.29
|
%
|
|
|
1.21
|
%
|
|
|
62
|
%
|
Year Ended March 31, 2009
|
|
|
11.17
|
|
|
|
0.16
|
|
|
|
(3.44
|
)
|
|
|
(3.28
|
)
|
|
|
(0.16
|
)
|
|
|
(0.16
|
)
|
|
|
(0.32
|
)
|
|
|
7.57
|
|
|
|
(29.61
|
)
|
|
316,142
|
|
|
|
1.21
|
|
|
|
1.61
|
|
|
|
1.22
|
|
|
|
71
|
|
Year Ended March 31, 2008
|
|
|
17.35
|
|
|
|
0.18
|
|
|
|
(1.65
|
)
|
|
|
(1.47
|
)
|
|
|
(0.17
|
)
|
|
|
(4.54
|
)
|
|
|
(4.71
|
)
|
|
|
11.17
|
|
|
|
(11.23
|
)
|
|
469,424
|
|
|
|
1.19
|
|
|
|
1.20
|
|
|
|
1.19
|
|
|
|
75
|
|
Year Ended March 31, 2007
|
|
|
20.93
|
|
|
|
0.10
|
|
|
|
1.25
|
|
|
|
1.35
|
|
|
|
(0.11
|
)
|
|
|
(4.82
|
)
|
|
|
(4.93
|
)
|
|
|
17.35
|
|
|
|
7.41
|
|
|
674,619
|
|
|
|
1.18
|
|
|
|
0.55
|
|
|
|
1.18
|
|
|
|
62
|
|
Year Ended March 31, 2006
|
|
|
19.86
|
|
|
|
0.10
|
|
|
|
5.39
|
|
|
|
5.49
|
|
|
|
(0.10
|
)
|
|
|
(4.32
|
)
|
|
|
(4.42
|
)
|
|
|
20.93
|
|
|
|
30.70
|
|
|
762,709
|
|
|
|
1.20
|
|
|
|
0.48
|
|
|
|
1.20
|
|
|
|
58
|
|
A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.47
|
|
|
|
0.07
|
|
|
|
4.15
|
|
|
|
4.22
|
|
|
|
(0.10
|
)
|
|
|
|
|
|
|
(0.10
|
)
|
|
|
11.59
|
|
|
|
56.66
|
|
|
17,826
|
|
|
|
1.50
|
|
|
|
1.00
|
|
|
|
1.50
|
|
|
|
62
|
|
Year Ended March 31, 2009
|
|
|
11.03
|
|
|
|
0.13
|
|
|
|
(3.40
|
)
|
|
|
(3.27
|
)
|
|
|
(0.13
|
)
|
|
|
(0.16
|
)
|
|
|
(0.29
|
)
|
|
|
7.47
|
|
|
|
(29.83
|
)
|
|
2,243
|
|
|
|
1.49
|
|
|
|
1.34
|
|
|
|
1.50
|
|
|
|
71
|
|
Year Ended March 31, 2008
|
|
|
17.20
|
|
|
|
0.14
|
|
|
|
(1.63
|
)
|
|
|
(1.49
|
)
|
|
|
(0.14
|
)
|
|
|
(4.54
|
)
|
|
|
(4.68
|
)
|
|
|
11.03
|
|
|
|
(11.48
|
)
|
|
4,887
|
|
|
|
1.44
|
|
|
|
0.94
|
|
|
|
1.44
|
|
|
|
75
|
|
Year Ended March 31, 2007
|
|
|
20.79
|
|
|
|
0.05
|
|
|
|
1.24
|
|
|
|
1.29
|
|
|
|
(0.06
|
)
|
|
|
(4.82
|
)
|
|
|
(4.88
|
)
|
|
|
17.20
|
|
|
|
7.17
|
|
|
7,629
|
|
|
|
1.44
|
|
|
|
0.28
|
|
|
|
1.44
|
|
|
|
62
|
|
Year Ended March 31, 2006
|
|
|
19.75
|
|
|
|
0.06
|
|
|
|
5.36
|
|
|
|
5.42
|
|
|
|
(0.06
|
)
|
|
|
(4.32
|
)
|
|
|
(4.38
|
)
|
|
|
20.79
|
|
|
|
30.44
|
|
|
5,317
|
|
|
|
1.45
|
|
|
|
0.22
|
|
|
|
1.48
|
|
|
|
58
|
|
C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.20
|
|
|
|
0.02
|
|
|
|
3.97
|
|
|
|
3.99
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
11.15
|
|
|
|
55.48
|
|
|
17,601
|
|
|
|
2.21
|
|
|
|
0.30
|
|
|
|
2.21
|
|
|
|
62
|
|
Year Ended March 31, 2009
|
|
|
10.65
|
|
|
|
0.09
|
|
|
|
(3.28
|
)
|
|
|
(3.19
|
)
|
|
|
(0.10
|
)
|
|
|
(0.16
|
)
|
|
|
(0.26
|
)
|
|
|
7.20
|
|
|
|
(30.14
|
)
|
|
11,091
|
|
|
|
1.89
|
|
|
|
0.94
|
|
|
|
1.89
|
|
|
|
71
|
|
Year Ended March 31, 2008
|
|
|
16.76
|
|
|
|
0.14
|
|
|
|
(1.57
|
)
|
|
|
(1.43
|
)
|
|
|
(0.14
|
)
|
|
|
(4.54
|
)
|
|
|
(4.68
|
)
|
|
|
10.65
|
|
|
|
(11.41
|
)
|
|
22,243
|
|
|
|
1.44
|
|
|
|
0.94
|
|
|
|
1.45
|
|
|
|
75
|
|
Year Ended March 31, 2007
|
|
|
20.39
|
|
|
|
0.05
|
|
|
|
1.20
|
|
|
|
1.25
|
|
|
|
(0.06
|
)
|
|
|
(4.82
|
)
|
|
|
(4.88
|
)
|
|
|
16.76
|
|
|
|
7.10
|
|
|
35,289
|
|
|
|
1.43
|
|
|
|
0.30
|
|
|
|
1.43
|
|
|
|
62
|
|
Year Ended March 31, 2006
|
|
|
19.45
|
|
|
|
0.06
|
|
|
|
5.26
|
|
|
|
5.32
|
|
|
|
(0.06
|
)
|
|
|
(4.32
|
)
|
|
|
(4.38
|
)
|
|
|
20.39
|
|
|
|
30.41
|
|
|
45,388
|
|
|
|
1.45
|
|
|
|
0.23
|
|
|
|
1.70
|
|
|
|
58
|
|
U.S. Equity 130/30 Fund(4)(5)
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
5.67
|
|
|
|
0.04
|
|
|
|
3.10
|
|
|
|
3.14
|
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
(0.07
|
)
|
|
|
8.74
|
|
|
|
55.52
|
|
|
12,481
|
|
|
|
1.90
|
|
|
|
0.65
|
|
|
|
2.67
|
|
|
|
382
|
|
Year Ended March 31, 2009
|
|
|
8.75
|
|
|
|
0.05
|
|
|
|
(3.08
|
)
|
|
|
(3.03
|
)
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
5.67
|
|
|
|
(34.69
|
)
|
|
3,294
|
|
|
|
1.93
|
|
|
|
0.72
|
|
|
|
3.92
|
|
|
|
312
|
|
Period Ended March 31, 2008
|
|
|
10.00
|
|
|
|
0.01
|
|
|
|
(1.25
|
)
|
|
|
(1.24
|
)
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
8.75
|
|
|
|
(12.39
|
)
|
|
4,381
|
|
|
|
1.96
|
|
|
|
0.48
|
|
|
|
3.49
|
|
|
|
87
|
|
See Notes to Financial
Highlights.
NOTES TO
FINANCIAL HIGHLIGHTS
|
|
|
(1)
|
|
Total return excludes sales charge.
Not annualized for periods less than one year.
|
|
(2)
|
|
Annualized for periods less than
one year.
|
|
(3)
|
|
Not annualized for periods less
than one year.
|
|
(4)
|
|
The following table details the
commencement of operations of certain classes of each respective
fund.
|
|
|
|
|
|
Fund
|
|
Class
|
|
Commencement Date
|
International Equity 130/30 Fund
|
|
I Shares
|
|
December 26, 2007
|
International Equity 130/30 Fund
|
|
A Shares
|
|
July 2, 2008
|
Real Estate 130/30 Fund
|
|
I Shares
|
|
December 26, 2007
|
Real Estate 130/30 Fund
|
|
A Shares
|
|
May 21, 2009
|
U.S. Equity 130/30 Fund
|
|
I Shares
|
|
December 26, 2007
|
|
|
|
(5)
|
|
The Ratio of Expenses to Average
Net Assets and Ratio of Net Expenses to Average Net Assets
include annualized dividend expense from securities sold short.
Dividend expense for the fiscal periods listed below are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
2009
|
|
2008
|
|
International Equity 130/30 Fund I Shares
|
|
|
1.46
|
%
|
|
|
1.31
|
%
|
|
|
1.74
|
%
|
International Equity 130/30 Fund A Shares
|
|
|
2.02
|
%
|
|
|
1.31
|
%
|
|
|
N/A
|
|
Real Estate 130/30 Fund I Shares
|
|
|
0.76
|
%
|
|
|
2.11
|
%
|
|
|
1.03
|
%
|
Real Estate 130/30 Fund A Shares
|
|
|
0.77
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
U.S. Equity Fund 130/30 I Shares
|
|
|
0.60
|
%
|
|
|
0.70
|
%
|
|
|
0.66
|
%
|
|
|
|
(a)
|
|
Per share data calculated using
average shares outstanding method.
|
|
(b)
|
|
Ratio reflects the impact of the
initial low level of average net assets associated with
commencement of operations.
|
|
(c)
|
|
The total return shown is based on
the ending net asset value calculated in accordance with
accounting principles generally accepted in the United States of
America (GAAP) and differs from the total return
shown based on the net asset value calculated for shareholder
transactions.
|
|
|
|
(d)
|
|
The Large Cap Core Equity Fund,
Large Cap Quantitative Equity Fund, Real Estate 130/30 Fund,
Select Large Cap Growth Stock Fund and Small Cap Growth Stock
Fund include per share distributions from tax return of capital
of $, $, $(0.04), $(0.01) and $(0.11), respectively.
|
|
|
|
(e)
|
|
Amended from prior Financial
Highlights that included a $(0.05) tax return of capital in the
Dividends from Net Investment Income column, and was
footnoted, as such, in the Notes to Financial Highlights. It was
subsequently determined that there was not a return of capital
and that the $(0.05) distribution was from realized capital
gains and, therefore, the Distributions from Realized Capital
Gains has been revised to $(2.27) per share from $(2.22) per
share.
|
|
(f)
|
|
The Select Large Cap Growth Stock
Fund includes per share distributions from tax return of capital
of less than $0.005.
|
|
#
|
|
The International Equity Fund and
International Equity Index Fund each had a voluntary
reimbursement by the Investment Adviser and affiliates that had
no effect on total returns for the period.
|
|
##
|
|
The Small Cap Growth Stock
Funds total return includes the effect of an asset
valuation adjustment as of March 31, 2006. Excluding this
effect, total return would have been 27.08% and 26.21% for the A
Shares and C Shares, respectively. There was no effect to the
total return for I Shares.
|
Amounts designated as are $0 or have been
rounded to $0.
PRIVACY
POLICY
RidgeWorth
Funds
Our Privacy
Policy
At RidgeWorth Funds, we recognize the sensitive nature of your
personal financial information and take every precaution to
protect your privacy. In providing services to you as an
individual who owns or is considering investing in shares of
RidgeWorth Funds, we collect certain nonpublic personal
information about you. Our policy is to safeguard this
information and keep it confidential, and to use or disclose it
only as necessary to provide services to you or as otherwise
required or permitted by law. When you entrust us with your
financial information, it will be used only within our strict
guidelines. Our privacy policy and practices apply equally to
nonpublic personal information about former shareholders and
individuals who have inquired about RidgeWorth Funds.
Information We
Collect
Nonpublic personal information is personally
identifiable financial information about you as an individual or
your family. The type of nonpublic personal information we have
about you may include the information you provide on your
account application; information you provide in telephone calls
or correspondence with us; information about your transactions
and holdings in RidgeWorth Funds, and information about how you
vote your shares.
Information We
Disclose
RidgeWorth Funds policy is to only disclose nonpublic
personal information about you to companies that provide
necessary services such as RidgeWorth Funds transfer
agent, distributor, administrator or investment adviser;
affiliates of RidgeWorth Funds, or as may otherwise be permitted
or required by law or authorized by you.
How We Safeguard
Your Information
We restrict access to nonpublic personal information about you
to those persons who are required to have certain information in
order to provide services to you, or who are permitted by law to
receive it. We have strict internal policies against
unauthorized disclosure or use of customer information. We
maintain customer information as mandated by financial
regulations, and policies and procedures are in place for
appropriate confidential destruction of all restricted access
data.
If you have any questions regarding our Privacy Policy,
please call 1-888-784-3863.
This is not part of the Prospectus.
|
|
|
Investment Adviser:
|
|
|
RidgeWorth Investments
50 Hurt Plaza, Suite 1400
Atlanta, Georgia 30303
www.ridgeworth.com
|
|
|
|
|
|
Investment Subadvisers:
|
|
|
Alpha Equity Management LLC 90 State House Square, Suite 1100 Hartford, CT 06103 www.alphaequityllc.com
Ceredex Value Advisors LLC Lincoln Plaza, Suite 1600 300 South Orange Avenue Orlando, FL 32801 www.ceredexvalue.com
Certium Asset Management LLC 50 Hurt Plaza, Suite 1400 Atlanta, GA 30303 www.certiumllc.com
|
|
IronOak Advisors LLC 919 East Main Street, 15th Floor Richmond, VA 23219 www.ironoakadvisors.com
Silvant Capital Management LLC 50 Hurt Plaza, Suite 1500 Atlanta, GA 30303 www.silvantcapital.com
Zevenbergen Capital Investments LLC 601 Union Street, Suite 4600 Seattle, Washington 98101 www.zci.com
|
More information about the RidgeWorth Funds is available without
charge through the following:
Statement of Additional Information (SAI):
The SAI includes detailed information about the RidgeWorth
Funds. The SAI is on file with the SEC and is incorporated by
reference into this prospectus. This means that the SAI, for
legal purposes, is a part of this prospectus.
Annual and Semi-Annual Reports:
These reports list each Funds holdings and contain
information from the Funds managers about strategies and
recent market conditions and trends and their impact on Fund
performance. The reports also contain detailed financial
information about the Funds.
To Obtain an SAI, Annual or Semi-Annual Report, or More
Information:
|
|
Telephone: |
Shareholder Services
1-888-784-3863
|
Mail:
RidgeWorth Funds
3435 Stelzer Road
Columbus, Ohio 43219
Website: www.ridgeworth.com
SEC:
You can also obtain the SAI or the Annual and Semi-Annual
reports, as well as other information about the RidgeWorth
Funds, from the EDGAR Database on the SECs website at
http://www.sec.gov.
You may review and copy documents at the SEC Public Reference
Room in Washington, DC (for information on the operation of the
Public Reference Room, call
202-551-8090).
You may request documents by mail from the SEC, upon payment of
a duplicating fee, by writing to: Securities and Exchange
Commission, Public Reference Section, Washington, DC
20549-1520.
You may also obtain this information, upon payment of a
duplicating fee, by
e-mailing
the SEC at publicinfo@sec.gov.
The RidgeWorth Funds Investment Company Act registration
number is
811-06557.
Collective Strength Individual Insight is a federally registered
service mark of RidgeWorth Investments.
RFPRO-EQ-0810
|
|
|
|
|
FIXED INCOME FUNDS I SHARES PROSPECTUS
August 1, 2010 Investment Adviser: RidgeWorth Investments®
|
|
|
|
|
|
Class I
|
Investment Grade Funds
|
|
|
Subadviser: Seix Investment Advisors LLC
|
|
|
Corporate Bond Fund
|
|
STICX
|
Intermediate Bond Fund
|
|
SAMIX
|
Limited Duration Fund
|
|
SAMLX
|
Total Return Bond Fund
|
|
SAMFX
|
|
|
|
High Yield/Global Funds
|
|
|
Subadviser: Seix Investment Advisors LLC
|
|
|
High Income Fund
|
|
STHTX
|
Seix Floating Rate High Income Fund
|
|
SAMBX
|
Seix Global Strategy Fund
|
|
CGSIX
|
Seix High Yield Fund
|
|
SAMHX
|
The Securities and Exchange Commission has not approved or
disapproved these securities or passed upon the adequacy of this
prospectus. Any representation to the contrary is a criminal
offense.
RidgeWorth
Investments®
is the trade name of RidgeWorth Capital Management, Inc.
About
This Prospectus
RidgeWorth Funds is a mutual fund family that offers shares in
separate investment portfolios that have individual investment
goals and strategies. RidgeWorth Funds is an open-end management
investment company (commonly known as a mutual fund) established
under Massachusetts law as a Massachusetts business trust.
RidgeWorth Funds is required to comply with the Investment
Company Act of 1940 as well as other federal securities laws
that are applicable to all mutual funds. This prospectus gives
you important information about the I Shares of the Corporate
Bond Fund, Intermediate Bond Fund, Limited Duration Fund, Seix
Global Strategy Fund, Total Return Bond Fund, High Income Fund,
Seix Floating Rate High Income Fund and Seix High Yield Fund
(Funds) that you should know before investing.
Please read this prospectus and keep it for future reference.
This prospectus has been arranged into different sections so
that you can easily review this important information. For more
detailed information about each Fund, please see:
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1
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Investment Grade
Funds
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1
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Corporate Bond Fund
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4
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Intermediate Bond Fund
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8
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Limited Duration Fund
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11
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Total Return Bond Fund
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15
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High Yield/Global
Funds
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15
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High Income Fund
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18
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Seix Floating Rate High
Income Fund
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22
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Seix Global Strategy Fund
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26
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Seix High Yield Fund
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30
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More Information About
Risk
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34
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More Information About
Indices
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35
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More Information About
Fund Investments
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36
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Information About
Portfolio Holdings
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36
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Management
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39
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Purchasing and Selling
Fund Shares
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43
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Market Timing Policies
and Procedures
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44
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Distribution of Fund
Shares
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44
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Shareholder Servicing Plan
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45
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Dividends and
Distributions
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45
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Taxes
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46
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Financial Highlights
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Inside
Back Cover
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Privacy Policy
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Back
Cover
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How to Obtain More
Information
About RidgeWorth Funds
|
August 1,
2010
CORPORATE BOND
FUND
Summary
Section
I Shares
Investment
Objective
The Corporate Bond Fund (the Fund) seeks current
income and, secondarily, preservation of capital.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
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I Shares
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Management Fees
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0.40%
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Other Expenses
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0.12%
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Total Annual Fund Operating Expenses
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0.52%
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Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
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1 Year
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3 Years
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5 Years
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10 Years
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I Shares
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$
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53
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$
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167
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$
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291
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$
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653
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Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 75% of the average value
of its portfolio.
Principal
Investment Strategies
The Fund invests in a diversified portfolio of U.S. dollar
denominated corporate obligations and other fixed income
securities that are rated
BBB-/Baa3 or
better by Standard & Poors Ratings Services,
Moodys Investors Service or Fitch Ratings or unrated
securities that the Funds subadviser, Seix Investment
Advisors LLC (the Subadviser), believes are of
comparable quality. Under normal circumstances, the Fund invests
at least 80% of its net assets in corporate bonds. The Fund may
also invest in U.S. Treasury and agency obligations. The
Fund may invest in U.S. dollar denominated obligations of
U.S. and
non-U.S. issuers.
The Fund may invest a portion of its assets in securities that
are restricted as to resale.
The Fund will maintain an overall credit quality of A- or
better. Securities downgraded below BBB-/Baa3 after purchase by
all agencies that rate the securities can be retained up to 10%
of the Funds total net assets.
The Subadviser attempts to identify investment grade corporate
bonds offering above average total return. In selecting
corporate debt investments for purchase and sale, the Subadviser
seeks out companies with good fundamentals and above average
return prospects that are currently priced at attractive levels.
The primary basis for security selection is the potential income
offered by the security relative to the Subadvisers
assessment of the issuers ability to generate the cash
flow required to meet its obligations. The Subadviser employs a
bottom-up
approach, identifying investment opportunities based on the
underlying financial and economic fundamentals of the specific
issuer.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
CORPORATE BOND
FUND
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Default and Downgrade Risk: Securities rated below
BBB-/Baa3 involve greater risk of default or downgrade and are
more volatile than investment grade securities. Below investment
grade securities may also be less liquid than higher quality
securities.
Foreign Companies Risk: Dollar denominated securities of
foreign issuers involve special risks such as economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund began
operating April 1, 2009. Performance prior to April 1,
2009 is that of the Strategic Income Fund, the Funds
predecessor, which began operations on November 30, 2001.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
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Best Quarter
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Worst Quarter
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7.54%
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-3.98%
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(6/30/09)
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(3/31/09)
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|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
5.35%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts.
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Since
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1 Year
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5 Years
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Inception*
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I Shares Returns Before Taxes
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11.40%
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4.25%
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5.65%
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I Shares Returns After Taxes on Distributions
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9.35%
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2.09%
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3.44%
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I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
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7.32%
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2.35%
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3.52%
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Barclays Capital Corporate Index (reflects no deduction for
fees, expenses or taxes)
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18.68%
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4.58%
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5.66%
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* |
Since inception of the I Shares on November 30,
2001.
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Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
CORPORATE BOND
FUND
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Funds management team since 2008.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Funds
management team since 2004. Mr. Perry Troisi, Managing Director
and Senior Portfolio Manager, has been a member of the
Funds management team since 2004.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. The
Fund offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
There is no minimum initial investment amount for the
Funds I Shares. There are no minimums for subsequent
investments.
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
INTERMEDIATE BOND
FUND
Summary
Section
I Shares
Investment
Objective
The Intermediate Bond Fund (the Fund) seeks total
return (comprised of capital appreciation and income) that
consistently exceeds the total return of the broad
U.S. dollar denominated, investment grade market of
intermediate term government and corporate bonds.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
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I Shares
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Management Fees
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0.24%
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Other Expenses
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0.08%
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Acquired Fund Fees and Expenses
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0.01%
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Total Annual Fund Operating Expenses
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0.33%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
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|
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1 Year
|
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3 Years
|
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5 Years
|
|
10 Years
|
|
|
I Shares
|
|
$
|
34
|
|
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$
|
106
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|
$
|
185
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$
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418
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Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 122% of the average
value of its portfolio.
Principal
Investment Strategies
The Fund invests in various types of income producing debt
securities including mortgage-and asset-backed securities,
government and agency obligations, corporate obligations and
floating rate loans. The Fund may invest in debt securities of
U.S. and
non-U.S. issuers,
including emerging market debt. The Funds investment in
non-U.S. issuers
may at times be significant. Under normal circumstances, the
Fund invests at least 80% of its net assets in fixed income
securities. These securities will be chosen from the broad
universe of available intermediate term fixed income securities
rated investment grade by Standard & Poors
Ratings Services, Moodys Investors Service or Fitch
Ratings or unrated securities that the Funds subadviser,
Seix Investment Advisors LLC, (the Subadviser)
believes are of comparable quality. The Fund may invest up to
20% of its net assets in below investment grade, high yield debt
obligations. The Fund may also invest a portion of its assets in
securities that are restricted as to resale.
The Subadviser invests in intermediate term fixed income
securities with an emphasis on corporate and mortgage backed
securities. The Subadviser anticipates that the Fund will
maintain an average weighted maturity of 3 to 10 years and
the Fund will be managed with a duration that is close to that
of its comparative benchmark, the Barclays Capital Intermediate
U.S. Government/Credit Bond Index, which is generally
between 3 to 4 years. In selecting investments for purchase
and sale, the Subadviser generally selects a greater weighting
in obligations of domestic corporations and mortgage-backed
securities relative to the Funds comparative benchmark,
and a lower relative weighting in U.S. Treasury and
government agency issues.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as foreign currency
forward contracts, swaps, including credit default swaps,
futures, credit linked notes, options, inverse floaters and
warrants) to use as a substitute for a purchase or sale of a
position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as
INTERMEDIATE BOND
FUND
interest rate or credit risks. The Fund may count the value of
certain derivatives with investment grade intermediate-term
fixed income characteristics towards its policy to invest, under
normal circumstances, at least 80% of its net assets in fixed
income securities.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Foreign Securities Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments and
delays in enforcement of rights. These risks are increased for
investments in emerging markets.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan. These requirements may limit
the eligible pool of potential bank loan holders by placing
conditions or restrictions on sales and purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may negatively impact the liquidity of loans. Difficulty in
selling a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which may require the Fund to
replace a particular loan with a lower-yielding security. There
may be less extensive public information available with respect
to loans than for rated, registered or exchange listed
securities. The Fund may assume the credit risk of the
administrative agent in addition to the borrower, and
investments in loan assignments may involve the risks of being a
lender.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Foreign Currency Forward Contracts Risk: The technique of
purchasing foreign currency forward contracts to obtain exposure
to currencies or manage currency risk may not be effective. In
addition, currency markets generally are not as regulated as
securities markets.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and
INTERMEDIATE BOND
FUND
could result in losses if the Subadviser does not correctly
evaluate the creditworthiness of the entity on which the credit
default swap is based. Swap agreements may also subject the Fund
to the risk that the counterparty to the transaction may not
meet its obligations.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as foreign currency forward contracts, swaps
and futures may create leveraging risk. Leverage may cause the
Fund to be more volatile than if the Fund had not been
leveraged. This is because leverage tends to exaggerate the
effect of any increase or decrease in the value of the
Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund began
operating on October 11, 2004. Performance prior to
October 11, 2004 is that of the I Shares of the Seix
Intermediate Bond Fund, the Funds predecessor, which began
operations on June 30, 1999.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
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Best Quarter
|
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Worst Quarter
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6.43%
|
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-2.33%
|
(12/31/08)
|
|
(6/30/04)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
5.48%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
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1 Year
|
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5 Years
|
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10 Years
|
|
|
I Shares Returns Before Taxes
|
|
|
5.51%
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|
5.31%
|
|
|
|
5.85%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
4.16%
|
|
|
|
3.57%
|
|
|
|
3.94%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
3.57%
|
|
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|
3.51%
|
|
|
|
3.85%
|
|
|
|
Barclays Capital Intermediate U.S. Government/Credit Bond Index
(reflects no deduction for fees, expenses or taxes)
|
|
|
5.24%
|
|
|
|
4.66%
|
|
|
|
5.93%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
INTERMEDIATE BOND
FUND
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Funds management team since 2008.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Funds
management team since 2002. Mr. Perry Troisi, Managing
Director and Senior Portfolio Manager, has been a member of the
Funds management team since 2002. Mr. Michael Rieger,
Managing Director and Senior Portfolio Manager, has been a
member of the Funds management team since 2007.
Mr. Seth Antiles, Ph.D., Managing Director and
Portfolio Manager, has been a member of the Funds
management team since 2005.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. The
Fund offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
There is no minimum initial investment amount for the
Funds I Shares. There are no minimums for subsequent
investments.
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
LIMITED DURATION
FUND
Summary
Section
I Shares
Investment
Objective
The Limited Duration Fund (the Fund) seeks current
income, while preserving liquidity and principal.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
I Shares
|
Management Fees
|
|
|
0.10%
|
|
Other Expenses
|
|
|
0.13%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.05%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.28%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
I Shares
|
|
$
|
29
|
|
|
$
|
90
|
|
|
$
|
157
|
|
|
$
|
356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 124% of the average
value of its portfolio.
Principal
Investment Strategies
The Fund invests in U.S. dollar-denominated, investment
grade fixed income securities, including corporate and bank
obligations, government securities, and mortgage-and
asset-backed securities of U.S. and
non-U.S. issuers,
rated A or better by Standard & Poors Ratings
Services, Moodys Investors Service or Fitch Ratings or
unrated securities that the Funds subadviser, Seix
Investment Advisors LLC (the Subadviser) believes
are of comparable quality. The Funds investment in
non-U.S. issuers
may at times be significant.
The Fund will maintain an average credit quality of AA or Aa and
all securities held in the Fund will have interest rate
durations of 180 days or less. For floating rate notes, the
interest rate duration will be based on the next interest rate
reset date. Duration measures a bond or Funds sensitivity
to interest rate changes and is expressed as a number of years.
The higher the number, the greater the risk. Under normal
circumstances, for example, if a portfolio has a duration of
5 years, its value will change by 5% if rates change by 1%.
Shorter duration bonds result in lower expected volatility.
The Subadviser attempts to identify
U.S. dollar-denominated, investment grade fixed income
securities that offer high current income while preserving
liquidity and principal. In selecting investments for purchase
and sale, the Subadviser emphasizes securities that are within
the targeted segment of the U.S. dollar-denominated, fixed
income securities markets and will generally focus on
investments that have good business prospects, credit strength,
stable cash flows and effective management. The Subadviser may
retain securities if the rating of the security falls below
investment grade and the Subadviser deems retention of the
security to be in the best interests of the Fund.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such
as credit linked notes, futures, options, inverse floaters,
swaps and warrants) to use as a substitute for a purchase or
sale of a position in the underlying asset
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate risk and credit risk.
LIMITED DURATION
FUND
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Foreign Securities Risk: Foreign securities involve
special risks such as economic or financial instability, lack of
timely or reliable financial information and unfavorable
political or legal developments and delays in enforcement of
rights. These risks are increased for investments in emerging
markets.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund began
operating on October 11, 2004. Performance prior to
October 11, 2004 is that of the I Shares of the Seix
Limited Duration Fund, the Funds predecessor, which began
operations on October 25, 2002.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
2.18%
|
|
-3.37%
|
(3/31/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
0.62%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax
|
|
|
10
|
|
Investment Grade Funds
|
LIMITED DURATION
FUND
returns are shown for only the I Shares. After-tax returns
for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
5 Years
|
|
Inception*
|
|
|
I Shares Returns Before Taxes
|
|
|
4.68%
|
|
|
|
2.83%
|
|
|
|
2.29%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
4.39%
|
|
|
|
1.63%
|
|
|
|
1.33%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
3.04%
|
|
|
|
1.72%
|
|
|
|
1.40%
|
|
|
|
Bank of America Merrill Lynch U.S. Treasury Bill 3 Month Index
(reflects no deduction for fees, expenses or taxes)
|
|
|
0.21%
|
|
|
|
3.02%
|
|
|
|
2.49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since inception of the predecessor fund on October 31,
2002. Benchmark returns since October 25, 2002.
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Funds management team since 2008.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Funds
management team since 2007. Mr. Perry Troisi, Managing
Director and Senior Portfolio Manager, has been a member of the
Funds management team since the Funds inception.
Mr. Michael Rieger, Managing Director and Senior Portfolio
Manager, has been a member of the Funds management team
since 2007. Mr. Seth Antiles, Ph.D., Managing Director
and Portfolio Manager, has been a member of the Funds
management team since 2009.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. The
Fund offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
There is no minimum initial investment amount for the
Funds I Shares. There are no minimums for subsequent
investments.
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
Investment Grade
Funds
|
|
11
|
TOTAL RETURN BOND
FUND
Summary
Section
I
Shares
Investment
Objective
The Total Return Bond Fund (the Fund) seeks total
return (comprised of capital appreciation and income) that
consistently exceeds the total return of the broad
U.S. investment grade bond market.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
I Shares
|
Management Fees
|
|
|
0.25%
|
|
Other Expenses
|
|
|
0.07%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.03%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.35%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
I Shares
|
|
$
|
36
|
|
|
$
|
113
|
|
|
$
|
197
|
|
|
$
|
443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 326% of the average
value of its portfolio.
Principal
Investment Strategies
The Fund invests in various types of income producing debt
securities including mortgage- and asset-backed securities,
government and agency obligations, corporate obligations and
floating rate loans. The Fund may invest in debt obligations of
U.S. and
non-U.S. issuers,
including emerging market debt. The Funds investment in
non-U.S. issuers
may at times be significant. Under normal circumstances, the
Fund invests at least 80% of its net assets in fixed income
securities. These securities will be chosen from the broad
universe of available fixed income securities rated investment
grade by Standard & Poors Ratings Services,
Moodys Investors Service or Fitch Ratings or unrated
securities that the Funds subadviser, Seix Investment
Advisors LLC, believes are of comparable quality. The Fund may
invest up to 20% of its net assets in below investment grade,
high yield debt obligations. The Fund may also invest a portion
of its assets in securities that are restricted as to resale.
The Subadviser anticipates that the Funds modified
adjusted duration will generally range from 3 to 6 years,
similar to that of the Barclays Capital U.S. Aggregate Bond
Index, the Funds comparative benchmark. Duration measures
a bond or Funds sensitivity to interest rate changes and
is expressed as a number of years. The higher the number, the
greater the risk. Under normal circumstances, for example, if a
portfolio has a duration of five years, its value will change by
5% if rates change by 1%. Shorter duration bonds result in lower
expected volatility. In selecting investments for purchase and
sale, the Subadviser generally selects a greater weighting in
obligations of domestic corporations and mortgage-backed
securities relative to the Funds comparative benchmark,
and a lower relative weighting in U.S. Treasury and
government agency issues.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as foreign currency
forward contracts, swaps, including credit default swaps,
futures, credit linked notes, options, inverse floaters and
warrants) to use as a substitute for a purchase or sale of a
position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate or credit risks. The Fund may count the
|
|
|
12
|
|
Investment Grade Funds
|
TOTAL RETURN BOND
FUND
value of certain derivatives with investment grade fixed income
characteristics towards its policy to invest, under normal
circumstances, at least 80% of its net assets in fixed income
securities.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Mortgage and Asset Backed Security Risk: Mortgage- and
asset-backed securities are debt instruments that are secured by
interests in pools of mortgage loans or other financial assets.
The value of these securities will be influenced by the factors
affecting the assets underlying such securities, swings in
interest rates, changes in default rates, or deteriorating
economic conditions. During periods of declining asset values,
mortgage-backed and asset-backed securities may face valuation
difficulties, become more volatile
and/or
illiquid. The risk of default is generally higher in the case of
securities backed by loans made to borrowers with
sub-prime credit metrics.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan. These requirements may limit
the eligible pool of potential bank loan holders by placing
conditions or restrictions on sales and purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may negatively impact the liquidity of loans. Difficulty in
selling a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which may require the Fund to
replace a particular loan with a lower-yielding security. There
may be less extensive public information available with respect
to loans than for rated, registered or exchange listed
securities. The Fund may assume the credit risk of the
administrative agent in addition to the borrower, and
investments in loan assignments may involve the risks of being a
lender.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Foreign Currency Forward Contracts Risk: The technique of
purchasing foreign currency forward contracts to obtain exposure
to currencies or manage currency risk may not be effective. In
addition, currency markets generally are not as regulated as
securities markets.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Swap agreements may also subject the Fund to the
risk that the counterparty to the transaction may not meet its
obligations.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these
|
|
|
Investment Grade
Funds
|
|
13
|
TOTAL RETURN BOND
FUND
instruments, the potential inability to terminate or sell a
position, the lack of a liquid secondary market for the
Funds position and the risk that the counterparty to the
transaction will not meet its obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as foreign currency forward contracts, swaps
and futures may create leveraging risk. Leverage may cause the
Fund to be more volatile than if the Fund had not been
leveraged. This is because leverage tends to exaggerate the
effect of any increase or decrease in the value of the
Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund began
operating on October 11, 2004. The performance for I Shares
prior to such date is that of the I Shares of the Seix Core Bond
Fund, the Funds predecessor.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
6.61%
|
|
-2.16%
|
(12/31/08)
|
|
(6/30/04)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
6.61%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the I
Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
5 Years
|
|
10 Years
|
|
|
I Shares Returns Before Taxes
|
|
|
7.22%
|
|
|
|
5.43%
|
|
|
|
6.12%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
5.43%
|
|
|
|
3.69%
|
|
|
|
4.24%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
4.74%
|
|
|
|
3.61%
|
|
|
|
4.12%
|
|
|
|
Barclays Capital U.S. Aggregate Bond Index (reflects no
deduction for fees, expenses or taxes)
|
|
|
5.93%
|
|
|
|
4.97%
|
|
|
|
6.33%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Funds management team since 2008.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Funds
management team since 2002. Mr. Perry Troisi, Managing
Director and Senior Portfolio Manager, has been a member of the
Funds management team since 2002. Mr. Michael Rieger,
Managing Director and Senior Portfolio Manager, has been a
member of the Funds management team since 2007.
Mr. Seth Antiles, Ph.D., Managing Director and
Portfolio Manager, has been a member of the Funds
management team since 2007.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. The
Fund offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or
|
|
|
14
|
|
Investment Grade Funds
|
TOTAL RETURN BOND
FUND
intermediary to find out about how to purchase I Shares of
the Fund.
There is no minimum initial investment amount for the
Funds I Shares. There are no minimums for subsequent
investments.
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
High Yield/Global
Funds
|
|
15
|
HIGH INCOME
FUND
Summary
Section
I
Shares
Investment
Objective
The High Income Fund (the Fund) seeks high current
income and, secondarily, total return (comprised of capital
appreciation and income).
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
I Shares
|
Management Fees
|
|
|
0.60%
|
|
Other Expenses
|
|
|
0.12%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.02%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.74%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
I Shares
|
|
$
|
76
|
|
|
$
|
237
|
|
|
$
|
411
|
|
|
$
|
918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 466% of the average
value of its portfolio.
Principal
Investment Strategies
The Fund invests primarily in a diversified portfolio of higher
yielding, lower-rated income producing debt instruments,
including corporate obligations, floating rate loans and other
debt obligations. The Fund may invest in debt obligations of
U.S. and
non-U.S. issuers,
including emerging market debt. The Funds investment in
non-U.S. issuers
may at times be significant. The Fund will invest at least 65%,
and may invest up to 100%, of its assets in securities rated
below investment grade by either Moodys Investors Service
or Standard & Poors Ratings Services or in
unrated securities that the Funds subadviser, Seix
Investment Advisors LLC (the Subadviser), believes
are of comparable quality. Such securities are commonly known as
junk bonds and offer greater risks than investment
grade debt securities. The Fund may also invest a portion of its
assets in securities that are restricted as to resale.
In selecting investments for purchase and sale, the Subadviser
employs a research driven process designed to identify value
areas within the high yield market. The Subadviser seeks to
identify securities which generally seek to meet the following
criteria: (1) industries that have sound fundamentals;
(2) companies that have good business prospects and
increasing credit strength; and (3) issuers with stable or
growing cash flows and effective management.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including
credit default swaps, futures, credit linked notes, options,
inverse floaters and warrants) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate or credit risks. The Fund may count the
value of certain derivatives with below investment grade fixed
income characteristics towards its policy to invest, under
normal circumstances, at least 65% of its net assets in
non-investment grade fixed income securities.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value
|
|
|
16
|
|
High Yield/Global Funds
|
HIGH INCOME
FUND
of the securities will decline because of a market perception
that the owner may not make payment on time. The lower the
rating of a debt security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan. These requirements may limit
the eligible pool of potential bank loan holders by placing
conditions or restrictions on sales and purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may negatively impact the liquidity of loans. Difficulty in
selling a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which may require the Fund to
replace a particular loan with a lower-yielding security. There
may be less extensive public information available with respect
to loans than for rated, registered or exchange listed
securities. The Fund may assume the credit risk of the
administrative agent in addition to the borrower, and
investments in loan assignments may involve the risks of being a
lender.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Foreign Securities Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments and
delays in enforcement of rights. These risks are increased for
investments in emerging markets.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Swap agreements may also subject the Fund to the
risk that the counterparty to the transaction may not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as foreign currency forward contracts, swaps
and futures may create leveraging risk. Leverage may cause the
Fund to be more volatile than if the Fund had not been
leveraged. This is because leverage tends to exaggerate the
effect of any increase or decrease in the value of the
Funds portfolio securities. A Fund share is not a bank
deposit and it is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund began
operating on March 28, 2000. Performance prior to
March 28, 2000 is that of the ESC Strategic Income Fund,
the Funds predecessor.
|
|
|
High Yield/Global
Funds
|
|
17
|
HIGH INCOME
FUND
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
17.94%
|
|
-22.06%
|
(6/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
3.55%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
|
|
|
|
Inception
|
|
|
1 Year
|
|
5 Years
|
|
of I Shares*
|
|
|
I Shares Returns Before Taxes
|
|
|
61.52%
|
|
|
|
7.22%
|
|
|
|
8.55%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
56.12%
|
|
|
|
3.66%
|
|
|
|
5.03%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
39.30%
|
|
|
|
4.02%
|
|
|
|
5.20%
|
|
|
|
Barclays Capital U.S. Corporate High-Yield Index (reflects no
deduction for fees, expenses or taxes)
|
|
|
58.21%
|
|
|
|
6.46%
|
|
|
|
9.02%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since inception of the I Shares on October 3, 2001.
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. Michael McEachern, CFA, President and Senior Portfolio
Manager of Seix, has co-managed the High Income Fund since July
2004. Mr. Brian Nold, M.D., Managing Director and
Senior Portfolio Manager, has co-managed the High Income Fund
since August 2006.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. The
Fund offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
There is no minimum initial investment amount for the
Funds I Shares. There are no minimums for subsequent
investments.
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
18
|
|
High Yield/Global Funds
|
SEIX FLOATING
RATE HIGH INCOME FUND
Summary
Section
I
Shares
Investment
Objective
The Seix Floating Rate High Income Fund (the Fund)
attempts to provide a high level of current income by investing
primarily in first lien senior floating rate loans and other
floating rate debt securities.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
I Shares
|
Management Fees
|
|
|
0.44%
|
|
Other Expenses
|
|
|
0.07%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.02%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.53%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
I Shares
|
|
$
|
54
|
|
|
$
|
170
|
|
|
$
|
296
|
|
|
$
|
665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 117% of the average
value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets in a combination of first and second lien senior
floating rate loans and other floating rate debt securities.
These loans are loans made by banks and other large financial
institutions to various companies and are senior in the
borrowing companies capital structure. Coupon rates are
floating, not fixed and are tied to a benchmark lending rate,
the most popular of which is LIBOR (London Interbank
Offered Rate). LIBOR is based on rates that contributor
banks in London charge each other for interbank deposits and is
typically used to set coupon rates on floating rate debt
securities.
The interest rates of these floating rate debt securities vary
periodically based upon a benchmark indicator of prevailing
interest rates. The Fund may invest all or substantially all of
its assets in floating rate loans and debt securities that are
rated below investment grade by Moodys Investors Service
or Standard & Poors Ratings Services, or in
comparable unrated securities. The Fund may also invest up to
20% of its net assets in any combination of junior debt
securities or securities with a lien on collateral lower than a
senior claim on collateral, high yield fixed rate bonds,
investment grade fixed income debt obligations, asset backed
securities (such as special purpose trusts investing in bank
loans), money market securities and repurchase agreements.
In selecting investments for purchase and sale, the Funds
subadviser, Seix Investment Advisors LLC (the
Subadviser) will emphasize securities which are
within the segment of the high yield market it has targeted,
which are securities rated either BB and
B by Standard & Poors Ratings
Services or Ba and B by Moodys
Investors Service or unrated securities that the Subadviser
believes are of comparable quality.
The Fund may invest up to 20% of its total assets in senior
loans made to
non-U.S. borrowers
provided that no more than 5% of the portfolios loans are
non-U.S. dollar
denominated. The Fund may also engage in certain hedging
transactions.
Preservation of capital is considered when consistent with the
funds objective.
|
|
|
High Yield/Global
Funds
|
|
19
|
SEIX FLOATING
RATE HIGH INCOME FUND
Some types of senior loans in which the Fund may invest require
that an open loan for a specific amount be continually offered
to a borrower. These types of senior loans are commonly referred
to as revolvers. Because revolvers contractually obligate the
lender (and therefore those with an interest in the loan) to
fund the revolving portion of the loan at the borrowers
discretion, the Fund must have funds sufficient to cover its
contractual obligation. Therefore the Fund will maintain, on a
daily basis, high-quality, liquid assets in an amount at least
equal in value to its contractual obligation to fulfill the
revolving senior loan. The Fund will not encumber any assets
that are otherwise encumbered. The Fund will limit its
investments in such obligations to no more than 25% of the
Funds total assets.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including
credit default swaps, futures, credit linked notes, options,
inverse floaters and warrants) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate or credit risks. The Fund may count the
value of certain derivatives with floating rate debt or high
yield bond characteristics towards its policy to invest, under
normal circumstances, at least 80% of its net assets in a
combination of first and second lien senior floating rate loans
and other floating rate debt securities.
Principal
Investment Risks
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Credit Risk: Loans and other debt securities are subject
to credit risk. Credit risk is the possibility that an issuer
will fail to make timely payments of interest or principal, go
bankrupt, or that the value of the securities will decline
because of a market perception that the owner may not make
payment on time. The lower the ratings of such debt securities,
the greater their risks. In addition, lower rated securities
have higher risk characteristics, and changes in economic
conditions are likely to cause issuers of these securities to be
unable to meet their obligations. Many floating rate loans are
such lower rated securities. Economic and other market events
may reduce the demand for certain senior loans held by the Fund,
which may adversely impact the net asset value of the Fund.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan. These requirements may limit
the eligible pool of potential bank loan holders by placing
conditions or restrictions on sales and purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may negatively impact the liquidity of loans. Difficulty in
selling a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which may require the Fund to
replace a particular loan with a lower-yielding security. There
may be less extensive public information available with respect
to loans than for rated, registered or exchange listed
securities. The Fund may assume the credit risk of the
administrative agent in addition to the borrower, and
investments in loan assignments may involve the risks of being a
lender.
Default and Downgrade Risk: Securities rated below
BBB-/Baa3 involve greater risk of default or downgrade and are
more volatile than investment grade securities. Below investment
grade securities may also be less liquid than higher quality
securities.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Foreign Securities Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments and
delays in enforcement of rights. These risks are increased for
investments in emerging markets.
|
|
|
20
|
|
High Yield/Global Funds
|
SEIX FLOATING
RATE HIGH INCOME FUND
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Swap agreements may also subject the Fund to the
risk that the counterparty to the transaction may not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as foreign currency forward contracts, swaps
and futures may create leveraging risk. Leverage may cause the
Fund to be more volatile than if the Fund had not been
leveraged. This is because leverage tends to exaggerate the
effect of any increase or decrease in the value of the
Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
12.47%
|
|
-18.04%
|
(6/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
2.03%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax
|
|
|
High Yield/Global
Funds
|
|
21
|
SEIX FLOATING
RATE HIGH INCOME FUND
returns are shown for only the I Shares. After-tax returns for
other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
Inception*
|
|
|
I Shares Returns Before Taxes
|
|
|
32.31%
|
|
|
|
2.97%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
29.59%
|
|
|
|
0.58%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
20.84%
|
|
|
|
1.12%
|
|
|
|
Credit Suisse First Boston Institutional Leveraged Loan Index
(reflects no deduction for fees, expenses or taxes)**
|
|
|
12.28%
|
|
|
|
0.59%
|
|
|
|
Credit Suisse First Boston Leveraged Loan Index (reflects no
deduction for fees, expenses or taxes)
|
|
|
44.87%
|
|
|
|
2.85%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since inception of the I Shares of the Fund on March 1,
2006. Benchmark returns since February 28, 2006 (benchmark
returns available only on a month end basis).
|
|
|
** |
Effective January 31, 2010, the Fund transitioned its
benchmark from the Credit Suisse First Boston Leveraged Loan
Index to the Credit Suisse First Boson Institutional Leveraged
Loan Index as this index is more reflective of the Funds
composition.
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. Michael McEachern, CFA, President and Senior Portfolio
Manager of Seix, has co-managed the Fund since its inception.
Mr. George Goudelias currently serves as Managing Director
of Seix and has co-managed the Fund since its inception.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. The
Fund offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
There is no minimum initial investment amount for the
Funds I Shares. There are no minimums for subsequent
investments.
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
22
|
|
High Yield/Global Funds
|
SEIX GLOBAL
STRATEGY FUND
Summary
Section
I Shares
Investment
Objective
The Seix Global Strategy Fund (the Fund) seeks solid
positive returns with limited downside risk from capital
appreciation and current income.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual Fund
Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
I Shares
|
Management Fees
|
|
|
0.60%
|
|
Other Expenses
|
|
|
0.41%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.15%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
1.16%
|
|
Fee Waivers and/or Expense
Reimbursements(1)
|
|
|
(0.18)%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee Waiver
and/or Expense Reimbursements
|
|
|
0.98%
|
|
|
|
(1) |
The Adviser and the Subadviser have contractually agreed to
waive fees and reimburse expenses until at least August 1,
2011 in order to keep Total Annual Fund Operating Expenses
(excluding, as applicable, taxes, brokerage commissions,
substitute dividend expenses on securities sold short,
extraordinary expenses and underlying fund fees and expenses)
from exceeding 0.83%. This agreement shall terminate upon the
termination of the Investment Advisory Agreement between
RidgeWorth Funds and the Adviser, or it may be terminated upon
written notice to the Adviser by RidgeWorth Funds.
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
I Shares
|
|
$
|
100
|
|
|
$
|
351
|
|
|
$
|
621
|
|
|
$
|
1,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 0% of the average value
of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests primarily in debt
securities of issuers worldwide (including emerging markets) and
foreign currencies. The Funds investments may include debt
securities issued by domestic and foreign governments and their
agencies and authorities, and corporations, and may be
denominated in U.S. dollars or other currencies. The Fund
focuses primarily on investment grade and may also invest
significantly in below investment grade securities that are
rated by a nationally recognized statistical rating
organization, or if no such rating exists, securities that are
deemed to be of comparable quality by the Subadviser. Such below
investment grade securities are commonly known as junk
bonds and offer greater risks than investment grade debt
securities. The Fund may invest in debt securities with a range
of maturities from short to long term. The Funds
investments in foreign currency may include buying and selling
currency on a spot basis.
To implement its investment strategy, the Fund may enter into
foreign currency forward contracts and will buy or sell
derivative instruments (such as credit linked notes, futures,
options, inverse floaters, swaps, including credit default swaps
and warrants) to use as a substitute for a purchase or sale of a
position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks.
For example, there are instances in which the derivatives market
is more liquid and less volatile than the market for the
underlying fixed income instruments and currencies. In other
cases, the only way to gain exposure to some foreign markets is
to purchase foreign currency forward contracts and other
|
|
|
High Yield/Global
Funds
|
|
23
|
SEIX GLOBAL
STRATEGY FUND
derivatives. When derivatives are used as the primary or only
means by which the Fund implements its investment strategy, the
Fund may be significantly invested in money market instruments
such as U.S. Treasuries or shares of RidgeWorth Money
Market Funds. The Fund may count the value of derivatives as
applying to its requirement to invest primarily in debt
securities of issuers worldwide and foreign currencies where the
derivatives underlying securities attributes meet those
described in the first paragraph. Portfolio turnover rate is
calculated without regard to cash instruments or derivatives. If
such instruments were included, the Funds portfolio
turnover rate would be significantly higher.
In selecting investments for purchase and sale, the Subadviser
identifies investment opportunities by beginning with country
selection, then assessing local markets for upside potential and
downside risk. Factors considered include prospects for a
countrys political stability, currency exchange rates,
interest rates, inflation, relative economic growth and
governmental policies.
The Subadviser may sell a security if it no longer believes the
security will contribute to meeting the investment objective of
the Fund. In considering whether to sell a security, the
Subadviser may evaluate, among other things, the condition of
foreign economies, and meaningful changes in the issuers
financial condition and competitiveness.
Principal
Investment Risks
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Foreign Securities Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments and
delays in enforcement of rights. These risks are increased for
investments in emerging markets.
Foreign Currency Risk: Changes in foreign currency
exchange rates will affect the value of what the fund owns and
the price of the Funds shares. Generally, when the
U.S. dollar rises in value against a foreign currency, an
investment in that country loses value because that currency is
worth fewer U.S. dollars. Currency trends are unpredictable
and currency rates may fluctuate significantly for a number of
reasons, including changes in interest rates, intervention (or
failure to intervene) by U.S. or foreign governments or
central banks, or by currency controls or political developments.
Foreign Currency Forward Contracts Risk: The technique of
purchasing foreign currency forward contracts to obtain exposure
to currencies or manage currency risk may not be effective. In
addition, currency markets generally are not as regulated as
securities markets.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Swap agreements may also subject the Fund to the
risk that the counterparty to the transaction may not meet its
obligations.
Futures Contract Risk: The Fund may enter into futures
contracts. The risks associated with futures include: the
Subadvisers ability to manage these instruments, the
potential inability to terminate or sell a position, the lack of
a liquid secondary market for the Funds position and the
risk that the counterparty to the transaction will not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as foreign currency forward contracts, swaps
and futures may create leveraging risk. Leverage may cause the
Fund to be more volatile than if the Fund had not been
leveraged. This is because leverage tends to exaggerate the
effect of
|
|
|
24
|
|
High Yield/Global Funds
|
SEIX GLOBAL
STRATEGY FUND
any increase or decrease in the value of the Funds
portfolio securities.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Non-Diversification Risk: The Fund is non-diversified,
which means that it may invest in the securities of relatively
few issuers. As a result, the Fund may be more susceptible to a
single adverse economic, political or regulatory occurrence
affecting one or more of these issuers, and may experience
increased volatility due to its investments in those securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future.
This bar chart shows the changes in performance of the
Funds I Shares for the 2009 calendar year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
1.72%
|
|
-3.30%
|
(6/30/09)
|
|
(9/30/09)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from 1/1/10 to
6/30/10 was 12.45%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the
I Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
Inception*
|
|
|
I Shares Returns Before Taxes
|
|
|
-1.75%
|
|
|
|
3.51%
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
-2.86%
|
|
|
|
2.39%
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
-1.15%
|
|
|
|
2.34%
|
|
|
|
|
|
|
|
|
|
|
|
|
J.P. Morgan EMBI+ Index
|
|
|
25.95%
|
|
|
|
8.78%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
The Fund commenced operations on September 8, 2008.
Index returns since August 31, 2008 (benchmark returns
available only on a month-end basis).
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Funds management team since the Funds
inception. Mr. Adrien Webb, CFA, Managing Director and
Senior Portfolio Manager, has been a member of the Funds
management team since the Funds inception. Mr. Seth
Antiles, Ph.D., Managing Director and Portfolio Manager,
has been a member of the Funds management team since the
Funds inception.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. The
Fund offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares
of the Fund.
|
|
|
High Yield/Global
Funds
|
|
25
|
SEIX GLOBAL
STRATEGY FUND
There is no minimum initial investment amount for the
Funds I Shares. There are no minimums for subsequent
investments.
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
|
|
|
26
|
|
High Yield/Global Funds
|
SEIX HIGH YIELD
FUND
Summary
Section
I
Shares
Investment
Objective
The Seix High Yield Fund (the Fund) seeks high
income and, secondarily, capital appreciation.
Fees and Expenses
of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual
Fund Operating Expenses
(expenses that you pay each year as
a percentage of the value of your
investment)
|
|
|
|
|
|
|
I Shares
|
Management Fees
|
|
|
0.43%
|
|
Other Expenses
|
|
|
0.06%
|
|
Acquired Fund Fees and Expenses
|
|
|
0.01%
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
|
0.50%
|
|
Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Fund
for the time periods indicated. The Example also assumes that
your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest
all dividends and distributions. Although your actual costs may
be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
|
|
I Shares
|
|
$
|
51
|
|
|
$
|
160
|
|
|
$
|
280
|
|
|
$
|
628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Turnover
The Fund pays transaction costs when it buys and sells
securities (or turns over its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the
Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 116% of the average
value of its portfolio.
Principal
Investment Strategies
The Fund invests in various types of lower rated, higher
yielding debt instruments, including corporate obligations,
floating rate loans and other debt obligations. The Fund may
invest in debt obligations of U.S. and
non-U.S. issuers,
including emerging market debt. The Funds investment in
non-U.S. issuers
may at times be significant. Under normal circumstances, the
Fund invests at least 80% of its net assets in high yield
securities. These securities will be chosen from the broad
universe of available U.S. dollar denominated, high yield
securities rated below investment grade by either Moodys
Investors Service or Standard & Poors Ratings
Services or unrated securities that the Subadviser believes are
of comparable quality. Such securities are commonly known as
junk bonds and offer greater risks than investment
grade bonds. Although the Fund seeks to achieve its investment
objective primarily through investment in high yield securities,
the Fund may invest up to 20% of its net assets in investment
grade securities. The Fund will be managed with a duration that
is close to the Funds comparative benchmark, the Merrill
Lynch U.S. High Yield BB/B Rated Constrained Index, which
is generally between 3 and 6 years. Duration measures a
bond or Funds sensitivity to interest rate changes and is
expressed as a number of years. The higher the number, the
greater the risk. Under normal circumstances, for example, if a
portfolio has a duration of five years, its value will change by
5% if rates change by 1%. Shorter duration bonds result in lower
expected volatility. The Fund may also invest a portion of its
assets in securities that are restricted as to resale.
In selecting investments for purchase and sale, the Funds
subadviser, Seix Investment Advisors LLC (the
Subadviser) employs a research driven process
designed to identify value areas within the high yield market
and attempts to identify lower rated, higher yielding bonds
offering above average total return. Additionally, the
Subadviser will emphasize securities which are within the
segment of the high yield market it has targeted for emphasis,
which are BB and B rated issuers. The
Subadviser seeks to identify securities which generally seek to
meet the following criteria: (1) industries that have sound
fundamentals; (2) companies that have good business
prospects and
|
|
|
High Yield/Global
Funds
|
|
27
|
SEIX HIGH YIELD
FUND
increasing credit strength; and (3) issuers with stable or
growing cash flows and effective management.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including
credit default swaps, futures, credit linked notes, options,
inverse floaters and warrants) to use as a substitute for a
purchase or sale of a position in the underlying assets
and/or as
part of a strategy designed to reduce exposure to other risks,
such as interest rate or credit risks. The Fund may count the
value of certain derivatives with below investment grade fixed
income characteristics towards its policy to invest, under
normal circumstances, at least 80% of its net assets in high
yield securities.
Principal
Investment Risks
Interest Rate Risk: Debt securities will generally lose
value if interest rates increase. U.S. Government
securities can exhibit price movements resulting from changes in
interest rates. Interest rate risk is generally higher for
investments with longer maturities or durations. Treasury
inflation protected securities (TIPS) can also
exhibit price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Credit Risk: Debt securities are subject to the risk that
an issuer will fail to make timely payments of interest or
principal, or go bankrupt, or that the value of the securities
will decline because of a market perception that the owner may
not make payment on time. The lower the rating of a debt
security, the higher its credit risk.
Below Investment Grade Securities Risk: Below investment
grade securities (sometimes referred to as junk
bonds) involve greater risk of default or downgrade and
are more volatile than investment grade securities. Below
investment grade securities may also be less liquid than higher
quality securities.
Floating Rate Loan Risk: The risks associated with
floating rate loans are similar to the risks of below investment
grade securities. In addition, the value of the collateral
securing the loan may decline, causing a loan to be
substantially unsecured. The sale and purchase of a bank loan
are subject to the requirements of the underlying credit
agreement governing such bank loan. These requirements may limit
the eligible pool of potential bank loan holders by placing
conditions or restrictions on sales and purchases of bank loans.
Bank loans are not traded on an exchange and purchasers and
sellers of bank loans rely on market makers, usually the
administrative agent for a particular bank loan, to trade bank
loans. These factors, in addition to overall market volatility,
may negatively impact the liquidity of loans. Difficulty in
selling a floating rate loan may result in a loss.
Borrowers may pay back principal before the scheduled due date
when interest rates decline, which may require the Fund to
replace a particular loan with a lower-yielding security. There
may be less extensive public information available with respect
to loans than for rated, registered or exchange listed
securities. The Fund may assume the credit risk of the
administrative agent in addition to the borrower, and
investments in loan assignments may involve the risks of being a
lender.
Prepayment and Call Risk: When mortgages and other
obligations are prepaid and when securities are called, the Fund
may have to reinvest in securities with a lower yield or fail to
recover additional amounts paid for securities with higher
interest rates, resulting in an unexpected capital loss.
Foreign Securities Risk: Foreign securities involve
special risks such as currency fluctuations, economic or
financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments and
delays in enforcement of rights. These risks are increased for
investments in emerging markets.
Derivatives Risk: Because the Fund may invest in
derivatives, it is exposed to additional volatility and
potential loss. Losses on investments in certain types of
derivatives may exceed the Funds initial investment.
Swap Risk: The Fund may enter into swap agreements,
including credit default swaps, for purposes of attempting to
gain exposure to a particular asset without actually purchasing
that asset, or to hedge a position. Credit default swaps may
increase the Funds exposure to credit risk and could
result in losses if the Subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Swap agreements may also subject the Fund to the
risk that the counterparty to the transaction may not meet its
obligations.
Leverage Risk: Certain transactions and the use of
derivatives such as foreign currency forward contracts, swaps
and futures may create leveraging risk. Leverage may cause the
Fund to be more volatile
|
|
|
28
|
|
High Yield/Global Funds
|
SEIX HIGH YIELD
FUND
than if the Fund had not been leveraged. This is because
leverage tends to exaggerate the effect of any increase or
decrease in the value of the Funds portfolio securities.
A Fund share is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The
Funds past performance (before and after taxes) does not
indicate how the Fund will perform in the future. The Fund began
operating on October 11, 2004. Performance between
December 29, 2000 to October 11, 2004 is that of the I
Shares of the Seix High Yield Fund, the Funds predecessor.
This bar chart shows the changes in performance of the
Funds I Shares from year to year.*
|
|
|
Best Quarter
|
|
Worst Quarter
|
11.39%
|
|
-14.52%
|
(6/30/09)
|
|
(12/31/08)
|
|
|
* |
The performance information shown above is based on a
calendar year. The Funds total return from
1/1/10 to
6/30/10 was
3.56%.
|
This table compares the Funds average annual total returns
for the periods indicated with those of a broad measure of
market performance. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your
actual after-tax returns will depend on your tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their Fund shares through tax
deferred arrangements, such as 401(k) plans or individual
retirement accounts. After-tax returns are shown for only the I
Shares. After-tax returns for other classes will vary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since
|
|
|
1 Year
|
|
5 Years
|
|
Inception*
|
|
|
I Shares Returns Before Taxes
|
|
|
35.70%
|
|
|
|
4.03%
|
|
|
|
6.78%
|
|
|
|
I Shares Returns After Taxes on Distributions
|
|
|
31.58%
|
|
|
|
1.23%
|
|
|
|
4.03%
|
|
|
|
I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
|
|
|
22.89%
|
|
|
|
1.77%
|
|
|
|
4.17%
|
|
|
|
Bank of America Merrill Lynch U.S. High Yield BB/B Rated
Constrained Index (reflects no deduction for fees, expenses or
taxes)
|
|
|
45.98%
|
|
|
|
5.49%
|
|
|
|
7.42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Since inception of the predecessor fund on December 29,
2000. Benchmark returns since December 31, 2000 (benchmark
returns available only on a month end basis).
|
Updated performance information is available by contacting the
RidgeWorth Funds at 1-888-784-3863, or by visiting
www.ridgeworth.com.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser.
Seix Investment Advisors LLC is the Funds subadviser.
Portfolio
Management
Mr. Michael McEachern, CFA, President and Senior Portfolio
Manager, has been a member of the Funds management team
since the Funds inception. Mr. Michael Kirkpatrick,
Managing Director and Senior Portfolio Manager, has been a
member of the Funds management team since 2007.
Mr. Brian Nold, M.D., Managing Director and Senior
Portfolio Manager, has been a member of the Funds
management team since 2007.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund shares on any business day. The
Fund offers I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. Please consult your financial institution
or intermediary to find out about how to purchase I Shares of
the Fund.
There is no minimum initial investment amount for the
Funds I Shares. There are no minimums for subsequent
investments.
|
|
|
High Yield/Global
Funds
|
|
29
|
SEIX HIGH YIELD
FUND
Tax
Information
The Funds distributions are generally taxable, and will be
taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k)
plan or an individual retirement account.
Payments to
Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial
intermediary, such as a broker-dealer or investment adviser, the
Fund, the Adviser or the Distributor may pay the intermediary
for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your
salesperson to recommend the Fund over another investment. Ask
your financial intermediary or visit your financial
intermediarys website for more information.
MORE INFORMATION
ABOUT RISK
More Information
About Risk
Below Investment
Grade Risk
All Funds
High yield securities, also known as junk bonds,
involve greater risks of default or downgrade and are more
volatile than investment grade securities due to actual or
perceived changes in an issuers credit-worthiness. Issuers
of high yield securities may be more susceptible to economic
downturns and, therefore, may be unable to pay interest,
dividends or ultimately repay the principal upon maturity.
Discontinuation of these payments could adversely affect the
market value of the security. High yield securities may be less
liquid and a security whose credit rating has been lowered may
be particularly difficult to sell.
Derivatives
Risk
All Funds (except Corporate Bond Fund)
A derivative is a financial contract whose value adjusts in
accordance with the value of one or more underlying assets,
reference rates or indices. Derivatives (such as credit linked
notes, futures, options, inverse floaters, swaps and warrants)
may be used to attempt to achieve investment objectives or to
offset certain investment risks. These positions may be
established for hedging, substitution of a position in the
underlying asset, or for speculation purposes. Hedging involves
making an investment (e.g., in a futures contract) to reduce the
risk of adverse price movements in an already existing
investment position. Risks associated with the use of
derivatives include those associated with hedging and leveraging
activities:
|
|
|
The success of a hedging strategy may depend on an ability to
predict movements in the prices of individual securities,
fluctuations in markets, and movements in interest rates.
|
|
|
A Fund may experience losses over certain market movements that
exceed losses experienced by a fund that does not use
derivatives.
|
|
|
There may be an imperfect or no correlation between the changes
in market value of the securities held by a Fund and the prices
of derivatives used to hedge those positions.
|
|
|
There may not be a liquid secondary market for derivatives.
|
|
|
Trading restrictions or limitations may be imposed by an
exchange.
|
|
|
Government regulations may restrict trading in derivatives.
|
|
|
The other party to an agreement (e.g., options or swaps) may
default; however, in certain circumstances, such counter-party
risk may be reduced by the creditworthiness of the counterparty
and/or using
an exchange as an intermediary.
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Because premiums or totals paid or received on derivatives are
small in relation to the market value of the underlying
investments, buying and selling derivatives can be more
speculative than investing directly in securities. In addition,
many types of derivatives have limited investment lives and may
expire or necessitate being sold at inopportune times.
The use of derivatives may cause a Fund to recognize higher
amounts of short-term capital gains, which are generally taxed
to shareholders at ordinary income tax rates.
Credit default swaps may involve greater risks than if a Fund
had invested in the asset directly. A Fund may be more exposed
to credit risk. In addition, a Fund may experience losses if the
Funds investment subadviser does not correctly evaluate
the creditworthiness of the entity on which the credit default
swap is based. Total return swaps could result in losses if
their reference index, security or investments do not perform as
anticipated.
Leverage may cause a Fund to be more volatile than if the Fund
had not been leveraged. This is because leverage tends to
exaggerate the effect of any increase or decrease on the value
of a Funds portfolio securities. To limit leveraging risk,
a Fund observes asset segregation requirements to fully cover
its future obligations. By setting aside assets equal only to
its net obligations under certain derivative instruments, a Fund
will have the ability to employ leverage to a greater extent
than if it were required to segregate assets equal to the full
notional value of such derivative instruments.
Emerging Markets
Risk
High Income Fund
Intermediate Bond Fund
Seix Floating Rate High Income Fund
Seix Global Strategy Fund
Seix High Yield Fund
Total Return Bond Fund
Emerging market countries are countries that the World Bank or
the United Nations considers to be emerging or developing.
Emerging markets may be
MORE INFORMATION
ABOUT RISK
more likely to experience political turmoil or rapid changes in
market or economic conditions than more developed countries. In
addition, the financial stability of issuers (including
governments) in emerging market countries may be more precarious
than in other countries. As a result, there will tend to be an
increased risk of price volatility associated with investments
in emerging market countries, which may be magnified by currency
fluctuations relative to the U.S. dollar. Governments of
some emerging market countries have defaulted on their bonds and
may do so in the future.
Equity
Risk
High Income Fund
Seix Floating Rate High Income Fund
Seix High Yield Fund
Equity securities include public and privately issued equity
securities, common and preferred stocks, warrants, rights to
subscribe to common stock and convertible securities, as well as
instruments that attempt to track the price movement of equity
indices. Individual companies may report poor results or be
negatively affected by industry
and/or
economic trends and developments. The prices of securities
issued by such companies may suffer a decline in response. These
factors contribute to price volatility, which is the principal
risk of investing in funds that primarily hold equity
securities. Historically, the equity market has moved in cycles
and investments in equity securities and equity derivatives in
general are subject to market risks that may cause their prices
to fluctuate over time. The value of securities convertible into
equity securities, such as warrants or convertible debt, is also
affected by prevailing interest rates, the credit quality of the
issuer and any call provision. Fluctuations in the value of
equity securities in which a mutual fund invests will cause a
funds net asset value to fluctuate. An investment in a
portfolio of equity securities may be more suitable for
long-term investors who can bear the risk of these share price
fluctuations.
Exchange Traded
Fund Risk
All Funds
The Funds may purchase shares of exchange-traded funds
(ETFs) to gain exposure to a particular portion of
the market. ETFs are investment companies that are bought and
sold on a securities exchange. ETFs may track a securities
index, a particular market sector, or a particular segment of a
securities index or market sector. ETFs, like mutual funds, have
expenses associated with their operation, including advisory
fees. When the Fund invests in an ETF, in addition to directly
bearing expenses associated with its own operations, it will
bear a pro rata portion of the ETFs expense. The risks of
owning shares of an ETF generally reflect the risks of owning
the underlying securities the ETF is designed to track, although
lack of liquidity in an ETF could result in being more volatile
than the underlying portfolio of securities. In addition,
because of ETF expenses, compared to owning the underlying
securities directly, it may be more costly to own shares of an
ETF.
Fixed Income
Risk
All Funds
The prices of a Funds fixed income securities respond to
economic developments, particularly interest rate changes, as
well as to perceptions about the creditworthiness of individual
issuers, including governments. Generally, a Funds fixed
income securities will decrease in value if interest rates rise
and vice versa.
Long-term debt securities generally are more sensitive to
changes in interest rates, usually making them more volatile
than short-term debt securities and thereby increasing risk.
Debt securities are also subject to credit risk, which is the
possibility than an issuer will fail to make timely payments of
interest or principal, or go bankrupt. The lower the ratings of
such debt securities, the greater their risks. In addition,
lower rated securities have higher risk characteristics, and
changes in economic conditions are likely to cause issuers of
these securities to be unable to meet their obligations.
Debt securities are also subject to income risk, which is the
possibility that falling interest rates will cause a Funds
income to decline. Income risk is generally higher for
short-term bonds.
An additional risk of debt securities is reinvestment risk,
which is the possibility that a Fund may not be able to reinvest
interest or dividends earned from an investment in such a way
that they earn the same rate of return as the invested funds
that generated them. For example, falling interest rates may
prevent bond coupon payments from earning the same rate of
return as the original bond. Furthermore, pre-funded loans and
issues may cause a Fund to reinvest those assets at a rate lower
than originally anticipated.
MORE INFORMATION
ABOUT RISK
Floating Rate
Loan Risk
High Income Fund
Intermediate Bond Fund
Seix Floating Rate High Income Fund
Seix Global Strategy Fund
Seix High Yield Fund
Total Return Bond Fund
Investments in floating rate loans are subject to interest rate
risk although the risk is less because the interest rate of the
loan adjusts periodically. Investments in floating rate loans
are also subject to credit risk. Many floating rate loans are
rated below investment grade or are unrated, therefore, a Fund
relies heavily on the analytical ability of the Funds
investment subadviser. Many floating rate loans share the same
risks as high yield securities, although these risks are reduced
when the floating rate loans are senior and secured as opposed
to many high yield securities that are junior and unsecured.
Floating rate loans are often subject to restrictions on resale
which can result in reduced liquidity. The risk is greater for
the Seix Floating Rate High Income Fund, due to its
concentration in these types of instruments. Borrowers may repay
principal faster than the scheduled due date which may result in
a Fund replacing that loan with a lower-yielding security.
Investment in loan participation interests may result in
increased exposure to financial services sector risk. A loan may
not be fully collateralized which may cause the loan to decline
significantly in value.
One lending institution acting as agent for all of the lenders
will generally be required to administer and manage the loan
and, with respect to collateralized loans, to service or monitor
the collateral. Investing in certain types of floating rate
loans, such as revolving credit facilities and unfunded loans,
creates a future obligation for a Fund. To avoid any leveraging
concerns, a Fund will segregate or earmark liquid assets with
the Funds custodian in amounts sufficient to fully cover
any future obligations.
The Subadviser currently serves as collateral manager to six
collateralized loan obligation (CLO) CLO funds that
invest in bank loans. The trustees and custodians of the CLO
funds are not affiliated entities of the Adviser or Subadviser.
In addition, the Adviser serves as adviser to an account
established with its affiliate, SunTrust Equity Funding, LLC for
the purpose of purchasing high yield securities for subsequent
sale to these same CLO funds. Each of these transactions is
subject to the approval of the independent trustee of the
applicable CLO fund. In addition to disclosure to the trustee,
all such transactions are fully disclosed to potential investors
in the CLOs offering and disclosure documents.
In addition to the CLO funds, the Subadviser serves subadviser
to an unaffiliated registered fund and as investment manager to
two unregistered funds that invest in bank loans. The custodian
and adviser for the unaffiliated registered fund are not
affiliated entities of the Adviser or Subadviser. The custodians
and administrators for the two unregistered funds are not
affiliated entities of the Adviser or Subadviser. There are no
trustees for the unregistered funds. Only the offshore entities
that are a part of one of the unregistered funds have
independent boards of directors that are not affiliated entities
of the Adviser or Subadviser. SunTrust Equity Funding, LLC does
not purchase assets for the unregistered funds.
As a result of these multiple investment-oriented and associated
relationships, there exists a potential risk that the portfolio
managers may favor other adviser and non-adviser contracted
businesses over a Fund.
The Subadviser has created and implemented additional policies
and procedures designed to protect shareholders against such
conflicts; however, there can be no absolute guarantee that a
Fund will always participate in the same or similar investments
or receive equal or better individual investment allocations at
any given time.
Foreign
Securities Risk
All Funds
Investments in securities of foreign companies or governments
can be more volatile than investments in U.S. companies or
governments. Diplomatic, political, or economic developments,
including nationalization or appropriation, unique to a country
or region will affect those markets and their issuers. Foreign
securities markets generally have less trading volume and less
liquidity than U.S. markets.
The value of securities denominated in foreign currencies, and
of dividends from such securities, can change significantly when
foreign currencies strengthen or weaken relative to the
U.S. dollar. As a result, changes in the value of those
currencies compared to the U.S. dollar may affect
(positively or negatively) the value of a Funds
investment. Foreign currency exchange rates may fluctuate
significantly. They are determined by supply and demand in the
foreign exchange markets, the relative merits of investments in
different countries, actual or perceived changes in interest
rates, and other complex factors. Currency exchange rates also
can be affected
MORE INFORMATION
ABOUT RISK
unpredictably by intervention (or the failure to intervene) by
U.S. or foreign governments or central banks or by currency
controls or political developments. Currency movements may
happen separately from and in response to events that do not
otherwise affect the value of the security in the issuers
home country.
Foreign companies or governments generally are not subject to
uniform accounting, auditing, and financial reporting standards
comparable to those applicable to domestic U.S. companies
or governments. Transaction costs are generally higher than
those in the U.S. and expenses for custodial arrangements
of foreign securities may be somewhat greater than typical
expenses for custodial arrangements of similar
U.S. securities. Some foreign governments levy withholding
taxes against dividend and interest income. Although in some
countries a portion of these taxes are recoverable, the
non-recovered portion will reduce the income received from the
securities comprising the portfolio.
Foreign Currency
Risk
All Funds
Non-U.S. securities
often trade in currencies other than the U.S. dollar.
Changes in currency exchange rates may affect a Funds net
asset value, the value of dividends and interest earned, and
gains and losses realized on the sale of securities. An increase
in the strength of the U.S. dollar relative to these other
currencies may cause the value of the Fund to decline. Certain
currencies may be particularly volatile, and
non-U.S. governments
may intervene in the currency markets, causing a decline in
value or liquidity in the Funds
non-U.S. holdings
whose value is tied to that particular currency.
Mortgage-Backed
and Asset-Backed Securities Risk
High Income Fund
Intermediate Bond Fund
Limited Duration Fund
Seix High Yield Fund
Total Return Bond Fund
Mortgage- and asset-backed securities are fixed income
securities representing an interest in a pool of underlying
mortgage or asset-backed secured and unsecured cashflow
producing assets such as automobile loans and leases, credit
card receivables and other financial assets. The risks
associated with these types of securities include:
(1) prepayment risk that could result in earlier or later
return of principal than expected and can lead to significant
fluctuations in the value and realized yield of the securities;
(2) liquidity/market risk which can result in higher than
expected changes in security valuation and transactions costs
especially in times of general market stress; and
(3) credit risk that is associated with the underlying
borrowers and can also be driven by general economic conditions
which can result in the loss of invested principal.
The value of some mortgage- or asset-backed securities may be
particularly sensitive to changes in prevailing interest rates.
Early repayment of principal on some mortgage-backed securities
may expose a Fund to a lower rate of return upon reinvestment of
principal. When interest rates rise, the value of these
securities generally will decline; however, when interest rates
are declining, the value of these securities with prepayment
features may not increase as much as other fixed income
securities. The rate of prepayments on underlying mortgages will
affect the price and volatility of a mortgage-backed security,
and may shorten or extend the effective maturity of the security
beyond what was anticipated at the time of purchase. If
unanticipated rates of prepayment on underlying mortgages
increase the effective maturity of a mortgage-related security,
the volatility of the security can be expected to increase. The
value of these securities may fluctuate in response to the
markets perception of the creditworthiness of the issuers.
Additionally, although mortgage-backed securities are generally
supported by some form of government or private guarantee
and/or
insurance, there is no assurance that private guarantors or
insurers will meet their obligations.
Regional
Risk
Seix Global Strategy Fund
To the extent that a Funds investments are concentrated in
a specific geographic region, a Fund may be subject to the
political and other developments affecting that region. Regional
economies are often closely interrelated and political and
economic developments affecting one region, country or state
often affect other regions, countries or states, thus subjecting
the Fund to additional risks.
Restricted
Security Risk
All Funds
Restricted securities may increase the level of illiquidity in
the Fund during any period that qualified institutional buyers
become uninterested in purchasing these restricted securities.
The Adviser and Subadviser intend to invest only in restricted
MORE INFORMATION
ABOUT INDICES
securities that they believe present minimal liquidity risk.
Securities
Lending Risk
All Funds
A Fund may lend securities to approved borrowers, such as
broker-dealers, to earn additional income. Risks include the
potential insolvency of the borrower that could result in delays
in recovering securities and capital losses. Additionally,
losses could result from the reinvestment of collateral received
on loaned securities in investments that default or do not
perform well. It is also possible that if a security on loan is
sold and a Fund is unable to timely recall the security, the
Fund may be required to repurchase the security in the market
place, which may result in a potential loss to shareholders.
There is a risk that the Fund may not be able to recall
securities on loan in sufficient time to vote on material proxy
matters. In addition, as a general practice, a Fund will not
recall securities on loan solely to receive income payments,
which could result in an increase of a Funds tax
obligation that is subsequently passed on to its shareholders.
Smaller Company
Risk
High Income Fund
Intermediate Bond Fund
Seix Floating Rate High Income Fund
Seix High Yield Fund
Total Return Bond Fund
Small and mid-capitalization companies may be either established
or newer companies. Smaller companies may offer greater
opportunities for gain. They also involve a greater risk of loss
because they may be more vulnerable to adverse business or
economic events, particularly those companies that have been in
operation for less than three years. Smaller company securities
may trade in lower volumes or there may be less information
about the company which may cause the investments to be more
volatile or to have less liquidity than larger company
investments. They may have unseasoned management or may rely on
the efforts of particular members of their management team to a
great degree causing turnover in management to pose a greater
risk. Smaller sized companies may have more limited access to
resources, product lines, and financial resources. Small and
mid-sized companies typically reinvest a large proportion of
their earnings in their business and may not pay dividends or
make interest payments for some time, particularly if they are
newer companies.
Risk Information
Common to RidgeWorth Funds
Each Fund is a mutual fund. A mutual fund pools
shareholders money and, using professional investment
managers, invests it in securities.
Each Fund has its own investment goal and strategies for
reaching that goal. The Adviser invests Fund assets in a way
that it believes will help a Fund achieve its goal. Still,
investing in each Fund involves risk and there is no guarantee
that a Fund will achieve its goal. The Advisers or
Sub-Advisers judgments about the markets, the economy or
companies may not anticipate actual market movements, economic
conditions or company performance, and these judgments may
affect the return on your investment. In fact, no matter how
good a job the Adviser or Sub-Adviser does, you could lose money
on your investment in a Fund, just as you could with other
investments. The value of your investment in a Fund is based on
the market prices of the securities the Fund holds. These prices
change daily due to economic and other events that affect
particular companies and other issuers. These price movements,
sometimes called volatility, may be greater or lesser depending
on the types of securities a Fund owns and the markets in which
they trade. The effect on a Fund of a change in the value of a
single security will depend on how widely the Fund diversifies
its holdings.
Except for the Seix Global Strategy Fund, each Funds
investment goal may be changed without shareholder approval.
Before investing, make sure that the Funds goal matches
your own.
The Funds are not managed to achieve tax efficiency.
More Information
About Indices
An index measures the market prices of a specific group of
securities in a particular market or market sector. You cannot
invest directly in an index. Unlike a mutual fund, an index does
not have an investment adviser and does not pay any commissions
or expenses. If an index had expenses, its performance would be
lower.
Barclays Capital Corporate Index covers USD-denominated,
investment-grade, fixed-rate, taxable securities sold by
industrial, utility and financial issuers. It includes publicly
issued U.S. corporate and foreign debentures and secured
notes that meet specified maturity, liquidity, and quality
requirements.
MORE INFORMATION
ABOUT FUND INVESTMENTS
Barclays Capital Intermediate U.S. Government/Credit Bond
Index measures the performance of dollar-denominated
U.S. Treasuries, government-related (the United States and
foreign agencies, sovereign, supranational and local authority
debt), and investment-grade credit securities that have a
remaining maturity of greater than or equal to 1 year and
less than 10 years, and have $250 million or more of
outstanding face value. In addition, the securities must be
denominated in United States dollars, and must be fixed-rate and
non-convertible securities.
Barclays Capital U.S. Aggregate Bond Index measures the
U.S. dollar-denominated, investment-grade, fixed rate,
taxable bond market of SEC-registered securities. The index
includes bonds from the Treasury, Government-related, Corporate,
MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and
CMBS sectors.
Barclays Capital U.S. Corporate High-Yield Index covers the
U.S. dollar-denominated non-investment grade, fixed-rate,
taxable corporate bond market. Securities are classified as
high-yield if the middle of Moodys, Fitch and S&P is
Ba1/BB+/BB+ or below. The index excludes emerging markets debt.
Credit Suisse First Boston (CSFB) Leveraged Loan Index is an
unmanaged market value-weighted index designed to represent the
investable universe of the U.S. dollar-denominated
leveraged loan market. The index reflects reinvestment of all
distributions and changes in market prices.
Credit Suisse First Boston (CSFB) Institutional Leveraged Loan
Index is a sub-index of the Credit Suisse First Boston Leveraged
Loan Index which contains only institutional loan facilities
priced above 90, excluding TL and TLa facilities and
loans rated CC, C or in default. It is designed to more closely
reflect the investment criteria of institutional investors.
The J.P. Morgan EMBI+ Index tracks returns for actively
traded external debt instruments in emerging market, and is also
most liquid U.S-dollar emerging markets debt benchmark. The
index segments further the universe of emerging markets as
defined by the broader EMBI Global and EMBI Global Diversified,
by placing a strict liquidity requirement rule for inclusion.
Included in the EMBI+ are US-dollar denominated Brady bonds,
Eurobonds, and traded loans issued by sovereign entities. The
EMBI+ is a market capitalization-weighted index and is
rebalanced on the last business day of each month. Only issues
with a current face amount outstanding of $500 million or
more and a remaining life of greater than
21/2 years
are eligible for inclusion in the index. Index returns are
available hedged or unhedged in a variety of currencies.
Bank of America Merrill Lynch U.S. High Yield BB/B Rated
Constrained Index tracks the performance of BB/B rated
U.S. dollar denominated corporate bonds publicly issued in
the U.S. domestic market.
Bank of America Merrill Lynch U.S. Treasury Bill
3 Month Index is an index which tracks the monthly
price-only and total return performance of a three-month
Treasury bill, based on monthly average auction rates.
More Information
About Fund Investments
This prospectus describes the Funds primary strategies,
and the Funds will normally invest in the types of securities
described in this prospectus. However, in addition to the
investments and strategies described in this prospectus, each
Fund also may invest in other securities, use other strategies
and engage in other investment practices. These investments and
strategies, as well as those described in this prospectus, are
described in detail in the Statement of Additional Information
(SAI).
The investments and strategies described in this prospectus are
those that the Funds use under normal conditions. During unusual
economic or market conditions, or for temporary defensive or
liquidity purposes, each Fund may invest up to 100% of its
assets in cash, money market instruments, repurchase agreements
and short-term obligations that would not ordinarily be
consistent with a Funds objectives. In addition, each Fund
may shorten its average weighted maturity to as little as
90 days. A Fund will do so only if the Adviser or
Subadviser believes that the risk of loss outweighs the
opportunity for capital gains or higher income. Of course, a
Fund cannot guarantee that it will achieve its investment goal.
Each Fund may invest in other mutual funds for cash management
purposes. When a Fund invests in another mutual fund, in
addition to directly bearing expenses associated with its own
operations, it will bear a pro rata portion of the other mutual
funds expenses.
Further, during certain interest rate environments, the gross
yield of certain shares of money market funds may be less than
the related expenses of that class.
MANAGEMENT
In these instances, shareholders of these Funds may not receive
a monthly income payment, or may receive a much smaller payment
than during a more typical interest rate environment.
Information About
Portfolio Holdings
A description of the Funds policies and procedures with
respect to the circumstances under which the Funds disclose
their portfolio securities is available in the SAI.
Management
The Board of Trustees (the Board) is responsible for
the overall supervision and management of the business and
affairs of the Funds. The Board supervises the Adviser and
Subadvisers and establishes policies that the Adviser and
Subadvisers must follow in their fund related management
activities. The day-to-day operations of the Funds are the
responsibilities of the officers and various service
organizations retained by the Funds.
Investment
Adviser
RidgeWorth Investments, 50 Hurt Plaza, Suite 1400,
Atlanta, Georgia 30303 (RidgeWorth or the
Adviser), serves as the investment adviser to the
Funds. In addition to being an investment adviser registered
with the Securities and Exchange Commission (the
SEC), RidgeWorth is a money-management holding
company with multiple style- focused investment boutiques. As of
June 30, 2010, the Adviser had approximately
$61.5 billion in assets under management. The Adviser is
responsible for overseeing the Subadviser to ensure compliance
with each Funds investment policies and guidelines and
monitors each Subadvisers adherence to its investment
style. The Adviser pays the Subadviser out of the fees it
receives from the Funds.
The Adviser may use its affiliates as brokers for Fund
transactions.
An investment adviser has a fiduciary obligation to its clients
when the adviser has authority to vote their proxies. Under the
current contractual agreement, the Adviser is authorized to vote
proxies on behalf of each Fund. Information regarding the
Advisers, and thus each Funds, Proxy Voting Policies
and Procedures is provided in the SAI. A copy of the
Advisers Proxy Voting Policies and Procedures may be
obtained by contacting the Funds at 1-888-784-3863, or by
visiting www.ridgeworth.com.
For the fiscal year ended March 31, 2010, the following
Funds paid the Adviser advisory fees (after waivers) based on
the respective Funds average daily net assets of:
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Corporate Bond Fund
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0.40%
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High Income Fund
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0.58%
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Intermediate Bond Fund
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0.24%
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Limited Duration Fund
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0.10%
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Seix Floating Rate High Income Fund
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0.44%
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Seix Global Strategy Fund*
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0.42%
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Seix High Yield Fund
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0.43%
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Total Return Bond Fund
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0.25%
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* |
The Adviser and the Subadviser have contractually agreed to
waive fees and reimburse expenses until at least August 1,
2011 in order to keep total annual operating expenses of the
Funds I Shares from exceeding 0.83%. If at any point
before August 1, 2013, total annual operating expenses are
less than the expense cap, the Adviser may retain the difference
to recapture any of the prior waivers or reimbursements.
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The following breakpoints are used in computing the advisory fee:
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Average Daily Net Assets
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Discount From Full Fee
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First $500 million
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None Full Fee
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Next $500 million
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5%
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Over $1 billion
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10%
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Based on average daily net assets as of March 31, 2010, the
asset levels of the following Funds had reached a breakpoint in
the advisory fee.* Had the Funds asset levels been lower,
the Adviser may have been entitled to receive maximum advisory
fees as follows:
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Intermediate Bond Fund
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0.25%
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Seix Floating Rate High Income Fund
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0.45%
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Seix High Yield Fund
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0.45%
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* |
Fund expenses in the Annual Fund Operating
Expenses tables shown earlier in this prospectus reflect
the advisory breakpoints.
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A discussion regarding the basis for the Boards approval
of the investment advisory agreement with the Adviser appears in
the Funds annual report to shareholders for the period
ended March 31, 2010.
The SAI provides additional information regarding the portfolio
managers compensation, other accounts managed by the
portfolio manager, potential conflicts
MANAGEMENT
of interest and the portfolio managers ownership of
securities in the Funds.
Investment
Subadviser
The Subadviser is responsible for managing the portfolios of the
Funds on a day-to-day basis and selecting the specific
securities to buy, sell and hold for the Funds under the
supervision of the Adviser and the Board. A discussion regarding
the basis for the Boards approval of the investment
subadvisory agreements appears in the Funds annual report
to shareholders for the period ended March 31, 2010.
Information about the Subadviser and the individual portfolio
managers of the Funds is discussed below. The SAI provides
additional information regarding the portfolio managers
compensation, other accounts managed by the portfolio managers,
potential conflicts of interest and the portfolio managers
ownership of securities in the Funds.
Seix Investment Advisors LLC (Seix)
10 Mountainview Road,
Suite C-200,
Upper Saddle River, New Jersey 07458
www.seixadvisors.com
Seix, established in 2008 as a wholly-owned subsidiary of
RidgeWorth, is an investment adviser registered with the SEC.
Its predecessor, Seix Investment Advisors, Inc., was founded in
1992 and was independently-owned until 2004 when the firm joined
RidgeWorth as the high grade, high yield investment management
division. As of June 30, 2010, Seix had approximately
$24.8 billion in assets under management.
Seix is a fundamental, credit driven fixed income boutique
specializing in both investment grade and high yield bond
management. Seix has employed its
bottom-up,
research-oriented approach to fixed income management for over
17 years. Seix is focused on delivering superior,
risk-adjusted investment performance for its clients. Seix
selects, buys and sells securities for the Funds it subadvises
under the supervision of the Adviser and the Board.
The following individuals are primarily responsible for the
day-to-day management of the High Income and Seix Floating Rate
High Income Funds.
Mr. Michael McEachern, CFA, currently serves as President
and Senior Portfolio Manager of Seix and served as Managing
Director of Seix since May 2004. Mr. McEachern joined Seix
Investment Advisors, Inc., a predecessor of Seix, in 1997, where
he served as Senior Portfolio Manager. Mr. McEachern has
co-managed the High Income Fund since July 2004 and the
Seix Floating Rate High Income Fund since its inception.
He has more than 26 years of investment experience.
Mr. George Goudelias currently serves as Managing Director
and Senior Portfolio Manager of Seix and served as Managing
Director of the Adviser since May 2004. Prior to joining Seix,
Mr. Goudelias served as Director of High Yield Research of
Seix Investment Advisors, Inc., a predecessor of Seix, from
February 2001 to May 2004. Mr. Goudelias has co-managed the
Seix Floating Rate High Income Fund since its inception.
He has more than 24 years of investment experience.
Mr. Brian Nold, M.D., currently serves as Managing
Director and Senior Portfolio Manager of Seix and served as
Senior High Yield Analyst of Seix since May 2004. Mr. Nold
was a High Yield Research Analyst at Morgan Stanley prior to
joining Seix Investment Advisors, Inc., a predecessor of Seix,
in 2003. Mr. Nold has co-managed the High Income Fund
since August 2006. He has more than 10 years of
investment experience.
Seix High Yield
Fund
Mr. Michael McEachern, CFA, President and Senior Portfolio
Manager, has been a member of the Seix High Yield Funds
management team since the Funds inception.
Mr. McEachern focuses primarily on high yield bonds and
loans and related securities held in the Fund.
Mr. McEachern joined Seix Investment Advisors, Inc., a
predecessor of Seix, in 1997, where he served as Senior
Portfolio Manager. Mr. McEachern has more than
26 years of investment experience.
Mr. Michael Kirkpatrick, Managing Director and Senior
Portfolio Manager, has been a member of the Seix High Yield
Funds management team since February 2007.
Mr. Kirkpatrick focuses primarily on high yield bonds and
loans and related securities held in the Fund.
Mr. Kirkpatrick joined Seix Investment Advisors Inc., a
predecessor of Seix, in 2002, where he served as a Senior High
Yield Analyst. Mr. Kirkpatrick has more than 19 years
of investment experience.
Mr. Brian Nold, M.D., Managing Director and Senior
Portfolio Manager, has been a member of the Seix
MANAGEMENT
High Yield Funds management team since August 2007.
Mr. Nold focuses primarily on high yield bonds and loans
and related securities held in the Fund. Mr. Nold was a
High Yield Research Analyst at Morgan Stanley prior to joining
Seix Investment Advisors, Inc., a predecessor of Seix, in 2003.
Mr. Nold has more than 10 years of investment
experience.
Intermediate Bond
Fund, Limited Duration Fund, and Total Return Bond Fund
(collectively, the Investment Grade Funds)
Seix utilizes a team management approach for the Investment
Grade Funds for which it acts as Subadviser. Seix is organized
into teams of portfolio managers and credit analysts along
sectors and broad investment categories, including government
securities, corporate bonds, securitized assets, high yield
bonds, high yield loans, emerging market debt,
non-U.S. securities
and global currencies. The senior portfolio managers are
responsible for security selection, portfolio structure and
rebalancing, compliance with stated investment objectives, and
cash flow monitoring.
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Investment Grade Funds management team since
March 2008, when he joined Seix. Mr. Keegan sets overall
investment strategy and works with Mr. Troisi,
Mr. Webb, Mr. Antiles and Mr. Rieger on sector
allocation for the Investment Grade Funds. Prior to joining
Seix, Mr. Keegan was a Senior Vice President at American
Century Investments from February 2006 through March 2008, a
private investor from July 2003 through January 2006, and the
Chief Investment Officer of Westmoreland Capital Management, LLC
from February 2002 through June 2003. Mr. Keegan has more
than 27 years of investment experience.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Investment Grade
Funds management team for several years. Mr. Webb
focuses primarily on high grade corporate bonds and related
securities held in the Investment Grade Funds. Mr. Webb
joined Seix Investment Advisors, Inc., a predecessor of Seix, in
2000, where he served as Senior Portfolio Manager. Mr. Webb
has co-managed the Intermediate Bond Fund since January
2002, the Limited Duration Fund since February 2007 and
the Total Return Bond Fund since January 2002.
Mr. Webb has more than 15 years of investment
experience.
Mr. Perry Troisi, Managing Director and Senior Portfolio
Manager, has been a member of the Investment Grade Funds
management team for several years. Mr. Troisi focuses
primarily on United States government and agency bonds and
related securities held in the Investment Grade Funds.
Mr. Troisi joined Seix Investment Advisors, Inc., a
predecessor of Seix, in 1999, where he served as Senior
Portfolio Manager. Mr. Troisi has co-managed the
Intermediate Bond Fund since January 2002, the Limited
Duration Fund since inception and the Total Return Bond
Fund since January 2002. He has more than 24 years of
investment experience.
Mr. Michael Rieger, Managing Director and Portfolio
Manager, has been a member of the Investment Grade Funds
management team since 2007, when he joined Seix. Mr. Rieger
focuses primarily on securitized assets including
mortgage-backed and asset-backed securities held in the
Investment Grade Funds. Prior to joining the Adviser in 2007,
Mr. Rieger was a Managing Director at AIG Global
Investments since 2005 and a Vice President from 2002 to 2005.
Mr. Rieger has co-managed the Intermediate Bond Fund
and the Limited Duration Fund since February 2007. He
has co-managed the Total Return Bond Fund since May 2007.
Mr. Rieger has more than 23 years of investment
experience.
Mr. Seth Antiles, Ph.D., Managing Director and
Portfolio Manager, has been a member of the management team for
the Investment Grade Funds for several years. Mr. Antiles
focuses on emerging market debt, foreign currency and related
securities held in the Investment Grade Funds. Mr. Antiles
joined the Adviser in 2005 as the Head of Emerging Markets.
Prior to joining the Adviser, Mr. Antiles was a Director at
Citigroup/Salomon Smith Barney since 1997. Mr. Antiles has
co-managed the Intermediate Bond Fund since May 2005, the
Limited Duration Fund since March 2009, and the Total
Return Bond Fund since February 2007. Mr. Antiles has
more than 16 years investment experience.
Corporate Bond
Fund
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Corporate Bond Funds management team since
March 2008, when he joined the management team of its
predecessor Fund. Mr. Keegan sets overall investment
strategy and works with Mr. Webb and Mr. Troisi on
sector allocation for the Fund. Prior to joining Seix in 2008,
Mr. Keegan was a Senior Vice President at American Century
Investments from February 2006 through March 2008, a private
investor from July 2003 through January 2006, and the Chief
Investment Officer of
PURCHASING AND
SELLING FUND SHARES
Westmoreland Capital Management, LLC from February 2002 through
June 2003. Mr. Keegan has more than 27 years of
investment experience.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Corporate Bond
Funds management team since July 2004, when he joined the
management team of its predecessor Fund. Mr. Webb focuses
primarily on high grade corporate bonds and related securities
held in the Fund. Mr. Webb joined Seix Investment Advisors,
Inc., a predecessor of Seix, in 2000, where he served as Senior
Portfolio Manager. Mr. Webb has more than 15 years of
investment experience.
Mr. Perry Troisi, Managing Director and Senior Portfolio
Manager, has been a member of the Corporate Bond Funds
management team since July 2004. Mr. Troisi focuses
primarily on U.S. Treasury and agency obligations held in the
Fund. Mr. Troisi joined Seix Investment Advisors, Inc., a
predecessor of Seix, in 1999, where he served as Senior
Portfolio Manager. He has more than 23 years of investment
experience.
Seix Global
Strategy Fund
Mr. James F. Keegan, Chief Investment Officer, has been a
member of the Seix Global Strategy Funds management team
since the Funds inception. Mr. Keegan sets overall
investment strategy and works with Mr. Webb and
Mr. Antiles on sector allocation for the Fund. Prior to
joining Seix in 2008, Mr. Keegan was a Senior Vice
President at American Century Investments from February 2006
through March 2008, a private investor from July 2003 through
January 2006, and the Chief Investment Officer of Westmoreland
Capital Management, LLC from February 2002 through June 2003.
Mr. Keegan has more than 27 years of investment
experience.
Mr. Adrien Webb, CFA, Managing Director and Senior
Portfolio Manager, has been a member of the Seix Global Strategy
Funds management team since the Funds inception.
Mr. Webb focuses primarily on high grade corporate bonds
and related securities held in the Fund. Mr. Webb joined
Seix Investment Advisors, Inc., a predecessor of Seix, in 2000,
where he served as Senior Portfolio Manager. Mr. Webb has
more than 15 years of investment experience.
Mr. Seth Antiles, Ph.D., Managing Director and
Portfolio Manager, has been a member of the Seix Global Strategy
Funds management team since the Funds inception.
Mr. Antiles focuses on emerging market debt, foreign
currency and related securities held in the Fund.
Mr. Antiles joined the Adviser in 2005 as the Head of
Emerging Markets. Prior to joining the Adviser, Mr. Antiles
was a Director at Citigroup/Salomon Smith Barney since 1997.
Mr. Antiles has more than 16 years of investment
experience.
Purchasing and
Selling Fund Shares
This section tells you how to purchase and sell (sometimes
called redeem) I Shares of the Funds. Investors
purchasing or selling shares through a pension or 401(k) plan
should also refer to their Plan documents.
Participants in retirement plans must contact their Employee
Benefits Office or their Plans Administrator for
information regarding the purchase, redemption or exchange of
shares. Plans may require separate documentation and the
plans policies and procedures may be different than those
described in this prospectus. Participants should contact their
employee benefits office or plan administrator for questions
about their specific accounts.
If your I Shares are held in a retirement plan account, the
rules and procedures you must follow as a plan participant
regarding the purchase, redemption or exchange of I Shares may
be different from those described in this prospectus. Review the
information you have about your retirement plan.
How to Purchase
Fund Shares
Purchasing I
Shares
The Funds offer I Shares to financial institutions and
intermediaries for their own accounts or for the accounts of
customers for whom they may act as fiduciary agent, investment
adviser, or custodian. These accounts primarily consist of:
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assets of a bona fide trust,
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assets of a business entity possessing a tax identification
number,
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assets of an employee benefit plan,
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assets held within select fee-based programs, or
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assets held within certain non-discretionary intermediary
no-load platforms.
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Employee benefit plans generally include profit sharing, 401(k)
and 403(b) plans. Employee benefit plans generally do not
include IRAs; SIMPLE, SEP, SARSEP plans; plans covering
self-employed individuals and their employees or health savings
accounts unless you, as a customer of a financial
PURCHASING AND
SELLING FUND SHARES
institution or intermediary, meet the Funds established
criteria as described above.
As a result, you, as a customer of a financial institution or
intermediary, may, under certain circumstances that meet the
Funds established criteria, be able to purchase I Shares
through accounts made with select financial institutions or
intermediaries. I Shares will be held of record by (in the name
of) your financial institution or intermediary. Depending upon
the terms of your account, you may have, or be given, the right
to vote your I Shares. Financial institutions or intermediaries
may impose eligibility requirements for each of their clients or
customers investing in the Funds, including investment minimum
requirements, which may differ from those imposed by the Funds.
Please contact your financial institution or intermediary for
complete details for purchasing I Shares.
I Shares may also be purchased directly from the Funds by
officers, directors or trustees, and employees and their
immediate families (strictly limited to current spouses/domestic
partners and dependent children) of:
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RidgeWorth Funds,
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Subadvisers to the RidgeWorth Funds, or
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SunTrust Banks, Inc. and its subsidiaries.
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Validation of current employment/service will be required upon
establishment of the account. The Funds, in their sole
discretion, may determine if an applicant qualifies for this
program.
In-Kind
Purchases I Shares
Payment for I Shares of a Fund may, in the discretion of the
Adviser, be made in the form of securities that are permissible
investments for such Fund. In connection with an in-kind
securities payment, a Fund will require, among other things,
that the securities (a) meet the investment objectives and
policies of the Fund; (b) are acquired for investment and
not for resale; (c) are liquid securities that are not
restricted as to transfer either by law or liquidity of markets;
(d) have a value that is readily ascertainable (e.g., by a
listing on a nationally recognized securities exchange); and
(e) are valued on the day of purchase in accordance with
the pricing methods used by the Fund. For further information
about this form of payment, please call 1-888-784-3863.
When Can You
Purchase Shares? I Shares
The Funds are open for business on days when the New York Stock
Exchange (the NYSE) is open for regular trading (a
Business Day). The RidgeWorth Funds reserve the
right to open one or more Funds on days that the principal bond
markets (as recommended by SIFMA (Securities Industry and
Financial Markets Association)) are open even if the NYSE is
closed. Each Fund calculates its net asset value per share
(NAV) once each Business Day at the close of regular
trading on the NYSE (normally 4:00 p.m. Eastern Time).
If a Fund or its authorized agent receives your purchase or
redemption request in proper form before 4:00 p.m., Eastern
Time, your transaction will be priced at that Business
Days NAV. If your request is received after
4:00 p.m., it will be priced at the next Business
Days NAV.
The time at which transactions and shares are priced and the
time until which orders are accepted may be changed if the NYSE
closes early or if the principal bond markets close early on
days when the NYSE is closed. For those Funds that open on days
when the NYSE is closed, these times will be the time the
principal bond markets close.
The Funds will not accept orders that request a particular day
or price for the transaction or any other special conditions.
You may be required to transmit your purchase sale and
exchange orders to your financial institutions or intermediaries
at an earlier time for your transaction to become effective that
day. This allows the financial institution or intermediary time
to process your order and transmit it to the transfer agent in
time to meet the above stated Fund cut-off times. For more
information about how to purchase, sell or exchange Fund shares,
including a specific financial institutions or
intermediarys internal order entry cut-off times, please
contact your financial institution or intermediary directly.
A Fund may reject any purchase order.
How the Funds
Calculate NAV I Shares
NAV is calculated by adding the total value of a Funds
investments and other assets, subtracting its liabilities, and
then dividing that figure by the number of outstanding shares of
the Fund.
In calculating NAV, each Fund generally values its investment
portfolio at market price. If market prices are not readily
available or a Fund reasonably believes
PURCHASING AND
SELLING FUND SHARES
that market prices or amortized cost valuation method are
unreliable, such as in the case of a security value that has
been materially affected by events occurring after the relevant
market closes, a Fund is required to price those securities at
fair value as determined in good faith using methods approved by
the Board. A Funds determination of a securitys fair
value price often involves the consideration of a number of
subjective factors, and is therefore subject to the unavoidable
risk that the value that a Fund assigns to a security may be
higher or lower than the securitys value would be if a
reliable market quotation for the security was readily available.
With respect to
non-U.S. securities
held by a Fund, the Fund may take factors influencing specific
markets or issues into consideration in determining the fair
value of a
non-U.S. security.
International securities markets may be open on days when the
U.S. markets are closed. In such cases, the value of any
international securities owned by a Fund may be significantly
affected on days when investors cannot buy or sell shares. In
addition, due to the difference in times between the close of
the international markets and the time a Fund prices its shares,
the value the Fund assigns to securities generally will not be
the same as the primary markets or exchanges. In determining
fair value prices, a Fund may consider the performance of
securities on their primary exchanges, foreign currency
appreciation/depreciation, securities market movements in the
U.S., or other relevant information as related to the securities.
When valuing fixed income securities with remaining maturities
of more than 60 days, the Funds use the value of the
security provided by pricing services. The values provided by a
pricing service may be based upon market quotations for the same
security, securities expected to trade in a similar manner, or a
pricing matrix. When valuing fixed income securities with
remaining maturities of 60 days or less, the Funds use the
securitys amortized cost. Amortized cost and the use of a
pricing matrix in valuing fixed income securities are forms of
fair value pricing. Fair value prices may be determined in good
faith using methods approved by the Board.
The prices for many securities held by the Funds are provided by
independent pricing services approved by the Board.
Minimum/Maximum
Purchases I Shares
For investors who qualify to purchase I Shares, there are no
minimum or maximum requirements for initial or subsequent
purchases.
Customer
Identification
Foreign
Investors
The Funds do not generally accept investments in I Shares
by
non-U.S. citizens
or entities. Investors in I Shares generally must reside in
the U.S. or its territories (which includes
U.S. military APO or FPO addresses) and have a
U.S. tax identification number.
Customer
Identification and Verification
To help the government fight the funding of terrorism and money
laundering activities, federal law requires all financial
institutions to obtain, verify, and record information that
identifies each person who opens an account.
When you open an account, you will be asked to provide your
name, residential street address, date of birth, Social Security
Number or tax identification number. You may also be asked for
other information that will allow us to identify you. Entities
are also required to provide additional documentation. This
information will be verified to ensure the identity of all
persons opening a mutual fund account.
In certain instances, the Funds are required to collect
documents to fulfill their legal obligation. Documents provided
in connection with your application will be used solely to
establish and verify a customers identity.
The Funds are required by law to reject your new account
application if the required identifying information is not
provided. Attempts to collect the missing information required
on the application will be performed by either contacting you
or, if applicable, your broker. If this information is unable to
be obtained within a timeframe established in the sole
discretion of the Funds, your application will be rejected.
Upon receipt of your application in proper form (or upon receipt
of all identifying information required on the application),
your investment will be accepted and your order will be
processed at the NAV next determined.
However, the Funds reserve the right to close your account at
the then-current days price if the Funds are unable to
verify your identity. Attempts to verify your identity will be
performed within a timeframe established in the sole discretion
of the Funds. If the Funds are unable to verify your identity,
the Funds reserve the right to liquidate your account at the
then-current days price and remit proceeds to you via
PURCHASING AND
SELLING FUND SHARES
check. The Funds reserve the further right to hold your proceeds
until your original check clears the bank. In such an instance,
you may be subject to a gain or loss on Fund shares and will be
subject to corresponding tax implications.
Anti-Money
Laundering Program
Customer identification and verification is part of the
Funds overall obligation to deter money laundering under
federal law. The Funds have adopted an anti-money laundering
compliance program designed to prevent the Funds from being used
for money laundering or the financing of terrorist activities.
In this regard, the Funds reserve the right to (i) refuse,
cancel or rescind any purchase or exchange order,
(ii) freeze any account
and/or
suspend account services, or (iii) involuntarily redeem
your account in cases of threatening conduct or suspected
fraudulent or illegal activity. These actions will be taken
when, in the sole discretion of Fund management, they are deemed
to be in the best interest of the Funds or in cases when the
Funds are requested or compelled to do so by governmental or law
enforcement authority.
Offering Price of
Fund Shares I Shares
The offering price of I Shares is simply the next calculated NAV.
You can also obtain this information about sales charges, rights
of accumulation and letters of intent on the Funds website
at www.ridgeworth.com.
How to Sell Your
Fund Shares
Selling I
Shares
You may sell your I Shares on any Business Day by contacting
your financial institution or intermediary. Your financial
institution or intermediary will give you information about how
to sell your shares including any specific cut-off times
required.
Holders of I Shares may sell shares by following the procedures
established when they opened their account or accounts with the
Funds or with their financial institution or intermediary. The
sale price of each share will be the next NAV determined after
the Funds receive your request in proper form.
A Medallion
Signature
Guarantee¨
I Shares
A Medallion Signature Guarantee by a bank or other
financial institution (a notarized signature is not sufficient)
is required to redeem shares:
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made payable to someone other than the registered shareholder;
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sent to an address or bank account other than the address or
bank account of record; or
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sent to an address or bank account of record that has been
changed within the last 15 calendar days.
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Other documentation may be required depending on the
registration of the account.
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Medallion Signature Guarantee: A Medallion Signature
Guarantee verifies the authenticity of your signature and helps
ensure that changes to your account are in fact authorized by
you. A Medallion Signature Guarantee may be obtained from a
domestic bank or trust company, broker, dealer, clearing agency,
savings association or other financial institution participating
in a Medallion Program recognized by the Securities Trading
Association. Signature guarantees from financial institutions
that do not reflect one of the following are not part of the
program and will not be accepted. The acceptable Medallion
programs are Securities Transfer Agents Medallion Program,
(STAMP), Stock Exchange Medallion Program, (SEMP), or the New
York Stock Exchange, Inc. Medallion Program, (NYSE MSP). Contact
your local financial adviser or institution for further
assistance.
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Sale Price of
Fund Shares I Shares
The sale price of each share will be the next NAV determined
after the Funds receive your request in proper form.
Receiving Your
Money I Shares
Normally, the Funds will send your sale proceeds within five
Business Days after the Funds receive your request, but a Fund
may take up to seven days to pay the sale proceeds if making
immediate payments would adversely affect the Fund (for example,
to allow the Fund to raise capital in the case of a large
redemption).
Redemptions In
Kind I Shares
The Funds generally pay redemption proceeds in cash. However,
under unusual conditions that make the
MARKET TIMING
POLICIES AND PROCEDURES
payment of cash unwise (and for the protection of the
Funds remaining shareholders), the Funds might pay all or
part of your redemption proceeds in liquid securities with a
market value equal to the redemption price (redemption in kind).
It is highly unlikely that your shares would ever be redeemed in
kind, but if they were you would probably have to pay
transaction costs to sell the securities distributed to you, as
well as taxes on any capital gains from the sale as with any
redemption.
Suspension of
Your Right to Sell Your Shares
I Shares
A Fund may suspend your right to sell your shares if the NYSE
restricts trading, the SEC declares an emergency or for other
reasons approved by the SEC. More information about this is in
the SAI.
Exchanges
When you exchange shares, you are really selling your shares of
one Fund and buying shares of another RidgeWorth Fund. So, your
sale price and purchase price will be based on the NAV next
calculated after the Funds receive your exchange requests, in
proper form.
Telephone
Transactions I Shares
Purchasing, selling and exchanging Fund shares over the
telephone is extremely convenient, but not without risk.
Although the Funds have certain safeguards and procedures to
confirm the identity of callers and the authenticity of
instructions, the Funds are not responsible for any losses or
costs incurred by following telephone instructions the Funds
reasonably believe to be genuine. If you or your financial
institution or intermediary transact with the Funds over the
telephone, you will generally bear the risk of any loss. The
Funds reserve the right to modify, suspend or terminate
telephone transaction privileges at any time.
To redeem shares by telephone:
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redemption checks must be made payable to the registered
shareholder; and
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redemption checks must be mailed to an address or wired to a
bank account of record that has been associated with the
shareholder account for at least 15 calendar days.
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Market Timing
Policies and Procedures
The Funds are intended for long-term investment purposes only
and discourage shareholders from engaging in market
timing or other types of excessive short-term trading.
This frequent trading into and out of the Funds may present
risks to the Funds long-term shareholders, all of which
could adversely affect shareholder returns. The risks posed by
frequent trading include interfering with the efficient
implementation of the Funds investment strategies,
triggering the recognition of taxable gains and losses on the
sale of Fund investments, requiring the Funds to maintain higher
cash balances to meet redemption requests, and experiencing
increased transaction costs. A Fund that invests a significant
amount of its assets in overseas markets is particularly
susceptible to the risk of certain investors using a strategy
known as time-zone arbitrage. Investors using this strategy
attempt to take advantage of the differences in value of foreign
securities that might result from events that occur between the
close of the foreign securities market on which a foreign
security is traded and the time at which the Fund calculates its
NAV.
The Funds
and/or their
service providers will take steps reasonably designed to detect
and deter frequent trading by shareholders pursuant to the
Funds policies and procedures described in this prospectus
and approved by the Funds Board. The Funds seek to
discourage short-term trading by using fair value pricing
procedures to fair value certain investments under some
circumstances. For purposes of applying these policies, the
Funds service providers may consider the trading history
of accounts under common ownership or control. The Funds
policies and procedures include:
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Shareholders are restricted from making more than one
(1) round trip into and out of a Fund within
14 days or more than two (2) round trips
within any continuous 90 day period. If a shareholder
exceeds either round trip restriction, he or she may
be deemed a Market Timer, and the Funds
and/or their
service providers may, at their discretion, reject any
additional purchase orders. The Funds define a round trip as a
purchase into a Fund by a shareholder, followed by a subsequent
redemption out of the Fund. Anyone considered to be a Market
Timer by the Funds, the Adviser, the Subadviser or a shareholder
servicing agent may be notified in writing of their designation
as a Market Timer.
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SHAREHOLDER
SERVICING PLANS
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The Funds reserve the right to reject any purchase request by
any investor or group of investors for any reason without prior
notice, including, in particular, if the Funds or their Adviser
reasonably believes that the trading activity would be harmful
or disruptive to the Funds.
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The Funds
and/or their
service providers seek to apply these policies to the best of
their abilities uniformly and in a manner they believe is
consistent with the interests of the Funds long-term
shareholders.
Although these policies are designed to deter frequent trading,
none of these measures alone nor all of them taken together
eliminate the possibility that frequent trading in the Funds
will occur, particularly with respect to trades placed by
shareholders that invest in the Funds through omnibus
arrangements maintained by brokers, retirement plan accounts and
other financial intermediaries. Purchase and redemption
transactions submitted to the Funds by these intermediaries
reflect the transactions of multiple beneficial owners whose
individual transactions are not automatically disclosed to the
Funds. Therefore, the Funds rely in large part on the
intermediaries who maintain omnibus arrangements (which may
represent a majority of Fund shares) to aid in the Funds
efforts to detect and deter short-term trading. The Funds
monitor trading activity at the omnibus account level and look
for activity that indicates potential short-term trading. If
they detect suspicious trading activity, the Funds contact the
intermediaries to determine whether the short-term trading
policy has been violated and may request and receive personal
identifying information and transaction histories for some or
all beneficial owners to make this determination. If a Fund
believes that a shareholder has violated the short-term trading
policy, it will take further steps to prevent any future
short-term trading by such shareholder in accordance with the
policy. The Funds cannot guarantee the accuracy of the
information provided by the intermediaries and may not always be
able to track short-term trading effected through these
intermediaries. A Fund has the right to terminate an
intermediarys ability to invest in a Fund if excessive
trading activity persists and a Fund or its Adviser or
Subadviser reasonably believes that such termination would be in
the best interests of long-term shareholders. In addition to the
Funds market timing policies and procedures described
above, you may be subject to the market timing policies and
procedures of the intermediary through which you invest. Please
consult with your intermediary for additional information
regarding its frequent trading restrictions.
Distribution of
Fund Shares
From their own assets, the Adviser, the Subadviser or their
affiliates may make payments based on gross sales and current
assets to selected brokerage firms or institutions. The amount
of these payments may be substantial. The minimum aggregate
sales required for eligibility for such payments, and the
factors in selecting the brokerage firms and institutions to
which they will be made, are determined from time to time by the
Adviser or Subadviser. Furthermore, in addition to the fees that
may be paid by a Fund, the Adviser, the Subadviser or their
affiliates may pay fees from their own capital resources to
brokers, banks, financial advisers, retirement plan service
providers and other financial intermediaries, including
affiliates, for providing distribution-related or shareholder
services.
The Adviser, the Subadviser or their affiliates may pay fees
from their own capital resources to financial intermediaries to
compensate them for marketing expenses they incur or to pay for
the opportunity to have them distribute the Funds. The amount of
these payments is determined by the Adviser or the Subadviser
and may differ among financial intermediaries. Such payments may
provide incentives for financial intermediaries to make shares
of the Funds available to their customers, and may allow the
Funds greater access to such financial intermediaries and their
customers than would be the case if no payments were made. You
may wish to consider whether such arrangements exist when
evaluating any recommendation to purchase shares of the Funds.
Please refer to the SAI for more information regarding these
arrangements.
Shareholder
Servicing Plans
With respect to the I Shares of certain of the Funds, the I
Shares Shareholder Servicing Plan permits the I Shares of
that Fund to pay financial service firms for shareholder support
services they provide, at a rate of up to 0.15% of the average
daily net assets of each of the I Shares of that Fund. The
shareholder support services may include, among others,
providing general shareholder liaison services (including
responding to shareholder inquiries), providing information on
shareholder investments, and establishing and maintaining
shareholder accounts and records.
DIVIDENDS AND
DISTRIBUTIONS AND TAXES
Dividends and
Distributions
Each Fund declares dividends daily and pays these dividends
monthly. Each Fund makes distributions of its net realized
capital gains, if any, at least annually. If you own Fund shares
on a Funds record date, you will be entitled to receive
the distribution.
You will receive dividends and distributions in the form of
additional Fund shares unless you elect to receive payment in
cash. To elect cash payment, you must notify the Funds in
writing prior to the date of the distribution. Your election
will be effective for dividends and distributions paid after the
Funds receive your written notice. To cancel your election,
simply send the Funds written notice.
Taxes
Please consult your tax advisor regarding your specific
questions about federal, state, and local income taxes.
Below the Funds have summarized some important tax issues
that affect the Funds and their shareholders. This summary is
based on current tax laws, which may change. More information on
taxes is in the SAI.
Each Fund will distribute substantially all of its net
investment income and its net realized capital gains, if any, at
least annually. The dividends and distributions you receive may
be subject to federal, state and local taxation, depending upon
your tax situation. Distributions you receive from a Fund may be
taxable whether or not you reinvest them. Income distributions
are generally taxable as either ordinary income or qualified
dividend income. Dividends that are qualified dividend income
are eligible for the reduced maximum rate to individuals of 15%
(lower rates apply to individuals in lower tax brackets) to the
extent that the Fund receives qualified dividend income. Capital
gains distributions are generally taxable at the rates
applicable to long-term capital gains. Long-term capital gains
are currently taxed at a maximum rate of 15%. Absent further
legislation, the maximum 15% tax rate on qualified dividend
income and long-term capital gains will cease to apply to
taxable years beginning after December 31, 2010. A high
portfolio turnover rate and a Funds or an Underlying
Funds use of certain derivatives may cause a Fund to
recognize higher amounts of short-term capital gains, which are
generally taxed to shareholders at ordinary income tax rates.
Each sale or exchange of Fund shares may be a taxable event.
For tax purposes, an exchange of Fund shares for shares of a
different RidgeWorth Fund is treated the same as a sale. A
transfer from one share class to another in the same RidgeWorth
Fund should not be a taxable event.
Each Fund will inform you of the amount of your ordinary income
dividends, qualified dividend income, and capital gain
distributions shortly after the close of each calendar year.
If you have a tax-advantaged or other retirement account you
will generally not be subject to federal taxation on income and
capital gain distributions until you begin receiving your
distributions from your retirement account. You should consult
your tax advisor regarding the rules governing your own
retirement plan.
The Funds expect to distribute federally tax-exempt income
(described above), the Funds expect to distribute primarily
ordinary income dividends currently taxable at a maximum rate of
35%.
More information
about taxes is in the SAI.
FINANCIAL
HIGHLIGHTS
The financial highlights table is intended to help you
understand a Funds financial performance for the past
5 years or, if shorter, the period of the Funds
operations. Certain information reflects financial results for a
single Fund share. The total returns in the table represent the
rate that an investor would have earned (or lost) on an
investment in the Fund (assuming reinvestment of all dividends
and distributions). This financial information has been audited
by PricewaterhouseCoopers LLP. The Report of Independent
Registered Public Accounting Firm for each period shown, along
with the Funds financial statements and related notes, are
included in the Annual Reports to Shareholders for such periods.
The 2010 Annual Report is available upon request and without
charge by calling 1-888-784-3863 or on the Funds website
at www.ridgeworth.com.
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|
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|
|
|
|
|
|
|
|
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|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
Expenses
|
|
Income
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
Distributions
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
from Tax
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Return of
|
|
Capital
|
|
and
|
|
End of
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Capital
|
|
Gains
|
|
Distributions
|
|
Period
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
Corporate Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
8.53
|
|
|
$
|
0.46
|
(a)
|
|
$
|
1.09
|
|
|
$
|
1.55
|
|
|
$
|
(0.45
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(0.45
|
)
|
|
$
|
9.63
|
|
|
18.49
|
%
|
|
$
|
157,739
|
|
|
|
0.50
|
%
|
|
|
4.86
|
%
|
|
|
0.50
|
%
|
|
|
75
|
%
|
Year Ended March 31, 2009
|
|
|
9.60
|
|
|
|
0.49
|
(a)
|
|
|
(0.86
|
)
|
|
|
(0.37
|
)
|
|
|
(0.70
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.70
|
)
|
|
|
8.53
|
|
|
(4.10
|
)
|
|
|
39,881
|
|
|
|
0.73
|
|
|
|
5.29
|
|
|
|
0.74
|
|
|
|
357
|
|
Year Ended March 31, 2008
|
|
|
9.88
|
|
|
|
0.60
|
(a)
|
|
|
(0.27
|
)
|
|
|
0.33
|
|
|
|
(0.61
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.61
|
)
|
|
|
9.60
|
|
|
3.43
|
|
|
|
62,581
|
|
|
|
0.69
|
|
|
|
6.16
|
|
|
|
0.71
|
|
|
|
439
|
|
Year Ended March 31, 2007
|
|
|
9.64
|
|
|
|
0.50
|
(a)
|
|
|
0.31
|
|
|
|
0.81
|
|
|
|
(0.40
|
)
|
|
|
(0.17
|
)
|
|
|
|
|
|
|
(0.57
|
)
|
|
|
9.88
|
|
|
8.66
|
|
|
|
86,812
|
|
|
|
0.71
|
|
|
|
5.20
|
|
|
|
0.73
|
|
|
|
397
|
|
Year Ended March 31, 2006
|
|
|
10.24
|
|
|
|
0.43
|
(a)
|
|
|
(0.41
|
)
|
|
|
0.02
|
|
|
|
(0.44
|
)
|
|
|
|
|
|
|
(0.18
|
)
|
|
|
(0.62
|
)
|
|
|
9.64
|
|
|
0.19
|
|
|
|
243,001
|
|
|
|
0.76
|
|
|
|
4.35
|
|
|
|
0.79
|
|
|
|
317
|
|
High Income Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
4.67
|
|
|
|
0.55
|
|
|
|
2.09
|
|
|
|
2.64
|
|
|
|
(0.54
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.54
|
)
|
|
|
6.77
|
|
|
58.65
|
|
|
|
148,252
|
|
|
|
0.70
|
|
|
|
8.97
|
|
|
|
0.72
|
|
|
|
466
|
|
Year Ended March 31, 2009
|
|
|
6.40
|
|
|
|
0.54
|
|
|
|
(1.74
|
)
|
|
|
(1.20
|
)
|
|
|
(0.53
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.53
|
)
|
|
|
4.67
|
|
|
(19.40
|
)
|
|
|
23,995
|
|
|
|
0.70
|
|
|
|
9.67
|
|
|
|
0.76
|
|
|
|
368
|
|
Year Ended March 31, 2008
|
|
|
7.36
|
|
|
|
0.57
|
|
|
|
(0.82
|
)
|
|
|
(0.25
|
)
|
|
|
(0.58
|
)
|
|
|
|
|
|
|
(0.13
|
)
|
|
|
(0.71
|
)
|
|
|
6.40
|
|
|
(3.68
|
)
|
|
|
30,587
|
|
|
|
0.70
|
|
|
|
8.23
|
|
|
|
0.71
|
|
|
|
403
|
|
Year Ended March 31, 2007
|
|
|
6.97
|
|
|
|
0.58
|
|
|
|
0.39
|
|
|
|
0.97
|
|
|
|
(0.58
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.58
|
)
|
|
|
7.36
|
|
|
14.58
|
|
|
|
42,809
|
|
|
|
0.70
|
|
|
|
8.11
|
|
|
|
0.71
|
|
|
|
379
|
|
Year Ended March 31, 2006
|
|
|
7.38
|
|
|
|
0.55
|
|
|
|
(0.03
|
)
|
|
|
0.52
|
|
|
|
(0.55
|
)
|
|
|
|
|
|
|
(0.38
|
)
|
|
|
(0.93
|
)
|
|
|
6.97
|
|
|
7.53
|
|
|
|
36,764
|
|
|
|
0.72
|
|
|
|
7.64
|
|
|
|
0.82
|
|
|
|
208
|
|
Intermediate Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.27
|
|
|
|
0.34
|
(a)
|
|
|
0.27
|
|
|
|
0.61
|
|
|
|
(0.30
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
(0.35
|
)
|
|
|
10.53
|
|
|
6.08
|
|
|
|
1,559,191
|
|
|
|
0.31
|
|
|
|
3.24
|
|
|
|
0.31
|
|
|
|
122
|
|
Year Ended March 31, 2009
|
|
|
10.29
|
|
|
|
0.43
|
|
|
|
0.24
|
|
|
|
0.67
|
|
|
|
(0.46
|
)
|
|
|
|
|
|
|
(0.23
|
)
|
|
|
(0.69
|
)
|
|
|
10.27
|
|
|
6.83
|
|
|
|
1,071,496
|
|
|
|
0.29
|
|
|
|
4.24
|
|
|
|
0.29
|
|
|
|
217
|
|
Year Ended March 31, 2008
|
|
|
9.96
|
|
|
|
0.50
|
|
|
|
0.33
|
|
|
|
0.83
|
|
|
|
(0.49
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
(0.50
|
)
|
|
|
10.29
|
|
|
8.57
|
|
|
|
812,982
|
|
|
|
0.29
|
|
|
|
4.80
|
|
|
|
0.30
|
|
|
|
254
|
|
Year Ended March 31, 2007
|
|
|
9.85
|
|
|
|
0.46
|
(a)
|
|
|
0.11
|
|
|
|
0.57
|
|
|
|
(0.46
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.46
|
)
|
|
|
9.96
|
|
|
5.97
|
|
|
|
94,136
|
|
|
|
0.31
|
|
|
|
4.67
|
|
|
|
0.31
|
|
|
|
225
|
|
Year Ended March 31, 2006
|
|
|
10.08
|
|
|
|
0.38
|
|
|
|
(0.21
|
)
|
|
|
0.17
|
|
|
|
(0.39
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
(0.40
|
)
|
|
|
9.85
|
|
|
1.76
|
|
|
|
78,187
|
|
|
|
0.31
|
|
|
|
3.88
|
|
|
|
0.31
|
|
|
|
154
|
|
Limited Duration Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
9.52
|
|
|
|
0.08
|
|
|
|
0.18
|
|
|
|
0.26
|
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.07
|
)
|
|
|
9.71
|
|
|
2.69
|
|
|
|
22,482
|
|
|
|
0.23
|
|
|
|
0.82
|
|
|
|
0.23
|
|
|
|
124
|
|
Year Ended March 31, 2009
|
|
|
9.87
|
|
|
|
0.23
|
|
|
|
(0.37
|
)
|
|
|
(0.14
|
)
|
|
|
(0.21
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.21
|
)
|
|
|
9.52
|
|
|
(1.38
|
)
|
|
|
30,826
|
|
|
|
0.19
|
|
|
|
2.43
|
|
|
|
0.19
|
|
|
|
44
|
|
Year Ended March 31, 2008
|
|
|
9.98
|
|
|
|
0.50
|
|
|
|
(0.12
|
)
|
|
|
0.38
|
|
|
|
(0.49
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.49
|
)
|
|
|
9.87
|
|
|
3.90
|
|
|
|
43,509
|
|
|
|
0.17
|
|
|
|
5.01
|
|
|
|
0.17
|
|
|
|
132
|
|
Year Ended March 31, 2007
|
|
|
9.99
|
|
|
|
0.51
|
|
|
|
(0.02
|
)
|
|
|
0.49
|
|
|
|
(0.50
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.50
|
)
|
|
|
9.98
|
|
|
5.04
|
|
|
|
40,291
|
|
|
|
0.14
|
|
|
|
5.03
|
|
|
|
0.14
|
|
|
|
185
|
|
Year Ended March 31, 2006
|
|
|
9.98
|
|
|
|
0.35
|
|
|
|
0.02
|
|
|
|
0.37
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.36
|
)
|
|
|
9.99
|
|
|
3.73
|
|
|
|
58,887
|
|
|
|
0.15
|
|
|
|
3.39
|
|
|
|
0.15
|
|
|
|
94
|
|
See Notes to Financial
Highlights.
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
Net
|
|
Ratio of
|
|
|
|
|
|
|
|
|
Realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
Investment
|
|
Expenses to
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
Distributions
|
|
|
|
Net
|
|
|
|
|
|
Expenses
|
|
Income
|
|
Average
|
|
|
|
|
Net Asset
|
|
Net
|
|
Unrealized
|
|
|
|
Dividends
|
|
from
|
|
Total
|
|
Asset
|
|
|
|
|
|
to
|
|
to
|
|
Net Assets
|
|
|
|
|
Value,
|
|
Investment
|
|
Gains
|
|
|
|
from Net
|
|
Realized
|
|
Dividends
|
|
Value,
|
|
|
|
Net Assets,
|
|
Average
|
|
Average
|
|
(Excluding
|
|
Portfolio
|
|
|
Beginning
|
|
Income
|
|
(Losses) on
|
|
Total From
|
|
Investment
|
|
Capital
|
|
and
|
|
End of
|
|
Total
|
|
End of
|
|
Net
|
|
Net
|
|
Waivers and
|
|
Turnover
|
|
|
of Period
|
|
(Loss)
|
|
Investments
|
|
Operations
|
|
Income
|
|
Gains
|
|
Distributions
|
|
Period
|
|
Return(1)
|
|
Period (000)
|
|
Assets(2)
|
|
Assets(2)
|
|
Reimbursements)(2)
|
|
Rate(3)
|
Seix Floating Rate High Income Fund(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
$
|
7.37
|
|
|
$
|
0.53
|
|
|
$
|
1.40
|
|
|
$
|
1.93
|
|
|
$
|
(0.50
|
)
|
|
$
|
|
|
|
$
|
(0.50
|
)
|
|
$
|
8.80
|
|
|
|
26.68
|
%
|
|
$
|
1,173,308
|
|
|
|
0.50
|
%
|
|
|
7.08
|
%
|
|
|
0.50
|
%
|
|
|
117
|
%
|
Year Ended March 31, 2009
|
|
|
8.90
|
|
|
|
0.52
|
|
|
|
(1.53
|
)
|
|
|
(1.01
|
)
|
|
|
(0.52
|
)
|
|
|
|
|
|
|
(0.52
|
)
|
|
|
7.37
|
|
|
|
(11.67
|
)
|
|
|
557,347
|
|
|
|
0.49
|
|
|
|
6.31
|
|
|
|
0.49
|
|
|
|
226
|
|
Year Ended March 31, 2008
|
|
|
9.98
|
|
|
|
0.70
|
|
|
|
(1.06
|
)
|
|
|
(0.36
|
)
|
|
|
(0.70
|
)
|
|
|
(0.02
|
)
|
|
|
(0.72
|
)
|
|
|
8.90
|
|
|
|
(3.85
|
)
|
|
|
553,208
|
|
|
|
0.51
|
|
|
|
7.34
|
|
|
|
0.51
|
|
|
|
134
|
|
Year Ended March 31, 2007
|
|
|
9.96
|
|
|
|
0.69
|
|
|
|
0.03
|
|
|
|
0.72
|
|
|
|
(0.70
|
)
|
|
|
|
|
|
|
(0.70
|
)
|
|
|
9.98
|
|
|
|
7.47
|
|
|
|
582,861
|
|
|
|
0.51
|
|
|
|
7.03
|
|
|
|
0.51
|
|
|
|
148
|
|
Period Ended March 31, 2006
|
|
|
10.00
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
9.96
|
|
|
|
0.02
|
|
|
|
106,405
|
|
|
|
0.56
|
|
|
|
5.24
|
|
|
|
0.80
|
|
|
|
9
|
|
Seix Global Strategy Fund(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.44
|
|
|
|
(0.07
|
)
|
|
|
0.20
|
|
|
|
0.13
|
|
|
|
|
|
|
|
(0.29
|
)
|
|
|
(0.29
|
)
|
|
|
10.28
|
|
|
|
1.38
|
|
|
|
9,589
|
|
|
|
0.83
|
|
|
|
(0.70
|
)
|
|
|
1.01
|
|
|
|
|
|
Period Ended March 31, 2009
|
|
|
10.00
|
|
|
|
0.05
|
|
|
|
0.52
|
|
|
|
0.57
|
|
|
|
(0.07
|
)
|
|
|
(0.06
|
)
|
|
|
(0.13
|
)
|
|
|
10.44
|
|
|
|
5.68
|
|
|
|
10,427
|
|
|
|
0.69
|
|
|
|
0.82
|
|
|
|
1.44
|
|
|
|
741
|
|
Seix High Yield Fund
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
7.75
|
|
|
|
0.77
|
|
|
|
1.70
|
|
|
|
2.47
|
|
|
|
(0.76
|
)
|
|
|
|
|
|
|
(0.76
|
)
|
|
|
9.46
|
|
|
|
32.91
|
|
|
|
1,723,678
|
|
|
|
0.48
|
|
|
|
8.54
|
|
|
|
0.49
|
|
|
|
116
|
|
Year Ended March 31, 2009
|
|
|
9.77
|
|
|
|
0.78
|
|
|
|
(2.03
|
)
|
|
|
(1.25
|
)
|
|
|
(0.77
|
)
|
|
|
|
|
|
|
(0.77
|
)
|
|
|
7.75
|
|
|
|
(13.15
|
)
|
|
|
786,029
|
|
|
|
0.50
|
|
|
|
8.99
|
|
|
|
0.51
|
|
|
|
114
|
|
Year Ended March 31, 2008
|
|
|
10.84
|
|
|
|
0.80
|
|
|
|
(1.06
|
)
|
|
|
(0.26
|
)
|
|
|
(0.81
|
)
|
|
|
|
|
|
|
(0.81
|
)
|
|
|
9.77
|
|
|
|
(2.50
|
)
|
|
|
663,081
|
|
|
|
0.49
|
|
|
|
7.70
|
|
|
|
0.50
|
|
|
|
117
|
|
Year Ended March 31, 2007
|
|
|
10.69
|
|
|
|
0.74
|
|
|
|
0.15
|
|
|
|
0.89
|
|
|
|
(0.74
|
)
|
|
|
|
|
|
|
(0.74
|
)
|
|
|
10.84
|
|
|
|
8.68
|
|
|
|
1,116,851
|
|
|
|
0.48
|
|
|
|
6.92
|
|
|
|
0.48
|
|
|
|
130
|
|
Year Ended March 31, 2006
|
|
|
10.94
|
|
|
|
0.68
|
|
|
|
(0.10
|
)
|
|
|
0.58
|
|
|
|
(0.68
|
)
|
|
|
(0.15
|
)
|
|
|
(0.83
|
)
|
|
|
10.69
|
|
|
|
5.37
|
|
|
|
1,217,679
|
|
|
|
0.49
|
|
|
|
6.20
|
|
|
|
0.50
|
|
|
|
95
|
|
Total Return Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2010
|
|
|
10.26
|
|
|
|
0.40
|
|
|
|
0.43
|
|
|
|
0.83
|
|
|
|
(0.36
|
)
|
|
|
(0.13
|
)
|
|
|
(0.49
|
)
|
|
|
10.60
|
|
|
|
8.17
|
|
|
|
724,588
|
|
|
|
0.31
|
|
|
|
3.72
|
|
|
|
0.31
|
|
|
|
326
|
|
Year Ended March 31, 2009
|
|
|
10.10
|
|
|
|
0.49
|
|
|
|
0.18
|
|
|
|
0.67
|
|
|
|
(0.51
|
)
|
|
|
|
|
|
|
(0.51
|
)
|
|
|
10.26
|
|
|
|
6.89
|
|
|
|
602,267
|
|
|
|
0.30
|
|
|
|
4.85
|
|
|
|
0.30
|
|
|
|
199
|
|
Year Ended March 31, 2008
|
|
|
9.96
|
|
|
|
0.51
|
|
|
|
0.14
|
|
|
|
0.65
|
|
|
|
(0.51
|
)
|
|
|
|
|
|
|
(0.51
|
)
|
|
|
10.10
|
|
|
|
6.74
|
|
|
|
630,451
|
|
|
|
0.30
|
|
|
|
5.14
|
|
|
|
0.30
|
|
|
|
248
|
|
Year Ended March 31, 2007
|
|
|
9.86
|
|
|
|
0.48
|
|
|
|
0.11
|
|
|
|
0.59
|
|
|
|
(0.49
|
)
|
|
|
|
|
|
|
(0.49
|
)
|
|
|
9.96
|
|
|
|
6.16
|
|
|
|
601,676
|
|
|
|
0.30
|
|
|
|
4.97
|
|
|
|
0.30
|
|
|
|
310
|
|
Year Ended March 31, 2006
|
|
|
10.12
|
|
|
|
0.41
|
|
|
|
(0.24
|
)
|
|
|
0.17
|
|
|
|
(0.42
|
)
|
|
|
(0.01
|
)
|
|
|
(0.43
|
)
|
|
|
9.86
|
|
|
|
1.68
|
|
|
|
497,730
|
|
|
|
0.29
|
|
|
|
4.01
|
|
|
|
0.29
|
|
|
|
236
|
|
See Notes to Financial
Highlights.
NOTES TO
FINANCIAL HIGHLIGHTS
|
|
|
(1)
|
|
Total return excludes sales charge.
Not annualized for periods less than one year.
|
|
|
|
(2)
|
|
Annualized for periods less than
one year.
|
|
|
|
(3)
|
|
Not annualized for periods less
than one year.
|
|
|
|
(4)
|
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The following table details the
commencement of operations of certain classes of each respective
fund.
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Fund
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Class
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Commencement Date
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Seix Floating Rate High Income Fund
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I Shares
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March 2, 2006
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Seix Global Strategy Fund
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I Shares
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September 8, 2008
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(a)
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Per share data was calculated using
the average shares method.
|
Amounts designated as are $0 or have been
rounded to $0.
PRIVACY
POLICY
RidgeWorth
Funds
Our Privacy
Policy
At RidgeWorth Funds, we recognize the sensitive nature of your
personal financial information and take every precaution to
protect your privacy. In providing services to you as an
individual who owns or is considering investing in shares of
RidgeWorth Funds, we collect certain nonpublic personal
information about you. Our policy is to safeguard this
information and keep it confidential, and to use or disclose it
only as necessary to provide services to you or as otherwise
required or permitted by law. When you entrust us with your
financial information, it will be used only within our strict
guidelines. Our privacy policy and practices apply equally to
nonpublic personal information about former shareholders and
individuals who have inquired about RidgeWorth Funds.
Information We
Collect
Nonpublic personal information is personally
identifiable financial information about you as an individual or
your family. The type of nonpublic personal information we have
about you may include the information you provide on your
account application; information you provide in telephone calls
or correspondence with us; information about your transactions
and holdings in RidgeWorth Funds, and information about how you
vote your shares.
Information We
Disclose
RidgeWorth Funds policy is to only disclose nonpublic
personal information about you to companies that provide
necessary services such as RidgeWorth Funds transfer
agent, distributor, administrator or investment adviser;
affiliates of RidgeWorth Funds, or as may otherwise be permitted
or required by law or authorized by you.
How We Safeguard
Your Information
We restrict access to nonpublic personal information about you
to those persons who are required to have certain information in
order to provide services to you, or who are permitted by law to
receive it. We have strict internal policies against
unauthorized disclosure or use of customer information. We
maintain customer information as mandated by financial
regulations, and policies and procedures are in place for
appropriate confidential destruction of all restricted access
data.
If you have any questions regarding our Privacy Policy,
please call 1-888-784-3863.
This is not part of the Prospectus.
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Investment Adviser:
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RidgeWorth Investments
50 Hurt Plaza, Suite 1400
Atlanta, Georgia 30303
www.ridgeworth.com
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Investment Subadviser:
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Seix Investment Advisors LLC
10 Mountainview Road,
Suite C-200
Upper Saddle River, NJ 07458
www.seixadvisors.com
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More information about the RidgeWorth Funds is available without
charge through the following:
Statement of Additional Information (SAI):
The SAI includes detailed information about the RidgeWorth
Funds. The SAI is on file with the SEC and is incorporated by
reference into this prospectus. This means that the SAI, for
legal purposes, is a part of this prospectus.
Annual and Semi-Annual Reports:
These reports list each Funds holdings and contain
information from the Funds managers about strategies and
recent market conditions and trends and their impact on Fund
performance. The reports also contain detailed financial
information about the Funds.
To Obtain an SAI, Annual or Semi-Annual Report, or More
Information:
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Telephone: |
Shareholder Services
1-888-784-3863
|
Mail:
RidgeWorth Funds
3435 Stelzer Road
Columbus, Ohio 43219
Website: www.ridgeworth.com
SEC:
You can also obtain the SAI or the Annual and Semi-Annual
reports, as well as other information about the RidgeWorth
Funds, from the EDGAR Database on the SECs website at
http://www.sec.gov.
You may review and copy documents at the SEC Public Reference
Room in Washington, DC (for information on the operation of the
Public Reference Room, call
202-551-8090).
You may request documents by mail from the SEC, upon payment of
a duplicating fee, by writing to: Securities and Exchange
Commission, Public Reference Section, Washington, DC
20549-1520.
You may also obtain this information, upon payment of a
duplicating fee, by
e-mailing
the SEC at publicinfo@sec.gov.
The RidgeWorth Funds Investment Company Act registration
number is
811-06557.
Collective Strength Individual Insight is a federally registered
service mark of RidgeWorth Investments.
RFPRO-ISEIX-0810
STATEMENT OF ADDITIONAL INFORMATION
RIDGEWORTH FUNDS
August 1, 2010
Investment Adviser:
RIDGEWORTH INVESTMENTS
(the Adviser)
This Statement of Additional Information (SAI) is not a prospectus. It is intended to provide
additional information regarding the activities and operations of RidgeWorth Funds (the Trust)
and should be read in conjunction with the Trusts prospectuses dated August 1, 2010, as may be
supplemented from time to time. This SAI relates to each class of the following series of the
Trust (each a Fund and collectively, the Funds):
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Institutional |
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Corporate |
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A Shares |
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C Shares |
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I Shares |
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R Shares |
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Shares |
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Trust Shares |
Equity Funds |
Aggressive Growth Stock Fund |
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ü |
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ü |
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Emerging Growth Stock Fund |
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ü |
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ü |
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International Equity 130/30 Fund |
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ü |
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ü |
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International Equity Fund |
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ü |
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ü |
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International Equity Index Fund |
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ü |
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ü |
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Large Cap Core Equity Fund |
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ü |
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ü |
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ü |
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Large Cap Growth Stock Fund |
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ü |
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ü |
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ü |
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Large Cap Quantitative Equity Fund |
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ü |
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ü |
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Large Cap Value Equity Fund |
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ü |
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ü |
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ü |
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Mid-Cap Core Equity Fund |
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ü |
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ü |
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ü |
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Mid-Cap Value Equity Fund |
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ü |
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ü |
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ü |
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Real Estate 130/30 Fund |
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ü |
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ü |
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Select Large Cap Growth Stock Fund |
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ü |
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ü |
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ü |
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Small Cap Growth Stock Fund |
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ü |
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ü |
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ü |
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Small Cap Value Equity Fund |
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ü |
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ü |
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ü |
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U.S. Equity 130/30 Fund |
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ü |
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ü |
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Taxable Fixed Income Funds |
Corporate Bond Fund |
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ü |
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ü |
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ü |
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High Income Fund |
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ü |
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ü |
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ü |
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Intermediate Bond Fund |
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ü |
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ü |
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ü |
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Institutional |
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Corporate |
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A Shares |
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C Shares |
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I Shares |
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R Shares |
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Shares |
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Trust Shares |
Investment Grade Bond Fund |
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ü |
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ü |
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ü |
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Limited Duration Fund |
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ü |
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Limited-Term Federal Mortgage
Securities Fund |
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ü |
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ü |
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ü |
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Seix Floating Rate High Income Fund |
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ü |
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ü |
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ü |
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Seix Global Strategy Fund |
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ü |
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ü |
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Seix High Yield Fund |
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ü |
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ü |
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ü |
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Short-Term Bond Fund |
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ü |
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ü |
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ü |
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Short-Term U.S. Treasury Securities
Fund |
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ü |
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ü |
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ü |
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Total Return Bond Fund |
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ü |
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ü |
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ü |
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U.S. Government Securities Fund |
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ü |
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ü |
|
ü |
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U.S.
Government Securities Ultra-Short
Bond Fund |
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ü |
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Ultra-Short Bond Fund |
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ü |
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Tax-Exempt Fixed Income Funds |
Georgia Tax-Exempt Bond Fund |
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ü |
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ü |
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High Grade Municipal Bond Fund |
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ü |
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ü |
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Investment
Grade Tax-Exempt Bond Fund |
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ü |
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ü |
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Maryland Municipal Bond Fund |
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ü |
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ü |
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North
Carolina Tax-Exempt Bond Fund |
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ü |
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ü |
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Virginia Intermediate Municipal Bond
Fund |
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ü |
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ü |
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Money Market Funds |
Institutional Cash Management Money
Market Fund |
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ü |
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Institutional Municipal Cash Reserve
Money Market Fund |
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ü |
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Institutional U.S. Government
Securities Money Market Fund |
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ü |
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Institutional U.S. Treasury Securities
Money Market Fund |
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ü |
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ü |
Prime Quality Money Market Fund |
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ü |
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ü |
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ü |
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Tax-Exempt Money Market Fund |
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ü |
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ü |
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U.S. Government Securities |
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ü |
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ü |
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Institutional |
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Corporate |
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A Shares |
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C Shares |
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I Shares |
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R Shares |
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Shares |
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Trust Shares |
Money Market Fund |
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U.S. Treasury Money Market Fund |
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ü |
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ü |
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Virginia Tax-Free Money Market Fund |
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ü |
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ü |
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Allocation Strategies |
Aggressive Growth Allocation Strategy |
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ü |
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ü |
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ü |
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Conservative Allocation Strategy |
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ü |
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ü |
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ü |
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Growth Allocation Strategy |
|
ü |
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ü |
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ü |
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Moderate Allocation Strategy |
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ü |
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ü |
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ü |
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The Equity Funds and Allocation Strategies are collectively referred to herein as Equity Funds
and the Taxable Fixed Income Funds and the Tax-Exempt Fixed Income Funds are collectively referred
to herein as the Fixed Income Funds.
This SAI is incorporated by reference into the Trusts prospectuses dated August 1, 2010.
Capitalized terms not defined herein are defined in the prospectuses. A prospectus may be obtained
by writing to the Trust or calling toll-free 1-888-784-3863.
TABLE OF CONTENTS
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1 |
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1 |
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35 |
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37 |
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41 |
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46 |
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56 |
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58 |
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76 |
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76 |
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76 |
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76 |
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76 |
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83 |
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86 |
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87 |
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94 |
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101 |
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103 |
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104 |
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104 |
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105 |
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105 |
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105 |
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106 |
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106 |
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124 |
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DESCRIPTION OF RATINGS |
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A-1 |
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PROXY VOTING POLICY |
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B-1 |
|
MSCI INDEX DISCLOSURE |
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C-1 |
|
THE TRUST
Each Fund is a separate series of the Trust, an open-end management investment company established
under Massachusetts law as a Massachusetts business trust under a Declaration of Trust dated
January 15, 1992. The Declaration of Trust permits the Trust to offer separate series (each a
Fund and collectively, the Funds) of units of beneficial interest (shares) and different
classes of shares of each Fund. The Trust reserves the right to create and issue shares of
additional funds and/or classes. Each Fund, except, the North Carolina Tax-Exempt Bond Fund, the
Real Estate 130/30 Fund and the Seix Global Strategy Fund is diversified, as that term is defined
in the Investment Company Act of 1940, as amended (the 1940 Act).
DESCRIPTION OF PERMITTED INVESTMENTS
The Funds respective investment objectives and principal investment strategies are described in
the prospectuses. The following information supplements, and should be read in conjunction with,
the prospectuses. Following are descriptions of the permitted investments and investment practices
discussed in the Funds prospectuses under the Investment Strategy section and the associated
risk factors. A Subadviser will only invest in any of the following instruments or engage in any of
the following investment practices if such investment or activity is consistent with and permitted
by the Funds stated investment policies.
American Depositary Receipts (ADRs), European Depositary Receipts (EDRs) and Global Depositary
Receipts (GDRs). ADRs, EDRs, and GDRs are securities, typically issued by a U.S. financial
institution or a non-U.S. financial institution in the case of an EDR or GDR (a depositary). The
institution has ownership interests in a security, or a pool of securities, issued by a foreign
issuer and deposited with the depositary. ADRs, EDRs and GDRs may be available through sponsored
or unsponsored facilities. A sponsored facility is established jointly by the issuer of the
security underlying the receipt and a depositary. An unsponsored facility may be established by a
depositary without participation by the issuer of the underlying security. Holders of unsponsored
depositary receipts generally bear all the costs of the unsponsored facility. The depositary of an
unsponsored facility frequently is under no obligation to distribute shareholder communications
received from the issuer of the deposited security or to pass through, to the holders of the
receipts, voting rights with respect to the deposited securities.
Acquisitional/equipment lines (delayed-draw term loans). Acquisitional/equipment lines
(delayed-draw term loans) are credits that may be drawn down for a given period to purchase
specified assets or equipment or to make acquisitions. The issuer pays a fee during the commitment
period (a ticking fee). The lines are then repaid over a specified period (the term-out period).
Repaid amounts may not be re-borrowed. To avoid any leveraging concerns, a Fund will segregate or
earmark liquid assets with the Funds custodian in an amount sufficient to cover its repurchase
obligations.
Asset-Backed Securities. Asset-backed securities are securities backed by non-mortgage assets such
as company receivables, truck and auto loans, leases, and credit card receivables and mortgage-like
assets such as home equity loans or manufactured housing. These securities may
be traded over-the-counter and typically have a short-intermediate maturity structure depending on
the pay down characteristics of the underlying financial assets which are passed through to the
security holder. These securities are generally issued as pass-through certificates, which
represent undivided fractional ownership interests in the underlying pool of assets. Asset-backed
securities may also be debt obligations, which are known as collateralized obligations and are
generally issued as the debt of a special purpose entity, such as a trust, organized solely for the
purpose of owning these assets and issuing debt obligations. Asset-backed securities that are
backed by a single type of asset are pooled together by asset type for purposes of calculating a
Funds industry concentration levels.
Asset-backed securities are not issued or guaranteed by the U.S. Government, its agencies or
instrumentalities; however, the payment of principal and interest on such obligations may be
guaranteed up to certain amounts and, for a certain period, by a letter of credit issued by a
financial institution (such as a bank or insurance company) unaffiliated with the issuers of such
securities. The purchase of asset-backed securities raises risk considerations peculiar to the
1
financing of the instruments underlying such securities. There also is the possibility that
recoveries on repossessed collateral may not, in some cases, be available to support payments on
those securities.
Asset-backed securities entail prepayment risk, which may vary depending on the type of asset, but
is generally less than the prepayment risk associated with mortgage-backed securities. In addition,
credit card receivables are unsecured obligations of the cardholder.
For purposes of calculating Annual Fund Operating Expenses in the Prospectus, direct or indirect
fees associated with investing in structured products such as asset-backed securities are not
included.
Bank Obligations. A Fund may invest in obligations issued by banks and other savings institutions.
Investments in bank obligations include obligations of domestic branches of foreign banks and
foreign branches of domestic banks. Such investments in domestic branches of foreign banks and
foreign branches of domestic banks may involve risks that are different from investments in
securities of domestic branches of U.S. banks. These risks may include future unfavorable political
and economic developments, possible withholding taxes on interest income, seizure or
nationalization of foreign deposits, currency controls, interest limitations, or other governmental
restrictions, which might affect the payment of principal or interest on the securities held by a
Fund. Additionally, these institutions may be subject to less stringent reserve requirements and to
different accounting, auditing, reporting and recordkeeping requirements than those applicable to
domestic branches of U.S. banks. The Funds may invest in U.S. dollar-denominated obligations of
domestic branches of foreign banks and foreign branches of domestic banks only when a Subadviser
believes that the risks associated with such investment are minimal and that all applicable quality
standards have been satisfied. Bank obligations include the following:
Bankers Acceptances. Bankers acceptances are bills of exchange or time
drafts drawn on and accepted by a commercial bank. Corporations use bankers
acceptances to finance the shipment and storage of goods and to furnish dollar
exchange. Maturities are generally six months or less.
Certificates of Deposit. Certificates of deposit are interest-bearing
instruments with a specific maturity. They are issued by banks and savings
and loan institutions in exchange for the deposit of funds and normally can be
traded in the secondary market prior to maturity. Certificates of deposit with
penalties for early withdrawal will be considered illiquid.
Time Deposits. Time deposits are non-negotiable receipts issued by a bank in
exchange for the deposit of funds. Like a certificate of deposit, it earns a
specified rate of interest over a definite period of time; however, it cannot be
traded in the secondary market. Time deposits with a withdrawal penalty or that
mature in more than seven days are considered to be illiquid securities.
A Fund will not purchase obligations issued by the Adviser, Subadvisers, or their affiliates.
Borrowing. As required by the 1940 Act, a Fund must maintain continuous asset coverage (total
assets, including assets acquired with borrowed funds, less liabilities exclusive of borrowings) of
300% of all amounts borrowed. If, at any time, the value of the Funds assets should fail to meet
this 300% coverage test, the Fund, within three days (not including Sundays and holidays), will
reduce the amount of the Funds borrowings to the extent necessary to meet this 300% coverage.
Maintenance of this percentage limitation may result in the sale of portfolio securities at a time
when investment considerations otherwise indicate that it would be disadvantageous to do so.
Investment strategies that either obligate a Fund to purchase securities or require a Fund to
segregate assets are not considered to be borrowing.
In addition to the foregoing, the Funds are authorized to borrow money as a temporary measure for
extraordinary or emergency purposes in amounts not in excess of 5% of the value of a Funds total
assets. This borrowing is not subject to the foregoing 300% asset coverage requirement.
Borrowing may subject the Funds to interest costs, which may exceed the interest received on the
securities purchased with the borrowed funds. The Funds may borrow at times to meet redemption
requests rather than sell portfolio securities to raise the necessary cash. Borrowing can involve
leveraging when securities are purchased with the borrowed money.
2
Collateralized Debt Obligations. Collateralized Debt Obligations (CDOs) are securitized
interests in pools of assets. Assets called collateral usually comprise loans or debt instruments.
A CDO may be called a collateralized loan obligation (CLO) or collateralized bond obligation
(CBO) if it holds only loans or bonds, respectively. Investors bear the credit risk of the
collateral. Multiple tranches of securities are issued by the CDO, offering investors various
maturity and credit risk characteristics. Tranches are categorized as senior, mezzanine, and
subordinated/equity, according to their degree of credit risk. If there are defaults or the CDOs
collateral otherwise underperforms, scheduled payments to senior tranches take precedence over
those of mezzanine tranches, and scheduled payments to mezzanine tranches take precedence over
those to subordinated/equity tranches. Senior and mezzanine tranches are typically rated, with the
former receiving ratings of A to AAA/Aaa and the latter receiving ratings of B to BBB/Baa. The
ratings reflect both the credit quality of underlying collateral as well as how much protection a
given tranche is afforded by tranches that are subordinate to it.
Commercial Paper. Commercial paper is the term used to designate unsecured short-term promissory
notes issued by corporations and other entities. Maturities on these issues vary from a few to 270
days.
Convertible Bonds. Convertible bonds are bonds which may be converted, at the option of either the
issuer or the holder, into a specified amount of common stock of the issuer, or in the case of
exchangeable bonds, into the common stock of another corporation. Convertible bonds are generally
subordinate to other publicly held debt of the issuer, and therefore typically have a lower credit
rating than nonconvertible debt of the issuer. Convertible bonds generally carry a lower coupon
rate than the issuer would otherwise pay at issuance in exchange for the conversion feature. In
addition to the interest rate risk factors generally associated with fixed income investments, the
market risk of a convertible bond is determined by changes in the credit quality of the issuer and
price changes and volatility of the stock into which the bond may be converted. The conversion
feature may cause a convertible bond to be significantly more volatile than other types of fixed
income investments. Convertible bonds for which the value of the conversion feature is deemed
worthless are generally referred to as busted convertibles, and risk associated more closely
approximates that of similar debt without the conversion feature.
Corporate Issues. Corporate issues refer to debt instruments issued by private corporations or
other business entities. Bondholders, as creditors, have a prior legal claim over common and
preferred stockholders of the corporation as to both income and assets for the principal and
interest due to the bondholder. A Fund will buy corporate issues subject to any quality
constraints. Corporate issues may also be issued by master limited partnerships and real estate
investment trusts, or REITS.
Credit Linked Notes. A credit linked note (CLN) is a type of hybrid instrument in which a special
purpose entity issues a structured note (the Note Issuer) that is intended to replicate a single
bond, a portfolio of bonds, or with respect to the unsecured credit of an issuer, in general (the
Reference Instrument). The purchaser of the CLN (the Note Purchaser) invests a par amount and
receives a payment during the term of the CLN that equals a fixed or floating rate of interest
equivalent to a high rated funded asset (such as a bank certificate of deposit) plus an additional
premium that relates to taking on the credit risk of the Reference Instrument. Upon maturity of
the CLN, the Note Purchaser will receive a payment equal to (i) the original par amount paid to the
Note Issuer, if there is neither a designated event of default (an Event of Default) with respect
to the Reference Instrument nor a restructuring of the issuer of the Reference Instrument (a
Restructuring Event) or (ii) the value of the Reference Instrument, if an Event of Default or
Restructuring Event has occurred. Depending upon the terms of the CLN, it is also possible that
the Note Purchaser may be required to take physical delivery of the Reference Instrument in the
event of an Event of Default or a Restructuring Event. Most CLNs use a corporate bond (or a
portfolio of corporate bonds) as the Reference Instrument(s). However, almost any type of fixed
income security (including foreign government securities) or derivative contract (such as a credit
default swap) can be used as the Reference Instrument.
Custodial Receipts. A custodial receipt represents an indirect interest in a tax-exempt bond that
is deposited with a custodian. For example, custodial receipts may be used to permit the sale of
the deposited bond in smaller denominations than would otherwise be permitted. Frequently,
custodial receipts are issued to attach bond insurance or other forms of credit enhancement to the
deposited tax-exempt bond. Note, because a separate security is not created by the issuance of a receipt, many of the tax advantages bestowed upon holders of the deposited tax-exempt bond are
also conferred upon the custodial receipt holder.
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Debt Securities. Debt securities (e.g., bonds, notes, debentures) represent money borrowed that
obligates the issuer (e.g., a corporation, municipality, government, government agency) to repay
the borrowed amount at maturity (when the obligation is due and payable) and usually to pay the
holder interest at specific times.
Dollar Rolls. Dollar rolls are transactions in which securities are sold for delivery in
the current month and the seller contracts to repurchase substantially similar securities on a
specified future date. Any difference between the sale price and the purchase price (plus interest
earned on the cash proceeds of the sale) is applied against the past interest income on the
securities sold to arrive at an implied borrowing rate.
Dollar rolls may be renewed prior to cash settlement and initially may involve only a firm
commitment agreement by the Fund to buy a security.
Dollar rolls involve selling securities (e.g., mortgage-backed securities or U.S. Treasury
securities) and simultaneously entering into a commitment to purchase those or similar (same
collateral type, coupon and maturity) securities on a specified future date and price. Mortgage
dollar rolls and U.S. Treasury rolls are types of dollar rolls. A Fund foregoes principal and
interest paid on the securities during the roll period. A Fund is compensated by the difference
between the current sales price and the lower forward price for the future purchase of the
securities as well as the interest earned on the cash proceeds of the initial sale.
Dollar rolls involve the risk that the market value of the securities a Fund is obligated to
repurchase may decline below the repurchase price or that the transaction costs may exceed the
return earned by a Fund from the transaction. Dollar rolls also involve risk to a Fund if the other
party should default on its obligation and a Fund is delayed or prevented from completing the
transaction. In the event that the buyer of securities under a dollar roll files for bankruptcy or
becomes insolvent, a Funds use of proceeds of the dollar roll may be restricted pending a
determination by the other party, or its trustee or receiver, whether to enforce a Funds
obligation to repurchase the securities. In addition, the security to be delivered in the future
may turn out to be inferior to the security sold upon entering into the transaction.
If the broker-dealer to whom a Fund sells the security becomes insolvent, the Funds right to
repurchase the security may be restricted. Other risks involved in entering into dollar rolls
include the risk that the value of the security may change adversely over the term of the dollar
roll and that the security the Fund is required to repurchase may be worth less than the security
that the Fund originally held. To avoid any leveraging concerns, the Fund will segregate or earmark
liquid assets with the Funds custodian in an amount sufficient to cover its repurchase
obligations. A Fund may also cover the transaction by means of an offsetting transaction or by
other means permitted under the 1940 Act or the rules and Securities and Exchange Commission
(SEC) interpretations thereunder.
Equipment Trust Certificates (ETCs). ETCs are issued by a trust formed to finance large purchases
of equipment, such as airplanes, at favorable interest rates. Legal title on such equipment is held
by a trustee. The trustee leases the equipment and sells ETCs at a small
discount to the purchase price of the equipment. The lease payments are then used to pay principal
and interest to the ETC holders.
Equity Securities. Equity securities represent ownership interests in a company and consist of
common stocks, preferred stocks, warrants to acquire common stock, and securities convertible into
common stock. Investments in equity securities in general are subject to market risks that may
cause their prices to fluctuate over time. Fluctuations in the value of equity securities in which
a Fund invests will cause the net asset value of a Fund to fluctuate. The Funds purchase equity
securities traded in the U.S. or foreign countries on securities exchanges or the over-the-counter
market. Equity securities are described in more detail below:
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Commodity Equity Securities Commodity equity securities represent equity securities
of companies that principally engage in the energy, metals, and agriculture group of
industries. These companies may include, for example, integrated oil companies; companies
engaged in the exploration and production of oil and gas; companies primarily involved in
the production and mining of coal, related products, and other consumable fuels;
fertilizer and agricultural chemicals companies; producers of aluminum and related
products; companies engaged in producing or extracting metals and minerals; producers of
gold, precious metals and minerals, and related products; producers of iron and steel;
manufacturers of timber and related wood and paper products; and producers of agricultural
products, including crop growers, owners of plantations, and companies that produce and
process foods.
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Market conditions, interest rates, and economic, regulatory, or financial developments
could significantly affect a group of related industries, and the securities of companies
in that group of industries could react similarly to these or other developments. In
addition, from time to time, a small number of companies may represent a large portion of a
group of related industries as a whole, and these companies can be sensitive to adverse
economic, regulatory, or financial developments. |
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The commodities industries can be significantly affected by the level and volatility of
commodity prices; world events including international monetary and political developments;
import controls and worldwide competition; exploration and production spending; and tax and
other government regulations and economic conditions. |
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Common Stock. Common stock represents an equity or ownership interest in an issuer. In
the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds
and preferred stock take precedence over the claims of those who own common stock. |
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Preferred Stock. Preferred stock represents an equity or ownership interest in an
issuer that pays dividends at a specified rate and that has precedence over common stock
in the payment of dividends. In the event an issuer is liquidated or declares bankruptcy,
the claims of owners of bonds take precedence over the claims of those who own preferred
and common stock. |
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Convertible Securities. Convertible securities are bonds, debentures, notes, preferred
stocks or other securities that may be converted or exchanged (by the holder or by the
issuer) into shares of the underlying common stock (or cash or securities of equivalent
value) at a stated exchange ratio. A convertible security may also be called for
redemption or conversion by the issuer after a particular date and under certain
circumstances (including a specified price) established upon issue. If a convertible
security held by a Fund is called for redemption or conversion, the Fund could be required
to tender it for redemption, convert it into the underlying common stock, or sell it to a
third-party. |
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Convertible securities generally have less potential for gain or loss than common stocks.
Convertible securities generally provide yields higher than the underlying common stocks,
but generally lower than comparable non-convertible securities. Because of this higher
yield, convertible securities generally sell at a price above their conversion value,
which is the current market value of the stock to be received upon conversion. The
difference between this conversion value and the price of convertible securities will vary
over time depending on changes in the value of the underlying common stocks and interest
rates. When the underlying common stocks decline in value, convertible securities will tend
not to decline to the same extent because of the interest or dividend payments and the
repayment of principal at maturity for certain types of convertible securities. However,
securities that are convertible other than at the option of the holder generally do not
limit the potential for loss to the same extent as securities convertible at the option of
the holder. When the underlying common stocks rise in value, the value of convertible
securities may also be expected to increase. At the same time, however, the difference
between the market value of convertible securities and their conversion value will narrow,
which means that the value of convertible securities will generally not increase to the
same extent as the value of the underlying common stocks. Because convertible securities
may also be interest-rate sensitive, their value may increase as interest rates fall and
decrease as interest rates rise. Convertible securities are also subject to credit risk,
and are often lower-quality securities. |
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Small and Mid-Cap Issuers. Generally, capitalization or market capitalization is a
measure of a companys size. Investing in equity securities of small and mid-cap companies
often involves greater risk than is customarily associated with investments in larger
capitalization companies. This increased risk may be due to the greater business risks of
smaller size, limited markets and financial resources, narrow product lines and frequent
lack of depth of management. The securities of smaller companies are often traded in the
over-the-counter market and even if listed on a national securities exchange may not be
traded in volumes typical for that exchange. Consequently, the securities of smaller
companies are less likely to be liquid, may have limited market stability, and may be
subject to more abrupt or erratic market movements than securities of larger, more
established growth companies or the market averages in general. |
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Equity-Linked Securities. A Fund may invest in equity-linked securities, including,
among others, PERCS, ELKS or LYONs, which are securities that are convertible into, or the
value of which is based upon the value of, equity securities upon certain terms and
conditions. The amount received by an investor at maturity of such securities is not fixed
but is based on the price of the underlying common stock. It is impossible to predict
whether the price of the underlying common stock will rise or fall. Trading prices of the
underlying common stock will be influenced by the issuers operational results, by
complex, interrelated political, economic, financial or other factors affecting the
capital markets, the stock exchanges on which the underlying common stock is traded and
the market segment of which the issuer is a part. In addition, it is not possible to
predict how equity-linked securities will trade in the secondary market. The market for such securities
may be shallow, and high volume trades may be possible only with discounting. In addition
to the foregoing risks, the return on such securities depends on the creditworthiness of
the issuer of the securities, which may be the issuer of the underlying securities or a
third-party investment banker or other lender. The creditworthiness of such third-party
issuer equity-linked securities may, and often does, exceed the creditworthiness of the
issuer of the underlying securities. The advantage of using equity-linked securities over
traditional equity and debt securities is that the former are income producing vehicles
that may provide a higher income than the dividend income on the underlying equity
securities while allowing some participation in the capital appreciation of the underlying
equity securities. Another advantage of using equity-linked securities is that they may be
used for hedging to reduce the risk of investing in the generally more volatile underlying
equity securities. |
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The following are three examples of equity-linked securities. A Fund may invest in the
securities described below or other similar equity-linked securities. |
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PERCS. Preferred Equity Redemption Cumulative Stock (PERCS) technically is
preferred stock with some characteristics of common stock. PERCS are mandatorily
convertible into common stock after a period of time, usually three years, during
which the investors capital gains are capped, usually at 30%. Commonly, PERCS may
be redeemed by the issuer at any time or if the issuers common stock is trading
at a specified price level or better. The redemption price starts at the beginning
of the PERCS duration period at a price that is above the cap by the amount of the
extra dividends the PERCS holder is entitled to receive relative to the common
stock over the duration of the PERCS and declines to the cap price shortly before
maturity of the PERCS. In exchange for having the cap on capital gains and giving
the issuer the option to redeem the PERCS at any time or at the specified common
stock price level, the Fund may be compensated with a substantially higher
dividend yield than that on the underlying common stock. |
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ELKS. Equity-Linked Securities (ELKS) differ from ordinary debt securities,
in that the principal amount received at maturity is not fixed but is based on the
price of the issuers common stock. ELKS are debt securities commonly issued in
fully registered form for a term of three years under an indenture trust. At
maturity, the holder of ELKS will be entitled to receive a principal amount equal
to the lesser of a cap amount, commonly in the range of 30% to 55% greater than
the current price of the issuers common stock, or the average closing price per
share of the issuers common stock, subject to adjustment as a result of certain
dilution events, for the 10 trading days immediately prior to maturity. Unlike
PERCS, ELKS are commonly not subject to redemption prior to maturity. ELKS usually
bear interest six times during the three-year term at a substantially higher rate
than the dividend yield on the underlying common stock. In exchange for having the
cap on the return that might have been received as capital gains on the underlying
common stock, the Fund may be compensated with the higher yield, contingent on how
well the underlying common stock does. |
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LYONS. Liquid Yield Option Notes (LYONS) differ from ordinary debt
securities, in that the amount received prior to maturity is not fixed but is
based on the price of the issuers common stock. LYONs are zero-coupon notes that
sell at a large discount from face value. For an investment in LYONs, a Fund will
not receive any interest payments until the notes mature, typically in 15 to 20
years, when the notes are redeemed at face, or par value. The yield on LYONs,
typically, is lower-than-market rate for debt securities of the same maturity, due
in part to the fact that the LYONs are convertible into common stock of the issuer
at any time at the option of the holder of the LYONs. Commonly, the |
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LYONs are
redeemable by the issuer at any time after an initial period or if the issuers
common stock is trading at a specified price level or better, or, at the option of
the holder, upon certain fixed dates. The redemption price typically is the
purchase price of the LYONs plus accrued original issue discount to the date of
redemption, which amounts to the lower-than-market yield. A Fund will receive only
the lower-than-market yield unless the underlying common stock increases in value
at a substantial rate. LYONs are attractive to investors, like a Fund, when it
appears that they will increase in value due to the rise in value of the
underlying common stock. |
Eurodollar and Yankee Dollar Obligations. Eurodollar obligations are U.S. dollar denominated
obligations issued outside the United States by non-U.S. corporations or other entities. Yankee
dollar obligations are U.S. dollar denominated obligations issued in the United States by non-U.S.
corporations or other entities. Eurodollar and Yankee Dollar obligations are subject to the same
risks that pertain to the domestic issues, notably credit risk, market risk and liquidity risk.
Additionally, Eurodollar and Yankee Dollar obligations are subject to certain sovereign risks. One
such risk is the possibility that a sovereign country might prevent capital from flowing across
their borders. Other risks include: adverse political and economic developments; the extent and
quality of government regulation of financial markets and institutions; the imposition of foreign
withholding taxes; and the expropriation or nationalization or foreign issuers.
Exchange Traded Funds (ETFs). ETFs are investment companies whose shares are bought and sold on
a securities exchange. An ETF holds a portfolio of securities designed to track a particular
market segment or index. Some examples of ETFs are SPDRsâ, DIAMONDSSM,
NASDAQ 100 Index Tracking StockSM (QQQs SM), iSharesâ
and VIPERsâ. A Fund could purchase an ETF to temporarily gain exposure to a
portion of the U.S. or foreign market. The risks of owning an ETF generally reflect the risks of
owning the underlying securities they are designed to track, although lack of liquidity in an ETF
could result in it being more volatile than the underlying portfolio of securities and ETFs have
management fees that increase their costs versus the costs of owning the underlying securities
directly. (See also Investment Company Shares below).
Fixed Income Securities. Fixed income securities are debt obligations issued by corporations,
municipalities and other borrowers. Coupons may be fixed or adjustable, based on a pre-set formula.
The market value of fixed income investments may change in response to interest rate changes and
other factors. During periods of falling interest rates, the values of outstanding fixed income
securities generally rise. Conversely, during periods of rising interest rates, the values of such
securities generally decline. Moreover, while securities with longer maturities tend to
produce higher yields, the prices of longer maturity securities are also subject to greater market
fluctuations as a result of changes in interest rates. Changes by recognized agencies in the rating
of any fixed income security and in the ability of an issuer to make payments of interest and
principal will also affect the value of these investments. Changes in the value of portfolio
securities will not affect cash income derived from these securities but will affect a Funds net
asset value.
Floating Rate Instruments. Floating rate instruments have a rate of interest that is set as a
specific percentage of a designated base rate (such as LIBOR). Such obligations are frequently
secured by letters of credit or other credit support arrangements provided by banks. The quality of
the underlying credit or of the bank, as the case may be, must, in the Subadvisers opinion be
equivalent to the long-term bond or commercial paper ratings stated in the prospectus. The
Subadviser will monitor the earning power, cash flow and liquidity ratios of the issuers of such
instruments and the ability of an issuer of a demand instrument to pay principal and interest on
demand.
Foreign Securities. Foreign securities may include U.S. dollar denominated obligations or
securities of foreign issuers denominated in other currencies. Possible investments include
obligations of foreign corporations and other entities, obligations of foreign branches of U.S.
banks and of foreign banks, including, without limitation, European Certificates of Deposit,
European Time Deposits, European Bankers Acceptances, Canadian Time Deposits, Europaper and Yankee
Certificates of Deposit, and investments in Canadian Commercial Paper and foreign securities. These
instruments have investment risks that differ in some respects from those related to investments in
obligations of U.S. domestic issuers. These risks include future adverse political and economic
developments, the possible imposition of withholding taxes on interest or other income, possible
seizure, nationalization, or expropriation of foreign deposits, the possible establishment of
exchange controls or taxation at the source, greater fluctuations in value due to changes in
exchange rates, or the adoption of other foreign governmental restrictions which might adversely
affect the payment of principal and interest on such obligations. These investments may also entail
higher custodial fees and sales commissions than
7
domestic investments. Foreign issuers of
securities or obligations are often subject to accounting treatment and engage in business
practices different from those respecting domestic issuers of similar securities or obligations.
Foreign branches of U.S. banks and foreign banks may be subject to less stringent reserve
requirements than those applicable to domestic branches of U.S. banks.
In making investment decisions for the Funds, a Subadviser evaluates the risks associated with
investing Fund assets in a particular country, including risks stemming from a countrys financial
infrastructure and settlement practices; the likelihood of expropriation, nationalization or
confiscation of invested assets; prevailing or developing custodial practices in the country; the
countrys laws and regulations regarding the safekeeping, maintenance and recovery of invested
assets, the likelihood of government-imposed exchange control restrictions which could impair the
liquidity of Fund assets maintained with custodians in that country, as well as risks from
political acts of foreign governments (country risks). Of course, a Subadviser cannot assure that
the Fund will not suffer losses resulting from investing in foreign countries.
Holding Fund assets in foreign countries through specific foreign custodians presents additional
risks, including but not limited to the risks that a particular foreign custodian or depository
will
not exercise proper care with respect to Fund assets or will not have the financial strength or
adequate practices and procedures to properly safeguard Fund assets.
By investing in foreign securities, the Funds attempt to take advantage of differences between both
economic trends and the performance of securities markets in the various countries, regions and
geographic areas as prescribed by each Funds investment objective and policies. During certain
periods the investment return on securities in some or all countries may exceed the return on
similar investments in the United States, while at other times the investment return may be less
than that on similar U.S. securities. The international investments of a Fund may reduce the effect
that events in any one country or geographic area will have on its investment holdings. Of course,
negative movement by a Funds investments in one foreign market represented in its portfolio may
offset potential gains from the Funds investments in another countrys markets.
Emerging countries are all countries that are considered to be developing or emerging countries by
the World Bank or the International Finance Corporation, as well as countries classified by the
United Nations or otherwise regarded by the international financial community as developing.
Foreign Currency: A Fund may temporarily hold funds in bank deposits in foreign currencies during
the completion of investment programs. A Fund may conduct foreign currency exchange transactions
either on a spot (cash) basis at the spot rate prevailing in the foreign exchange market or by
entering into a foreign currency forward contract (forward contract). A forward contract involves
an obligation to purchase or sell a specific amount of a specific currency at a future date, which
may be any fixed number of days (usually less than one year) from the date of the contract agreed
upon by the parties, at a price set at the time of the contract. Forward contracts are considered
derivatives financial instruments whose performance is derived, at least in part, from the
performance of another asset (such as a security, currency or an index of securities). A forward
contract locks in the exchange rate between the currency it will deliver and the currency it will
receive at the maturity of the contract. A Fund may enter into forward contracts to hedge against
risks arising from securities the Fund owns or anticipates purchasing, or the U.S. dollar value of
interest and dividends paid on those securities. In addition, the Fund may enter into forward
contracts to gain exposure to foreign markets.
At or before settlement of a forward contract, a Fund may either deliver the currency or terminate
its contractual obligation to deliver the currency by purchasing an offsetting contract. If a Fund
makes delivery of the foreign currency, it may be required to obtain the currency through the
conversion of assets of a Fund into the currency. A Fund may close out a forward contract by
purchasing or selling an offsetting contract, in which case it will realize a gain or a loss.
A Fund may invest in a combination of forward contracts and U.S. dollar-denominated instruments in
an attempt to obtain an investment result that is substantially the same as a direct investment in
a foreign currency-denominated instrument. This investment technique creates a synthetic position
in the particular foreign-currency instrument whose performance the manager is trying to duplicate.
For example, the combination of U.S. dollar-denominated
8
money market instruments with long
forward contracts creates a position economically equivalent to a money market instrument
denominated in the foreign currency itself. Such combined positions are sometimes necessary when
the money market in a particular foreign currency is small or relatively illiquid.
For hedging purposes, a Fund may invest in forward contracts to hedge either specific transactions
(transaction hedging) or portfolio positions (position hedging). Transaction hedging is the
purchase or sale of forward contracts with respect to specific receivables or payables of a Fund in
connection with the purchase and sale of portfolio securities. Position hedging is the sale of a
forward contract on a particular currency with respect to portfolio positions denominated or quoted
in that currency.
A Fund may use forward contracts for position hedging if consistent with its policy of trying to
expose its net assets to foreign currencies. A Fund is not required to enter into forward contracts
for hedging purposes and it is possible that a Fund may not be able to hedge against a currency. It
also is possible, under certain circumstances that a Fund may have to limit its currency
transactions to qualify as a regulated investment company under the Internal Revenue Code of
1986, as amended (the Internal Revenue Code).
Each Fund currently does not intend to enter into a forward currency contract with a term of more
than one year, or to engage in position hedging with respect to the currency of a particular
country to more than the aggregate market value (at the time the hedging transaction is entered
into) of its portfolio securities denominated in (or quoted in or currently convertible into or
directly related through the use of forward currency contracts in conjunction with money market
instruments to) that particular currency. At or before the maturity of a forward currency
contract, a Fund may either sell a portfolio security and make delivery of the currency, or retain
the security and terminate its contractual obligation to deliver the currency by buying an
offsetting contract obligating it to buy, on the same maturity date, the same amount of the
currency. If a Fund engages in an offsetting transaction, it may later enter into a new forward
currency contract to sell the currency.
If a Fund engages in an offsetting transaction, it will incur a gain or loss to the extent that
there has been movement in forward currency contract prices. If forward prices go down during the
period between the date a Fund enters into a forward currency contract for the sale of a currency
and the date it enters into an offsetting contract for the purchase of the currency, the Fund will
realize a gain to the extent that the price of the currency it has agreed to sell exceeds the price
of the currency it has agreed to buy. If forward prices go up, a Fund will suffer a loss to the
extent the price of the currency it has agreed to buy exceeds the price of the currency it has
agreed to sell.
A Fund may also enter into a forward contract to sell, for a fixed amount of U.S. dollars or other
appropriate currency, the amount of foreign currency approximating the value of some or all of the
Funds securities denominated in the foreign currency. A Fund may realize a gain or loss from
currency transactions.
When a Fund purchases or sells a forward contract, under applicable federal securities laws, rules,
and interpretations thereof and applicable exchange rules, a Fund must set aside (referred to
sometimes as asset segregation) liquid assets, or engage in other measures to cover open
positions with respect to such transactions. For example, with respect to forward contracts that
are not contractually required to cash-settle, a Fund must cover its open positions by setting
aside liquid assets equal to the contracts full, notional value. With respect to forward contracts
that are contractually required to cash-settle, a Fund may set aside or deliver liquid assets,
including cash, in an amount equal to a Funds daily marked-to-market (net) obligation
rather than the notional value. By setting aside or delivering assets equal to only its net
obligation under cash-settled forward contracts, a Fund will have the ability to employ leverage
to a greater extent than if a Fund were required to segregate assets equal to the full notional
value of such contracts. The Funds reserve the right to modify their asset segregation policies in
the future.
A Fund may otherwise cover the transaction by means of an offsetting transaction or by other means
permitted by the 1940 Act or the rules and SEC interpretations thereunder. In as much as these
transactions are entered into for hedging purposes or are offset by segregating liquid assets, as
permitted by applicable law, the Funds and their Subadvisers believe that these transactions do not
constitute senior securities under the 1940 Act and, accordingly, will not treat them as being
subject to a Funds borrowing restrictions. The Funds reserve the right to modify their asset
segregation policies in the future.
9
Foreign Sovereign Debt Securities. Investing in fixed and floating rate high yield foreign
sovereign debt securities will expose a Fund to the direct or indirect consequences of political,
social or economic changes in countries that issue the securities. The ability of a foreign
sovereign obligor to make timely payments on its external debt obligations will also be strongly
influenced by the obligors balance of payments, including export performance, its access to
international credits and investments, fluctuations in interest rates and the extent of its foreign
reserves. A country whose exports are concentrated in a few commodities or whose economy depends on
certain strategic imports could be vulnerable to fluctuations in international prices of these
commodities or imports. To the extent that a country receives payment for its exports in currencies
other than dollars, its ability to make debt payments denominated in dollars could be adversely
affected. If a foreign sovereign obligor cannot generate sufficient earnings from foreign trade to
service its external debt, it may need to depend on continuing loans and aid from foreign
governments, commercial banks and multilateral organizations, and inflows of foreign investment.
The commitment on the part of these foreign governments, multilateral organizations and others to
make such disbursements may be conditioned on the governments implementation of economic reforms
and/or economic performance and the timely service of its obligations. Failure to implement such
reforms, achieve such levels of economic performance or repay principal or interest when due may
result in the cancellation of such third parties commitments to lend funds, which may further
impair the obligors ability or willingness to timely service its debts.
Forward Roll Transactions. To enhance current income, each Fund may enter into forward roll
transactions with respect to mortgage-related securities. In a forward roll transaction, the Fund
sells a mortgage-related security to a financial institution, such as a bank or broker-dealer, and
simultaneously agrees to repurchase a similar security from the institution at a later date at an
agreed upon price. The securities that are repurchased will bear the same interest rate as those
sold, but generally will be collateralized by different pools of mortgages with different
pre-payment histories than those sold. During the period between the sale and purchase, the Fund
will not be entitled to receive interest and principal payments on the securities sold. Proceeds of
the sale typically will be invested in short-term instruments, particularly repurchase agreements,
and the income from these investments, together with any additional fee income received on the sale
will be expected to generate income for the Fund exceeding the yield on the securities sold.
Forward roll transactions involve the risk that the market value of the securities sold by the Fund
may decline below the purchase price of those securities. The Fund will segregate permissible
liquid assets at least equal to the amount of the repurchase price (including accrued interest).
Futures and Options on Futures. Futures contracts provide for the future sale by one party and
purchase by another party of a specified amount of a specific security at a specified future time
and at a specified price. An option on a futures contract gives the purchaser the right, in
exchange for a premium, to assume a position in a futures contract at a specified exercise price
during the term of the option. A Fund will reduce the risk that it will be unable to close out a
futures contract by only entering into futures contracts that are traded on a national futures
exchange regulated by the Commodities Futures Trading Commission (CFTC). A Fund may use futures
contracts and related options for bona fide hedging; attempting to offset changes in the value of
securities held or expected to be acquired or be disposed of; attempting to minimize fluctuations
in foreign currencies; attempting to gain exposure to a particular market, index or instrument; or
other risk management purposes. To the extent the Fund uses futures and/or options on futures, it
will do so in accordance with Rule 4.5 of the Commodity Exchange Act (CEA). The Trust, on behalf
of the Funds, has filed a notice of eligibility for exclusion from the definition of the term
commodity pool operator in accordance with Rule 4.5 and therefore, no Fund is subject to
registration or regulation as a commodity pool operator under the CEA.
An index futures contract is a bilateral agreement pursuant to which two parties agree to take or
make delivery of an amount of cash equal to a specified dollar amount times the difference between
the index value at the close of trading of the contract and the price at which the futures contract
is originally struck. No physical delivery of the securities comprising the index is made;
generally contracts are closed out prior to the expiration date of the contract.
When a Fund purchases or sells a futures contract, under applicable federal securities laws, rules,
and interpretations thereof and applicable exchange rules, a Fund must set aside (referred to
sometimes as asset segregation) liquid assets, or engage in other measures to cover open
positions with respect to such transactions. For example, with respect to futures contracts that
are not contractually required to cash-settle, a Fund must cover its open positions by setting
aside liquid assets equal to the contracts full, notional value. With respect to futures contracts
that are contractually required to cash-settle, a Fund may set aside or deliver liquid assets,
including cash, in an amount equal
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to a Funds daily marked-to-market (net) obligation rather than
the notional value. By setting aside or delivering assets equal to only its net obligation under
cash-settled futures contracts, a Fund will have the ability to employ leverage to a greater
extent than if a Fund were required to segregate assets equal to the full notional value of such
contracts. The Funds reserve the right to modify their asset segregation policies in the future.
A Fund may also cover its long position in a futures contract by purchasing a put option on the
same futures contract with a strike price (i.e., an exercise price) as high as or higher than the
price of the futures contract. In the alternative, if the strike price of the put is less than the
price of the futures contract, the Fund will maintain in a segregated account cash or liquid
securities equal in value to the difference between the strike price of the put and the price of
the futures contract. A Fund may also cover its long position in a futures contract by taking a
short position in the instruments underlying the futures contract, or by taking positions in
instruments with prices, which are expected to move relatively consistently with the futures
contract. A Fund may cover its short position in a futures contract by taking a long position in
the instruments underlying the
futures contracts, or by taking positions in instruments with prices, which are expected to move
relatively consistently with the futures contract.
A Fund may cover its sale of a call option on a futures contract by taking a long position in the
underlying futures contract at a price less than or equal to the strike price of the call option.
In the alternative, if the long position in the underlying futures contract is established at a
price greater than the strike price of the written (sold) call, a Fund will maintain in a
segregated account cash or liquid securities equal in value to the difference between the strike
price of the call and the price of the futures contract. The Fund may also cover its sale of a call
option by taking positions in instruments with prices which are expected to move relatively
consistently with the call option. A Fund may cover its sale of a put option on a futures contract
by taking a short position in the underlying futures contract at a price greater than or equal to
the strike price of the put option, or, if the short position in the underlying futures contract is
established at a price less than the strike price of the written put, the Fund will maintain in a
segregated account cash or liquid securities equal in value to the difference between the strike
price of the put and the price of the futures contract. A Fund may also cover its sale of a put
option by taking positions in instruments with prices which are expected to move relatively
consistently with the put option.
In as much as these transactions are entered into for hedging purposes or are offset by segregating
liquid assets, as permitted by applicable law, the Funds and their Subadvisers believe that these
transactions do not constitute senior securities under the 1940 Act and, accordingly, will not
treat them as being subject to a Funds borrowing restrictions.
There are significant risks associated with a Funds use of futures contracts and related options,
including the following: (1) the success of a hedging strategy may depend on the Advisers ability
to predict movements in the prices of individual securities, fluctuations in markets and movements
in interest rates, (2) there may be an imperfect or no correlation between the changes in market
value of the securities held by a Fund and the prices of futures and options on futures, (3) there
may not be a liquid secondary market for a futures contract or option, (4) trading restrictions or
limitations may be imposed by an exchange, and (5) government regulations may restrict trading in
futures contracts and options on futures. In addition, some strategies reduce a Funds exposure to
price fluctuations, while others tend to increase its market exposure
Guaranteed Investment Contracts (GICs). A GIC is a general obligation of the issuing insurance
company and not a separate account. The purchase price paid for a GIC becomes part of the general
assets of the issuer, and the contract is paid at maturity from the general assets of the issuer.
Generally, GICs are not assignable or transferable without the permission of the issuing insurance
company. For this reason, an active secondary market in GICs does not currently exist and GICs are
considered to be illiquid investments.
Hedging Techniques. Hedging is an investment strategy designed to offset investment risks. Hedging
activities include, among other things, the use of options and futures. There are risks associated
with hedging activities, including: (i) the success of a hedging strategy may depend on an ability
to predict movements in the prices of individual securities, fluctuations in markets, and movements
in interest rates; (ii) there may be an imperfect or no correlation between the changes in market
value of the securities held by a Fund and the prices of futures and option on futures; (iii) there
may not be a liquid secondary market for a futures contract or option; and (iv) trading
restrictions or limitations may be imposed by an exchange, and government regulations may restrict
trading in futures contracts and options.
11
High Yield Securities. High yield securities, commonly referred to as junk bonds, are debt
obligations rated below investment grade, i.e., below BBB- by Standard & Poors Ratings Group
(S&P) or Baa3 by Moodys Investors Service, Inc. (Moodys), or their unrated equivalents. The
risks associated with investing in high yield securities include:
1. High yield, lower rated bonds may involve greater risk of default or price
declines than investments in investment grade securities (e.g., securities rated
BBB- or higher by S&P or Baa3 or higher by Moodys) due to changes in the issuers
creditworthiness.
2. The market for high risk, high yield securities may be thinner and less active,
causing market price volatility and limited liquidity in the secondary market. This
may limit the ability of a Fund to sell these securities at their fair market values
either to meet redemption requests, or in response to changes in the economy or the
financial markets.
3. Market prices for high risk, high yield securities may also be affected by
investors perception of the issuers credit quality and the outlook for economic
growth. Thus, prices for high risk, high yield securities may move independently of
interest rates and the overall bond market.
4. The market for high risk, high yield securities may be adversely affected by
legislative and regulatory developments.
Illiquid Securities. Illiquid securities are securities that cannot be sold or disposed of in the
ordinary course of business (within seven days) at approximately the prices at which they are
valued. Because of their illiquid nature, illiquid securities must be priced at fair value as
determined in good faith pursuant to procedures approved by the Trusts Board of Trustees. Despite
such good faith efforts to determine fair value prices, a Funds illiquid securities are subject to
the risk that the securitys fair value price may differ from the actual price, which the Fund may
ultimately realize upon its sale or disposition. Difficulty in selling illiquid securities may
result in a loss or may be costly to a Fund. Under the supervision of the Trusts Board of
Trustees, the Subadviser determines the liquidity of a Funds investments. In determining the
liquidity of a Funds investments, the Subadviser may consider various factors, including (1) the
frequency and volume of trades and quotations, (2) the number of dealers and prospective purchasers
in the marketplace, (3) dealer undertakings to make a market, and (4) the nature of the security
and the market in which it trades (including any demand, put or tender features, the mechanics and
other requirements for transfer, any letters of credit or other credit enhancement features, any
ratings, the number of holders, the method of soliciting offers, the time required to dispose of
the security, and the ability to assign or offset the rights and obligations of the security). A
Fund will not invest more than 15% of its net assets (5% with respect to the Money Market Funds) in
illiquid securities.
Initial Public Offerings. A Fund may invest in a companys securities at the time of a companys
initial public offering (IPO). Companies involved in IPOs are often smaller and have a limited
operating history, which involves a greater risk that the value of their securities will be
impaired following the IPO. In addition, market psychology prevailing at the time of an IPO can
have a substantial and unpredictable effect on the price of an IPO security, causing the price of a
companys securities to be particularly volatile at the time of its IPO and for a period
thereafter. As a result, a Funds Adviser or Sub-Adviser might decide to sell an IPO security more
quickly than it would otherwise, which may result in significant gains or losses to the Fund.
Inverse Floaters. A Fund may invest in municipal securities whose interest rates bear an inverse
relationship to the interest rate on another security or the value of an index (Inverse
Floaters). An investment in Inverse Floaters may involve greater risk than an investment in a
fixed rate bond. Because changes in the interest rate on the other security or index inversely
affect the residual interest paid on the Inverse Floater, the value and income of an inverse
floater is generally more volatile than that of a fixed rate bond. Inverse Floaters have varying
degrees of liquidity, and the market for these securities is relatively volatile. These securities
tend to underperform the market for fixed rate bonds in a rising interest rate environment, but
tend to outperform the market for fixed rate bonds when interest rates decline.
12
Investment Company Shares. A Fund may invest in the securities of other investment companies to the
extent that such an investment would be consistent with the requirements of the 1940 Act and the
Funds investment objectives.
Notwithstanding these restrictions, each Fund may invest any amount, pursuant to Rule 12d1-1 of the
1940 Act, in affiliated or unaffiliated investment companies that hold themselves out as money
market funds and which operate in accordance with Rule 2a-7 of the 1940 Act. A Fund will
indirectly bear its proportionate share of any management fees paid by an investment company in
which it invests in addition to the advisory fee paid by the Fund.
Under Section 12(d)(1) of the 1940 Act, a Fund may invest only up to 5% of its total assets in the
securities of any one investment company (other than money market funds), but may not own more than
3% of the outstanding voting stock of any one investment company or invest more than 10% of its
total assets in the securities of other investment companies. However, a Fund may exceed these
limits if (i) the ETF or the Fund has received an order for exemptive relief from the 3%, 5%, or
10% limitations from the SEC that is applicable to the Fund; and (ii) the ETF and the Fund take
appropriate steps to comply with any conditions in such order. In the alternative, a Fund may rely
on Rule 12d1-3, which allows unaffiliated mutual funds to exceed the 5% Limitation and the 10%
Limitation, provided the aggregate sales loads any investor pays (i.e., the combined distribution
expenses of both the acquiring fund and the acquired funds) does not exceed the limits on sales
loads established by Financial Industry Regulatory Authority (FINRA), for funds of funds.
For hedging or other purposes, each Fund may invest in investment companies that seek to track the
composition and/or performance of specific indexes or portions of specific indexes. Certain of
these investment companies, known as ETFs, are traded on a securities exchange. (See Exchange
Traded Funds above.) The market prices of index-based investments will fluctuate in accordance
with changes in the underlying portfolio securities of the investment company and also due to
supply and demand of the investment companys shares on the exchange upon which the shares are
traded. Index-based investments may not replicate or otherwise match the composition or performance
of their specified index due to transaction costs, among other things. Pursuant to orders issued by
the SEC to iShares® Funds, The Select Sector SPDR Trust, streetTRACKS Series Trust,
streetTRACKS Index Shares Fund and Vanguard Trust and procedures approved by the Board, each Fund
may invest in iShares® Funds, The Select Sector SPDR Trust, streetTRACKS Series Trust, streetTRACKS
Index Shares Fund and Vanguard Trust in excess of the 5% and 10% limits described above, provided
that the Fund has described ETF investments in its prospectus and otherwise complies with the
conditions of the SEC, as may be amended, and any other applicable investment limitations.
iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A.
(BlackRock). Neither BlackRock, The Select Sector SPDR Trust, streetTRACKS Series Trust,
streetTRACKS Index Shares Fund nor the iShares® Funds makes any representations regarding the
advisability of investing in the Funds.
Investment Grade Obligations. Investment grade obligations are fixed income obligations rated by
one or more of the rating agencies in one of the four highest rating categories at the time of
purchase (e.g., AAA, AA, A or BBB by S&P or Fitch, Inc. (Fitch), or Aaa, Aa, A or Baa by Moodys
or determined to be of equivalent quality by the Subadviser). Securities rated BBB or Baa
represents the lowest of four levels of investment grade obligations and are regarded as borderline
between sound obligations and those in which the speculative element begins to predominate. Ratings
assigned to fixed income securities represent only the opinion of the rating agency assigning the
rating and are not dispositive of the credit risk associated with the purchase of a particular
fixed income obligation. A Fund may hold unrated securities if its Subadviser considers the risks
involved in owning that security to be equivalent to the risks involved in holding an investment
grade security. Moreover, market risk also will affect the prices of even the highest rated fixed
income obligation so that their prices may rise or fall even if the issuers capacity to repay its
obligation remains unchanged.
Leveraged Buyouts. A Fund may invest in leveraged buyout limited partnerships and funds that, in
turn, invest in leveraged buyout transactions (LBOs). An LBO, generally, is an acquisition of an
existing business by a newly formed corporation financed largely with debt assumed by such newly
formed corporation to be later repaid with funds generated from the acquired company. Equity
investments in LBOs may appreciate substantially in value given only modest growth in the earnings
or cash flow of the acquired business. Investments in LBO limited partnerships and funds, however,
present a number of risks. Investments in LBO limited partnerships and funds will normally lack
liquidity and may be subject to intense competition from other LBO limited partnerships and funds.
Additionally, if the cash flow of the acquired company is insufficient to service the debt assumed
in the LBO, the LBO limited partnership or fund could lose all or part of its investment in such
acquired company.
13
Master Limited Partnerships. Master limited partnerships (MLPs) are limited partnerships in
which ownership units are publicly traded. MLPs often own or own interests in properties or
businesses that are related to oil and gas industries, including pipelines, although MLPs may
invest in other types of industries, or in credit-related investments. Generally, an MLP is
operated under the supervision of one or more managing general partners. Limited partners (like a
Fund that invests in an MLP) are not involved in the day-to-day management of the partnership. A
Fund also may invest in companies who serve (or whose affiliates serve) as the general partner of
an MLP.
Investments in MLPs are generally subject to many of the risks that apply to partnerships. For
example, holders of the units of MLPs may have limited control and limited voting rights on matters
affecting the partnership. There may be fewer corporate protections afforded investors in an MLP
than investors in a corporation. Conflicts of interest may exist among unit holders, subordinated
unit holders and the general partner of an MLP, including those arising from incentive distribution
payments. MLPs that concentrate in a particular industry or region are subject to risks associated
with such industry or region. MLPs holding credit-related investments are subject to interest rate
risk and the risk of default on payment obligations by debt issuers. Investments held by MLPs may
be illiquid. MLP units may trade infrequently and in limited volume, and they may be subject to
more abrupt or erratic price movements than securities of larger or more broadly based companies.
The Funds may also hold investments in limited liability companies that have many of the same
characteristics and are subject to many of the same risks as master limited partnerships.
Distributions attributable to gain from the sale of master limited partnerships may be taxed as
ordinary income.
Medium-Term Notes. Medium-term notes are periodically or continuously offered corporate or agency
debt that differs from traditionally underwritten corporate bonds only in the process by which they
are issued.
Money Market Securities. Money market securities include short-term U.S. government securities;
custodial receipts evidencing separately traded interest and principal components of securities
issued by the U.S. Treasury; commercial paper rated in the highest short-term rating category by a
nationally recognized statistical ratings organization (NRSRO), such as S&P or Moodys, or
determined by the Subadviser to be of comparable quality at the time of purchase; short-term bank
obligations (certificates of deposit, time deposits and bankers acceptances) of U.S. commercial
banks with assets of at least $1 billion as of the end of their most recent fiscal year; and
repurchase agreements involving such securities. Each of these money market securities are
described herein. For a description of ratings, see Appendix A to this SAI.
Mortgage-Backed Securities. A Fund may invest in mortgage-backed and asset-backed securities.
Mortgage-backed securities (MBS) are securities which represent ownership interests in, or are
debt obligations secured entirely or primarily by, pools of residential or commercial and reverse
mortgage loans or other asset-backed securities (the Underlying Assets). Such securities may be
issued by U.S. government agencies and government-sponsored entities, such as Government National
Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), Federal Home Loan
Mortgage Corporation (FHLMC), commercial banks, savings and loan associations, mortgage banks, or
by issuers that are affiliates of or sponsored by such entities. The payment of interest and
principal on mortgage-backed obligations issued by these entities may be guaranteed by the full
faith and credit of the U.S. Government (in the case of GNMA), or may be guaranteed by the issuer
(in the case of FNMA and MHLMC). However, these guarantees do not apply to the market prices and
yields of these securities, which vary with changes in interest rates.
Obligations of GNMA are backed by the full faith and credit of the U.S. Government. Obligations of
Fannie Mae and FHLMC are not backed by the full faith and credit of the U.S. Government, but are
considered to be of high quality since such entities are considered to be instrumentalities of the
United States. In the case of mortgage-backed securities representing ownership interests in the
Underlying Assets, the principal and interest payments on the underlying mortgage loans are
distributed monthly to the holders of the mortgage-backed securities. In the case of
mortgage-backed securities representing debt obligations secured by the Underlying Assets, the
principal and interest payments on the underlying mortgage loans, and any reinvestment income
thereon, provide the funds to pay debt service on such mortgage-backed securities.
14
Certain mortgage-backed securities represent an undivided fractional interest in the entirety of
the Underlying Assets (or in a substantial portion of the Underlying Assets, with additional
interests junior to that of the mortgage-backed security), and thus have payment terms that closely
resemble the payment terms of the Underlying Assets.
In addition, many mortgage-backed securities are issued in multiple classes. Each class of such
multi-class mortgage-backed securities, often referred to as a tranche, is issued at a specific
fixed or floating coupon rate and has a stated maturity or final distribution date. Principal
prepayment on the Underlying Assets may cause the MBS to be retired substantially earlier than
their stated maturities or final distribution dates. Interest is paid or accrues on all or most
classes of the MBS on a periodic basis, typically monthly or quarterly. The principal of and
interest on the Underlying Assets may be allocated among the several classes of a series of MBS in
many different ways. In a relatively common structure, payments of principal (including any
principal prepayments) on the Underlying Assets are applied to the classes of a series of MBS in
the order of their respective stated maturities so that no payment of principal will be made on any
class of MBS until all other classes having an earlier stated maturity have been paid in full. An
important feature of MBS is that the principal amount is generally subject to partial or total
prepayment at any time because the Underlying Assets (i.e., loans) generally may be prepaid at any
time. The occurrence of prepayments is a function of several factors, including interest rates,
general economic conditions, the location of the mortgaged property, the age of the mortgage or
other underlying obligations, and other social and demographic conditions. Because prepayment rates
of individual mortgage pools vary widely, the average life of a particular pool is difficult to
predict. The rate of principal payments for a reverse mortgage-backed security depends on a variety
of economic, geographic, social, and other factors, including interest rates and borrower
mortality. Reverse mortgage-backed securities may respond differently to economic, geographic,
social, and other factors than other mortgage-backed securities.
A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the
equity in his or her home into cash. The equity built up over years of home mortgage payments can
be paid to the borrower. But unlike a traditional home equity loan or second mortgage, no repayment
is required until the borrower no longer uses the home as his or her principal residence. A
reverse mortgage derives its name from the pattern of payments that is typically the reverse of a
traditional mortgage loan used to buy a home. The three basic types of reverse mortgages are
single purpose reverse mortgages, Federal Housing Administration (FHA) insured reverse mortgages
and proprietary reverse mortgages. Single purpose reverse mortgages are offered only by some state
and local government agencies and nonprofit organizations. FHA insured reverse mortgages, also
known as Home Equity Conversion Mortgages, are the oldest and most popular reverse mortgage product
and are insured by the federal government through FHA, a part of the U.S. Department of Housing and
Urban Development. Proprietary reverse mortgages are private loans that are typically backed by
the companies that originate them.
Private pass-through securities are mortgage-backed securities issued by a non-governmental agency,
such as a trust. While they are generally structured with one or more types of credit enhancement,
private pass-through securities generally lack a guarantee by an entity having the credit status of
a governmental agency or instrumentality. The two principal types of private mortgage-backed
securities are collateralized mortgage obligations (CMOs) and real estate mortgage investment
conduits (REMICs).
CMOs are collateralized mortgage obligations, which are collateralized by mortgage pass-through
securities. Cash flows from the mortgage pass-through securities are allocated to various tranches
(a tranche is essentially a separate security) in a predetermined, specified order. Each tranche
has a stated maturity the latest date by which the tranche can be completely repaid, assuming no
prepayments and has an average life the average of the time to receipt of a principal payment
weighted by the size of the principal payment. The average life is typically used as a proxy for
maturity because the debt is amortized (repaid a portion at a time), rather than being paid off
entirely at maturity, as would be the case in a straight debt instrument.
Although some of the mortgages underlying CMOs may be supported by various types of insurance, and
some CMOs may be backed by GNMA certificates or other mortgage pass-throughs issued or guaranteed
by U.S. government agencies or instrumentalities, the CMOs themselves are not generally guaranteed.
REMICs are private entities formed for the purpose of holding a fixed pool of mortgages secured by
an interest in real property. REMICs are similar to CMOs in that they issue multiple classes of
securities and are rated in one of the two highest categories by S&P or Moodys.
15
Investors may purchase beneficial interests in REMICs, which are known as regular interests, or
residual interests. Guaranteed REMIC pass-through certificates (REMIC Certificates) issued by
Fannie Mae or FHLMC represent beneficial ownership interests in a REMIC trust consisting
principally of mortgage loans or Fannie Mae, FHLMC or GNMA-guaranteed mortgage pass-through
certificates.
For FHLMC REMIC Certificates, FHLMC guarantees the timely payment of interest. GNMA REMIC
Certificates are backed by the full faith and credit of the U.S. Government.
Parallel pay CMOs and REMICs are structured to provide payments of principal on each payment date
to more than one class. These simultaneous payments are taken into account in calculating the
stated maturity date or final distribution date of each class, which must be retired by its stated
maturity date or final distribution date, but may be retired earlier. Planned Amortization Class
CMOs (PAC Bonds) generally require payments of a specified amount of principal on each payment
date. PAC Bonds are always parallel pay CMOs with the required principal payment on such securities
having the highest priority after interest has been paid to all classes.
Stripped mortgage-backed securities are securities that are created when a U.S. government agency
or a financial institution separates the interest and principal components of a mortgage-backed
security and sells them as individual securities. The holder of the principal only security
(PO) receives the principal payments made by the underlying mortgage-backed security, while the
holder of the interest only security (IO) receives interest payments from the same underlying
security.
The prices of stripped mortgage-backed securities may be particularly affected by changes in
interest rates. As interest rates fall, prepayment rates tend to increase, which tends to reduce
prices of IOs and increase prices of POs. Rising interest rates can have the opposite effect.
Delegated Underwriting and Servicing (DUS) bonds are pools of multifamily housing loans issued by
the Federal National Mortgage Association (Fannie Mae). DUS bonds have significant call protection
in the form of prepayment penalties. The most common structures at the time of issuance are
seven-year balloons with 6.5 years of prepayment protection and 10-year balloons with 9.5 years of
prepayment protection. Borrowers must pay a prepayment penalty to prepay the loan during the
specified prepayment protection period. In the event of default there is no penalty passed on to
the investor.
Money Market Fund Investments. Investments by a money market fund are subject to limitations
imposed under regulations adopted by the SEC. Under these regulations, money market funds may
acquire only obligations that present minimal credit risk and that are eligible securities, which
means they are (i) rated, at the time of investment, in the highest rating category or, if unrated,
determined to be of comparable quality (a first tier security), or (ii) rated according to the
foregoing criteria in the second highest rating category or, if unrated, determined to be of
comparable quality (second tier security) ). In the case of taxable money market funds,
Investments in second tier securities are subject to further constraints in that (i) no more than
3% of a money market funds assets may be invested in second tier securities and (ii) any
investment in securities of any one such issuer is limited to a maximum of 0.5% of total assets. At
time of purchase, a taxable money market fund may not purchase securities of any issuer (except
securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities) if, as a
result, more than 5% of the total assets of a Fund would be invested in the securities of one
issuer. However, a taxable money market fund may hold more than 5% of its assets in first tier
securities of a single issuer for three business days (that is, any day other than a Saturday,
Sunday or customary business holiday).
Municipal Forwards. Municipal forwards are forward commitments for the purchase of tax-exempt bonds
with a specified coupon to be delivered by an issuer at a future date, typically exceeding 45 days
but, normally less than one year after the commitment date. Municipal forwards are normally used as
a refunding mechanism for bonds that may only be redeemed on a designated future date. See
When-Issued Securities and Forward Commitment Securities for more information.
Municipal Lease Obligations. Municipal lease obligations are securities issued by state and local
governments and authorities to finance the acquisition of equipment and facilities where the lease
obligation is secured by the leased
16
property and subject to renewal or termination by the issuer. They may take the form of a lease, an
installment purchase contract, a conditional sales contract, or a participation interest in any of
the above.
Municipal Securities. Municipal bonds include general obligation bonds, revenue or special
obligation bonds, private activity and industrial development bonds and participation interests in
municipal bonds. General obligation bonds are backed by the taxing power of the issuing
municipality. Revenue bonds are backed by the revenues of a project or facility (for example, tolls
from a bridge). Certificates of participation represent an interest in an underlying obligation or
commitment, such as an obligation issued in connection with a leasing arrangement. The payment of
principal and interest on private activity and industrial development bonds generally is totally
dependent on the ability of a facilitys user to meet its financial obligations and the pledge, if
any, of real and personal property as security for the payment.
Municipal notes consist of general obligation notes, tax anticipation notes (notes sold to finance
working capital needs of the issuer in anticipation of receiving taxes on a future date), revenue
anticipation notes (notes sold to provide needed cash prior to receipt of expected non-tax revenues
from a specific source), bond anticipation notes, certificates of indebtedness, demand notes and
construction loan notes. A Funds investments in any of the notes described above will be limited
to those obligations (i) where both principal and interest are backed by the full faith and credit
of the United States, (ii) which are rated MIG-2 or V-MIG-2 at the time of investment by Moodys,
(iii) which are rated SP-2 at the time of investment by S&P, or (iv) which, if not rated by S&P or
Moodys, are in the Subadvisers judgment, of at least comparable quality to MIG-2, VMIG-2 or SP-2.
From time to time, a municipality may refund a bond that it has already issued prior to the
original bonds call date by issuing a second bond, the proceeds of which are used to purchase
securities. The securities are placed in an escrow account pursuant to an agreement between the
municipality and an independent escrow agent. The principal and interest payments on the securities
are then used to pay off the original bondholders. For purposes of diversification and industry
concentration, pre-refunded bonds will be treated as governmental issues.
Municipal bonds generally must be rated investment grade by at least one national securities rating
agency or, if not rated, must be deemed by the Subadviser to essentially have characteristics
similar to those of bonds having the above rating. Bonds downgraded to below investment grade may
continue to be held at the discretion of a Funds Subadviser. A Fund may purchase industrial
development and pollution control bonds if the interest paid is exempt from federal income tax.
These bonds are issued by or on behalf of public authorities to raise money to finance various
privately-operated facilities for business and manufacturing, housing, sports and pollution
control. These bonds are also used to finance public facilities such as airports, mass transit
systems, ports and parking. The payment of the principal and interest on such bonds is dependent
solely on the ability of the facilitys user to meet its financial obligations and the pledge, if
any, of real and personal property so financed as security for such payment.
Private activity bonds are issued by or on behalf of states, or political subdivisions thereof, to
finance privately owned or operated facilities for business and manufacturing, housing, sports, and
pollution control, and to finance activities of and facilities for charitable institutions. Private
activity bonds are also used to finance public facilities such as airports, mass transit systems,
ports, parking and low-income housing. The payment of the principal and interest on private
activity bonds is dependent solely on the ability of the facilitys user to meet its financial
obligations and may be secured by a pledge of real and personal property so financed.
Investments in floating rate instruments will normally involve industrial development or revenue
bonds which provide that the rate of interest is set as a specific percentage of a designated base
rate (such as the prime rate) at a major commercial bank, and that a Fund can demand payment of the
obligation at all times or at stipulated dates on short notice (not to exceed 30 days) at par plus
accrued interest. Such obligations are frequently secured by letters of credit or other credit
support arrangements provided by banks. The quality of the underlying credit or of the bank, as the
case may be, must, in the Subadvisers opinion, be equivalent to the long-term bond or commercial
paper ratings stated above. The Subadviser will monitor the earning power, cash flow and liquidity
ratios of the issuers of such instruments and the ability of an issuer of a demand instrument to
pay principal and interest on demand. The Subadviser may purchase other types of tax-exempt
instruments as long as they are of a quality equivalent to the bond or commercial paper ratings
stated above.
17
The Subadviser has the authority to purchase securities at a price which would result in a yield to
maturity lower than that generally offered by the seller at the time of purchase when they can
simultaneously acquire the right to sell the securities back to the seller, the issuer, or a
third-party (the writer) at an agreed-upon price at any time during a stated period or on a
certain date. Such a right is generally denoted as a standby commitment or a put. The purpose
of engaging in transactions involving puts is to maintain flexibility and liquidity in order to
meet redemptions and remain as fully invested as possible in municipal securities. The right to put
the securities depends on the writers ability to pay for the securities at the time the put is
exercised. A Fund will limit its put transactions to those with institutions which the Subadviser
believe present minimum credit risks, and the Subadviser will use its best efforts to initially
determine and thereafter monitor the financial strength of the put providers by evaluating their
financial statements and such other information as is available in the marketplace. It may,
however, be difficult to monitor the financial strength of the writers where adequate current
financial information is not available. In the event that any writer is unable to honor a put for
financial reasons, the affected Fund would be a general creditor (i.e., on parity with all other
unsecured creditors) of the writer. Furthermore, particular provisions of the contract between a
Fund and the writer may excuse the writer from repurchasing the securities in certain circumstances
(for example, a change in the published rating of the underlying municipal securities or any
similar event that has an adverse effect on the issuers credit); or a provision in the contract
may provide that the put will not be exercised except in certain special cases, for example, to
maintain portfolio liquidity. A Fund could, however, sell the underlying portfolio security in the
open market or wait until the portfolio security matures, at which time it should realize the full
par value of the security. Municipal securities purchased subject to a put may be sold to third
persons at any time, even though the put is outstanding, but the put itself, unless it is an
integral part of the security as originally issued, may not be marketable or otherwise assignable.
Sale of the securities to third parties or lapse of time with the put unexercised may terminate the
right to put the securities. Prior to the expiration of any put option, a Fund could seek to
negotiate terms for the extension of such an option. If such a renewal cannot be negotiated on
terms satisfactory to a Fund, the Fund could, of course, sell the portfolio security. The maturity
of the underlying security will generally be different from that of the put. There will be no limit
to the percentage of portfolio securities that a Fund may purchase subject to a put. For the
purpose of determining the maturity of securities purchased subject to an option to put, and for
the purpose of determining the dollar-weighted average maturity of a Fund including such
securities, a Fund will consider maturity to be the first date on which it has the right to
demand payment from the writer of the put although the final maturity of the security is later than
such date.
Other types of tax-exempt instruments which are permissible investments include floating rate
notes. Investments in such floating rate instruments will normally involve industrial development
or revenue bonds which provide that the rate of interest is set as a specific percentage of a
designated base rate (such as the prime rate) at a major commercial bank, and that a Fund can
demand payment of the obligation at all times or at stipulated dates on short notice (not to exceed
30 days) at par plus accrued interest. Such obligations are frequently secured by letters of credit
or other credit support arrangements provided by banks. The quality of the underlying credit or of
the bank, as the case may be, must, in the Subadvisers opinion, be equivalent to the long-term
bond or commercial paper ratings stated above. The Subadviser will monitor the earning power, cash
flow and liquidity ratios of the issuers of such instruments and the ability of an issuer of a
demand instrument to pay principal and interest on demand. A Fund may also purchase participation
interests in municipal securities (such as industrial development bonds and municipal
lease/purchase agreements). A participation interest gives a Fund an undivided interest in the
underlying municipal security. If it is unrated, the participation interest will be backed by an
irrevocable letter of credit or guarantee of a credit-worthy financial institution or the payment
obligations otherwise will be collateralized by U.S. government securities. Participation interests
may have fixed, variable or floating rates of interest and may include a demand feature. A
participation interest without a demand feature or with a demand feature exceeding seven days may
be deemed to be an illiquid security subject to a Funds investment limitations restricting its
purchases of illiquid securities. A Fund may purchase other types of tax-exempt instruments as long
as they are of a quality equivalent to the bond or commercial paper ratings stated above.
Opinions relating to the validity of municipal securities and to the exemption of interest thereon
from federal income tax are rendered by bond counsel to the respective issuers at the time of
issuance. Neither a Fund nor its Subadviser will review the proceedings relating to the issuance of
municipal securities or the basis for such opinions.
Special Considerations Relating to Municipal Obligations of Designated States
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As described in the prospectuses, except for investments in temporary investments, each Tax-Exempt
Bond Fund will invest substantially all of its net assets (at least 80%) in municipal bonds that
are exempt from federal and state tax in that state (Municipal Obligations), generally Municipal
Obligations issued in its respective state. Each Fund is therefore more susceptible to political,
economic or regulatory factors adversely affecting issuers of Municipal Obligations in its state.
Set forth below is additional information that bears upon the risk of investing in Municipal
Obligations issued by public authorities in the states of currently offered Funds. This information
was obtained from official statements of issuers located in the respective states as well as from
other publicly available official documents and statements. The Funds have not independently
verified any of the information contained in such statements and documents. The information below
is intended only as a general summary and is not intended as a discussion of any specific factor
that may affect any particular obligation or issuer.
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Factors Pertaining to Georgia |
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The State of Georgia ended April, 2010 with revenue collections for the fiscal
year to date trailing 2009 levels by 10.7%. On May 6 2010, Governor Sonny Perdue
signed into law the states $17.1 billion Amended Fiscal Year 2010 budget. Due
to declining revenues, the amended budget has reduced state spending by $1.5
billion. According to the Governors office, the budget managed the state
through the worst economic downturn of our generation and protected the core
mission of state government. Despite making difficult decisions to balance the
budget, we have remained focused on education, public safety and creating jobs. |
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In an October, 2009 report, Moodys Investors Service continued to praise the
State of Georgias conservative fiscal practices, moderate debt burden, and
well-funded pensions, while acknowledging the states budget gaps, erosion of
fund balances, declining revenues and signs of economic underperformance relative
to the nation. |
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The states unemployment rate for March, 2010 was 10.4%, .2% above the national
average of 10.2%. Total employment in Georgia stood at 4.21 million in March,
down from 4.37 million in March 2009. |
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Georgias general obligation debt continues to carry Aaa/AAA ratings from
Moodys, Standard and Poors, and Fitch. These ratings reflect the states
credit quality only and do not indicate the creditworthiness of other tax-exempt
securities in which the Fund may invest. Furthermore, it cannot be assumed that
the state will maintain its current credit ratings. |
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Factors Pertaining to Maryland |
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The State of Marylands economy expanded at a strong pace for much of the
previous decade but has slowed considerably in the last year and a half.
Because of the States proximity to the Washington DC metropolitan area, the
states economy is greatly affected by Federal government spending. The ongoing
Base Realignment and Closing (BRAC) initiative of the military is expected to
bring 45,000 60,000 new jobs to the state, although the timing of these jobs is
not clear at this time. These additional jobs will continue to help diversify
the states economy away from the manufacturing sector. |
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Marylands unemployment rate for December 2009 was estimated at 7.1% compared to
the national rate of 9.3%. Per capita income for 2008 was approximately 121% of
the national average compared to 115% in 2000, ranking the State as the 4th
wealthiest by this measurement. |
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The States revenue growth has slowed in recent years and forecasted growth rates
have been adjusted lower following housing market weakness and the recession that
began in 2008. Revenues for 2009 totaled $2.22 billion down $630 million from
2006 levels. Based on the revenue contraction and expenditure pressures, tax
changes were implemented during fiscal
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year 2008 to increase revenue, including an income tax surcharge for the years 2008 2010 and a draw
down on the State Reserve Fund. However, challenges remain as sales and income
tax collections remain below forecast. The state ended FY 2009 with a $1.3
billion operating deficit and projects continuing shortfalls through 2015. |
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The States general obligation bonds are rated AAA by all of the rating services
and are amortized rapidly, over 15 years, as required by the States
Constitution. This is a credit strength which replenishes debt capacity.
According to Moodys, net tax supported debt at $1,507 per capita ranks Maryland
12th highest of the states. However, when compared to per capita income, the
State ranks 18th due to its high income levels with net debt as a percentage of
personal income at 3% compared to the 50-state mean of 3.2%. Moodys also cites
the States strong financial management, revenue reserves and economy as
strengths. |
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The AAA ratings apply to the States direct debt and may not be indicative of the
credit rating of other securities purchased by the Maryland Municipal Bond Fund.
It also cannot be assumed that the State will maintain its current debt profile
and ratings. |
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Factors Pertaining to North Carolina |
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The State of North Carolina ended fiscal year 2009 with revenue collections 11.1%
lower than collections during 2008. February 2010 revenue projections expect a
further 1.6% decline in revenues for fiscal year 2010 and projected a budgetary
shortfall of $400-$500 million for the biennium (2010 and 2011). Recognizing
these shortfalls, Governor Bev Perdue announced her 2010-2011 proposed budget for
the state. The budget cuts nearly $1 billion in spending and reallocates some
$250 million to programs that will reform state government and continue to move
the state forward through an economic recovery. Additionally, the budget
includes almost $1 billion in spending cuts. That total was achieved through
efficiency measures, cutting waste and eliminating unproductive programs. The
proposed cuts include: reduced spending for most governmental agencies by 5% to
7%, protecting educational entities with less than 4% reductions and eliminating
more than 600 positions. In addition, Gov. Perdues budget ensures North
Carolinas financial security by earmarking $101.5 million to replenish the
states Rainy Day Fund. By enacting the governors proposed cuts, the state
expects to end 2010 with a general fund balance of $94 million. |
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In a March, 2010 rating update, Moodys Investors Service lauded the states
history of strong financial management, strong population growth and diverse
economy, while acknowledging the challenges posed by a slowing economy and job
losses that exceed the national average. |
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The states unemployment rate for January, 2010 was 11.1%, 1.4% above the
national average of 9.7%. Total employment in North Carolina declined 5.3% in
2009 vs. the national average decline of 4.1%. |
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North Carolinas general obligation debt carries Aaa/AAA ratings from Moodys,
Standard and Poors, and Fitch. These ratings reflect the states credit quality
only and do not indicate the creditworthiness of other tax-exempt securities in
which the Fund may invest. Furthermore, it cannot be assumed that the state will
maintain its current credit ratings. |
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Factors Pertaining to Virginia |
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The Commonwealth of Virginias economy and employment have grown at a pace
exceeding the nation in most years. However like most states, Virginia has
recently been affected by the national recession causing employment to decrease
by 2.4% in 2009 compared to the national decline of 4.3%. Additionally, the
States unemployment rate of 6.7% for December 2009 was below the national rate
of 9.3%. Despite these declines, Virginia continues to benefit from a diverse
economy, higher than |
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average governmental employment and defense related spending. This is especially
true for the Northern Virginia suburbs of Washington DC and in the Hampton Roads
region, an area with significant military installations. Personal income remains
the highest in the southeast and, at 108% of national averages, Virginia ranked
8th out of the states in 2008, according to Moodys. |
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For Fiscal Year 2009, Virginias general fund revenue declined by 9.2%, compared
to a 1.4% increase during Fiscal 2008. Revenue forecasts are slightly above
projections for Fiscal Year 2010, but still project to a 2.0% decline for the
year. To combat these revenue declines, the state has eliminated previously
budgeted pay increases, reduced pension contributions, drawn on the Revenue
Stabilization Fund, and adjusted state agency budgets lower. Additionally, the
Governor and legislature continue to take proactive measures by passing a budget
that lowers state spending over the biennial period 2011-2012. |
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Virginia has, historically, maintained low debt ratios, however, the minimal
issuance of general obligation debt has been offset by significant growth in
appropriation backed debt issued by various state authorities. Moodys calculates
Virginias net tax supported debt per capita at $782, ranking Virginia 31st among
states. Comparing debt per capita to personal income, Virginias debt was 1.9%
compared to the state average of 2.5%. |
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All three major debt rating agencies rate Virginias general obligation bonds AAA
and Moodys cites its conservative fiscal management, diverse economy and low
debt burden as strengths. This rating applies only to the States direct debt and
may not be indicative of the rating on other securities that the Virginia
Intermediate Municipal Bond Fund may invest in. There is no assurance that the
State will maintain its current debt profile or ratings. |
Non-Publicly Traded Securities; Rule 144A Securities. The Funds may purchase securities that are
not registered under the Securities Act of 1933, as amended (the 1933 Act), but that can be sold
to qualified institutional buyers in accordance with Rule 144A under the 1933 Act (Rule 144A
Securities). An investment in Rule 144A Securities will be considered illiquid and therefore
subject to a Funds limitation on the purchase of illiquid securities (usually 15% of a funds net
assets, 5% for the Money Market Funds), unless a Funds governing Board of Trustees determines on
an ongoing basis that an adequate trading market exists for the security. In addition to an
adequate trading market, the Board of Trustees will also consider factors such as trading activity,
availability of reliable price information and other relevant information in determining whether a
Rule 144A Security is liquid. This investment practice could have the effect of increasing the
level of illiquidity in a Fund to the extent that qualified institutional buyers become
uninterested for a time in purchasing Rule 144A Securities. The Board of Trustees will carefully
monitor any investments by a Fund in Rule 144A Securities. The Board of Trustees may adopt
guidelines and delegate to the Subadvisers the daily function of determining and monitoring the
liquidity of Rule 144A Securities, although the Board of Trustees will retain ultimate
responsibility for any determination regarding liquidity.
Non-publicly traded securities (including Rule 144A Securities) may involve a high degree of
business and financial risk and may result in substantial losses. These securities may be less
liquid than publicly traded securities, and a Fund may take longer to liquidate these positions
than would be the case for publicly traded securities. Although these securities may be resold in
privately negotiated transactions, the prices realized on such sales could be less than those
originally paid by a Fund. Further, companies whose securities are not publicly traded may not be
subject to the disclosure and other investor protection requirements applicable to companies whose
securities are publicly traded. A Funds investments in illiquid securities are subject to the risk
that should a Fund desire to sell any of these securities when a ready buyer is not available at a
price that is deemed to be representative of their value, the value of the Funds net assets could
be adversely affected.
Options. A Fund may purchase and write put and call options on securities or securities indices
(traded on U.S. exchanges or over-the-counter markets) and enter into related closing transactions.
A put option on a security gives the purchaser of the option the right to sell, and the writer of
the option the obligation to buy, the underlying security at any time during the option period. A
call option on a security gives the purchaser of the option the right to buy, and
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the writer
of the option the obligation to sell, the underlying security at any time during the option period. The premium paid
to the writer is the consideration for undertaking the obligations under the option contract.
Put and call options on indices are similar to options on securities except that options on an
index give the holder the right to receive, upon exercise of the option, an amount of cash if the
closing level of the underlying index is greater than (or less than, in the case of puts) the
exercise price of the option. This amount of cash is equal to the difference between the closing
price of the index and the exercise price of the option, expressed in dollars multiplied by a
specified number. Thus, unlike options on individual securities, all settlements are in cash, and
gain or loss depends on price movements in the particular market represented by the index
generally, rather than the price movements in individual securities.
The initial purchase (sale) of an option contract is an opening transaction. In order to close
out an option position, a Fund may enter into a closing transaction, which is simply the sale
(purchase) of an option contract on the same security with the same exercise price and expiration
date as the option contract originally opened. If a Fund is unable to effect a closing purchase
transaction with respect to an option it has written, it will not be able to sell the underlying
security until the option expires or the Fund delivers the security upon exercise.
A Fund may purchase and write options on an exchange or over-the-counter. Over-the-counter options
(OTC options) differ from exchange-traded options in several respects. They are transacted
directly with dealers and not with a clearing corporation, and therefore entail the risk of
non-performance by the dealer. OTC options are available for a greater variety of securities and
for a wider range of expiration dates and exercise prices than are available for exchange-traded
options. Because OTC options are not traded on an exchange, pricing is done normally by reference
to information from a market maker. It is the SECs position that OTC options are generally
illiquid.
The market value of an option generally reflects the market price of an underlying security. Other
principal factors affecting market value include supply and demand, interest rates, the pricing
volatility of the underlying security and the time remaining until the expiration date.
A Fund must cover all options it purchases or writes. For example, when a Fund writes an option on
a security, index or foreign currency, it will segregate or earmark liquid assets with the Funds
custodian in an amount at least equal to the market value of the option and will maintain such
coverage while the option is open. A Fund may otherwise cover the transaction by means of an
offsetting transaction or other means permitted by the 1940 Act or the rules and SEC
interpretations thereunder.
A Fund may trade put and call options on securities, securities indices or currencies, as its
Subadviser determines is appropriate in seeking the Funds investment objective. For example, a
Fund may purchase put and call options on securities or indices to protect against a decline in the
market value of the securities in its portfolio or to anticipate an increase in the market value of
securities that the Fund may seek to purchase in the future. A Fund purchasing put and call options
pays a premium therefor. If price movements in the underlying securities are such that exercise of
the options would not be profitable for a Fund, loss of the premium paid may be offset by an
increase in the value of the Funds securities or by a decrease in the cost of acquisition of
securities by the Fund.
In another instance, a Fund may write covered call options on securities as a means of increasing
the yield on its assets and as a means of providing limited protection against decreases in its
market value. When a Fund writes an option, if the underlying securities do not increase or
decrease to a price level that would make the exercise of the option profitable to the holder
thereof, the option generally will expire without being exercised and the Fund will realize as
profit the premium received for such option. When a call option written by a Fund is exercised, the
Fund will be required to sell the underlying securities to the option holder at the strike price,
and will not participate in any increase in the price of such securities above the strike price.
When a put option written by a Fund is exercised, the Fund will be required to purchase the
underlying securities at a price in excess of the market value of such securities.
There are significant risks associated with a Funds use of options, including the following: (1)
the success of a hedging strategy may depend on the Subadvisers ability to predict movements in
the prices of individual securities, fluctuations in markets and movements in interest rates; (2)
there may be an imperfect or no correlation between the movement in prices of options held by the Fund and the securities underlying them; (3) there may not be a liquid
22
secondary market for options; and (4) while a Fund will receive a premium when it writes covered
call options, it may not participate fully in a rise in the market value of the underlying
security.
Other Investments. The Funds are not prohibited from investing in bank obligations issued by
clients of the Funds administrator or distributor or their respective parent or affiliated
companies. The purchase of Fund shares by these banks or their customers will not be a
consideration in deciding which bank obligations the Funds will purchase. The Funds will not
purchase obligations issued by the Adviser or any of the Funds Subadvisers.
Pay-In-Kind Securities. Pay-In-Kind securities are debt obligations or preferred stock that pay
interest or dividends in the form of additional debt obligations or preferred stock.
Preferred Stock. Preferred stock is a corporate equity security that pays a fixed or variable
stream of dividends. Preferred stock is generally a non-voting security.
Real Estate Investment Trusts. A REIT is a corporation or business trust (that would otherwise be
taxed as a corporation) which meets the definitional requirements of the Internal Revenue Code. The
Code permits a qualifying REIT to deduct from taxable income the dividends paid, thereby
effectively eliminating corporate level federal income tax and making the REIT a pass-through
vehicle for federal income tax purposes. A REIT primarily invests in real estate and real estate
mortgages. If a corporation, trust or association meets the REIT requirements, it will be taxed
only on its undistributed income and capital gains.
REITs are sometimes informally characterized as Equity REITs and Mortgage REITs. An Equity REIT
invests primarily in the fee ownership or leasehold ownership of land and buildings; a Mortgage
REIT invests primarily in mortgages on real property, which may secure construction, development or
long-term loans.
REITs in which a Fund invests may be affected by changes in underlying real estate values, which
may have an exaggerated effect to the extent that REITs in which a Fund invests may concentrate
investments in particular geographic regions or property types. Additionally, rising interest rates
may cause investors in REITs to demand a higher annual yield from future distributions, which may
in turn decrease market prices for equity securities issued by REITs. Rising interest rates also
generally increase the costs of obtaining financing, which could cause the value of the Funds
investments to decline. During periods of declining interest rates, certain Mortgage REITs may hold
mortgages that the mortgagors elect to prepay, which prepayment may diminish the yield on
securities issued by such Mortgage REITs. In addition, Mortgage REITs may be affected by the
ability of borrowers to repay when due the debt extended by the REIT and Equity REITs may be
affected by the ability of tenants to pay rent.
Certain REITs have relatively small market capitalization, which may tend to increase the
volatility of the market price of securities issued by such REITs. Furthermore, REITs are dependent
upon specialized management skills, have limited diversification and are, therefore, subject to
risks inherent in operating and financing a limited number of projects. By investing in REITs
indirectly through the Fund, a shareholder will bear not only his proportionate share of the
expenses of the Fund, but also, indirectly, similar expenses of the REITs. REITs depend generally
on their ability to generate cash flow to make distributions to shareholders.
In addition to these risks, Equity REITs may be affected by changes in the value of the underlying
property owned by the trusts, while Mortgage REITs may be affected by the quality of any credit
extended. Further, Equity and Mortgage REITs are dependent upon management skills and generally may
not be diversified. Equity and Mortgage REITs are also subject to heavy cash flow dependency
defaults by borrowers and self-liquidation. In addition, Equity and Mortgage REITs could possibly
fail to qualify for tax free pass-through of income under the Code or to maintain their exemptions
from registration under the 1940 Act. The above factors may also adversely affect a borrowers or a
lessees ability to meet its obligations to the REIT. In the event of default by a borrower or
lessee, the REIT may experience delays in enforcing its rights as a lender or lessor and may incur
substantial costs associated with protecting its investments.
Real Estate Securities. A Fund may be subject to the risks associated with the direct ownership of
real estate because of its policy of concentration in the securities of companies principally
engaged in the real estate industry. For example, real estate values may fluctuate as a result of
general and local economic conditions, overbuilding and increased
23
competition, increases in
property taxes and operating expenses, demographic trends and variations in rental income, changes
in zoning laws, casualty or condemnation losses, regulatory limitations on rents, changes in
neighborhood values, related party risks, changes in how appealing properties are to tenants,
changes in interest rates and other real estate capital market influences. The value of securities
of companies which service the real estate business sector may also be affected by such risks.
Repurchase Agreements. A Fund may enter into repurchase agreements with financial institutions. The
Funds each follow certain procedures designed to minimize the risks inherent in such agreements.
These procedures include effecting repurchase transactions only with creditworthy financial
institutions whose condition will be continually monitored by the Subadviser. The repurchase
agreements entered into by a Fund will provide that the underlying collateral at all times shall
have a value at least equal to 102% of the resale price stated in the agreement. Under all
repurchase agreements entered into by a Fund, the custodian or its agent must take possession of
the underlying collateral. In the event of a default or bankruptcy by a selling financial
institution, a Fund will seek to liquidate such collateral. However, the exercising of each Funds
right to liquidate such collateral could involve certain costs or delays and, to the extent that
proceeds from any sale upon a default of the obligation to repurchase were less than the repurchase
price, the Fund could suffer a loss. It is the current policy of each of the Funds not to invest in
repurchase agreements that do not mature within seven days if any such investment, together with
any other illiquid assets held by that Fund, amounts to more than 15% of the Funds net assets (5%
of the Money Market Funds). The investments of each of the Funds in repurchase agreements, at
times, may be substantial when, in the view of the Subadviser, liquidity or other considerations so
warrant.
Resource Recovery Bonds. Resource recovery bonds are a type of revenue bond issued to build
facilities such as solid waste incinerators or waste-to-energy plants. Typically, a private
corporation will be involved, at least during the construction phase, and the revenue stream will
be secured by fees or rents paid by municipalities for use of the facilities. The viability of a
resource recovery project, environmental protection regulations, and project operator tax
incentives may affect the value and credit quality of resource recovery bonds.
Reverse Repurchase Agreements. A reverse repurchase agreement is a contract under which a Fund
sells a security for cash for a relatively short period (usually not more than one week) subject to
the obligation of the Fund to repurchase such security at a fixed time and price (representing the
sellers cost plus interest). Reverse repurchase agreements involve the risk that the market value
of the securities a Fund is obligated to repurchase under the agreement may decline below the
repurchase price. In the event the buyer of securities under a reverse repurchase agreement files
for bankruptcy or becomes insolvent, a Funds use of proceeds of the agreement may be restricted
pending a determination by the other party, or its trustee or receiver, whether to enforce the
Funds obligation to repurchase the securities. In addition, reverse repurchase agreements are
techniques involving leverage, and are subject to asset coverage requirements. To avoid any
leveraging concerns, the Fund will segregate or earmark liquid assets with the Funds custodian in
an amount sufficient to cover its repurchase obligations.
Revolving Credit Facilities (Revolvers). Revolvers are borrowing arrangements in which the
lender agrees to make loans up to a maximum amount upon demand by the borrower during a specified
term. As the borrower repays the loan, an amount equal to the repayment may be borrowed again
during the term of the Revolver and usually provides for floating or variable rates of interest.
These commitments may have the effect of requiring a Fund to increase its investment in a company
at a time when it might not otherwise decide to do so (including at a time when the companys
financial condition makes it unlikely that such amounts will be repaid). To avoid any leveraging
concerns, a Fund will segregate or earmark liquid assets with the Funds custodian in an amount
sufficient to cover its obligations to fund Revolvers.
A Fund may invest in Revolvers with credit quality comparable to that of issuers of its other
investments. Revolvers may be subject to restrictions on transfer, and only limited opportunities
may exist to resell such instruments. As a result, a Fund may be unable to sell such investments at
an opportune time or may have to resell them at less than fair market value. Each Fund currently
intends to treat Revolvers for which there is no readily available market as illiquid for purposes
of that Funds limitation on illiquid investments.
Securities Lending. Each Fund may lend portfolio securities to brokers, dealers and other financial
organizations that meet capital and other credit requirements or other criteria established by the
Funds Board. These loans, if and when
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made, may not exceed 33 1/3% of the total asset value of the
Fund (including the loan collateral). No Fund will lend portfolio securities to its investment
adviser, subadviser or their affiliates unless it has applied for and received specific authority
to do so from the SEC. Loans of portfolio securities will be fully collateralized by cash, letters
of credit or U.S. government securities, and the collateral will be maintained in an amount equal
to at least 100% of the current market value of the loaned securities by marking to market daily.
Any gain or loss in the market price of the securities loaned that may occur during the term of the
loan would be for the account of the Fund. A Fund may pay a portion of the interest earned from the
investment of collateral or other fee, to an unaffiliated third party for acting as the Funds
securities lending agent.
By lending its securities, a Fund may increase its income by receiving payments from the borrower
that reflect the amount of any interest or any dividends payable on the loaned securities as well
as by either investing cash collateral received from the borrower in short-term instruments or
obtaining a fee from the borrower when U.S. government securities or letters of credit are used as
collateral. Each Fund will adhere to the following conditions whenever its portfolio securities are
loaned: (i) the Fund must receive from the borrower at least 100% cash collateral or equivalent
securities of the type discussed in the preceding; (ii) the borrower must increase such collateral
whenever the market value of the securities increases above the level of such collateral; (iii) the
Fund must be able to terminate the loan on demand; (iv) the Fund must receive reasonable interest
on the loan, as well as any dividends, interest, or other distributions on the loaned securities
and any increase in market value; (v) the Fund may pay only reasonable fees in connection with the
loan (which fees may include fees payable to the lending agent, the borrower, the Funds
administrator and the Funds custodian); and (vi) voting rights on the loaned securities may pass
to the borrower, provided, however, that in the event where a matter is presented for a vote on an
issuers proxy which would have a material effect on a Fund or its investment, the Fund must
attempt to terminate the loan and regain the right to vote the securities. Please refer to Appendix
B-1: Proxy Voting Policy: Securities Lending Program for additional information with respect to
the Funds policies for what constitutes a material effect with respect to the practice of
recalling securities on loan for the sole purpose of voting proxies for such securities. There is
a risk that the Fund may not be able to recall the security in sufficient time to vote on material
proxy matters; however, the Fund will make a best faith effort where it has been determined that
the outcome of such vote would have a material effect on a Fund or its investment. In addition,
as a general practice, the Funds will not recall loans solely to receive income payments. See
Taxes section of this SAI for information on the security lending programs impact on treatment
of income which could increase a Funds tax obligation which is subsequently passed on to its
shareholders.
Any securities lending activity in which a Fund may engage will be undertaken pursuant to Board
approved procedures reasonably designed to ensure that the foregoing criteria will be met. Loan
agreements involve certain risks in the event of default or insolvency of the borrower, including
possible delays or restrictions upon a Funds ability to recover the loaned securities or dispose
of the collateral for the loan, which could give rise to loss because of adverse market action,
expenses and/or delays in connection with the disposition of the underlying securities.
Senior Loans
Structure of Senior Loans. A senior floating rate loan (Senior Loan) is typically originated,
negotiated and structured by a U.S. or foreign commercial bank, insurance company, finance company
or other financial institution (the Agent) for a group of loan investors (Loan Investors). The
Agent typically administers and enforces the Senior Loan on behalf of the other Loan Investors in
the syndicate. In addition, an institution, typically but not always the Agent, holds any
collateral on behalf of the Loan Investors.
Senior Loans primarily include senior floating rate loans and secondarily senior fixed rate loans,
and interests therein. Loan interests primarily take the form of assignments purchased in the
primary or secondary market. Loan interests may also take the form of participation interests in a
Senior Loan. Such loan interests may be acquired from U.S. or foreign commercial banks, insurance
companies, finance companies or other financial institutions who have made loans or are Loan
Investors or from other investors in loan interests.
A Fund typically purchases Assignments from the Agent or other Loan Investors. The purchaser of
an Assignment typically succeeds to all the rights and obligations under the Loan Agreement of the
assigning Loan Investor and becomes a Loan Investor under the Loan Agreement with the same rights and obligations as the assigning Loan
Investor. Assignments may, however, be arranged through private negotiations between potential
assignees and
25
potential assignors, and the rights and obligations acquired by the purchaser of an
Assignment may differ from, and be more limited than, those held by the assigning Loan Investor. A
Fund may invest up to 10% of its total assets in Participations. Loan participations
are interests in loans to U.S. corporations, which loans are administered by the lending bank or
agent for a syndicate of lending banks. In a loan participation, the borrower corporation is the
underlying issuer of the loan, but a Fund derives its rights in the loan participation from the
intermediary bank. Because the intermediary bank does not guarantee a loan participation, a loan
participation is subject to the credit risks associated with the underlying corporate borrower.
Participations by a Fund in a Loan Investors portion of a Senior Loan typically will result in a
Fund having a contractual relationship only with such Loan Investor, not with the borrower. As a
result, a Fund may have the right to receive payments of principal, interest and any fees to which
it is entitled only from the Loan Investor selling the Participation and only upon receipt by such
Loan Investor of such payments from the borrower. In connection with purchasing Participations, a
Fund generally will have no right to enforce compliance by the borrower with the terms of the Loan
Agreement, nor any rights with respect to any funds acquired by other Loan Investors through
set-off against the borrower and a Fund may not directly benefit from the collateral supporting the
Senior Loan in which it has purchased the Participation. As a result, a Fund may assume the credit
risk of both the borrower and the Loan Investor selling the Participation. In the event of the
insolvency of the Loan Investor selling a participation, a Fund may be treated as a general
creditor of such Loan Investor. The selling Loan Investors with respect to such Participations
will likely conduct their principal business activities in the banking, finance and financial
services industries. Persons engaged in such industries may be more susceptible to, among other
things, fluctuations in interest rates, changes in the Federal Open Market Committees monetary
policy, governmental regulations concerning such industries and capital raising activities
generally, and fluctuations in the financial markets generally.
In the event of bankruptcy or insolvency of the corporate borrower, a loan participation may be
subject to certain defenses that can be asserted by the borrower as a result of improper conduct by
the seller of the loan participation. In addition, in the event the underlying corporate borrower
fails to pay principal and interest when due, a Fund may be subject to delays, expenses, and risks
that are greater than those that would have been involved if a Fund had purchased a direct
obligation of the borrower. Under the terms of a Loan Participation, a Fund may be regarded as a
creditor of the seller of the loan participation (rather than of the underlying corporate
borrower), so that a Fund may also be subject to the risk that the seller of the loan participation
may become insolvent.
The secondary market for loan participations is limited and any such participation purchased by a
Fund may be regarded as illiquid.
Loan Collateral. In order to borrow money pursuant to a Senior Loan, a borrower will frequently,
for the term of the Senior Loan, pledge collateral, including but not limited to, (i) working
capital assets, such as accounts receivable and inventory; (ii) tangible fixed assets, such as real
property, buildings and equipment; (iii) intangible assets, such as trademarks and patent rights
(but excluding goodwill); and/or (iv) security interests in shares of stock of subsidiaries or
affiliates. In the case of Senior Loans made to non-public companies, the companys shareholders
or owners may provide collateral in the form of secured guarantees and/or security interests in
assets that they own. In many instances, a Senior Loan may be secured only by stock in the borrower
or its subsidiaries. Collateral may consist of assets that may not be readily liquidated, and there
is no assurance that the liquidation of such assets would satisfy a borrowers obligations under a
Senior Loan.
Certain Fees Paid to a Fund. In the process of buying, selling and holding Senior Loans, a Fund
may receive and/or pay certain fees. These fees are in addition to interest payments received and
may include facility fees, commitment fees, commissions, prepayment penalty, and assignment fees.
When a Fund buys a Senior Loan it may receive a facility fee and when it sells a Senior Loan it may
pay a facility fee. On an ongoing basis, a Fund may receive a commitment fee based on the undrawn
portion of the underlying line of credit portion of a Senior Loan. In certain circumstances, a Fund
may receive a prepayment penalty fee upon the prepayment of a Senior Loan by a borrower. Other fees
received by a Fund may include amendment fees. A Fund may have to pay an assignment to the Agent
when it purchases or sells a Senior Loan via assignment.
Borrower Covenants. A borrower must comply with various restrictive covenants contained in a loan
agreement or note purchase agreement between the borrower and the holders of the Senior Loan (the
Loan Agreement). Such covenants, in addition to requiring the scheduled payment of interest and
principal, may include restrictions on
26
dividend payments and other distributions to stockholders, provisions requiring the borrower to
maintain specific minimum financial ratios, and limits on total debt. In addition, the Loan
Agreement may contain a covenant requiring the borrower to prepay the Loan with all or a portion of
any free cash flow. Free cash flow is generally defined as net cash flow after scheduled debt
service payments and permitted capital expenditures, and typically includes the proceeds from asset
dispositions or sales of securities. A breach of a covenant which is not waived by the Agent, or by
the Loan Investors directly, as the case may be, is normally an event of acceleration; i.e., the
Agent, or the Loan Investors directly, as the case may be, have the right to call the outstanding
Senior Loan. The typical practice of an Agent or a Loan Investor in relying exclusively or
primarily on reports from the borrower may involve a risk of fraud by the borrower. In the case of
a Senior Loan in the form of a Participation, the agreement between the buyer and seller may limit
the rights of the holder to vote on certain changes which may be made to the Loan Agreement, such
as loosening a covenant. However, the holder of the Participation will, in almost all cases, have
the right to vote on or direct the seller of the Participation to vote on certain fundamental
issues such as changes in principal amount, payment dates and interest rate.
Administration of Loans. In a typical Senior Loan, the Agent administers the terms of the Loan
Agreement. In such cases, the Agent is normally responsible for the collection of principal and
interest payments from the borrower and the apportionment of these payments to the credit of all
institutions which are LoanInvestors. A Fund will generally rely upon the Agent or an intermediate
participant to receive and forward to a Fund its portion of the principal and interest payments on
the Senior Loan. Furthermore, unless under the terms of a Participation Agreement a Fund has
direct recourse against the borrower, a Fund will rely on the Agent and the other Loan Investors to
use appropriate credit remedies against the borrower. The Agent is typically responsible for
monitoring compliance with covenants contained in the Loan Agreement based upon reports prepared by
the borrower. The Agent of the Senior Loan usually does, but is often not obligated to, notify
holders of Senior Loans of any failures of compliance. The Agent may monitor the value of the
collateral and, if the value of the collateral declines, may accelerate the Senior Loan, may give
the borrower an opportunity to provide additional collateral or may seek other protection for the
benefit of the Loan Investors. The Agent is compensated by the borrower for providing these
services under a Loan Agreement, and such compensation may include special fees paid upon
structuring and funding the Senior Loan and other fees paid on a continuing basis. With respect to
Senior Loans for which the Agent does not perform such administrative and enforcement functions, a
Fund will perform such tasks on its own behalf, although a collateral bank will typically hold any
collateral on behalf of a Fund and the other Loan Investors pursuant to the applicable Loan
Agreement.
A financial institutions appointment as Agent may be terminated in the event that it fails to
observe the requisite standard of care or becomes insolvent, enters Federal Deposit Insurance
Corporation (FDIC) receivership, or, if not FDIC insured, enters into bankruptcy proceedings. A
successor Agent would generally be appointed to replace the terminated Agent, and assets held by
the Agent under the Loan Agreement should remain available to holders of Senior Loans. However, if
assets held by the Agent for the benefit of a Fund were determined to be subject to the claims of
the Agents general creditors, a Fund might incur certain costs and delays in realizing payment on
a Senior Loan, or suffer a loss of principal and/or interest. In situations involving intermediate
participants similar risks may arise.
Prepayments. Senior Loans can require, in addition to scheduled payments of interest and
principal, the prepayment of the Senior Loan from free cash flow, as defined above. The degree to
which borrowers prepay Senior Loans, whether as a contractual requirement or at their election, may
be affected by general business conditions, the financial condition of the borrower and competitive
conditions among Loan Investors, among others. As such, prepayments cannot be predicted with
accuracy. Upon a prepayment, either in part or in full, the actual outstanding debt on which a
Fund derives interest income will be reduced. However, a Fund may receive both a prepayment
penalty fee from the prepaying borrower and a facility fee upon the purchase of a new Senior Loan
with the proceeds from the prepayment of the former. Prepayments generally will not materially
affect a Funds performance because a Fund should be able to reinvest prepayments in other Senior
Loans that have similar yields (subject to market conditions) and because receipt of such fees may
mitigate any adverse impact on a Funds yield.
Other Information Regarding Senior Loans. From time to time a Subadviser and its affiliates may
borrow money from various banks in connection with their business activities. Such banks may also
sell interests in Senior Loans to or acquire them from a Fund or may be intermediate participants
with respect to Senior Loans in which a Fund owns interests. Such banks may also act as Agents for
Senior Loans held by a Fund.
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A Fund may purchase and retain in its portfolio a Senior Loan where the borrower has experienced,
or may be perceived to be likely to experience, credit problems, including involvement in or recent
emergence from bankruptcy reorganization proceedings or other forms of debt restructuring. Such
investments may provide opportunities for enhanced income as well as capital appreciation. At
times, in connection with the restructuring of a Senior Loan either outside of bankruptcy court or
in the context of bankruptcy court proceedings, a Fund may determine or be required to accept
equity securities or junior debt securities in exchange for all or a portion of a Senior Loan. As
soon as reasonably practical, a Fund will divest itself of any equity securities or any junior debt
securities received if it is determined that the security is an ineligible holding for a Fund.
A Fund may acquire interests in Senior Loans which are designed to provide temporary or bridge
financing to a borrower pending the sale of identified assets or the arrangement of longer-term
loans or the issuance and sale of debt obligations. Bridge loans are often unrated. A Fund may
also invest in Senior Loans of borrowers that have obtained bridge loans from other parties. A
borrowers use of bridge loans involves a risk that the borrower may be unable to locate permanent
financing to replace the bridge loan, which may impair the borrowers perceived creditworthiness.
A Fund will be subject to the risk that collateral securing a loan will decline in value or have no
value. Such a decline, whether as a result of bankruptcy proceedings or otherwise, could cause the
Senior Loan to be undercollateralized or unsecured. In most credit agreements there is no formal
requirement to pledge additional collateral. In addition, a Fund may invest in Senior Loans
guaranteed by, or secured by assets of, shareholders or owners, even if the Senior Loans are not
otherwise collateralized by assets of the borrower; provided, however, that such guarantees are
fully secured. There may be temporary periods when the principal asset held by a borrower is the
stock of a related company, which may not legally be pledged to secure a Senior Loan. On occasions
when such stock cannot be pledged, the Senior Loan will be temporarily unsecured until the stock
can be pledged or is exchanged for or replaced by other assets, which will be pledged as security
for the Senior Loan.
If a borrower becomes involved in bankruptcy proceedings, a court may invalidate a Funds security
interest in the loan collateral or subordinate a Funds rights under the Senior Loan to the
interests of the borrowers unsecured creditors or cause interest previously paid to be refunded to
the borrower. If a court requires interest to be refunded, it could negatively affect a Funds
performance. Such action by a court could be based, for example, on a fraudulent conveyance
claim to the effect that the borrower did not receive fair consideration for granting the security
interest in the loan collateral to a Fund or a preference claim that a pre-petition creditor
received a greater recovery on an existing debt than it would have in a liquidation situation. For
Senior Loans made in connection with a highly leveraged transaction, consideration for granting a
security interest may be deemed inadequate if the proceeds of the Loan were not received or
retained by the borrower, but were instead paid to other persons (such as shareholders of the
borrower) in an amount which left the borrower insolvent or without sufficient working capital.
There are also other events, such as the failure to perfect a security interest due to faulty
documentation or faulty official filings, which could lead to the invalidation of a Funds security
interest in loan collateral. If a Funds security interest in loan collateral is invalidated or
the Senior Loan is subordinated to other debt of a borrower in bankruptcy or other proceedings, a
Fund would have substantially lower recovery, and perhaps no recovery on the full amount of the
principal and interest due on the Loan, or a Fund could also have to refund interest (see the
prospectus for additional information).
A Fund may acquire warrants and other equity securities as part of a unit combining a Senior Loan
and equity securities of a borrower or its affiliates. The acquisition of such equity securities
will only be incidental to a Funds purchase of a Senior Loan. A Fund may also acquire equity
securities or debt securities (including non-dollar denominated debt securities) issued in exchange
for a Senior Loan or issued in connection with the debt restructuring or reorganization of a
borrower, or if such acquisition, in the judgment of the Subadviser, may enhance the value of a
Senior Loan or would otherwise be consistent with a Funds investment policies.
Regulatory Changes. To the extent that legislation or state or federal regulators that regulate
certain financial institutions impose additional requirements or restrictions with respect to the
ability of such institutions to make loans, particularly in connection with highly leveraged
transactions, the availability of Senior Loans for investment may be adversely affected. Further,
such legislation or regulation could depress the market value of Senior Loans.
Short Sales. A Fund may engage in short sales that are either uncovered or against the box. A
short sale is against the box if at all times during which the short position is open, a Fund
owns at least an equal amount of the securities
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or securities convertible into, or exchangeable without further consideration for, securities of
the same issue as the securities that are sold short. A short sale against-the-box is a taxable
transaction to a Fund with respect to the securities that are sold short.
Uncovered short sales are transactions under which a Fund sells a security it does not own. To
complete such a transaction, a Fund must borrow the security to make delivery to the buyer. A Fund
then is obligated to replace the security borrowed by purchasing the security at the market price
at the time of the replacement. The price at such time may be more or less than the price at which
the security was sold by a Fund. Until the security is replaced, a Fund is required to pay the
lender amounts equal to any dividends or interest that accrue during the period of the loan. To
borrow the security, a Fund is required to pay a premium or daily interest, which will increase the
total cost of the security sold. The proceeds of the short sale will be retained by the broker, to
the extent necessary to meet margin requirements, until the short position is closed out.
Until a Fund closes its short position or replaces the borrowed security, a Fund will: (a) earmark
or maintain in a segregated account cash or liquid securities at such a level that (i) the amount
earmarked or deposited in the account plus the amount deposited with the broker as collateral will
equal the current value of the security sold short; and (ii) the amount earmarked or deposited in
the segregated account plus the amount deposited with the broker as collateral will not be less
than the current market value of the security sold short, or (b) otherwise cover a Funds short
positions. Uncovered short sales incur a higher level of risk because to cover the short sale, the
security may have to be purchased in the open market at a much higher price.
Short-Term Obligations. Short-term obligations are debt obligations maturing (becoming payable) in
397 days or less, including commercial paper and short-term corporate obligations. Short-term
corporate obligations are short-term obligations issued by corporations.
Standby Commitments and Puts. A Fund may purchase securities at a price which would result in a
yield to maturity lower than that generally offered by the seller at the time of purchase when the
Fund can simultaneously acquire the right to sell the securities back to the seller, the issuer or
a third-party (the writer) at an agreed-upon price at any time during a stated period or on a
certain date. Such a right is generally denoted as a standby commitment or a put. The purpose
of engaging in transactions involving puts is to maintain flexibility and liquidity to permit a
Fund to meet redemptions and remain as fully invested as possible in municipal securities. The
Funds reserve the right to engage in put transactions. The right to put the securities depends on
the writers ability to pay for the securities at the time the put is exercised. A Fund would limit
its put transactions to institutions which the Subadviser believes present minimal credit risks,
and the Subadviser would use its best efforts to initially determine and continue to monitor the
financial strength of the sellers of the options by evaluating their financial statements and such
other information as is available in the marketplace. It may, however be difficult to monitor the
financial strength of the writers because adequate current financial information may not be
available. In the event that any writer is unable to honor a put for financial reasons, a Fund
would be a general creditor (i.e., on a parity with all other general unsecured creditors) of the
writer. Furthermore, particular provisions of the contract between a Fund and the writer may excuse
the writer from repurchasing the securities; for example, a change in the published rating of the
underlying securities or any similar event that has an adverse effect on the issuers credit or a
provision in the contract that the put will not be exercised except in certain special cases, for
example, to maintain portfolio liquidity. A Fund could, however, at any time sell the underlying
portfolio security in the open market or wait until the portfolio security matures, at which time
it should realize the full par value of the security.
The securities purchased subject to a put may be sold to third persons at any time, even though the
put is outstanding, but the put itself, unless it is an integral part of the security as originally
issued, may not be marketable or otherwise assignable. Therefore, the put would have value only to
a Fund. Sale of the securities to third parties or lapse of time with the put unexercised may
terminate the right to put the securities. Prior to the expiration of any put option, a Fund could
seek to negotiate terms for the extension of such an option. If such a renewal cannot be negotiated
on terms satisfactory to a Fund, the Fund could, of course, sell the portfolio security. The
maturity of the underlying security will generally be different from that of the put. There will be
no limit to the percentage of portfolio securities that a Fund may purchase subject to a standby
commitment or put, but the amount paid directly or indirectly for all standby commitments or puts
which are not integral parts of the security as originally issued held in a Fund will not exceed
one-half of 1% of the value of the total assets of such Fund calculated immediately after any such
put is acquired.
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STRIPS. Separately Traded Interest and Principal Securities (STRIPS) are component parts of U.S.
Treasury securities traded through the federal book-entry system. A Subadviser will only purchase
STRIPS that it determines are liquid or, if illiquid, do not violate the affected Funds investment
policy concerning investments in illiquid securities. Consistent with Rule 2a-7 under the 1940 Act,
the Subadviser will only purchase, for Money Market Funds, STRIPS that have a remaining maturity of
397 days or less; therefore, the Money Market Funds currently may only purchase interest component
parts of U.S. Treasury securities. While there is no limitation on the percentage of a Funds
assets that may be comprised of STRIPS, the Subadviser will monitor the level of such holdings to
avoid the risk of impairing shareholders redemption rights and of deviations in the value of
shares of the Money Market Funds.
Structured Investments. Structured Investments are derivatives in the form of a unit or units
representing an undivided interest(s) in assets held in a trust that is not an investment company
as defined in the 1940 Act. A trust unit pays a return based on the total return of securities and
other investments held by the trust and the trust may enter into one or more swaps to achieve its
objective. For example, a trust may purchase a basket of securities and agree to exchange the
return generated by those securities for the return generated by another basket or index of
securities. A Fund will purchase structured investments in trusts that engage in such swaps only
where the counterparties are approved by the Subadviser in accordance with credit-risk guidelines
established by the Board of Trustees.
Structured Notes. Structured Notes are derivatives where the amount of principal repayment and or
interest payments is based upon the movement of one or more factors. These factors include, but are
not limited to, currency exchange rates, interest rates (such as the prime lending rate and LIBOR)
and stock indices such as the S&P 500® Index. In some cases, the impact of the movements
of these factors may increase or decrease through the use of multipliers or deflators. The use of
structured notes allows the Fund to tailor its investments to the specific risks and returns the
Subadviser wishes to accept while avoiding or reducing certain other risks.
Supranational Agency Obligations. Supranational Agency Obligations are obligations of supranational
entities established through the joint participation of several governments, including the Asian
Development Bank, Inter-American Development Bank, International Bank for Reconstruction and
Development (also known as the World Bank), African Development Bank, European Union, European
Investment Bank, and the Nordic Investment Bank.
Swap Agreements. A Fund may enter into swap agreements for purposes of attempting to gain exposure
to the securities making up an index without actually purchasing those instruments, to hedge a
position or to gain exposure to a particular instrument or currency. Swap agreements are two-party
contracts entered into primarily by institutional investors for periods ranging from a day to more
than one-year. In a standard swap transaction, two parties agree to exchange the returns (or
differentials in rates of return) earned or realized on particular predetermined investments or
instruments. The gross returns to be exchanged or swapped between the parties are calculated with
respect to a notional amount, i.e., the return on or increase in value of a particular dollar
amount invested in a basket of securities representing a particular index. Forms of swap
agreements include interest rate caps, under which, in return for a premium, one party agrees to
make payments to the other to the extent that interest rates exceed a specified rate, or cap,
interest rate floors, under which, in return for a premium, one party agrees to make payments to
the other to the extent that interest rates fall below a specified level, or floor; and interest
rate dollars, under which a party sells a cap and purchases a floor or vice versa in an attempt to
protect itself against interest rate movements exceeding given minimum or maximum levels. A credit
default swap is a specific kind of counterparty agreement designed to transfer the third party
credit risk between parties. One party in the swap is a lender and faces credit risk from a third
party and the counterparty in the credit default swap agrees to insure this risk in exchange for
regular periodic payments (essentially an insurance premium). If the third party defaults, the
party providing insurance will have to purchase from the insured party the defaulted asset. A Fund
may enter into index swap agreements as an additional hedging strategy for cash reserves held by
the Fund or to effect investment transactions consistent with the Funds investment objective and
strategies. The Select Aggregate Market Index (SAMI) is a basket of credit default swaps whose
underlying reference obligations are floating rate loans. Investments in SAMIs increase exposure
to risks that are not typically associated with investments in other floating rate debt
instruments, and involve many of the risks associated with investments in derivative instruments.
The liquidity of the market for SAMIs is subject to liquidity in the secured loan and credit
derivatives markets. The use of equity swaps is a highly specialized activity, which involves
investment techniques and risks different from those associated with ordinary portfolio securities
transactions.
30
A Funds current obligations under a swap agreement will be accrued daily (offset against any
amounts owing to the Fund) and any accrued but unpaid net amounts owed to a swap counterparty will
be covered by earmarking or segregating assets determined to be liquid. Obligations under swap
agreements so covered will not be construed to be senior securities for purposes of a Funds
investment restriction concerning senior securities. Because they are two party contracts and
because they may have terms of greater than seven days, swap agreements may be considered to be
illiquid for the Funds illiquid investment limitations. A Fund will not enter into any swap
agreement unless the Subadviser believes that the other party to the transaction is creditworthy. A
Fund bears the risk of loss of the amount expected to be received under a swap agreement in the
event of the default or bankruptcy of a swap agreement counterparty. A Fund may enter into swap
agreements to invest in a market without owning or taking physical custody of securities in
circumstances in which direct investment is restricted for legal reasons or is otherwise
impracticable. The counterparty to any swap agreement will typically be a bank, investment banking
firm or broker/dealer. The counterparty will generally agree to pay a Fund the amount, if any, by
which the notional amount of the swap agreement would have increased in value had it been invested
in the particular stocks, plus the dividends that would have been received on those stocks. A Fund
will agree to pay to the counterparty a floating rate of interest on the notional amount of the
swap agreement plus the amount, if any, by which the notional amount would have decreased in value
had it been invested in such stocks. Therefore, the return to a Fund on any swap agreement should
be the gain or loss on the notional amount plus dividends on the stocks less the interest paid by a
Fund on the notional amount.
Swap agreements typically are settled on a net basis, which means that the two payment streams are
netted out, with a Fund receiving or paying, as the case may be, only the net amount of the two
payments. Payments may be made at the conclusion of a swap agreement or periodically during its
term. Swap agreements do not involve the delivery of securities or other underlying assets.
Accordingly, the risk of loss with respect to swap agreements is limited to the net amount of
payments that a Fund is contractually obligated to make. If the other party to a swap agreement
defaults, a Funds risk of loss consists of the net amount of payments that such Fund is
contractually entitled to receive, if any. The net amount of the excess, if any, of a Funds
obligations over its entitlements with respect to each swap will be accrued on a daily basis and
liquid assets, having an aggregate net asset value at least equal to such accrued excess will be
earmarked or maintained in a segregated account by the Funds custodian. In as much as these
transactions are entered into for hedging purposes or are offset by segregating liquid assets, as
permitted by applicable law, the Funds and their Subadviser believe that these transactions do not
constitute senior securities under the 1940 Act and, accordingly, will not treat them as being
subject to a Funds borrowing restrictions. For purposes of each of the Funds requirements under
Rule 12d3-1 (where, for example, a Fund is prohibited from investing more than 5% of its total
assets in any one broker, dealer, underwriter or investment adviser (the securities-related
issuer) and Section 5b-1 where, for example, a diversified Fund is prohibited from owning more
than 5% of its total assets in any one issuer with respect to 75% of a Funds total assets, both
counterparty exposure and reference entity exposure will be reviewed where appropriate. The
mark-to-market value will be used to measure the Funds counterparty exposure. With respect to
reference entity exposure, the notional value of the swap will be used when protection is sold on
the underlying reference entity. The mark-to-market value will be used when protection is bought
on the underlying reference entity. Should the Fund acquire an interest in a swap that is traded
on a centralized exchange, the Fund will not consider the counterparty to be an issuer for these
purposes if it is determined that counterparty risk has been eliminated through use of the
centralized exchange. Further, the Fund will use the same approach described above for Section
5b-1 to satisfy the Funds SubChapter M quarter-end requirements under the Internal Revenue Code.
Exposure may be adjusted by appropriate offsets.
The swap market has grown substantially in recent years with a large number of banks and investment
banking firms acting both as principals and as agents utilizing standardized swap documentation. As
a result, the swap market has become relatively liquid in comparison with the markets for other
similar instruments, which are traded in the over-the-counter market. The Subadviser, under the
supervision of the Board of Trustees, is responsible for determining and monitoring the liquidity
of Fund transactions in swap agreements.
Taxable Municipal Securities. Taxable municipal securities are municipal securities the interest on
which is not exempt from federal income tax. Taxable municipal securities include private activity
bonds that are issued by or on behalf of states or political subdivisions thereof to finance
privately-owned or operated facilities for business and manufacturing, housing, sports, and
pollution control and to finance activities of and facilities for charitable institutions. Private
activity bonds are also used to finance public facilities such as airports, mass transit systems,
ports,
31
parking lots, and low income housing. The payment of the principal and interest on private activity
bonds is not backed by a pledge of tax revenues, and is dependent solely on the ability of the
facilitys user to meet its financial obligations, and may be secured by a pledge of real and
personal property so financed. Interest on these bonds may not be exempt from federal income tax.
Tax Credit Bonds (Build America Bonds). Build America Bonds are taxable bonds issued by federal
and state local governments that allow a new direct federal payment subsidy. At the election of the
state and local governments, the Treasury Department will make a direct payment to the state or
local governmental issuer in an amount equal to 35% of the interest payment on the Build America
Bonds. As a result, state and local governments will have lower net borrowing costs. This will
also make Build America Bonds attractive to a broader group of investors that typically invest in
traditional state and local tax-exempt bonds, where interest rates have historically been 20% lower
than taxable interest rates.
Tender Option Bonds. A tender option bond is a municipal obligation (generally held pursuant
to a custodial arrangement) having a relatively long maturity and bearing interest at a fixed rate
substantially higher than prevailing short-term, tax-exempt rates. The bond is typically issued in
conjunction with the agreement of a third party, such as a bank, broker-dealer or other financial
institution, pursuant to which the institution grants the security holder the option, at periodic
intervals, to tender its securities to the institution. As consideration for providing the option,
the financial institution receives periodic fees equal to the difference between the bonds fixed
coupon rate and the rate, as determined by a remarketing or similar agent that would cause the
securities, coupled with the tender option, to trade at par on the date of such determination.
Thus, after payment of this fee, the security holder effectively holds a demand obligation that
bears interest at the prevailing short-term, tax-exempt rate. An institution will normally not be
obligated to accept tendered bonds in the event of certain defaults or a significant downgrading in
the credit rating assigned to the issuer of the bond. The tender option will be taken into account
in determining the maturity of the tender option bonds and a Funds average portfolio maturity.
There is a risk that a Fund will not be considered the owner of a tender option bond for federal
income tax purposes, and thus will not be entitled to treat such interest as exempt from federal
income tax. Certain tender option bonds may be illiquid or may become illiquid as a result of a
credit rating downgrade, payment default or a disqualification from tax-exempt status.
Trust Preferred Securities. Trust preferred securities are convertible preferred shares issued by a
trust where proceeds from the sale are used to purchase convertible subordinated debt from the
issuer. The convertible subordinated debt is the sole asset of the trust. The coupon from the
issuer to the trust exactly mirrors the preferred dividend paid by the trust. Upon conversion by
the investors, the trust in turn converts the convertible debentures and passes through the shares
to the investors.
U.S. Government Securities. Examples of types of U.S. government obligations in which a Fund may
invest include U.S. Treasury obligations and the obligations of U.S. government agencies such as
Federal Home Loan Banks, Federal Farm Credit Banks, Federal Land Banks, the Federal Housing
Administration, Farmers Home Administration, Export-Import Bank of the United States, Small
Business Administration, Federal National Mortgage Association, Government National Mortgage
Association, General Services Administration, Student Loan Marketing Association, Central Bank for
Cooperatives, Freddie Mac (formerly Federal Home Loan Mortgage Corporation), Federal Intermediate
Credit Banks, Maritime Administration, and other similar agencies. Whether backed by the full faith
and credit of the U.S. Treasury or not, U.S. government securities are not guaranteed against price
movements due to fluctuating interest rates. The Student Loan Marketing Association can issue debt
as a U.S. government agency or as corporation. If the debt is issued as a corporation, it is not
considered a U.S. government obligation.
Federal Deposit Insurance Corporation (FDIC) Backed Bonds. FDIC-backed bonds
are senior unsecured debt obligations issued by banks, thrifts and some holding
companies that participate in the FDICs Temporary Liquidity Guaranty Program
(TLGP). Under the TLGP, the FDIC guarantees, with the full faith and credit of
the U.S. government, the payment of principal and interest on senior unsecured debt
issued by entities eligible to participate in the TLGP, which generally include
FDIC-insured depository institutions, U.S. bank holding companies or financial
holding companies and certain U.S. savings and loan holding companies, in exchange
for a fee to the FDIC. The debt must be issued on or before June 30, 2009, and
coverage is limited to bonds with maturities of 30 days to three years. This
guarantee presently extends through the earlier of the maturity date of the debt or
32
June 30, 2012. This guarantee does not extend to shares of the Portfolio itself.
FDIC-guaranteed debt is still subject to interest rate and securities selection
risk.
U.S. Treasury Obligations. U.S. Treasury obligations consist of bills, notes and
bonds issued by the U.S. Treasury and separately traded interest and principal
component parts of such obligations that are transferable through the federal
book-entry system known as STRIPS and Treasury Receipts (TRs).
Receipts. Interests in separately traded interest and principal component parts of
U.S. government obligations that are issued by banks or brokerage firms and are
created by depositing U.S. government obligations into a special account at a
custodian bank. The custodian holds the interest and principal payments for the
benefit of the registered owners of the certificates or receipts. The custodian
arranges for the issuance of the certificates or receipts evidencing ownership and
maintains the register. TRs and STRIPS are interests in accounts sponsored by the
U.S. Treasury. Receipts are sold as zero coupon securities.
Treasury Inflation Protected Notes (TIPS). TIPS are securities issued by the
U.S. Treasury that are designed to provide inflation protection to investors. TIPS
are income-generating instruments whose interest and principal payments are adjusted
for inflation. The inflation adjustment, which is typically applied monthly to the
principal of the bond, follows a designated inflation index, such as the consumer
price index. A fixed coupon rate is applied to the inflation-adjusted principal so
that as inflation rises, both the principal value and the interest payments
increase. This can provide investors with a hedge against inflation, as it helps
preserve the purchasing power of an investment. Because of this inflation adjustment
feature, inflation-protected bonds typically have lower yields than conventional
fixed-rate bonds.
Zero Coupon Obligations. Zero coupon obligations are debt obligations that do not
bear any interest, but instead are issued at a deep discount from face value or par.
The value of a zero coupon obligation increases over time to reflect the interest
accumulated. These obligations will not result in the payment of interest until
maturity, and will have greater price volatility than similar securities that are
issued at face value or par and pay interest periodically.
U.S. Government Zero Coupon Securities. STRIPS and receipts are sold as zero
coupon securities, that is, fixed income securities that have been stripped of their
unmatured interest coupons. Zero coupon securities are sold at a (usually
substantial) discount and redeemed at face value at their maturity date without
interim cash payments of interest or principal. The amount of this discount is
accreted over the life of the security, and the accretion constitutes the income
earned on the security for both accounting and tax purposes. Because of these
features, the market prices of zero coupon securities are generally more volatile
than the market prices of securities that have similar maturity but that pay
interest periodically. Zero coupon securities are likely to respond to a greater
degree to interest rate changes than are non-zero coupon securities with similar
maturity and credit qualities. See Mortgage-Backed Securities.
U.S. Government Agencies. Some obligations issued or guaranteed by agencies of the
U.S. Government are supported by the full faith and credit of the U.S. Treasury,
others are supported by the right of the issuer to borrow from the Treasury, while
still others are supported only by the credit of the instrumentality. Guarantees of
principal by agencies or instrumentalities of the U.S. Government may be a guarantee
of payment at the maturity of the obligation so that in the event of a default prior
to maturity there might not be a market and thus no means of realizing on the
obligation prior to maturity. Guarantees as to the timely payment of principal and
interest do not extend to the value or yield of these securities nor to the value of
a Funds shares.
Variable and Floating Rate Instruments. Certain of the obligations purchased by a Fund may carry
variable or floating rates of interest, may involve a conditional or unconditional demand feature
and may include variable amount master demand notes. Such instruments bear interest at rates that
are not fixed, but which vary with changes in
33
specified market rates or indices. The interest rates on these securities may be reset daily,
weekly, quarterly or some other reset period, and may have a floor or ceiling on interest rate
changes. There is a risk that the current interest rate on such obligations may not accurately
reflect existing market interest rates. A demand instrument with a demand notice exceeding seven
days may be considered illiquid if there is no secondary market for such securities.
Variable Rate Master Demand Notes. Variable rate master demand notes permit the investment of
fluctuating amounts at varying market rates of interest pursuant to direct arrangements between a
Fund, as lender, and a borrower. Such notes provide that the interest rate on the amount
outstanding varies on a daily, weekly or monthly basis depending upon a stated short-term interest
rate index. Both the lender and the borrower have the right to reduce the amount of outstanding
indebtedness at any time. There is no secondary market for the notes and it is not generally
contemplated that such instruments will be traded. The quality of the note or the underlying credit
must, in the opinion of the Subadviser, be equivalent to the ratings applicable to permitted
investments for the particular Fund. The Subadviser will monitor on an ongoing basis the earning
power, cash flow and liquidity ratios of the issuers of such instruments and will similarly monitor
the ability of an issuer of a demand instrument to pay principal and interest on demand. Variable
rate master demand notes may or may not be backed by bank letters of credit.
Warrant. A Warrant is a financial instrument that gives the holder the right, but not the
obligation, to purchase a specified amount of an asset at a specified price during a specified
period of time. A warrant may give its holder the right to buy shares of stock, bonds, currencies,
or commodities. Index Warrants, a type of warrant, allows investors to take a direct position in a
commodity, index, currency or economic variable. An example of an Index Warrant is a GDP Warrant,
which is a bond that allows investors to invest directly in a countrys economic growth. A GDP
Warrant creates long term securities that would be indexed on the economic growth of a country, or
rather an economic zone (for example Euroland). Those securities would have two main purposes: 1)
to give those countries or other issuers another source of financing, and a new financial
management tool; 2) to give investors a hybrid asset which has some feature(s) of an equity
security (variable return and/or capital, based on economic performances) while basically being a
bond (it is a debt). In the case of a GDP Warrant, the index would be the Gross Domestic Product
(GDP).
When-Issued Securities, Delayed Delivery and Forward Commitment Securities. When-Issued, Delayed
Delivery and Forward Commitment Securities are securities with settlement dates in excess of normal
settlement periods.
Each Fund may purchase or sell securities on a forward commitment, when-issued or delayed-delivery
basis, which means delivery and payment take place in the future after the date of the commitment
to purchase or sell the securities at a predetermined price and/or yield. Typically, no interest
accrues to the purchaser until the security is delivered. When purchasing a security on a forward
commitment, when-issued or delayed-delivery basis, a Fund assumes the rights and risks of ownership
of the security, including the risk of price and yield fluctuations, and takes such fluctuations
into account when determining its net asset value. Because the Fund is not required to pay for
these securities until the delivery date, these risks are in addition to the risks associated with
the Funds other investments. If the Fund is fully or almost fully invested when forward
commitment, when-issued or delayed-delivery purchases are outstanding, such purchases may result in
a form of leverage. The Fund intends to engage in forward commitment, when-issued and
delayed-delivery purchases to increase its portfolios financial exposure to the types of
securities in which it invests. Leveraging the portfolio in this manner will increase the Funds
exposure to changes in interest rates and will increase the volatility of its returns. The Fund
will segregate permissible liquid assets at least equal at all times to the amount of the Funds
purchase commitments.
Securities purchased on a forward commitment, when-issued or delayed-delivery basis are subject to
changes in value (generally changing in the same way, i.e., appreciating when interest rates
decline and depreciating when interest rates rise) based upon the publics perception of the
creditworthiness of the issuer and changes, real or anticipated, in the level of interest rates.
Securities purchased on a forward commitment, when-issued or delayed-delivery basis may expose the
Fund to risks because they may experience such fluctuations prior to their actual delivery.
Purchasing securities on a forward commitment, when-issued or delayed-delivery basis can involve
the additional risk that the yield available in the market when the delivery takes place actually
may be higher than that obtained in the transaction itself. Purchasing securities on a forward
commitment, when-issued or delayed-delivery basis when a Fund is fully or almost fully invested may
result in greater potential fluctuation in the value of the Funds net assets and its net asset
value per share.
34
To avoid any leveraging concerns, a Fund will segregate or earmark liquid assets in an amount
at least equal in value to its commitments to purchase when-issued and forward commitment
securities for any securities with settlement dates in excess of normal settlement periods.
INVESTMENT LIMITATIONS
Except with respect to a Funds non-fundamental policy relating to liquidity, if a percentage
limitation stated in the fundamental and non-fundamental policies below is adhered to at the time
of investment, a later increase or decrease in percentage resulting from any change in value will
not result in a violation of such restriction.
Fundamental Policies
Fundamental policies cannot be changed without the consent of the holders of a majority of each
Funds outstanding shares. The term majority of the outstanding shares means the vote of (i) 67%
or more of the Funds shares present at a meeting, if more than 50% of the outstanding shares of
the Fund are present or represented by proxy, or (ii) more than 50% of the Funds outstanding
shares, whichever is less.
In addition to the 80% investment policy of the Institutional Municipal Cash Reserve Money Market
Fund, the Georgia Tax-Exempt Bond Fund, the High Grade Municipal Bond Fund, the Investment Grade
Tax-Exempt Bond Fund, the Maryland Municipal Bond Fund, the North Carolina Tax-Exempt Bond Fund,
the Tax-Exempt Money Market Fund, the Virginia Intermediate Municipal Bond Fund and the Virginia
Tax-Free Money Market Fund, the following investment limitations are fundamental policies of the
Funds.
No Fund may:
1. With respect to 75% of each Funds total assets (50% in the case of the North
Carolina Tax-Exempt Bond Fund, the Real Estate 130/30 Fund and the Seix Global
Strategy Fund), invest more than 5% of the value of the total assets of a Fund in
the securities of any one issuer (other than securities issued or guaranteed by the
U.S. Government or any of its agencies or instrumentalities, repurchase agreements
involving such securities, and securities issued by investment companies), or
purchase the securities of any one issuer if such purchase would cause more than 10%
of the voting securities of such issuer to be held by a Fund.
2. Borrow money in an amount exceeding 33 1/3% of the value of its total assets,
provided that, for the purposes of this limitation, investment strategies that
either obligate a Fund to purchase securities or require a Fund to segregate assets
are not considered to be borrowing. Asset coverage of at least 300% is required for
all borrowing, except where the Fund has borrowed money for temporary purposes (less
than 60 days), and in an amount not exceeding 5% of its total assets.
3. Underwrite securities issued by others, except to the extent that the Fund may be
considered an underwriter within the meaning of the 1933 Act in the sale of
portfolio securities.
4. Issue senior securities (as defined in the 1940 Act), except as permitted by
rule, regulation or order of the SEC.
5. Purchase the securities of any issuer (other than securities issued or guaranteed
by the U.S. Government or any of its agencies or instrumentalities and securities
issued by investment companies) if, as a result, more than 25% of the Funds total
assets would be invested in the securities of companies whose principal business
activities are in the same industry.
|
|
a. |
|
With respect to the Money Market Funds, this
limitation does not apply to obligations issued by domestic
branches of U.S. banks or U.S. branches of foreign banks
subject to the same regulations as U.S. banks. |
|
35
|
|
b. |
|
No Allocation Strategy may invest more than 25% of its
assets in underlying RidgeWorth Funds that, as a matter of
policy, concentrate their assets in any one industry. However,
an Allocation Strategy may indirectly invest more than 25% of
its total assets in one industry through its investments in
the underlying RidgeWorth Funds. Each Allocation Strategy may
invest up to 100% of its assets in securities issued by
investment companies. |
|
|
|
|
c. |
|
The Real Estate 130/30 Fund will invest more
than 25% of its total assets in securities issued by real
estate investment trusts and by companies that derive at least
50% of revenues from the ownership, construction, management,
financing or sale of commercial, industrial or residential
real estate or has 50% of assets in such real estate. |
|
6. Purchase or sell real estate, unless acquired as a result of ownership of
securities or other instruments (but this shall not prevent a Fund from investing in
securities or other instruments either issued by companies that invest in real
estate, backed by real estate or securities of companies engaged in the real estate
business).
7. Purchase or sell physical commodities, unless acquired as a result of ownership
of securities or other instruments.
8. Make loans, except that a Fund may: (i) purchase or hold debt instruments in
accordance with its investment objectives and policies; (ii) enter into repurchase
agreements; and (iii) lend its portfolio securities.
Non-Fundamental Policies
The following investment policies are non-fundamental policies of the Funds and may be changed by
the Board of Trustees without shareholder approval:
1. With respect to each Fund that is subject to Rule 35d-1 under the 1940 Act,
except the Institutional Municipal Cash Reserve Money Market Fund, the Georgia
Tax-Exempt Bond Fund, the High Grade Municipal Bond Fund, the Investment Grade
Tax-Exempt Bond Fund, the Maryland Municipal Bond Fund, the North Carolina
Tax-Exempt Bond Fund, the Virginia Intermediate Municipal Bond Fund, the Tax-Exempt
Money Market Fund and the Virginia Tax-Free Money Market Fund, any change to a
Funds investment policy of investing at least 80% of such Funds net assets in a
particular type or category of securities is subject to 60 days prior notice to
shareholders.
2. No Fund may purchase or hold illiquid securities (i.e., securities that cannot be
disposed of for their approximate carrying value in seven days or less (which term
includes repurchase agreements and time deposits maturing in more than seven days)
if, in the aggregate, more than 15% of its net assets (5% for the Money Market
Funds) would be invested in illiquid securities.
3. No Allocation Strategy currently intends to purchase securities on margin, except
that an Allocation Strategy may obtain such short-term credits as are necessary for
the clearance of transactions.
4. No Allocation Strategy currently intends to sell securities short.
5. No Allocation Strategy currently intends to purchase or sell futures contracts or
put or call options.
6. No Allocation Strategy may invest in shares of unaffiliated money market funds,
except as permitted by applicable law or the SEC.
36
7. The Intermediate Bond Fund will not engage in the strategy of establishing or
rolling forward To Be Approved (TBA) mortgage commitments.
THE ADVISER
General. RidgeWorth Investments serves as investment adviser to the Funds. RidgeWorth Investments
is the trade name of RidgeWorth Capital Management, Inc., a professional investment management firm
registered with the SEC under the Investment Advisers Act of 1940. The Adviser is responsible for
making investment decisions for the Allocation Strategies and continuously reviews, supervises and
administers each Allocation Strategys investment program. With respect to the other Funds, the
Adviser oversees the Subadvisers to ensure compliance with the respective Funds investment
policies and guidelines and monitors each Subadvisers adherence to its investment style.
The Board supervises the Adviser with respect to its processes and policies and procedures that are
applicable to the Advisers management of the Funds. The principal business address of the Adviser
is 50 Hurt Plaza, Suite 1400, Atlanta, Georgia 30303. The Adviser is a wholly-owned subsidiary of
SunTrust Banks, Inc.
Advisory Agreement with the Trust. The Adviser serves as the investment adviser to each Fund
pursuant to an agreement (the Advisory Agreement) with the Trust. The continuance of the
Advisory Agreement must be specifically approved at least annually (i) by the vote of the Board or
by a vote of the shareholders of the Funds and (ii) by the vote of a majority of the Trustees who
are not parties to the Advisory Agreements or interested persons of any party thereto, as defined
in the 1940 Act, cast in person at a meeting called for the purpose of voting on such approval.
The Advisory Agreement will terminate automatically in the event of its assignment, and is
terminable at any time without penalty by the Board or, with respect to any Fund, by a majority of
the outstanding shares of that Fund, on not less than 30 days nor more than 60 days written notice
to the Adviser, or by the Adviser on 90 days written notice to the Trust. The Advisory Agreement
provides that the Adviser shall not be protected against any liability to the Trust or its
shareholders by reason of willful misfeasance, bad faith or gross negligence on its part in the
performance of its duties or from reckless disregard of its obligations or duties thereunder.
The Advisory Agreement provides that if, for any fiscal year, the ratio of expenses of any Fund
(including amounts payable to the Adviser but excluding interest, taxes, brokerage commissions, and
litigation and other extraordinary expenses) exceeds limitations established by certain states, the
Adviser and/or the administrator will bear the amount of such excess. The Adviser will not be
required to bear expenses of the Trust to an extent which would result in a Funds inability to
qualify as a regulated investment company under provisions of the Internal Revenue Code.
Advisory Fees Paid to the Adviser. For its services under the Advisory Agreement, the Adviser is
entitled to a fee at the specified annual rate of each Funds average daily net assets as listed in
the table that follows. Each Fund allocates and pays advisory fees among its constituent classes
based on the aggregate daily net asset values of each such class.
|
|
|
|
|
Fund |
|
Fee |
Aggressive Growth Allocation Strategy |
|
|
0.10 |
% |
Aggressive Growth Stock Fund |
|
|
1.10 |
% |
Conservative Allocation Strategy |
|
|
0.10 |
% |
Corporate Bond Fund |
|
|
0.40 |
% |
Emerging Growth Stock Fund |
|
|
1.10 |
% |
Georgia Tax-Exempt Bond Fund |
|
|
0.55 |
% |
Growth Allocation Strategy |
|
|
0.10 |
% |
High Grade Municipal Bond Fund |
|
|
0.55 |
% |
High Income Fund |
|
|
0.60 |
% |
Intermediate Bond Fund |
|
|
0.25 |
% |
Institutional Cash Management Money Market Fund |
|
|
0.13 |
% |
Institutional Municipal Cash Reserve Money Market Fund |
|
|
0.15 |
% |
Institutional U.S. Government Securities Money Market Fund |
|
|
0.15 |
% |
Institutional U.S. Treasury Securities Money Market Fund |
|
|
0.15 |
% |
International Equity 130/30 Fund |
|
|
1.25 |
% |
International Equity Fund |
|
|
1.15 |
% |
International Equity Index Fund |
|
|
0.50 |
% |
37
|
|
|
|
|
Fund |
|
Fee |
Investment Grade Bond Fund |
|
|
0.50 |
% |
Investment Grade Tax-Exempt Bond Fund |
|
|
0.50 |
% |
Large Cap Core Equity Fund |
|
|
0.85 |
% |
Large Cap Growth Stock Fund |
|
|
0.97 |
% |
Large Cap Quantitative Equity Fund |
|
|
0.85 |
% |
Large Cap Value Equity Fund |
|
|
0.80 |
% |
Limited Duration Fund |
|
|
0.10 |
% |
Limited-Term Federal Mortgage Securities Fund |
|
|
0.50 |
% |
Maryland Municipal Bond Fund |
|
|
0.55 |
% |
Mid-Cap Core Equity Fund |
|
|
1.00 |
% |
Mid-Cap Value Equity Fund |
|
|
1.00 |
% |
Moderate Allocation Strategy |
|
|
0.10 |
% |
North Carolina Tax-Exempt Bond Fund |
|
|
0.55 |
% |
Prime Quality Money Market Fund |
|
|
0.55 |
% |
Real Estate 130/30 Fund |
|
|
1.25 |
% |
Seix Floating Rate High Income Fund |
|
|
0.45 |
% |
Seix Global Strategy Fund |
|
|
0.60 |
% |
Seix High Yield Fund |
|
|
0.45 |
% |
Select Large Cap Growth Stock Fund |
|
|
0.85 |
% |
Short-Term Bond Fund |
|
|
0.40 |
% |
Short-Term U.S. Treasury Securities Fund |
|
|
0.40 |
% |
Small Cap Growth Stock Fund |
|
|
1.15 |
% |
Small Cap Value Equity Fund |
|
|
1.15 |
% |
Tax-Exempt Money Market Fund |
|
|
0.45 |
% |
Total Return Bond Fund |
|
|
0.25 |
% |
Ultra-Short Bond Fund |
|
|
0.22 |
% |
U.S. Equity 130/30 Fund |
|
|
1.10 |
% |
U.S. Government Securities Fund |
|
|
0.50 |
% |
U.S. Government Securities Money Market Fund |
|
|
0.55 |
% |
U.S. Government Securities Ultra-Short Bond Fund |
|
|
0.20 |
% |
U.S. Treasury Money Market Fund |
|
|
0.55 |
% |
Virginia Intermediate Municipal Bond Fund |
|
|
0.55 |
% |
Virginia Tax-Free Money Market Fund |
|
|
0.40 |
% |
The above fees are also subject to the following breakpoint discounts:
Equity and Fixed Income Funds:
First $500 million = none no discount from full fee
Next $500 million = 5% discount from full fee
Over $1.0 billion = 10% discount from full fee
Money Market Funds:
First $1.0 billion = none no discount from full fee
Next $1.5 billion = 5% discount from full fee
Next $2.5 billion = 10% discount from full fee
Over $5.0 billion = 20% discount from full fee
As discussed in the prospectuses, the Adviser has contractually agreed to waive a portion of its
fees or reimburse expenses, with respect to certain Funds, in order to limit Fund expenses.
38
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008, the Funds paid
the following advisory fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands)($) |
|
Fees
Waived (in thousands)($) |
Fund |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
Aggressive Growth Allocation Strategy |
|
|
24 |
|
|
|
26 |
|
|
|
50 |
|
|
|
30 |
|
|
|
3 |
|
|
|
3 |
|
Aggressive Growth Stock Fund |
|
|
1,265 |
|
|
|
2,724 |
|
|
|
3,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Conservative Allocation Strategy |
|
|
13 |
|
|
|
10 |
|
|
|
10 |
|
|
|
39 |
|
|
|
14 |
|
|
|
10 |
|
Corporate Bond Fund |
|
|
631 |
|
|
|
442 |
|
|
|
627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging Growth Stock Fund |
|
|
627 |
|
|
|
1,128 |
|
|
|
1,433 |
|
|
|
20 |
|
|
|
|
|
|
|
|
|
Georgia Tax-Exempt Bond Fund |
|
|
1,062 |
|
|
|
989 |
|
|
|
898 |
|
|
|
|
|
|
|
2 |
|
|
|
5 |
|
Growth Allocation Strategy |
|
|
64 |
|
|
|
73 |
|
|
|
121 |
|
|
|
28 |
|
|
|
4 |
|
|
|
1 |
|
High Grade Municipal Bond Fund |
|
|
392 |
|
|
|
703 |
|
|
|
961 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
High Income Fund |
|
|
491 |
|
|
|
267 |
|
|
|
387 |
|
|
|
19 |
|
|
|
18 |
|
|
|
1 |
|
Institutional Cash Management Money Market Fund |
|
|
3,811 |
|
|
|
4,738 |
|
|
|
4,825 |
|
|
|
162 |
|
|
|
155 |
|
|
|
|
|
Institutional Municipal Cash Reserve Money Market Fund |
|
|
146 |
|
|
|
120 |
|
|
|
108 |
|
|
|
46 |
|
|
|
14 |
|
|
|
4 |
|
Institutional U.S. Government Securities Money Market Fund |
|
|
4,253 |
|
|
|
3,900 |
|
|
|
2,000 |
|
|
|
794 |
|
|
|
|
|
|
|
7 |
|
Institutional U.S. Treasury Securities Money Market Fund |
|
|
4,230 |
|
|
|
4,517 |
|
|
|
3,663 |
|
|
|
1,774 |
|
|
|
69 |
|
|
|
|
|
Intermediate Bond Fund |
|
|
3,395 |
|
|
|
2,134 |
|
|
|
1,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
International Equity 130/30 Fund |
|
|
1,309 |
|
|
|
962 |
|
|
|
14 |
* |
|
|
|
|
|
|
26 |
|
|
|
48 |
* |
International Equity Fund |
|
|
2,869 |
|
|
|
7,630 |
|
|
|
13,365 |
|
|
|
120 |
|
|
|
|
|
|
|
|
|
International Equity Index Fund |
|
|
4,565 |
|
|
|
3,809 |
|
|
|
5,192 |
|
|
|
1 |
|
|
|
9 |
|
|
|
|
|
Investment Grade Bond Fund |
|
|
2,210 |
|
|
|
2,029 |
|
|
|
1,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Grade Tax- Exempt Bond Fund |
|
|
4,758 |
|
|
|
3,364 |
|
|
|
2,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Cap Core Equity Fund |
|
|
3,963 |
|
|
|
7,393 |
|
|
|
12,877 |
|
|
|
41 |
|
|
|
|
|
|
|
|
|
Large Cap Growth Stock Fund |
|
|
5,150 |
|
|
|
5,399 |
|
|
|
8,298 |
|
|
|
205 |
|
|
|
117 |
|
|
|
|
|
Large Cap Quantitative Equity Fund |
|
|
264 |
|
|
|
7.98 |
|
|
|
2,400 |
|
|
|
30 |
|
|
|
5 |
|
|
|
|
|
Large Cap Value Equity Fund |
|
|
9,744 |
|
|
|
8,679 |
|
|
|
8,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited Duration Fund |
|
|
25 |
|
|
|
38 |
|
|
|
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited-Term Federal Mortgage Securities Fund |
|
|
202 |
|
|
|
352 |
|
|
|
779 |
|
|
|
17 |
|
|
|
|
|
|
|
|
|
Maryland Municipal Bond Fund |
|
|
173 |
|
|
|
205 |
|
|
|
218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Cap Core Equity Fund |
|
|
934 |
|
|
|
1,391 |
|
|
|
2,992 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
Mid-Cap Value Equity Fund |
|
|
5,398 |
|
|
|
2,557 |
|
|
|
3,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands)($) |
|
Fees Waived (in thousands)($) |
Fund |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
Moderate Allocation Strategy |
|
|
147 |
|
|
|
150 |
|
|
|
221 |
|
|
|
17 |
|
|
|
6 |
|
|
|
|
|
North Carolina Tax- Exempt Bond Fund |
|
|
281 |
|
|
|
251 |
|
|
|
235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime Quality Money Market Fund |
|
|
29,439 |
|
|
|
42,246 |
|
|
|
48,301 |
|
|
|
16,188 |
|
|
|
97 |
|
|
|
|
|
Real Estate 130/30 Fund |
|
|
108 |
|
|
|
58 |
|
|
|
16 |
* |
|
|
52 |
|
|
|
62 |
|
|
|
11 |
* |
Seix-Floating Rate High Income Fund |
|
|
3,963 |
|
|
|
2,470 |
|
|
|
3,012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix Global Strategy Fund |
|
|
58 |
|
|
|
29 |
|
|
|
* |
* |
|
|
18 |
|
|
|
35 |
|
|
|
* |
* |
Seix High Yield Fund |
|
|
5,673 |
|
|
|
3,158 |
|
|
|
3,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Large Cap Growth Stock Fund |
|
|
1,088 |
|
|
|
936 |
|
|
|
1,104 |
|
|
|
|
|
|
|
3 |
|
|
|
|
|
Short-Term Bond Fund |
|
|
1,692 |
|
|
|
1,450 |
|
|
|
1,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term U.S. Treasury Securities Fund |
|
|
273 |
|
|
|
335 |
|
|
|
285 |
|
|
|
30 |
|
|
|
|
|
|
|
|
|
Small Cap Growth Stock Fund |
|
|
4,020 |
|
|
|
4,983 |
|
|
|
7,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Small Cap Value Equity Fund |
|
|
5,551 |
|
|
|
4,684 |
|
|
|
7,318 |
|
|
|
1 |
|
|
|
9 |
|
|
|
3 |
|
Tax-Exempt Money Market Fund |
|
|
7,877 |
|
|
|
8,885 |
|
|
|
8,773 |
|
|
|
4,135 |
|
|
|
261 |
|
|
|
|
|
Total Return Bond Fund |
|
|
1,689 |
|
|
|
1,441 |
|
|
|
1,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Short Bond Fund |
|
|
147 |
|
|
|
163 |
|
|
|
184 |
|
|
|
20 |
|
|
|
22 |
|
|
|
1 |
|
U.S. Equity 130/30 Fund |
|
|
77 |
|
|
|
42 |
|
|
|
13 |
* |
|
|
53 |
|
|
|
74 |
|
|
|
19 |
* |
U.S. Government Securities Fund |
|
|
798 |
|
|
|
2,275 |
|
|
|
2,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Securities Money Market Fund |
|
|
5,820 |
|
|
|
9,034 |
|
|
|
6,615 |
|
|
|
3,989 |
|
|
|
174 |
|
|
|
|
|
U.S. Government Securities Ultra-Short Bond Fund |
|
|
1,136 |
|
|
|
169 |
|
|
|
86 |
|
|
|
18 |
|
|
|
20 |
|
|
|
15 |
|
U.S. Treasury Money Market Fund |
|
|
6,380 |
|
|
|
8,672 |
|
|
|
6,209 |
|
|
|
5,286 |
|
|
|
2,683 |
|
|
|
75 |
|
Virginia Intermediate Municipal Bond Fund |
|
|
1,130 |
|
|
|
1,130 |
|
|
|
1,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Virginia Tax-Free Money Market Fund |
|
|
1,432 |
|
|
|
2,471 |
|
|
|
2,741 |
|
|
|
734 |
|
|
|
32 |
|
|
|
|
|
|
|
|
|
* |
|
With respect to the 130/30 Funds, represents fees earned and waived and expenses reimbursed
during the period from December 26, 2007
(the commencement of operations) through March 31, 2008. |
|
|
|
** |
|
Not in operation during the period. |
|
Fund Services Agreement. Effective July 1, 2009, the Investment Adviser provides certain
services, including the review and approval of shareholder reports filed with the SEC, the
oversight and management of the Trusts primary service providers, periodic due diligence reviews
of the Trusts primary service providers, coordination and negotiation of contracts and pricing
relating to the Trusts primary service providers, coordination, performance of due diligence, and
providing of information to the Independent Trustees relating to their review and selection of
40
prospective primary service providers to the Trust, including contract negotiations, and the
coordination of quarterly and special board meetings. As compensation for providing such services,
each Fund shall pay an annual fee to RidgeWorth representing a previously agreed upon portion of
the salaries, bonuses and benefits related to the primary employees responsible for delivering such
services (the Services Fee). For the fiscal year ended March 31, 2010, the Trust paid a Services
Fee of $228,750.
Compliance Service Fees. The Investment Adviser provides services to the Trust to ensure
compliance with applicable laws and regulations. The Investment Adviser has designated a dedicated
compliance staff and an employee to serve as Chief Compliance Officer. The Investment Adviser
receives an annual fee totaling $775,000 for these services. In addition, the Administrator provides staff to assist the Chief Compliance
Officer for the Trust, including providing certain related services, and receives an annual fee of
$171,485 for providing these services. The fees above are allocated based on average daily net
assets of the Trust.
THE SUBADVISERS
Each Subadviser is a professional investment management firm registered with the SEC under the
Investment Advisers Act of 1940. Each Subadviser, excluding Alpha Equity Management LLC (Alpha
Equity) and Zevenbergen Capital Investments LLC (ZCI), is a wholly-owned subsidiary of the
Adviser. Alpha Equity and ZCI are both minority owned subsidiaries of the Adviser.
Alpha Equity serves as the subadviser to the International Equity 130/30 Fund, the Real Estate
130/30 Fund and the U.S. Equity 130/30 Fund pursuant to an Investment Subadvisory Agreement between
the Adviser and Alpha Equity. The Adviser owns less than a 25% interest in Alpha and the remainder
is owned by Alphas employees.
For its subadvisory services, Alpha is entitled to receive an annual fee paid by the Adviser, which
is calculated daily and paid quarterly by the Adviser, at an annual rate based on the average daily
net assets of each of the each of the Funds as follows:
- International Equity 130/30 Fund: 0.75%
- Real Estate 130/30 Fund: 0.75%
- U.S. Equity 130/30 Fund: 0.66%
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008 Alpha received the
following subadvisory fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands)($) |
Fund |
|
2010 |
|
2009 |
|
2008* |
International Equity 130/30 Fund |
|
|
785 |
|
|
|
567 |
|
|
|
9 |
|
Real Estate 130/30 Fund |
|
|
65 |
|
|
|
35 |
|
|
|
9 |
|
U.S. Equity 130/30 Fund |
|
|
46 |
|
|
|
25 |
|
|
|
9 |
|
|
|
|
|
* |
|
With respect to the 130/30 Funds, represents fees earned during the period from December 26, 2007
(the commencement of operations) through March 31, 2008. |
|
Ceredex Value Advisors LLC (Ceredex) serves as the subadviser to the Large Cap Value Equity Fund,
the Mid-Cap Value Equity Fund and the Small Cap Value Equity Fund pursuant to an Investment
Subadvisory Agreement between
41
the Adviser and Ceredex. For its subadvisory services, Ceredex is entitled to receive an
annual fee paid by the Adviser equal to 40% of the net advisory fee paid by each applicable Fund.
For the fiscal years ended March 31, 2010 and March 31, 2009, Ceredex received the following
subadvisory fees:
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands) ($) |
Fund |
|
2010 |
|
2009 |
Large Cap Value Equity Fund |
|
|
3,897 |
|
|
|
3,472 |
|
Mid-Cap Value Equity Fund |
|
|
2,159 |
|
|
|
1,023 |
|
Small Cap Value Equity Fund |
|
|
2,220 |
|
|
|
1,870 |
|
Certium Asset Management LLC (Certium) serves as the subadviser to the International Equity Fund
and the International Equity Index Fund pursuant to an Investment Subadvisory Agreement between the
Adviser and Certium. For its subadvisory services, Certium is entitled to receive an annual fee
paid by the Adviser equal to 40% of the net advisory fee paid by each applicable Fund.
For the fiscal years ended March 31, 2010 and March 31, 2009, Certium received the following
subadvisory fees:
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands)($) |
Fund |
|
2010 |
|
2009 |
International Equity Fund |
|
|
1,100 |
|
|
|
3,052 |
|
International Equity Index Fund |
|
|
1,826 |
|
|
|
1,520 |
|
Large Cap Quantitative Equity Fund |
|
|
94 |
|
|
|
317 |
|
IronOak Advisors LLC (IronOak) serves as the subadviser to the Large Cap Core Equity Fund and the
Mid-Cap Core Equity Fund pursuant to an Investment Subadvisory Agreement between the Adviser and
IronOak. For its subadvisory services, IronOak is entitled to receive an annual fee paid by the
Adviser equal to 40% of the net advisory fee paid by each applicable Fund.
For the fiscal years ended March 31, 2010 and March 31, 2009 IronOak received the following
subadvisory fees:
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands)($) |
Fund |
|
2010 |
|
2009 |
Large Cap Core Equity Fund |
|
|
1,569 |
|
|
|
2,957 |
|
Mid-Cap Core Equity Fund |
|
|
372 |
|
|
|
557 |
|
Seix Investment Advisors LLC (Seix) serves as the subadviser to the Corporate Bond Fund, the High
Income Fund, the Intermediate Bond Fund, the Investment Grade Bond Fund, the Limited Duration Fund,
the Limited-Term Federal Mortgage Securities Fund, the Seix Floating Rate High Income Fund, the
Seix Global Strategy Fund, the Seix High Yield Fund, the Total Return Bond Fund and the U.S.
Government Securities Fund pursuant to an Investment Subadvisory
42
Agreement between the Adviser and Seix. For its subadvisory services, Seix is entitled to receive
an annual fee paid by the Adviser equal to 60% of the net advisory fee paid by each applicable
Fund.
For the fiscal years ended March 31, 2010 and March 31, 2009, Seix received the following
subadvisory fees:
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands) ($) |
Fund |
|
2010 |
|
2009 |
Corporate Bond Fund |
|
|
379 |
|
|
|
265 |
|
High Income Fund |
|
|
285 |
|
|
|
149 |
|
Intermediate Bond Fund |
|
|
2,037 |
|
|
|
1,281 |
|
Investment Grade Bond Fund |
|
|
1,326 |
|
|
|
1,217 |
|
Limited Duration Fund |
|
|
15 |
|
|
|
23 |
|
Limited-Term Federal Mortgage Securities Fund |
|
|
111 |
|
|
|
211 |
|
Seix Floating Rate High Income Fund |
|
|
2,378 |
|
|
|
1,482 |
|
Seix Global Strategy Fund |
|
|
25 |
|
|
|
|
|
Seix High Yield Fund |
|
|
3,404 |
|
|
|
1,895 |
|
Total Return Bond Fund |
|
|
1,014 |
|
|
|
864 |
|
U.S. Govt Securities Fund |
|
|
479 |
|
|
|
1,365 |
|
Silvant Capital Management LLC (Silvant) serves as the subadviser to the Large Cap Growth Stock
Fund, the Select Large Cap Growth Stock Fund and the Small Cap Growth Stock Fund pursuant to an
Investment Subadvisory Agreement between the Adviser and Silvant. For its subadvisory services,
Silvant is entitled to receive an annual fee paid by the Adviser equal to 40% of the net advisory
fee paid by each applicable Fund.
For the fiscal years ended March 31, 2010 and March 31, 2009, Silvant received the following
subadvisory fees:
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands) ($) |
Fund |
|
2010 |
|
2009 |
Large Cap Growth Stock Fund |
|
|
1,978 |
|
|
|
2,113 |
|
Select Large Cap Growth Stock Fund |
|
|
435 |
|
|
|
373 |
|
Small Cap Growth Stock Fund |
|
|
1,608 |
|
|
|
1,993 |
|
43
StableRiver Capital Management LLC (StableRiver) serves as the subadviser to the Georgia
Tax-Exempt Bond Fund, the High Grade Municipal Bond Fund, the Investment Grade Tax-Exempt Bond
Fund, the Institutional Cash Management Fund, the Institutional Municipal Cash Reserve Fund, the
Institutional U.S. Government Securities Money Market Fund, the Institutional U.S. Treasury
Securities Money Market Fund, the Maryland Municipal Bond Fund, the North Carolina Tax-Exempt Bond
Fund, the Short-Term Bond Fund, the Short-Term U.S. Treasury Securities Bond Fund, the Ultra-Short
Bond Fund, the U.S. Government Securities Ultra-Short Bond Fund and the Virginia Intermediate
Municipal Bond Fund pursuant to an Investment Subadvisory Agreement between the Adviser and
StableRiver. For its subadvisory services, StableRiver is entitled to receive an annual fee paid
by the Adviser equal to 40% of the net advisory fee paid by each applicable Fund.
For the fiscal years ended March 31, 2010 and March 31, 2009, StableRiver received the following
subadvisory fees:
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands) ($) |
Fund |
|
2010 |
|
2009 |
Georgia Tax-Exempt Bond Fund |
|
|
425 |
|
|
|
395 |
|
High Grade Municipal Bond Fund |
|
|
152 |
|
|
|
281 |
|
Investment Grade Tax-Exempt Bond Fund |
|
|
1,903 |
|
|
|
1,346 |
|
Maryland Municipal Bond Fund |
|
|
69 |
|
|
|
82 |
|
North Carolina Tax-Exempt Bond Fund |
|
|
112 |
|
|
|
101 |
|
Short-Term Bond Fund |
|
|
677 |
|
|
|
580 |
|
Short-Term U.S. Treasury Securities Fund |
|
|
97 |
|
|
|
134 |
|
U.S. Government Securities Ultra-Short Bond Fund |
|
|
447 |
|
|
|
59 |
|
Ultra-Short Bond Fund |
|
|
52 |
|
|
|
56 |
|
Virginia Intermediate Municipal Bond Fund |
|
|
452 |
|
|
|
452 |
|
Prime Quality Money Market Fund |
|
|
5,301 |
|
|
|
16,860 |
|
Tax-Exempt Money Market Fund |
|
|
1,505 |
|
|
|
3,450 |
|
U.S. Govt Securities Money Market Fund |
|
|
733 |
|
|
|
3,544 |
|
U.S. Treasury Money Market Fund |
|
|
438 |
|
|
|
2,396 |
|
Virginia Tax-Free Money Market Fund |
|
|
280 |
|
|
|
975 |
|
Institutional Cash Management Money Market Fund |
|
|
1,460 |
|
|
|
1,833 |
|
44
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands) ($) |
Fund |
|
2010 |
|
2009 |
Institutional Municipal Cash Reserve Money Market Fund |
|
|
40 |
|
|
|
42 |
|
Institutional U.S. Govt Securities Money Market Fund |
|
|
1,384 |
|
|
|
1,560 |
|
Institutional U.S. Treasury Securities Money Market Fund |
|
|
982 |
|
|
|
1,780 |
|
ZCI serves as the subadviser to the Aggressive Growth Stock Fund and the Emerging Growth Stock Fund
pursuant to an Investment Subadvisory Agreement between the Adviser and ZCI. The Adviser owns less
than a 25% interest in ZCI and the remainder is owned by ZCIs employees. For its subadvisory
services ZCI is entitled to receive a fee paid by the Adviser at an annual rate of 0.44% based on
the average daily net assets of the Aggressive Growth Stock Fund and the Emerging Growth Stock
Fund, which is calculated daily and paid quarterly by the Adviser.
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008, ZCI received the
following subadvisory fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands)($) |
Fund |
|
2010 |
|
2009 |
|
2008* |
Aggressive Growth Stock Fund |
|
|
506 |
|
|
|
1,449 |
|
|
|
2,181 |
|
Emerging Growth Stock Fund |
|
|
243 |
|
|
|
598 |
|
|
|
814 |
|
|
|
|
* |
|
Prior to October 1, 2008, ZCI received a fee paid by the Adviser at an annual rate of 0.625%
based on the average daily net assets of the Aggressive Growth Stock Fund and the Emerging
Growth Stock Fund for its subadvisory services. |
Each Subadviser has contractually agreed to waive a portion of its fees or reimburse expenses, with
respect to certain Funds, in order to limit Fund expenses.
Investment Subadvisory Agreements. The Adviser and each Subadviser have entered into separate
investment subadvisory agreements (each an Investment Subadvisory Agreement) under which the
Subadviser makes the investment decisions for and continuously reviews, supervises, and administers
the investment program of the respective Funds, subject to the supervision of, and policies
established by, the Adviser and the Board of Trustees of the Trust. After an initial two year term,
the continuance of each Investment Subadvisory Agreement must be specifically approved at least
annually by (i) the vote of the Trustees or a vote of the shareholders of the Fund and (ii) the
vote of a majority of the Trustees who are not parties to the Investment Subadvisory Agreement or
interested persons of any party thereto, cast in person at a meeting called for the purpose of
voting on such approval. Each Investment Subadvisory Agreement will terminate automatically in the
event of its assignment and is terminable at any time without penalty by (i) the Trustees of the
Trust or, with respect to each Fund, by a majority of the outstanding shares of that Fund, (ii) the
Adviser at any time on not less than 30 days nor more than 60 days written notice to the
Subadviser, or (iii) the Subadviser on 90 days written notice to the Adviser. Each Investment
Subadvisory Agreement provides that the Subadviser shall not be protected against any liability by
reason of willful misfeasance, bad faith, or negligence on its part in the performance of its
duties or from reckless disregard of its obligations or duties thereunder.
45
THE PORTFOLIO MANAGERS
Set forth below is information regarding the individuals who are primarily responsible for the
day-to-day management of the Funds (portfolio managers). All information is as of March 31, 2010
except as otherwise noted.
Management of Other Accounts. The table below shows the number of other accounts managed by each
portfolio manager and the approximate total assets in the accounts in each of the following
categories: registered investment companies, other pooled investment vehicles and other accounts.
For each category, the table also shows the number of accounts and the approximate total assets in
the accounts with respect to which the advisory fee is based on account performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets in Accounts (millions) |
|
|
|
|
|
|
Other |
|
|
|
Other Accounts with Performance- |
|
|
Registered |
|
Pooled |
|
|
|
Based Fees |
Portfolio |
|
Investment |
|
Investment |
|
|
|
Number & |
|
Total Assets |
Manager |
|
Companies* |
|
Vehicles |
|
Other Accounts |
|
Category |
|
(millions) |
Seth Antiles |
|
8/2,954.7 |
|
7/728.2 |
|
203/10,162.3 |
|
2 separately managed accounts |
|
|
328.5 |
|
Charles B. Arrington |
|
94.9/1 |
|
14.3 |
|
5.7 |
|
None |
|
|
0.0 |
|
Brett Barner |
|
649.8/1 |
|
0 |
|
462.3/14 |
|
0 |
|
|
0 |
|
George E. Calvert
Jr. |
|
236/2 |
|
0 |
|
111.1/9 |
|
0 |
|
|
0 |
|
Chris Carter |
|
270.2/2 |
|
672.15 |
|
152.245 |
|
0 |
|
|
0 |
|
Robert Corner |
|
1,476/3 |
|
726/2 |
|
1.5/52 |
|
0 |
|
|
0 |
|
46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets in Accounts (millions) |
|
|
|
|
|
|
Other |
|
|
|
Other Accounts with Performance- |
|
|
Registered |
|
Pooled |
|
|
|
Based Fees |
Portfolio |
|
Investment |
|
Investment |
|
|
|
Number & |
|
Total Assets |
Manager |
|
Companies* |
|
Vehicles |
|
Other Accounts |
|
Category |
|
(millions) |
Chad Deakins |
|
1,148.2/3 |
|
5/400.4 |
|
2/113.2 |
|
0 |
|
|
0 |
|
Brooke deBoutray |
|
131.9/2 |
|
0 |
|
73/1860.31 |
|
1/ SMA |
|
280.58 |
Million |
Vince Fioramonti |
|
160.2/3 |
|
6.88/2 |
|
22.01/2 |
|
2 pooled, 2 other |
|
|
28.89 |
|
Alan Gayle |
|
269.5/4 |
|
0 |
|
0 |
|
0 |
|
|
0 |
|
George Goudelias |
|
4/1,849/1 |
|
8/2,797 |
|
48/5,999.6 |
|
5 CLOs, 1 hedge fund |
|
|
2,787.5 |
|
Chris Guinther |
|
1,123.3/4 |
|
1/9.2M |
|
4/16.8M |
|
0 |
|
|
0 |
|
James Keegan |
|
9/3,133.5 |
|
7/728.2 |
|
203/10,162.3 |
|
2; separately managed accounts |
|
|
328.5 |
|
Michael Kirkpatrick |
|
3/2,249.1 |
|
8/2,797 |
|
48/5,999.6 |
|
1 hedge fund |
|
|
185.8 |
|
Neil Kochen |
|
160.2/3 |
|
10.91/2 |
|
0 |
|
2 pooled |
|
|
10.91 |
|
Jeffrey E. Markunas |
|
471.8/1 |
|
0.0 |
|
394.23 |
|
None |
|
|
0.0 |
|
Michael McEachern |
|
5/3,609.8 |
|
8/2,797 |
|
48/5,999.6 |
|
5 CLOs, 1 hedge fund |
|
|
2,787.5 |
|
Kevin Means |
|
160.2/3 |
|
5.25/1 |
|
0 |
|
1 pooled |
|
|
5.25 |
|
H. Rick Nelson |
|
1,476/3 |
|
726/2 |
|
1.2/46 |
|
0 |
|
|
0 |
|
Brian Nold |
|
5/3,609.8 |
|
8/2,797 |
|
48/5,999.6 |
|
1 hedge fund |
|
|
185.8 |
|
Joe Ransom |
|
133.3/1 |
|
1/26.6M |
|
42/2.25B |
|
SMA - 1 |
|
|
23.0 |
M |
Mills Riddick |
|
1,345.4/1 |
|
0 |
|
96.9/7 |
|
0 |
|
|
0 |
|
Michael Rieger |
|
7/2,945.1 |
|
7/728.2 |
|
203/10,162.3 |
|
2; separately managed accounts |
|
|
328.5 |
|
Michael A. Sansoterra |
|
1,019.8/3 |
|
47.8M/2 |
|
445.1M/34 |
|
0 |
|
|
0 |
|
Ron Schwartz |
|
2/1123 |
|
2/51.7 |
|
9/452 |
|
0 |
|
|
0 |
|
Chad Stephens |
|
1476/3 |
|
726/2 |
|
784/35 |
|
0 |
|
|
0 |
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets in Accounts (millions) |
|
|
|
|
|
|
Other |
|
|
|
Other Accounts with Performance- |
|
|
Registered |
|
Pooled |
|
|
|
Based Fees |
Portfolio |
|
Investment |
|
Investment |
|
|
|
Number & |
|
Total Assets |
Manager |
|
Companies* |
|
Vehicles |
|
Other Accounts |
|
Category |
|
(millions) |
Perry Troisi |
|
8/3,123.9 |
|
7/728.2 |
|
203/10,162.3 |
|
2; separately managed accounts |
|
|
328.5 |
|
Leslie Tubbs |
|
131.9/2 |
|
0 |
|
73/1860.31 |
|
1/ SMA |
|
280.58 |
Million |
Adrien Webb |
|
9/3,133.5 |
|
7/728.2 |
|
203/10,162.3 |
|
2; separately managed accounts |
|
|
328.5 |
|
Matthew Welden |
|
1/941 |
|
1/294.9 |
|
4/134.1 |
|
1 SMA |
|
|
2.8 |
|
Don Wordell |
|
845/1 |
|
0 |
|
3/70.3 |
|
0 |
|
|
0 |
|
Nancy Zevenbergen |
|
2/129.97 |
|
0 |
|
73/1860.31 |
|
1/ SMA |
|
280.58 |
Million |
|
|
|
* |
|
Includes the RidgeWorth Funds |
Potential Conflicts of Interest in Managing Multiple Accounts. A portfolio managers management of
both a Fund and the other accounts listed in the table above at the same time may give rise to
potential conflicts of interest. If a Fund and the other accounts have identical investment
objectives, the portfolio manager could favor one or more accounts over the Fund. Another
potential conflict may arise from the portfolio managers knowledge about the size, timing and
possible market impact of Fund trades if the portfolio manager used this information to the
advantage of other accounts and to the disadvantage of the Fund. In addition, aggregation of
trades may create the potential for unfairness to a Fund or another account if one account is
favored over another in allocating the securities purchased or sold. Each Subadviser has
established policies and procedures to ensure that the purchase and sale of securities among all
accounts it manages are allocated in a manner the Subadviser believes is fair and equitable.
Portfolio Manager Compensation Structure.
Portfolio Managers of the Adviser and all Subadvisers except Alpha Equity and ZCI. Portfolio
managers earn competitive salaries and participate in incentive bonus plans designed to retain high
quality investment professionals. The portfolio managers receive a salary commensurate with the
individuals experience and responsibilities with the firm. The incentive bonus plans may be
structured differently, but all incorporate an evaluation of the Funds performance returns and/or
the Subadvisers financial performance. Investment performance may be judged directly relative to
a peer group and/or benchmark or may be incorporated by measuring business unit financial
performance over an extended period under the theory that successful investment performance will
translate into improved financial results. Other components that may be considered in the
calculation of incentive bonuses include: adherence to compliance policies, marketing, risk
management and business development, among others.
Where applicable, investment performance is determined by comparing a Funds pre-tax total returns
to the returns of the Funds benchmark and peer groups over multi-year periods, as applicable.
Where portfolio managers manage multiple Funds or other managed accounts, each Fund or other
managed account is weighted based on its market value and its relative strategic importance to the
Adviser and/or the Subadviser. Other performance attributes are also based on a scorecard that
objectively measures key performance attributes, which is then evaluated by the Advisers and/or
Subadvisers management to determine the award amount.
As a tool to minimize personnel turnover, the portfolio managers
incentive bonus may be partially paid promptly following the calendar year
end with any remaining portion subject to a mandatory deferral which vests
over three years subject to the terms and conditions of the incentive bonus plan.
On occasion, a portfolio manager may receive a guaranteed incentive for a fixed period in
conjunction with accepting a new position when the Adviser and/or the Subadviser deem it necessary
to recruit or retain talented managers.
48
All full-time employees of the Adviser and Subadvisers, including the Funds portfolio
managers, are provided a benefits package on substantially similar terms. The percentage of each
individuals compensation provided by these benefits is dependent upon length of employment, salary
level, and several other factors. In addition, certain portfolio managers may be eligible for one
or more of the following additional benefit plans:
401(k) Excess Plan This plan provides benefits which would otherwise be provided under the
qualified cash or deferred ESOP plan adopted by the Advisers/Subadvisers parent company
(SunTrust Banks, Inc.), were it not for the imposition of certain statutory limits on
qualified plan benefits. Certain select individuals within specific salary levels may be
eligible for this plan. Participation in the plan must be approved by the individuals senior
executive for the business.
ERISA Excess Retirement Plan This plan provides for benefits to certain executives that
cannot be paid to them under tax qualified pension plans as a result of federal restrictions.
Certain select individuals within specific salary levels may be eligible for this plan.
Participation in the plan must be approved by the individuals senior executive for the
business.
Voluntary Functional Incentive Plan Deferral This plan is a provision of a SunTrust
Deferred Compensation Plan which allows participants of selected annual incentive plans to
voluntarily defer portions of their incentive. Eligibility to participate in this plan is
offered to employees of selected incentive plans who earn above a specified level of total
compensation in the year prior to their deferral. The Advisers/Subadvisers annual incentive
plans offer this provision to employees who meet the compensation criteria level.
Restricted Stock Awards Restricted stock awards are granted to certain select individuals
on a case-by-case basis as a form of long-term compensation and as an additional incentive to
retain these professionals. The awards often vest based on the recipients continued
employment with the Adviser/Subadviser, but these awards may also carry additional vesting
requirements, including performance conditions.
Portfolio Managers of ZCI. ZCIs portfolio managers, Nancy Zevenbergen, Brooke de Boutray and
Leslie Tubbs, work as a team in managing the firms accounts, including the Funds. Key
professionals, including the portfolio managers, are compensated by salary commensurate with
industry standards and individual experience. They are additionally compensated with bonuses based
on ZCIs overall performance. ZCI does not tie compensation to a published or private benchmark.
All Managing Directors, including Ms. de Boutray and Ms. Tubbs, are compensated by growth in ZCIs
profits, thereby aligning professional interests with clients growth potential.
Portfolio Managers of Alpha Equity. The four primary investment professionals are partners of Alpha
Equity management, each having a similar economic stake in the company. Further, the senior
executives (the CFO/COO/CCO, Director of Business Development, and Director of Strategic Planning)
are also partners. After the payment of administrative expenses, each partner receives a base
salary. Cash flow in excess of administrative expenses and partner base salaries are available for
bonus allocations. Bonus allocations are determined annually based on contributions of each
professional to the success of the overall business and subject to preset formulaic minimums (these
minimums are tied to product-revenue generated, which is substantially impacted by investment
performance). At current asset and revenue levels, the current compensation for the Partners is
100% base salary.
New investment professionals are provided with industry-competitive salary/bonus opportunities, and
if new partners were to join, they would purchase equity shares from existing partners based on
then current firm valuation levels. All non-partner employees of Alpha Equity receive a
market-competitive base salary and participate in a bonus program tied to individual performance
and contributions, as determined annually by the firms Partners.
Securities Ownership of Portfolio Managers. The table below shows the range of equity securities
beneficially owned by each portfolio manager in the Fund or Funds managed by the portfolio manager.
The information is as of March 31, 2010, except as otherwise noted.
49
|
|
|
|
|
|
|
RidgeWorth Fund(s) |
|
|
Portfolio Manager |
|
Managed |
|
Range of Securities Owned ($) |
Seth Antiles
|
|
Intermediate Bond Fund
|
|
None |
|
|
Investment Grade Bond Fund
|
|
None |
|
|
Limited-Term Federal Mortgage
Securities Fund
|
|
None |
|
|
Limited Duration Fund
|
|
None |
|
|
Seix Global Strategy Fund
|
|
None |
|
|
Total Return Bond Fund
|
|
None |
|
|
U.S. Government Securities Fund
|
|
None |
|
|
|
|
|
Charles B. Arrington
|
|
Mid-Cap Core Equity Fund
|
|
10,001 50,000 |
|
|
|
|
|
Brett Barner
|
|
Small Cap Value Equity Fund
|
|
100,001 500,000 |
|
|
|
|
|
George E. Calvert Jr.
|
|
Maryland Municipal Bond Fund
|
|
None |
|
|
Virginia Intermediate Municipal
Bond Fund
|
|
None |
|
|
|
|
|
Chris Carter
|
|
North Carolina Tax-Exempt Bond
Fund
|
|
None |
|
|
Georgia Tax-Exempt Bond Fund
|
|
None |
|
|
|
|
|
Robert Corner
|
|
Short-Term Bond Fund
|
|
10,001 50,000 |
|
|
Short-Term U.S. Treasury
Securities Fund
|
|
0 10,000 |
|
|
Ultra-Short Bond Fund
|
|
0 10,000 |
|
|
U.S. Government Securities
Ultra-Short Bond Fund
|
|
0 10,000 |
50
|
|
|
|
|
|
|
RidgeWorth Fund(s) |
|
|
Portfolio Manager |
|
Managed |
|
Range of Securities Owned ($) |
Chad Deakins
|
|
International Equity Fund
|
|
10,001 50,000 |
|
|
International Equity Index Fund
|
|
10,001 50,000 |
|
|
Large Cap Quantitative Fund
|
|
None |
|
|
|
|
|
Brooke deBoutray
|
|
Aggressive Growth Stock Fund
|
|
100,001 500,000 |
|
|
Emerging Growth Stock fund
|
|
100,001 500,000 |
|
|
|
|
|
Vince Fioramonti
|
|
International Equity 130/30 Fund
|
|
0 10,000 |
|
|
|
|
|
Alan Gayle
|
|
Aggressive Growth Allocation
Strategy
|
|
0 10,000 |
|
|
Conservative Allocation Strategy
|
|
0 10,000 |
|
|
Growth Allocation Strategy
|
|
0 10,000 |
|
|
Moderate Allocation Strategy
|
|
0 10,000 |
51
|
|
|
|
|
|
|
RidgeWorth Fund(s) |
|
|
Portfolio Manager |
|
Managed |
|
Range of Securities Owned ($) |
George Goudelias
|
|
Seix Floating Rate High Income Fund
|
|
None |
|
|
|
|
|
Chris Guinther
|
|
Large Cap Growth Stock Fund
|
|
50,001 100,000 |
|
|
Select Large Cap Growth Stock Fund
|
|
None |
|
|
Small Cap Growth Stock Fund
|
|
10,001 50,000 |
|
|
|
|
|
James Keegan
|
|
Intermediate Bond Fund
|
|
None |
|
|
Investment Grade Bond Fund
|
|
None |
|
|
Limited Duration Fund
|
|
None |
|
|
Limited-Term Federal Mortgage
Securities Fund
|
|
None |
|
|
Seix Global Strategy Fund
|
|
None |
|
|
Corporate Bond Fund
|
|
None |
|
|
Total Return Bond Fund
|
|
None |
|
|
U.S. Government Securities Fund
|
|
None |
|
|
|
|
|
Michael Kirkpatrick
|
|
Seix High Yield Fund
|
|
None |
|
|
|
|
|
Neil Kochen
|
|
International Equity 130/30 Fund
|
|
0 10,000 |
|
|
Real Estate 130/30 Fund
|
|
0 10,000 |
|
|
U.S. Equity 130/30 Fund
|
|
0 10,000 |
|
|
|
|
|
Jeffrey E. Markunas
|
|
Large Cap Core Equity Fund
|
|
100,001 500,000 |
52
|
|
|
|
|
|
|
RidgeWorth Fund(s) |
|
|
Portfolio Manager |
|
Managed |
|
Range of Securities Owned ($) |
Michael McEachern
|
|
High Income Fund
|
|
100,001 500,000 |
|
|
Seix Floating Rate High Income Fund
|
|
None |
|
|
Seix High Yield Fund
|
|
None |
|
|
|
|
|
Kevin Means
|
|
Real Estate 130/30 Fund
|
|
0 10,000 |
|
|
|
|
|
H. Rick Nelson
|
|
Short-Term Bond Fund
|
|
10,001 50,000 |
|
|
Short-Term U.S. Treasury Securities
Fund
|
|
None |
|
|
Ultra-Short Bond Fund
|
|
None |
|
|
U.S. Government Securities
Ultra-Short Bond Fund
|
|
None |
|
|
|
|
|
Brian Nold
|
|
High Income Fund
|
|
None |
|
|
Seix High Yield Fund
|
|
10,001 50,000 |
|
|
|
|
|
Joe Ransom
|
|
Select Large Cap Growth Stock Fund
|
|
50,000 100,000 |
|
|
|
|
|
Mills Riddick
|
|
Large Cap Value Equity Fund
|
|
100,001 500,000 |
|
|
|
|
|
Michael Rieger
|
|
Intermediate Bond Fund
|
|
None |
|
|
Investment Grade Bond Fund
|
|
None |
|
|
Limited Duration Fund
|
|
None |
|
|
Limited-Term Federal Mortgage
Securities Fund
|
|
None |
|
|
Total Return Bond Fund
|
|
None |
|
|
U.S. Government Securities Fund
|
|
None |
53
|
|
|
|
|
|
|
RidgeWorth Fund(s) |
|
|
Portfolio Manager |
|
Managed |
|
Range of Securities Owned ($) |
Michael A. Sansoterra |
|
Large Cap Growth Stock Fund |
|
None |
|
|
Select Large Cap Growth Stock Fund |
|
None |
|
|
Small Cap Growth Stock Fund |
|
10,001 50,000 |
|
|
|
|
|
Ron Schwartz |
|
High Grade Municipal Bond Fund |
|
None |
|
|
Investment Grade Tax-Exempt Bond Fund |
|
|
|
|
|
|
|
Chad Stephens |
|
Short-Term Bond Fund |
|
None |
|
|
Short-Term U.S. Treasury Securities Fund |
|
None |
|
|
Ultra-Short Bond Fund |
|
None |
|
|
U.S. Government Securities Ultra-Short Bond Fund |
|
None |
|
|
|
|
|
Perry Troisi |
|
Corporate Bond Fund |
|
None |
|
|
Intermediate Bond Fund |
|
None |
|
|
Investment Grade Bond Fund |
|
None |
|
|
Limited Duration Fund |
|
None |
|
|
Limited-Term Federal Mortgage Securities Fund |
|
None |
|
|
Total Return Bond Fund |
|
None |
|
|
U.S. Government Securities Fund |
|
None |
54
|
|
|
|
|
|
|
RidgeWorth Fund(s) |
|
|
Portfolio Manager |
|
Managed |
|
Range of Securities Owned ($) |
Leslie Tubbs
|
|
Aggressive Growth Stock Fund
|
|
50,001 100,000 |
|
|
Emerging Growth Stock Fund
|
|
10,001 50,000 |
|
|
|
|
|
Adrien Webb
|
|
Intermediate Bond Fund
|
|
None |
|
|
Investment Grade Bond Fund
|
|
None |
|
|
Limited Duration Fund
|
|
None |
|
|
Limited-Term Federal Mortgage
Securities Fund
|
|
None |
|
|
Seix Global Strategy Fund
|
|
None |
|
|
Corporate Bond Fund
|
|
None |
|
|
Total Return Bond Fund
|
|
None |
|
|
U.S. Government Securities Fund
|
|
None |
|
|
|
|
|
Matthew Welden
|
|
International Equity Index Fund
|
|
1 10,000 |
|
|
|
|
|
Don Wordell
|
|
Mid-Cap Value Equity Fund
|
|
10,001 50,000 |
|
|
|
|
|
Nancy Zevenbergen
|
|
Aggressive Growth Stock Fund
|
|
101,000 500,000 |
|
|
Emerging Growth Stock Fund
|
|
101,000 500,000 |
55
THE ADMINISTRATOR
General. Citi Fund Services Ohio, Inc. (the Administrator) serves as administrator of the Trust.
Prior to the acquisition of the Administrator by a subsidiary of Citibank N.A. on August 1, 2007,
the Administrator was known as BISYS Fund Services Ohio, Inc. The Administrator, an Ohio
corporation, has its principal business offices at 3435 Stelzer Road, Columbus, Ohio 43219. The
Administrator provides administration services to other investment companies.
Master Services Agreement with the Trust. The Trust and the Administrator have entered into a
master services agreement (the Master Services Agreement). Under the Master Services Agreement,
the Administrator provides the Trust with administrative services, including day-to-day
administration of matters necessary to each Funds operations, maintenance of records and the books
of the Trust, preparation of reports, assistance with compliance monitoring of the Funds
activities, and certain supplemental services in connection with the Trusts obligations under the
Sarbanes-Oxley Act of 2002; fund accounting services; transfer agency services and shareholder
services.
The Master Services Agreement provides that it shall remain in effect until July 31, 2010 and shall continue in
effect for successive one year periods subject to review at least annually by the Trustees of the
Trust unless terminated by either party on not less than 90 days written notice to the other party.
Administration Fees to be Paid to the Administrator. Under the Master Services Agreement, the
Administrator is entitled to receive an asset-based fee for administration, fund accounting,
transfer agency and shareholder services (expressed as a percentage of the combined average daily
net assets of the RidgeWorth Complex) of 2.75 basis points (0.0275%) on the first $25 billion,
2.25 basis points (0.0225%) on the next $5 billion, and 1.75 basis points (0.0175%) on the amounts
over $30 billion, plus an additional class fee of $2,930 per class annually, applicable to each
additional class of shares over 145 classes of shares. The Administrator may waive a portion of
its fee.
The Master Services Agreement provides for the Administrator to pay certain insurance premiums for
the RidgeWorth Complex, including $300,000 toward the premium for Directors and Officers
Liability/Errors and Omissions insurance coverage, and $25,000 toward the premium for Fidelity Bond
coverage. The Administrator has also separately agreed to provide, for the benefit of
shareholders, annual fee waivers and certain administrative services at an annual value of at least
$950,000. The waivers described above include targeted fee waivers (TFWs) that are not applied
uniformly across the Funds. In some instances, the TFWs may be applied to non-capped Funds on a
voluntary basis. In certain other instances, the waivers may be applied to Funds subject to a
contractual expense limitation or cap. The application of TFWs to contractually capped Funds may
decrease or eliminate the Advisers obligation to reimburse the Funds for expenses incurred in
excess of the expense cap. The administrative services described in (i) above include: (a)
paying for certain legal expenses for the benefit of the Funds associated with fund administration
matters such as mergers and acquisitions, proxy statements, exemptive relief, contract
review, and preparation of SEC filings and prospectuses with respect to the Funds and (b)
providing certain shareholder services. The waivers described in (ii) above are applied pro rata
to reduce the expenses of each Fund in the RidgeWorth Complex. Such payments and fee waivers will
not be recouped by the Administrator in subsequent years.
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008, the Funds paid the
following administrative fees to the Administrator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands)($) |
|
Fees Waived (in thousands)($) |
Fund |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
Aggressive Growth Allocation Strategy |
|
|
11 |
|
|
|
11 |
|
|
|
16 |
|
|
|
87 |
|
|
|
4 |
|
|
|
3 |
|
Aggressive Growth Stock Fund |
|
|
38 |
|
|
|
69 |
|
|
|
93 |
|
|
|
1 |
|
|
|
3 |
|
|
|
4 |
|
Conservative Allocation Strategy |
|
|
6 |
|
|
|
4 |
|
|
|
4 |
|
|
|
1 |
|
|
|
2 |
|
|
|
3 |
|
Corporate Bond Fund |
|
|
58 |
|
|
|
37 |
|
|
|
39 |
|
|
|
1 |
|
|
|
1 |
|
|
|
13 |
|
Emerging Growth Stock Fund |
|
|
19 |
|
|
|
28 |
|
|
|
34 |
|
|
|
|
|
|
|
1 |
|
|
|
2 |
|
56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands)($) |
|
Fees Waived (in thousands)($) |
Fund |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
Georgia Tax-Exempt Bond Fund |
|
|
54 |
|
|
|
49 |
|
|
|
44 |
|
|
|
1 |
|
|
|
16 |
|
|
|
14 |
|
Growth Allocation Strategy |
|
|
30 |
|
|
|
30 |
|
|
|
38 |
|
|
|
5 |
|
|
|
5 |
|
|
|
1 |
|
High Grade Municipal Bond Fund |
|
|
21 |
|
|
|
35 |
|
|
|
46 |
|
|
|
|
|
|
|
2 |
|
|
|
2 |
|
High Income Fund |
|
|
32 |
|
|
|
27 |
|
|
|
31 |
|
|
|
|
|
|
|
10 |
|
|
|
8 |
|
Institutional Cash Management Money
Market Fund |
|
|
828 |
|
|
|
988 |
|
|
|
1,001 |
|
|
|
17 |
|
|
|
285 |
|
|
|
190 |
|
Institutional Municipal Cash Reserve
Money Market Fund |
|
|
32 |
|
|
|
23 |
|
|
|
21 |
|
|
|
11 |
|
|
|
11 |
|
|
|
11 |
|
Institutional U.S. Government
Securities Money Market Fund |
|
|
782 |
|
|
|
682 |
|
|
|
340 |
|
|
|
17 |
|
|
|
36 |
|
|
|
8 |
|
Institutional U.S. Treasury Securities
Money Market Fund |
|
|
775 |
|
|
|
797 |
|
|
|
635 |
|
|
|
116 |
|
|
|
153 |
|
|
|
46 |
|
Intermediate Bond Fund |
|
|
408 |
|
|
|
234 |
|
|
|
156 |
|
|
|
6 |
|
|
|
12 |
|
|
|
23 |
|
International Equity 130/30 Fund |
|
|
76 |
|
|
|
69 |
|
|
|
12 |
* |
|
|
|
|
|
|
16 |
|
|
|
|
* |
International Equity Fund |
|
|
106 |
|
|
|
227 |
|
|
|
367 |
|
|
|
12 |
|
|
|
9 |
|
|
|
13 |
|
International Equity Index Fund |
|
|
371 |
|
|
|
293 |
|
|
|
406 |
|
|
|
4 |
|
|
|
10 |
|
|
|
11 |
|
Investment Grade Bond Fund |
|
|
146 |
|
|
|
126 |
|
|
|
128 |
|
|
|
2 |
|
|
|
5 |
|
|
|
4 |
|
Investment Grade Tax-Exempt Bond Fund |
|
|
299 |
|
|
|
200 |
|
|
|
144 |
|
|
|
98 |
|
|
|
9 |
|
|
|
5 |
|
Large Cap Core Equity Fund |
|
|
156 |
|
|
|
258 |
|
|
|
447 |
|
|
|
375 |
|
|
|
66 |
|
|
|
17 |
|
Large Cap Growth Stock Fund |
|
|
183 |
|
|
|
192 |
|
|
|
274 |
|
|
|
28 |
|
|
|
68 |
|
|
|
83 |
|
Large Cap Quantitative Equity Fund |
|
|
12 |
|
|
|
29 |
|
|
|
77 |
|
|
|
54 |
|
|
|
11 |
|
|
|
3 |
|
Large Cap Value Equity Fund |
|
|
358 |
|
|
|
311 |
|
|
|
307 |
|
|
|
111 |
|
|
|
15 |
|
|
|
12 |
|
Limited Duration Fund |
|
|
10 |
|
|
|
14 |
|
|
|
17 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
Limited-Term Federal Mortgage
Securities Fund |
|
|
15 |
|
|
|
23 |
|
|
|
47 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
Maryland Municipal Bond Fund |
|
|
10 |
|
|
|
12 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Cap Core Equity Fund |
|
|
34 |
|
|
|
49 |
|
|
|
90 |
|
|
|
81 |
|
|
|
7 |
|
|
|
3 |
|
Mid-Cap Value Equity Fund |
|
|
154 |
|
|
|
75 |
|
|
|
87 |
|
|
|
64 |
|
|
|
3 |
|
|
|
6 |
|
Moderate Allocation Strategy |
|
|
54 |
|
|
|
59 |
|
|
|
73 |
|
|
|
11 |
|
|
|
9 |
|
|
|
5 |
|
North Carolina Tax-Exempt Bond Fund |
|
|
15 |
|
|
|
13 |
|
|
|
12 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
Prime Quality Money Market Fund |
|
|
1,583 |
|
|
|
2,222 |
|
|
|
2,520 |
|
|
|
254 |
|
|
|
394 |
|
|
|
106 |
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid (in thousands)($) |
|
Fees Waived (in thousands)($) |
Fund |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
Real Estate 130/30 Fund |
|
|
7 |
|
|
|
5 |
|
|
|
1 |
* |
|
|
80 |
|
|
|
1 |
|
|
|
|
* |
Seix Floating Rate High Income Fund |
|
|
278 |
|
|
|
147 |
|
|
|
197 |
|
|
|
4 |
|
|
|
7 |
|
|
|
7 |
|
Seix Global Strategy Fund |
|
|
3 |
|
|
|
2 |
|
|
|
* |
* |
|
|
|
|
|
|
1 |
|
|
|
* |
* |
Seix High Yield Fund |
|
|
430 |
|
|
|
251 |
|
|
|
279 |
|
|
|
5 |
|
|
|
38 |
|
|
|
18 |
|
Select Large Cap Growth Stock Fund |
|
|
49 |
|
|
|
48 |
|
|
|
53 |
|
|
|
1 |
|
|
|
6 |
|
|
|
7 |
|
Short-Term Bond Fund |
|
|
124 |
|
|
|
107 |
|
|
|
108 |
|
|
|
2 |
|
|
|
5 |
|
|
|
4 |
|
Short-Term U.S. Treasury Securities Fund |
|
|
24 |
|
|
|
26 |
|
|
|
23 |
|
|
|
3 |
|
|
|
1 |
|
|
|
8 |
|
Small Cap Growth Stock Fund |
|
|
116 |
|
|
|
138 |
|
|
|
213 |
|
|
|
2 |
|
|
|
18 |
|
|
|
63 |
|
Small Cap Value Equity Fund |
|
|
144 |
|
|
|
122 |
|
|
|
182 |
|
|
|
2 |
|
|
|
22 |
|
|
|
7 |
|
Tax Exempt Money Market Fund |
|
|
486 |
|
|
|
533 |
|
|
|
526 |
|
|
|
184 |
|
|
|
104 |
|
|
|
21 |
|
Total Return Bond Fund |
|
|
205 |
|
|
|
168 |
|
|
|
183 |
|
|
|
3 |
|
|
|
8 |
|
|
|
7 |
|
Ultra-Short Bond Fund |
|
|
36 |
|
|
|
33 |
|
|
|
33 |
|
|
|
|
|
|
|
17 |
|
|
|
28 |
|
U.S. Equity 130/30 Fund |
|
|
12 |
|
|
|
11 |
|
|
|
2 |
* |
|
|
1 |
|
|
|
1 |
|
|
|
|
* |
U.S. Government Securities Fund |
|
|
47 |
|
|
|
122 |
|
|
|
152 |
|
|
|
4 |
|
|
|
6 |
|
|
|
6 |
|
U.S. Government Securities Money Market
Fund |
|
|
286 |
|
|
|
426 |
|
|
|
305 |
|
|
|
47 |
|
|
|
22 |
|
|
|
13 |
|
U.S. Government Securities Ultra-Short
Bond Fund |
|
|
185 |
|
|
|
29 |
|
|
|
16 |
|
|
|
1 |
|
|
|
12 |
|
|
|
8 |
|
U.S. Treasury Money Market Fund |
|
|
312 |
|
|
|
405 |
|
|
|
286 |
|
|
|
51 |
|
|
|
165 |
|
|
|
34 |
|
Virginia Intermediate Municipal Bond
Fund |
|
|
59 |
|
|
|
56 |
|
|
|
59 |
|
|
|
1 |
|
|
|
3 |
|
|
|
5 |
|
Virginia Tax Free Money Market Fund |
|
|
102 |
|
|
|
171 |
|
|
|
186 |
|
|
|
16 |
|
|
|
33 |
|
|
|
7 |
|
|
|
|
* |
|
With respect to the 130/30 Funds, represents fees earned and waived during the period from
December 26, 2007 (the commencement of operations) through March 31, 2008. |
|
|
** |
|
Not operational during the period. |
|
THE DISTRIBUTOR
The Trust and RidgeWorth Distributors LLC (the Distributor) are parties to a Distribution
Agreement whereby the Distributor acts as principal underwriter for the Trusts shares. The
principal business address of the Distributor is 10 High Street, Suite 302, Boston, Massachusetts
02110. Under the terms of the Distribution Agreement, the Distributor
58
must use all reasonable
efforts, consistent with its other business, in connection with the continuous offering of shares
of the Trust. The Distributor receives an annual fee of $3,500 per Fund, with a minimum fee of
$172,000 annually for the services it performs pursuant to the Distribution Agreement. In addition,
the A Shares of the Funds have a distribution and service plan (the A Shares Plan), the C Shares
of the Funds have a distribution and service plan (the
C Shares Plan), and the R Shares have a distribution and service plan (the R Shares Plan).
Prior to August 20, 2008, Foreside Distribution Services L.P. (Foreside) served as the
distributor of the Trusts shares.
The continuance of a distribution agreement must be specifically approved at least annually (i) by
the vote of the trustees or by a vote of the shareholders of the funds and (ii) by the vote of a
majority of the trustees who are not parties to such distribution agreement or interested persons
of any party thereto, as defined in the 1940 Act, cast in person at a meeting called for the
purpose of voting on such approval. A distribution agreement will terminate automatically in the
event of its assignment, and is terminable at any time without penalty by the trustees, the
distributor, or, with respect to any fund, by a majority of the outstanding shares of that fund,
upon 60 days written notice by either party. The Distributor has no obligation to sell any
specific quantity of Fund shares.
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008, the Funds paid the
following aggregate sales charge payable to the Distributor with respect to the A Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Sales Charge Payable to |
|
Amount Retained by Distributor |
|
|
Distributor (in thousands) ($) |
|
(in thousands) ($) |
Fund |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
Aggressive Growth Allocation Strategy |
|
|
7 |
|
|
|
3 |
|
|
|
4 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
Aggressive Growth Stock Fund |
|
|
4 |
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
Conservative Allocation Strategy |
|
|
28 |
|
|
|
2 |
|
|
|
1 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
Corporate Bond Fund |
|
|
71 |
|
|
|
40 |
|
|
|
|
|
|
|
13 |
|
|
|
7 |
|
|
|
|
|
Emerging Growth Stock Fund |
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
|
Georgia Tax-Exempt Bond Fund |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
Growth Allocation Strategy |
|
|
4 |
|
|
|
4 |
|
|
|
24 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
High Grade Municipal Bond Fund |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
High Income Fund |
|
|
29 |
|
|
|
2 |
|
|
|
10 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
Intermediate Bond Fund |
|
|
62 |
|
|
|
8 |
|
|
|
|
|
|
|
10 |
|
|
|
1 |
|
|
|
|
|
International Equity 130/30 Fund |
|
|
|
|
|
|
|
|
|
|
|
* |
|
|
|
|
|
|
|
|
|
|
|
* |
International Equity Fund |
|
|
3 |
|
|
|
3 |
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
International Equity Index Fund |
|
|
|
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Grade Bond Fund |
|
|
90 |
|
|
|
35 |
|
|
|
1 |
|
|
|
16 |
|
|
|
6 |
|
|
|
|
|
Investment Grade Tax-Exempt Bond Fund |
|
|
55 |
|
|
|
17 |
|
|
|
|
|
|
|
9 |
|
|
|
3 |
|
|
|
|
|
Large Cap Core Equity Fund |
|
|
2 |
|
|
|
5 |
|
|
|
6 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
Large Cap Growth Stock Fund |
|
|
8 |
|
|
|
5 |
|
|
|
9 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
Large Cap Quantitative Equity Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Cap Value Equity Fund |
|
|
8 |
|
|
|
7 |
|
|
|
11 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Sales Charge Payable to |
|
Amount Retained by Distributor |
|
|
Distributor (in thousands) ($) |
|
(in thousands) ($) |
Fund |
|
2010 |
|
2009 |
|
2008* |
|
2010 |
|
2009 |
|
2008 |
Limited-Term Federal Mortgage Securities
Fund |
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
|
Maryland Municipal Bond Fund |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Cap Core Equity Fund |
|
|
2 |
|
|
|
1 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Cap Value Equity Fund |
|
|
58 |
|
|
|
|
|
|
|
8 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
Moderate Allocation Strategy |
|
|
46 |
|
|
|
4 |
|
|
|
21 |
|
|
|
7 |
|
|
|
1 |
|
|
|
|
|
North Carolina Tax-Exempt Bond Fund |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime Quality Money Market Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate 130/30 Fund |
|
|
2 |
|
|
|
|
|
|
|
|
* |
|
|
|
|
|
|
|
|
|
|
|
* |
Seix Floating Rate High Income Fund |
|
|
31 |
|
|
|
8 |
|
|
|
31 |
|
|
|
4 |
|
|
|
1 |
|
|
|
|
|
Seix Global Strategy Fund |
|
|
|
|
|
|
|
|
|
|
* |
* |
|
|
|
|
|
|
|
|
|
|
* |
* |
Seix High Yield Fund |
|
|
67 |
|
|
|
30 |
|
|
|
1 |
|
|
|
12 |
|
|
|
5 |
|
|
|
|
|
Select Large Cap Growth Stock Fund |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Bond Fund |
|
|
10 |
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
Short-Term U.S. Treasury Securities Fund |
|
|
14 |
|
|
|
6 |
|
|
|
|
|
|
|
2 |
|
|
|
1 |
|
|
|
|
|
Small Cap Growth Stock Fund |
|
|
1 |
|
|
|
3 |
|
|
|
4 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
Small Cap Value Equity Fund |
|
|
32 |
|
|
|
4 |
|
|
|
|
|
|
|
5 |
|
|
|
1 |
|
|
|
|
|
Tax-Exempt Money Market Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return Bond Fund |
|
|
34 |
|
|
|
10 |
|
|
|
|
|
|
|
6 |
|
|
|
2 |
|
|
|
|
|
U.S. Equity 130/30 Fund |
|
|
|
|
|
|
|
|
|
|
|
* |
|
|
|
|
|
|
|
|
|
|
|
* |
U.S. Government Securities Fund |
|
|
5 |
|
|
|
30 |
|
|
|
|
|
|
|
1 |
|
|
|
5 |
|
|
|
|
|
U.S. Government Securities Money Market
Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Money Market Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Virginia Intermediate Municipal Bond Fund |
|
|
10 |
|
|
|
7 |
|
|
|
9 |
|
|
|
2 |
|
|
|
1 |
|
|
|
|
|
Virginia Tax Free Money Market Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
With respect to the 130/30 Funds, represents fees paid during the period from December 26,
2007 (the commencement of operations) through March 31, 2008. |
|
|
|
** |
|
Not in operation during the period. |
|
60
Each of the Equity Funds and the Allocation Strategies (excluding the Conservative Allocation
Strategy) pays the following amount of front-end sales charge to Investment Consultants (Dealers)
as a percentage of the offering price of A Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
More than |
|
More than |
|
More than |
|
More than |
|
|
|
|
$50,000 but |
|
$100,000 but |
|
$250,000 but |
|
$500,000 but |
|
|
Less than |
|
less than |
|
less than |
|
less than |
|
less than |
|
$1,000,000 |
$50,000 |
|
$100,000 |
|
$250,000 |
|
$500,000 |
|
$1,000,000 |
|
and over* |
5.00%
|
|
4.00%
|
|
3.00%
|
|
2.00%
|
|
1.75%
|
|
0.00% |
Each of the Fixed Income Funds (except the Limited-Term Federal Mortgage Securities Fund, Seix
Floating Rate High Income Fund, Short-Term Bond Fund and Short-Term U.S. Treasury Securities Fund)
and the Conservative Allocation
Strategy pays the following amount of front-end sales charge to Investment Consultants (Dealers) as
a percentage of the offering price of A Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
More than |
|
More than |
|
More than |
|
More than |
|
|
|
|
$50,000 but |
|
$100,000 but |
|
$250,000 but |
|
$500,000 but |
|
|
Less than |
|
less than |
|
less than |
|
less than |
|
less than |
|
$1,000,000 |
$50,000 |
|
$100,000 |
|
$250,000 |
|
$500,000 |
|
$1,000,000 |
|
and over* |
4.00%
|
|
3.75%
|
|
2.75%
|
|
2.00%
|
|
1.75%
|
|
0.00% |
The Limited-Term Federal Mortgage Securities Fund, Seix Floating Rate High Income Fund,
Short-Term Bond Fund and Short-Term U.S. Treasury Securities Fund pays the following amount of
front-end sales charge to Investment Consultants (Dealers) as a percentage of the offering price of
A Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
More than |
|
More than |
|
More than |
|
More than |
|
|
|
|
$50,000 but |
|
$100,000 but |
|
$250,000 but |
|
$500,000 but |
|
|
Less than |
|
less than |
|
less than |
|
than less |
|
less than |
|
$1,000,000 |
$50,000 |
|
$100,000 |
|
$250,000 |
|
$500,000 |
|
$1,000,000 |
|
and over* |
2.25%
|
|
2.00%
|
|
1.75%
|
|
1.50%
|
|
1.25%
|
|
0.00% |
|
|
|
* |
|
While investments of more than $1,000,000 are not subject to a front-end sales charge,
the Distributor may pay Dealers commissions ranging from 0.25% to 1.00% on such purchases.
Dealer commissions on investments of over $1,000,000 are paid on a tiered basis as follows: |
|
|
|
|
|
Trade Amount |
|
Payout to Dealer |
$1,000,000 $2,999,999 |
|
|
1.00 |
% |
$3,000,000 $49,999,999 |
|
|
0.50 |
% |
$50,000,000 and above |
|
|
0.25 |
% |
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008, the Funds paid
the aggregate sales charge payable to the Distributor with respect to the C Shares shown below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Sales Charges Payable to |
|
Amount Retained by Distributor |
|
|
Distributor (in thousands) ($) |
|
(in thousands) ($) |
Fund |
|
2010 |
|
2009 |
|
2008* |
|
2010 |
|
2009 |
|
2008 |
Aggressive Growth Allocation Strategy |
|
|
1 |
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggressive Growth Stock Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conservative Allocation Strategy |
|
|
20 |
|
|
|
12 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bond Fund |
|
|
7 |
|
|
|
5 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Sales Charges Payable to |
|
Amount Retained by Distributor |
|
|
Distributor (in thousands) ($) |
|
(in thousands) ($) |
Fund |
|
2010 |
|
2009 |
|
2008* |
|
2010 |
|
2009 |
|
2008 |
Emerging Growth Stock Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Georgia Tax-Exempt Bond Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth Allocation Strategy |
|
|
1 |
|
|
|
1 |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
High Grade Municipal Bond Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High Income Fund |
|
|
|
|
|
|
3 |
|
|
|
5 |
|
|
|
|
|
|
|
0 |
|
|
|
0 |
|
International Equity 130/30 Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Equity Fund |
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
International Equity Index Fund |
|
|
1 |
|
|
|
3 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Grade Tax-Exempt Bond Fund |
|
|
8 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Cap Core Equity Fund |
|
|
3 |
|
|
|
3 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Cap Growth Stock Fund |
|
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Cap Quantitative Equity Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Cap Value Equity Fund |
|
|
1 |
|
|
|
11 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited-Term Federal Mortgage
Securities Fund |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maryland Municipal Bond Fund |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Cap Core Equity Fund |
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Cap Value Equity Fund |
|
|
25 |
|
|
|
1 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Moderate Allocation Strategy |
|
|
11 |
|
|
|
4 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
North Carolina Tax-Exempt Bond Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime Quality Money Market Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate 130/30 Fund |
|
|
|
|
|
|
|
|
|
|
|
* |
|
|
|
|
|
|
|
|
|
|
|
* |
Seix Floating Rate High Income |
|
|
64 |
|
|
|
4 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix Global Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
** |
|
|
|
|
|
|
|
|
|
|
|
** |
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Sales Charges Payable to |
|
Amount Retained by Distributor |
|
|
Distributor (in thousands) ($) |
|
(in thousands) ($) |
Fund |
|
2010 |
|
2009 |
|
2008* |
|
2010 |
|
2009 |
|
2008 |
Select Large Cap Growth Stock Fund |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Bond Fund |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term U.S. Treasury Securities Fund |
|
|
9 |
|
|
|
7 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Small Cap Growth Stock Fund |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Small Cap Value Equity Fund |
|
|
26 |
|
|
|
2 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Equity 130/30 Fund |
|
|
|
|
|
|
|
|
|
|
1 |
* |
|
|
|
|
|
|
|
|
|
|
|
* |
U.S. Government Securities Fund |
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Virginia Intermediate Municipal Bond
Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Represents fees paid during the period from December 26, 2007 (the commencement of
operations) through March 31, 2008. |
|
|
|
** |
|
Not in operation during the period. |
|
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008, the Funds paid
the aggregate sales charge payable to the Distributor with respect to the R Shares shown below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Sales Charges Payable to |
|
Amount Retained by Distributor |
|
|
Distributor (in thousands) ($) |
|
(in thousands) ($) |
Fund |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
High Income Fund |
|
|
1 |
|
|
|
3 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermediate Bond Fund |
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Grade Bond Fund |
|
|
27 |
|
|
|
48 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix High Yield Fund |
|
|
5 |
|
|
|
22 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return Bond Fund |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares, C Shares and R Shares Distribution Plans
The Distribution Agreement and the A Shares Plan adopted by the Trust provide that A Shares of the
Funds will pay the Distributor fees for furnishing services related to (a) the distribution and
sale of shares of each Fund and (b) the shareholders servicing of A Shares of each Fund. The table
below shows the maximum amount approved by the Board of Trustees as (i) aggregate fees for
distribution and shareholder service activities and (ii) the maximum amount of the fee allocated
for shareholder servicing.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum Amount of |
|
|
|
|
|
|
|
|
|
|
A Shares Plan |
|
|
Maximum |
|
|
|
|
|
Distribution and |
|
|
A Shares Plan |
|
Current A Shares |
|
Service Fee Payable |
|
|
Distribution and |
|
Plan Distribution |
|
for Shareholder |
Fund |
|
Service Fee |
|
and Service Fee* |
|
Services** |
Aggressive Growth Allocation Strategy |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Aggressive Growth Stock Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Conservative Allocation Strategy |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Corporate Bond Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Emerging Growth Stock Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Georgia Tax-Exempt Bond Fund |
|
|
0.18 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
Growth Allocation Strategy |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
High Grade Municipal Bond Fund |
|
|
0.18 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
High Income Fund |
|
|
0.30 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Intermediate Bond Fund |
|
|
0.25 |
% |
|
|
0.25 |
% |
|
|
0.25 |
% |
63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum Amount of |
|
|
|
|
|
|
|
|
|
|
A Shares Plan |
|
|
Maximum |
|
|
|
|
|
Distribution and |
|
|
A Shares Plan |
|
Current A Shares |
|
Service Fee Payable |
|
|
Distribution and |
|
Plan Distribution |
|
for Shareholder |
Fund |
|
Service Fee |
|
and Service Fee* |
|
Services** |
International Equity 130/30 Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
International Equity Fund |
|
|
0.33 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
International Equity Index Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Investment Grade Bond Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Investment Grade Tax-Exempt Bond Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Large Cap Core Equity Fund |
|
|
0.25 |
% |
|
|
0.25 |
% |
|
|
0.25 |
% |
Large Cap Growth Stock Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Large Cap Quantitative Equity Fund |
|
|
0.25 |
% |
|
|
0.25 |
% |
|
|
0.25 |
% |
Large Cap Value Equity Fund |
|
|
0.33 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Limited-Term Federal Mortgage Securities Fund |
|
|
0.23 |
% |
|
|
0.20 |
% |
|
|
0.15 |
% |
Maryland Municipal Bond Fund |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
Mid-Cap Core Equity Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Mid-Cap Value Equity Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Moderate Allocation Strategy |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
North Carolina Tax-Exempt Bond Fund |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
Prime Quality Money Market Fund |
|
|
0.20 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
Real Estate 130/30 Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Seix Floating Rate High Income Fund |
|
|
0.30 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Seix Global Strategy Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Seix High Yield Fund |
|
|
0.25 |
% |
|
|
0.25 |
% |
|
|
0.25 |
% |
Select Large Cap Growth Stock Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Short-Term Bond Fund |
|
|
0.23 |
% |
|
|
0.20 |
% |
|
|
0.15 |
% |
Short-Term U.S. Treasury Securities Fund |
|
|
0.18 |
% |
|
|
0.18 |
% |
|
|
0.15 |
% |
Small Cap Growth Stock Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Small Cap Value Equity Fund |
|
|
0.33 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
Tax-Exempt Money Market Fund |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
Total Return Bond Fund |
|
|
0.25 |
% |
|
|
0.25 |
% |
|
|
0.25 |
% |
U.S. Equity 130/30 Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
U.S. Government Securities Fund |
|
|
0.35 |
% |
|
|
0.30 |
% |
|
|
0.25 |
% |
U.S. Government Securities Money Market Fund |
|
|
0.17 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
U.S. Treasury Money Market Fund |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
Virginia Intermediate Municipal Bond Fund |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
Virginia Tax-Free Money Market Fund |
|
|
0.20 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
|
* |
|
The Board has currently approved the implementation of only the amounts shown in the column
above. Payments under the A Shares Plan may not exceed the amounts shown above unless the Board
approves the implementation of higher amounts. |
|
** |
|
Up to the amounts specified may be used to provide compensation for personal, ongoing
servicing and/or maintenance of shareholder accounts with respect to the A Shares of the
applicable Fund. |
In addition, the Distribution Agreement and the C Shares Plan adopted by the Trust provide that C
Shares of each applicable Fund (except the Prime Quality Money Market Fund) will pay the
Distributor a fee of up to 0.75% of the average daily net assets of that Fund. The Distribution
Agreement and the R Shares Plan provide that R Shares will pay
64
the Distributor a fee of up 0.25% of
the average daily net assets of the Fund. The Distributor can use these fees to compensate
broker-dealers and service providers, including SunTrust and its affiliates, which provide
administrative and/or distribution services to each Fund. In addition, C Shares and R Shares are
subject to a service fee of up to 0.25% of the average daily net assets of the C Shares and R
Shares of each applicable Fund. This service fee will be used for services provided and expenses
incurred in maintaining shareholder accounts, responding to shareholder inquiries and providing
information to C Shares or R Shares shareholders or their customers who beneficially own C Shares
or R Shares. The maximum distribution and shareholder servicing fee for C shares of the Prime
Quality Money Market Fund is 0.25% of the average daily net assets of that Funds C Shares.
Services for which broker-dealers and service providers may be compensated include establishing and
maintaining customer accounts and records; aggregating and processing purchase and redemption
requests from customers; placing net purchase and redemption orders with the Distributor;
automatically investing customer account cash balances; providing periodic statements to customers;
arranging for wires; answering customer inquiries concerning their investments; assisting customers
in changing dividend options, account designations, and addresses; performing sub-accounting
functions; processing dividend payments from the Trust on behalf of customers; and forwarding
shareholder communications from the Trust (such as proxies, shareholder reports, and dividend
distribution and tax notices) to these customers with respect to investments in the Trust. Certain
state securities laws may require those financial institutions providing such distribution services
to register as dealers pursuant to state law. Although banking laws and regulations prohibit banks
from distributing shares of open-end investment companies such as the Trust, according to an
opinion issued to the staff of the SEC by the Office of the Comptroller of the Currency, financial
institutions are not prohibited from acting in other capacities for investment companies, such as
providing shareholder services. Should future legislative, judicial, or administrative action
prohibit or restrict the activities of financial institutions in connection with providing
shareholder services, the Trust may be required to alter materially or discontinue its arrangements
with such financial institutions.
The Trust has adopted the A Shares Plan the C Shares Plan and the R Shares Plan in each case in
accordance with the provisions of Rule 12b-1 under the 1940 Act, which rule regulates circumstances
under which an investment company may directly or indirectly bear expenses relating to the
distribution of its shares. Continuance of the A Shares Plan the C Shares Plan and the R Shares
Plan must be approved annually by a majority of the Trustees of the Trust and by a majority of the
disinterested Trustees. Distribution related expenditures under the A Shares Plan, the C Shares
Plan and the R Shares Plan may support the distribution of any class or combination of classes of
Shares of a Fund. The A Shares Plan, the C Shares Plan and the R Shares Plan require that quarterly
written reports of amounts spent under the A Shares Plan, the C Shares Plan and the R Shares Plan,
respectively, and the purposes of such expenditures be furnished to and reviewed by the Trustees.
The A Shares Plan, the C Shares Plan and the R Shares Plan may not be amended to increase
materially the amount that may be spent thereunder without approval by a majority of the
outstanding shares of the affected class of shares of the Trust. All material amendments of the
Plans will require approval by a majority of the Trustees of the Trust and of the disinterested
Trustees.
There is no sales charge on purchases of C Shares or R Shares, but C Shares are subject to a
contingent deferred sales charge if they are redeemed within one year of purchase.
Pursuant to the Distribution Agreement, the C
Shares Plan and the R Shares Plan, C Shares and R Shares are subject to an ongoing
distribution and service fee calculated on each Funds aggregate average daily net assets
attributable to its C Shares or R Shares.
The following amounts paid to the Distributor by the Funds (including when they were Predecessor
Funds, if applicable) under the Plan during the fiscal year ended March 31, 2010 were used as set
forth below (no amounts were paid as Compensation to Underwriters, Compensation to Sales Personnel or Interest Carrying or Other Financing Charges):
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Printing and |
|
|
|
|
|
|
|
|
|
|
|
|
Mailing of |
|
|
|
|
|
|
|
|
|
|
|
|
Prospectuses to |
|
|
|
|
|
|
|
|
|
|
|
|
Other Than |
|
|
|
|
|
Other |
|
|
|
|
|
|
Current |
|
Compensation |
|
Marketing |
Fund |
|
Advertising |
|
Shareholders |
|
to Dealers |
|
Expenses |
Aggressive Growth
Allocation Strategy |
|
|
92 |
|
|
|
2 |
|
|
|
34,103 |
|
|
|
3,841 |
|
Aggressive Growth
Stock Fund |
|
|
167 |
|
|
|
39 |
|
|
|
8,519 |
|
|
|
5,285 |
|
Conservative
Allocation Strategy |
|
|
52 |
|
|
|
1 |
|
|
|
32,481 |
|
|
|
3,680 |
|
Corporate Bond Fund |
|
|
277 |
|
|
|
(1 |
) |
|
|
155,511 |
|
|
|
5,575 |
|
Emerging Growth
Stock Fund |
|
|
53 |
|
|
|
12 |
|
|
|
831 |
|
|
|
4,271 |
|
Georgia Tax-Exempt
Bond Fund |
|
|
315 |
|
|
|
25 |
|
|
|
21,842 |
|
|
|
6,288 |
|
Growth Allocation
Strategy |
|
|
234 |
|
|
|
7 |
|
|
|
102,850 |
|
|
|
4,413 |
|
High Grade
Municipal Bond Fund |
|
|
102 |
|
|
|
13 |
|
|
|
21,431 |
|
|
|
4,556 |
|
High Income Fund |
|
|
174 |
|
|
|
4 |
|
|
|
62,738 |
|
|
|
4,617 |
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Printing and |
|
|
|
|
|
|
|
|
|
|
|
|
Mailing of |
|
|
|
|
|
|
|
|
|
|
|
|
Prospectuses to |
|
|
|
|
|
|
|
|
|
|
|
|
Other Than |
|
|
|
|
|
Other |
|
|
|
|
|
|
Current |
|
Compensation |
|
Marketing |
Fund |
|
Advertising |
|
Shareholders |
|
to Dealers |
|
Expenses |
Institutional Cash
Management Money
Market Fund |
|
|
4,535 |
|
|
|
520 |
|
|
|
|
|
|
|
49,165 |
|
Institutional
Municipal Cash
Reserve Money
Market Fund |
|
|
174 |
|
|
|
6 |
|
|
|
|
|
|
|
4,907 |
|
Institutional U.S.
Government
Securities Money
Market Fund |
|
|
4,160 |
|
|
|
438 |
|
|
|
|
|
|
|
47,254 |
|
Institutional U.S.
Treasury Securities
Money Market Fund |
|
|
4,726 |
|
|
|
432 |
|
|
|
|
|
|
|
47,187 |
|
Intermediate Bond
Fund |
|
|
2,458 |
|
|
|
142 |
|
|
|
22,908 |
|
|
|
26,202 |
|
International
Equity 130/30 Fund |
|
|
173 |
|
|
|
11 |
|
|
|
17 |
|
|
|
4,932 |
|
International
Equity Fund |
|
|
416 |
|
|
|
32 |
|
|
|
25,768 |
|
|
|
7,049 |
|
International
Equity Index Fund |
|
|
1,436 |
|
|
|
113 |
|
|
|
17,811 |
|
|
|
16,318 |
|
Investment Grade
Bond Fund |
|
|
683 |
|
|
|
58 |
|
|
|
122,194 |
|
|
|
9,865 |
|
Investment Grade
Tax-Exempt Bond
Fund |
|
|
1,898 |
|
|
|
119 |
|
|
|
65,379 |
|
|
|
18,679 |
|
Large Cap Core
Equity Fund |
|
|
735 |
|
|
|
67 |
|
|
|
251,807 |
|
|
|
10,093 |
|
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Printing and |
|
|
|
|
|
|
|
|
|
|
|
|
Mailing of |
|
|
|
|
|
|
|
|
|
|
|
|
Prospectuses to |
|
|
|
|
|
|
|
|
|
|
|
|
Other Than |
|
|
|
|
|
Other |
|
|
|
|
|
|
Current |
|
Compensation |
|
Marketing |
Fund |
|
Advertising |
|
Shareholders |
|
to Dealers |
|
Expenses |
Large Cap Growth
Stock Fund |
|
|
763 |
|
|
|
83 |
|
|
|
235,580 |
|
|
|
10,967 |
|
Large Cap
Quantitative Equity
Fund |
|
|
37 |
|
|
|
12 |
|
|
|
2,358 |
|
|
|
4,005 |
|
Large Cap Value
Equity Fund |
|
|
1,905 |
|
|
|
173 |
|
|
|
207,904 |
|
|
|
21,202 |
|
Limited Duration
Fund |
|
|
37 |
|
|
|
5 |
|
|
|
|
|
|
|
3,884 |
|
Limited-Term
Federal Mortgage
Securities Fund |
|
|
56 |
|
|
|
7 |
|
|
|
68,504 |
|
|
|
4,099 |
|
Maryland Municipal
Bond Fund |
|
|
49 |
|
|
|
5 |
|
|
|
21,914 |
|
|
|
3,958 |
|
Mid-Cap Core Equity
Fund |
|
|
220 |
|
|
|
14 |
|
|
|
42,944 |
|
|
|
4,827 |
|
Mid-Cap Value
Equity Fund |
|
|
18,494 |
|
|
|
20 |
|
|
|
42,953 |
|
|
|
26,641 |
|
Moderate Allocation
Strategy |
|
|
517 |
|
|
|
17 |
|
|
|
196,600 |
|
|
|
5,588 |
|
North Carolina
Tax-Exempt Bond
Fund |
|
|
82 |
|
|
|
6 |
|
|
|
953 |
|
|
|
4,231 |
|
Prime Quality Money
Market Fund |
|
|
8,070 |
|
|
|
1,108 |
|
|
|
2,802,207 |
|
|
|
91,724 |
|
Real Estate 130/30
Fund |
|
|
16 |
|
|
|
1 |
|
|
|
247 |
|
|
|
3,619 |
|
Seix Floating Rate
High Income Fund |
|
|
1,489 |
|
|
|
54 |
|
|
|
106,426 |
|
|
|
15,848 |
|
Seix Global
Strategy Fund |
|
|
14 |
|
|
|
1 |
|
|
|
8 |
|
|
|
3,644 |
|
Seix High Yield Fund |
|
|
2,395 |
|
|
|
99 |
|
|
|
67,115 |
|
|
|
21,806 |
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Printing and |
|
|
|
|
|
|
|
|
|
|
|
|
Mailing of |
|
|
|
|
|
|
|
|
|
|
|
|
Prospectuses to |
|
|
|
|
|
|
|
|
|
|
|
|
Other Than |
|
|
|
|
|
Other |
|
|
|
|
|
|
Current |
|
Compensation |
|
Marketing |
Fund |
|
Advertising |
|
Shareholders |
|
to Dealers |
|
Expenses |
Select Large Cap
Growth Stock Fund |
|
|
207 |
|
|
|
20 |
|
|
|
132,149 |
|
|
|
15,924 |
|
Short-Term Bond Fund |
|
|
2,668 |
|
|
|
45 |
|
|
|
27,170 |
|
|
|
9,523 |
|
Short-Term U.S.
Treasury Securities
Fund |
|
|
111 |
|
|
|
14 |
|
|
|
59,771 |
|
|
|
4,523 |
|
Small Cap Growth
Stock Fund |
|
|
556 |
|
|
|
49 |
|
|
|
91,036 |
|
|
|
8,416 |
|
Small Cap Value
Equity Fund |
|
|
807 |
|
|
|
56 |
|
|
|
46,501 |
|
|
|
10,192 |
|
Tax Exempt Money
Market Fund |
|
|
2,575 |
|
|
|
289 |
|
|
|
275,253 |
|
|
|
29,751 |
|
Total Return Bond
Fund |
|
|
2,202 |
|
|
|
84 |
|
|
|
12,055 |
|
|
|
13,426 |
|
U.S. Equity 130/30
Fund |
|
|
14 |
|
|
|
0 |
|
|
|
|
|
|
|
3,595 |
|
U.S. Government
Securities Fund |
|
|
160 |
|
|
|
73 |
|
|
|
32,677 |
|
|
|
6,247 |
|
U.S. Government
Securities Money
Market Fund |
|
|
1,503 |
|
|
|
196 |
|
|
|
175,269 |
|
|
|
19,234 |
|
U.S. Government
Securities
Ultra-Short Bond
Fund |
|
|
1,350 |
|
|
|
6 |
|
|
|
|
|
|
|
11,503 |
|
U.S. Treasury Money
Market Fund |
|
|
1,667 |
|
|
|
243 |
|
|
|
91,314 |
|
|
|
21,494 |
|
Ultra-Short Bond
Fund |
|
|
122 |
|
|
|
9 |
|
|
|
|
|
|
|
4,471 |
|
Virginia
Intermediate
Municipal Bond Fund |
|
|
325 |
|
|
|
28 |
|
|
|
53,724 |
|
|
|
6,475 |
|
Virginia Tax Free
Money Market Fund |
|
|
508 |
|
|
|
70 |
|
|
|
187,218 |
|
|
|
8,934 |
|
69
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008, the Funds paid
the following amounts as compensation to broker-dealers pursuant to the A Shares Plan:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
Amount Waived |
|
|
|
|
|
|
Amount Paid |
|
(in thousands) |
|
|
|
|
Fund |
|
(in thousands)($) |
|
($) |
|
2009 |
|
2008 |
Aggressive Growth Allocation
Strategy |
|
|
6 |
|
|
|
|
|
|
|
7 |
|
|
|
10 |
|
Aggressive Growth Stock Fund |
|
|
5 |
|
|
|
|
|
|
|
2 |
|
|
|
3 |
|
Conservative Allocation Strategy |
|
|
4 |
|
|
|
|
|
|
|
2 |
|
|
|
2 |
|
Corporate Bond Fund |
|
|
11 |
|
|
|
|
|
|
|
3 |
|
|
|
4 |
|
Emerging Growth Stock Fund |
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
2 |
|
Georgia Tax-Exempt Bond Fund |
|
|
9 |
|
|
|
|
|
|
|
6 |
|
|
|
7 |
|
Growth Allocation Strategy |
|
|
10 |
|
|
|
|
|
|
|
12 |
|
|
|
18 |
|
High Grade Municipal Bond Fund |
|
|
7 |
|
|
|
|
|
|
|
3 |
|
|
|
4 |
|
High Income Fund |
|
|
6 |
|
|
|
|
|
|
|
7 |
|
|
|
2 |
|
Intermediate Bond Fund |
|
|
20 |
|
|
|
|
|
|
|
2 |
|
|
|
2 |
|
International Equity 130/30 Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
International Equity Fund |
|
|
21 |
|
|
|
|
|
|
|
23 |
|
|
|
45 |
|
International Equity Index Fund |
|
|
15 |
|
|
|
|
|
|
|
13 |
|
|
|
19 |
|
Investment Grade Bond Fund |
|
|
82 |
|
|
|
|
|
|
|
49 |
|
|
|
46 |
|
Investment Grade Tax-Exempt Bond
Fund |
|
|
61 |
|
|
|
|
|
|
|
37 |
|
|
|
33 |
|
Large Cap Core Equity Fund |
|
|
51 |
|
|
|
|
|
|
|
66 |
|
|
|
113 |
|
Large Cap Growth Stock Fund |
|
|
125 |
|
|
|
|
|
|
|
153 |
|
|
|
234 |
|
Large Cap Quantitative Equity Fund |
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
3 |
|
Large Cap Value Equity Fund |
|
|
90 |
|
|
|
|
|
|
|
110 |
|
|
|
178 |
|
Limited-Term Federal Mortgage
Securities Fund |
|
|
5 |
|
|
|
|
|
|
|
4 |
|
|
|
6 |
|
Maryland Municipal Bond Fund |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Cap Core Equity Fund |
|
|
14 |
|
|
|
|
|
|
|
19 |
|
|
|
32 |
|
Mid-Cap Value Equity Fund |
|
|
34 |
|
|
|
|
|
|
|
15 |
|
|
|
16 |
|
Moderate Allocation Strategy |
|
|
21 |
|
|
|
|
|
|
|
22 |
|
|
|
31 |
|
North Carolina Tax-Exempt Bond
Fund |
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
Prime Quality Money Market Fund |
|
|
4,485 |
|
|
|
2,133 |
|
|
|
7,823 |
|
|
|
9,679 |
|
Real Estate 130/30 Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Seix Floating Rate High Income
Fund |
|
|
36 |
|
|
|
|
|
|
|
18 |
|
|
|
27 |
|
Seix Global Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
* |
Seix High Yield Fund |
|
|
54 |
|
|
|
|
|
|
|
45 |
|
|
|
64 |
|
Select Large Cap Growth Stock Fund |
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
|
2 |
|
Short-Term Bond Fund |
|
|
6 |
|
|
|
|
|
|
|
7 |
|
|
|
7 |
|
Short-Term U.S. Treasury
Securities Fund |
|
|
12 |
|
|
|
|
|
|
|
27 |
|
|
|
7 |
|
Small Cap Growth Stock Fund |
|
|
31 |
|
|
|
|
|
|
|
39 |
|
|
|
66 |
|
Small Cap Value Equity Fund |
|
|
21 |
|
|
|
|
|
|
|
10 |
|
|
|
16 |
|
Tax-Exempt Money Market Fund |
|
|
386 |
|
|
|
148 |
|
|
|
740 |
|
|
|
954 |
|
Total Return Bond Fund |
|
|
11 |
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
U.S. Equity 130/30 Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
U.S. Government Securities Fund |
|
|
8 |
|
|
|
|
|
|
|
9 |
|
|
|
11 |
|
U.S. Government Securities Money
Market Fund |
|
|
351 |
|
|
|
212 |
|
|
|
515 |
|
|
|
433 |
|
U.S. Treasury Money Market Fund |
|
|
361 |
|
|
|
285 |
|
|
|
385 |
|
|
|
88 |
|
Virginia Intermediate Municipal
Bond Fund |
|
|
17 |
|
|
|
|
|
|
|
11 |
|
|
|
9 |
|
Virginia Tax-Free Money Market
Fund |
|
|
267 |
|
|
|
104 |
|
|
|
542 |
|
|
|
614 |
|
|
|
|
|
* |
|
With respect to the 130/30 Funds, represents fees paid during the period from December 27, 2007
(the commencement of operations) through March 31, 2008. |
|
|
|
** |
|
Not in operation during the period. |
|
70
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008, the Funds paid the
amounts shown below as compensation to broker-dealers pursuant to the C Shares Plan. C Shares of
the Intermediate Bond Fund and the Total Return Bond Fund converted to R Shares effective February
13, 2009. C Shares of the High Income Fund, Investment Grade Bond Fund and Seix High Yield Fund
converted to R Shares effective August 1, 2009.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
|
|
|
Amount Paid |
|
Amount Waived |
|
|
|
|
Fund |
|
(in thousands) ($) |
|
(in thousands) ($) |
|
2009 |
|
2008 |
Aggressive Growth Allocation
Strategy |
|
|
13 |
|
|
|
|
|
|
|
14 |
|
|
|
17 |
|
Aggressive Growth Stock Fund |
|
|
5 |
|
|
|
|
|
|
|
20 |
|
|
|
32 |
|
Conservative Allocation Strategy |
|
|
33 |
|
|
|
|
|
|
|
9 |
|
|
|
8 |
|
Corporate Bond Fund |
|
|
191 |
|
|
|
|
|
|
|
216 |
|
|
|
288 |
|
Emerging Growth Stock Fund |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
Georgia Tax-Exempt Bond Fund |
|
|
14 |
|
|
|
|
|
|
|
44 |
|
|
|
59 |
|
Growth Allocation Strategy |
|
|
32 |
|
|
|
|
|
|
|
42 |
|
|
|
60 |
|
High Grade Municipal Bond Fund |
|
|
14 |
|
|
|
|
|
|
|
45 |
|
|
|
58 |
|
High Income Fund |
|
|
45 |
|
|
|
|
|
|
|
162 |
|
|
|
247 |
|
International Equity 130/30 Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
International Equity Fund |
|
|
10 |
|
|
|
|
|
|
|
44 |
|
|
|
81 |
|
International Equity Index Fund |
|
|
8 |
|
|
|
|
|
|
|
43 |
|
|
|
71 |
|
Investment Grade Bond Fund |
|
|
43 |
|
|
|
|
|
|
|
77 |
|
|
|
84 |
|
Investment Grade Tax-Exempt
Bond Fund |
|
|
18 |
|
|
|
|
|
|
|
56 |
|
|
|
65 |
|
Large Cap Core Equity Fund |
|
|
253 |
|
|
|
|
|
|
|
340 |
|
|
|
622 |
|
Large Cap Growth Stock Fund |
|
|
164 |
|
|
|
|
|
|
|
210 |
|
|
|
346 |
|
Large Cap Quantitative Equity
Fund |
|
|
1 |
|
|
|
|
|
|
|
6 |
|
|
|
12 |
|
Large Cap Value Equity Fund |
|
|
185 |
|
|
|
|
|
|
|
227 |
|
|
|
371 |
|
Limited-Term Federal Mortgage
Securities Fund |
|
|
84 |
|
|
|
|
|
|
|
93 |
|
|
|
125 |
|
Maryland Municipal Bond Fund |
|
|
18 |
|
|
|
|
|
|
|
56 |
|
|
|
63 |
|
Mid-Cap Core Equity Fund |
|
|
39 |
|
|
|
|
|
|
|
53 |
|
|
|
96 |
|
Mid-Cap Value Equity Fund |
|
|
34 |
|
|
|
|
|
|
|
30 |
|
|
|
55 |
|
Moderate Allocation Strategy |
|
|
142 |
|
|
|
|
|
|
|
167 |
|
|
|
232 |
|
North Carolina Tax-Exempt Bond
Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prime Quality Money Market Fund |
|
|
5 |
|
|
|
3 |
|
|
|
7 |
|
|
|
10 |
|
Real Estate 130/30 Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Seix Floating Rate High Income
Fund |
|
|
35 |
|
|
|
|
|
|
|
3 |
|
|
|
1 |
|
Seix Global Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
* |
Seix High Yield Fund |
|
|
19 |
|
|
|
|
|
|
|
35 |
|
|
|
46 |
|
Select Large Cap Growth Stock
Fund |
|
|
179 |
|
|
|
|
|
|
|
207 |
|
|
|
314 |
|
Short-Term Bond Fund |
|
|
28 |
|
|
|
|
|
|
|
31 |
|
|
|
39 |
|
Short-Term U.S. Treasury
Securities Fund |
|
|
65 |
|
|
|
|
|
|
|
79 |
|
|
|
96 |
|
Small Cap Growth Stock Fund |
|
|
80 |
|
|
|
|
|
|
|
109 |
|
|
|
195 |
|
Small Cap Value Equity Fund |
|
|
143 |
|
|
|
|
|
|
|
112 |
|
|
|
77 |
|
U.S. Equity 130/30 Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
U.S. Government Securities Fund |
|
|
33 |
|
|
|
|
|
|
|
39 |
|
|
|
45 |
|
Virginia Intermediate Municipal
Bond Fund |
|
|
8 |
|
|
|
|
|
|
|
28 |
|
|
|
31 |
|
|
|
|
|
* |
|
With respect to the 130/30 Funds, represents fees paid during the period from December 27, 2007
(the commencement of operations) through March 31, 2008. |
|
|
|
** |
|
Not in operation during the period. |
|
71
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008, the Funds paid
the amounts shown below as compensation to broker-dealers pursuant to the R Shares Plan.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
|
|
|
Amount Paid |
|
Amount Waived |
|
|
|
|
|
|
(in thousands) |
|
(in thousands) |
|
|
|
|
Fund |
|
($) |
|
($) |
|
2009 |
|
2008 |
High Income Fund |
|
|
51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermediate Bond Fund |
|
|
6 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
Investment Grade Bond Fund |
|
|
45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix High Yield Fund |
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return Bond Fund |
|
|
3 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
Other than any portion of the sales charges imposed on purchases, the following table shows
the level of compensation paid by the Distributor to broker-dealers selling A Shares, C Shares and R Shares,
(purchased prior to August 1, 2005), unless otherwise agreed upon by the Distributor and such
broker-dealer.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual Payout |
|
|
|
|
|
Annual Payout |
|
Annual Payout |
|
|
12(b)-1 |
|
|
|
|
|
12(b)-1 |
|
12(b)-1 |
|
|
Effective |
|
Initial Payment |
|
Effective in the |
|
Effective |
|
|
Immediately |
|
At Time Of Sale |
|
13th Month (C |
|
Immediately |
Fund |
|
(A Shares)* |
|
(C Shares) |
|
Shares)** |
|
(R Shares) |
Equity Funds |
Aggressive Growth
Allocation Strategy |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Aggressive Growth Stock
Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Conservative Allocation
Strategy |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Corporate Bond Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Emerging Growth Stock
Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Growth Allocation
Strategy |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
International Equity
130/30 Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
International Equity Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
International Equity
Index Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Large Cap Core Equity
Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Large Cap Growth Stock
Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Large Cap Quantitative
Equity Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Large Cap Value Equity
Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Mid-Cap Core Equity Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Mid-Cap Value Equity Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Moderate Allocation
Strategy |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Real Estate 130/30 Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Select Large Cap Growth
Stock Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Small Cap Growth Stock
Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Small Cap Value Equity
Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
U.S. Equity 130/30 Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Income Funds |
Corporate Bond Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Georgia Tax-Exempt Bond
Fund |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
High Grade Municipal
Bond Fund |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
High Income Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
0.50 |
% |
Intermediate Bond Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
0.50 |
% |
Investment Grade Bond
Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
0.50 |
% |
72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual Payout |
|
|
|
|
|
Annual Payout |
|
Annual Payout |
|
|
12(b)-1 |
|
|
|
|
|
12(b)-1 |
|
12(b)-1 |
|
|
Effective |
|
Initial Payment |
|
Effective in the |
|
Effective |
|
|
Immediately |
|
At Time Of Sale |
|
13th Month (C |
|
Immediately |
Fund |
|
(A Shares)* |
|
(C Shares) |
|
Shares)** |
|
(R Shares) |
Investment Grade
Tax-Exempt Bond Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Limited Term Federal
Mortgage Securities Fund |
|
|
0.15 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Maryland Municipal Bond
Fund |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
North Carolina
Tax-Exempt Bond Fund |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Seix Floating Rate High
Income Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Seix Global Strategy Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Seix High Yield Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
0.50 |
% |
Short Term Bond Fund |
|
|
0.15 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Short-Term U.S. Treasury
Securities Fund |
|
|
0.15 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Corporate Bond Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Total Return Bond Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government
Securities Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
U.S. Government
Securities Ultra-Short
Bond Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Virginia Intermediate
Municipal Bond Fund |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Money Market Fund |
Prime Quality Money
Market Fund |
|
|
0.15 |
% |
|
|
|
|
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
* |
|
Initial Front End Sales Charge for A Shares ranges from 5.75% maximum to 1.50%
depending on Fund and breakpoints (outlined in prospectus). |
|
|
|
** |
|
The C Shares Contingent Deferred Sales Charge (CDSC) will be waived for
certain retirement plan providers (Intermediary) with whom the Trust has entered
into an administrative arrangement under which the Intermediary agrees to provide
certain recordkeeping or administrative services. Under such arrangements, the
Trust will not pay an upfront commission. Rather, the Trust shall pay (or cause
to be paid) asset-based compensation to the Intermediary of up to 1.00% annually
of the average daily net assets of the plan assets invested in C Shares of the
Funds (of which 0.25% consists of the Distribution Plan service fee). |
|
Other than any portion of the sales charges imposed on purchases, and unless otherwise agreed upon
by the Distributor and such broker-dealer the Distributor pays broker-dealers selling C Shares
purchased beginning August 1, 2005, an initial payment at the time of sale of 1.00% and annual
12(b)-1 payout effective in the 13th month of 1.00%. The Distributor uses fees it has received
from both the distribution plan and from contingent deferred sales charges to make these upfront
payments to broker-dealers. If, for any reason, there are insufficient fees available to the
Distributor from the distribution plan and the contingent deferred sales charges, to make these
payments, the Adviser will provide the Distributor with funds that can, in turn, be used by the
Distributor to make these upfront payments to broker-dealers.
Participation Payment Program. The Adviser, the Subadvisers and their affiliates may make payments
to certain intermediaries for marketing support services, including business planning assistance,
educating dealer personnel about the Funds and shareholder financial planning needs, placement on
the intermediarys preferred or recommended fund company list, and access to sales meetings, sales
representatives and management representatives
73
of the dealer. These payments are made to
intermediaries that are registered as holders of record or
dealers of record for accounts in a Fund. These payments are generally based on one or more of the
following factors: average net assets of the Funds attributable to that intermediary, gross or net
sales of the Funds attributable to that intermediary, reimbursement of ticket charges (fees that an
intermediary firm charges its representatives for effecting transactions in fund shares) or a
negotiated lump sum payment for services rendered. The Adviser, the Subadvisers and their
affiliates compensate dealers differently depending upon, among other factors, the level and/or
type of marketing support provided by the intermediary. As of July 3, 2009, the following firms
were receiving participation payment program payments:
|
|
|
|
|
|
Citigroup Global Markets Inc./Smith Barney*
|
|
UBS Financial Services Inc. |
|
|
|
|
* |
|
Citigroup Global Markets Inc. /Smith Barney is an indirect affiliate of Citi Fund Services Ohio,
Inc., the administrator for the Trust. |
|
Shareholder Servicing Plans.
A and I Shares. The Trust has adopted a Shareholder Servicing Plan for the A Shares and I Shares
of certain of the Funds (the A Shares and I Shares Servicing Plans). Under the A Shares and I
Shares Servicing Plans, the Funds may pay Intermediaries a fee of up to 0.15% of the average daily
net assets attributable to the A Shares and I Shares. Intermediaries may perform, or may
compensate other service providers for performing, the following shareholder services: (i)
establishing and maintaining accounts and records relating to shareholders; (ii) processing
dividend and distribution payments from a Fund on behalf of shareholders; (iii) providing
information periodically to shareholders showing their positions in shares and integrating such
statements with those of other transactions and balances in shareholders other accounts serviced
by such intermediary; (iv) arranging for bank wires; (v) responding to shareholder inquiries
relating to the services performed; (vi) responding to routine inquiries from shareholders
concerning their investment; (vii) providing subacccounting with respect to shares beneficially
owned by shareholders, or the information to a Fund necessary for subaccounting; (viii) if required
by law, forwarding shareholder communications from a Fund (such as proxies, shareholder reports,
annual and semi-annual financial statements and dividend, distribution and tax notices) to
shareholders; (ix) assisting in processing purchase, exchange and redemption requests from
shareholders and in placing such orders with service contractors; (x) assisting shareholders in
changing dividend options, account designations and addresses; (xi) providing shareholders with a
service that invests the assets of their accounts in shares pursuant to specific or pre-authorized
instructions; and (xiii) providing such other similar services as a Fund or its shareholders may
reasonable request to the extent the intermediary is permitted to do so under applicable statutes,
rules and regulations.
The Funds did not
make any payments pursuant to the A Shares and I Shares Servicing Plans for the fiscal years
ended March 31, 2009 and March 31, 2008. For the fiscal year ended March 31, 2010,
the Funds made the following payments shown below.
|
|
|
|
|
|
|
|
|
|
|
Amount Paid (in thousands) ($) |
|
Amount Paid (in thousands) ($) |
Fund |
|
(I Shares) |
|
(A Shares) |
Corporate Bond Fund |
|
|
4 |
|
|
|
|
|
Intermediate Bond Fund |
|
|
265 |
|
|
|
|
|
International Equity Index Fund |
|
|
24 |
|
|
|
|
|
Investment Grade Bond Fund |
|
|
5 |
|
|
|
6 |
|
Investment Grade Tax-Exempt Bond Fund |
|
|
75 |
|
|
|
|
|
Limited Duration Fund |
|
|
|
|
|
|
|
|
Limited-Term Federal Mortgage Securities Fund |
|
|
|
|
|
|
|
|
Seix Floating Rate High Income Fund |
|
|
43 |
|
|
|
3 |
|
Seix High Yield Fund |
|
|
|
|
|
|
|
|
Short-Term Bond Fund |
|
|
|
|
|
|
1 |
|
Short-Term U.S. Treasury Securities Fund |
|
|
4 |
|
|
|
|
|
Total Return Bond Fund |
|
|
16 |
|
|
|
|
|
74
|
|
|
|
|
|
|
|
|
|
|
Amount Paid (in thousands) ($) |
|
Amount Paid (in thousands) ($) |
Fund |
|
(I Shares) |
|
(A Shares) |
Ultra-Short Bond Fund |
|
|
|
|
|
|
|
|
U.S. Government Securities Fund |
|
|
|
|
|
|
|
|
U.S. Government Securities Ultra Short Bond Fund |
|
|
184 |
|
|
|
|
|
R Shares. The Trust has adopted a Shareholder Servicing Plan for the R Shares of certain of the
Funds (the R Shares Servicing Plan). Under the R Shares Servicing Plan, the Funds may pay
Intermediaries a fee of up to 0.25% of the average daily net assets attributable to the R Shares.
Intermediaries may perform, or may compensate other service providers for performing, the following
shareholder services: (i) establishing and maintaining accounts and records relating to
shareholders; (ii) processing dividend and distribution payments from a Fund on behalf of
shareholders; (iii) providing information periodically to shareholders showing their positions in
shares and integrating such statements with those of other transactions and balances in
shareholders other accounts serviced by such intermediary; (iv) arranging for bank wires; (v)
responding to shareholder inquiries relating to the services performed; (vi) responding to routine
inquiries from shareholders concerning their investment; (vii) providing subacccounting with
respect to shares beneficially owned by shareholders, or the information to a Fund necessary for
subaccounting; (viii) if required by law, forwarding shareholder communications from a Fund (such
as proxies, shareholder reports, annual and semi-annual financial statements and dividend,
distribution and tax notices) to shareholders; (ix) assisting in processing purchase, exchange and
redemption requests from shareholders and in placing such orders with service contractors; (x)
assisting shareholders in changing dividend options, account designations and addresses; (xi)
providing shareholders with a service that invests the assets of their accounts in shares pursuant
to specific or pre-authorized instructions; and (xii) providing such other similar services as a
Fund or its shareholders may reasonable request to the extent the intermediary is permitted to do
so under applicable statutes, rules and regulations.
The Funds did not make any payments pursuant to the R Shares Servicing Plan for the fiscal years
ended March 31, 2009 or March 31, 2008. For the fiscal year ended March 31, 2010, the Funds made
the following payments shown below.
|
|
|
|
|
Fund |
|
Amount Paid (in thousands) ($) |
High Income Fund |
|
|
|
|
Intermediate Bond Fund |
|
|
1 |
|
Investment Grade Bond Fund |
|
|
|
|
Seix High Yield Fund |
|
|
|
|
Total Return Bond Fund |
|
|
3 |
|
Corporate Trust Shares. The Trust has adopted a shareholder service plan for the Institutional U.S.
Treasury Securities Money Market Funds Corporate Trust Shares (the Service Plan). Under the
Service Plan, the
Institutional U.S. Treasury Securities Money Market Fund will pay financial intermediaries
(Intermediaries) a fee of up to 0.25% of the average daily net assets attributable to the
Corporate Trust Shares. Intermediaries may perform, or may compensate other service providers for
performing, the following shareholder services: maintaining client accounts; arranging for bank
wires; responding to client inquiries concerning services provided on investments; assisting
clients in changing dividend options, account designations and addresses; sub-accounting; providing
information on share positions to clients; forwarding shareholder communications to clients;
processing purchase, exchange and redemption orders; and processing dividend payments.
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008, the Institutional
U.S. Treasury Securities Money Market Fund paid the following amount pursuant to the Service Plan:
|
|
|
|
|
|
|
|
|
|
|
Fees Amount Paid (in thousands)($) |
|
Fees Amount Waived (in thousands)($) |
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
1,238
|
|
1,692
|
|
3,362
|
|
1,023
|
|
162
|
|
16 |
75
THE TRANSFER AGENT
Citi Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, Ohio 43219, serves as the transfer
agent and dividend paying agent to the Trust.
THE CUSTODIAN
SunTrust Bank, 303 Peachtree Street N.E., 14th Floor, Atlanta, GA 30308 serves as the custodian for
all of the Funds except for the Corporate Bond Fund, the International Equity Fund, the
International Equity Index Fund, the International Equity 130/30 Fund, the Real Estate 130/30 Fund,
the Seix Global Strategy Fund, the U.S. Equity 130/30 Fund and the Institutional Cash Management
Money Market Fund. SunTrust Bank is paid on the basis of net assets and transactions costs of the
Funds. The custodian is responsible for the safekeeping of the assets of the Funds.
SunTrust Bank also serves as the custodian for the collateral reinvestment account in which
collateral on behalf of the Funds securities lending program is maintained. In addition, SunTrust
Bank provides other services to support the Funds securities lending program through periodic
monitoring and reporting of certain aspects related to the program including, but not limited to,
loan balances of specific borrowers. The information is provided to the Adviser to support its
oversight of the program. SunTrust Bank receives an annual fee of approximately $114,000 for these
additional services.
Brown Brothers Harriman & Co., 40 Water Street, Boston, MA 02109 serves as custodian for the
Corporate Bond Fund, International Equity 130/30 Fund, the International Equity Fund, the
International Equity Index Fund, the Real Estate 130/30 Fund, the Seix Global Strategy Fund, the
U.S. Equity 130/30 Fund and the Institutional Cash Management Money Market Fund. The custodian is
responsible for the safekeeping of the assets of the Funds.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP, located at 41 South High Street, Columbus, OH 43215, serves as the
Trusts independent registered public accounting firm.
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP, located at 1111 Pennsylvania Avenue, NW, Washington, DC 20004, serves
as legal counsel to the Trust.
TRUSTEES OF THE TRUST
Board Responsibilities. The management and affairs of the Trust and each of the Funds are
supervised by the Board under the laws of the Commonwealth of Massachusetts. The Board is
responsible for overseeing each of the Funds. The Trustees have approved contracts, as described
above, under which certain companies provide essential management services to the Trust.
Like most mutual funds, the day-to-day business of the Trust, including the management of risk, is
performed by third party service providers, such as the Adviser, Subadvisers, Distributor and
Administrator. The Trustees are responsible for overseeing the Trusts service providers and, thus,
have oversight responsibility with respect to risk management performed by those service providers.
Risk management seeks to identify and address risks, i.e., events or circumstances that could have
material adverse effects on the business, operations, shareholder services, investment performance
or reputation of the Funds. The Funds and their service providers employ a variety of processes,
procedures and controls to identify those possible events or circumstances, to lessen the
probability of their occurrence and/or to mitigate the effects of such events or circumstances if
they do occur. Each service provider is
76
responsible for one or more discrete aspects of the Trusts
business (e.g., the Adviser and Subadvisers, as applicable, are responsible for the day-to-day
management of each Funds portfolio investments) and, consequently, for managing the risks
associated with that business. The Board has emphasized to the Funds service providers the
importance of maintaining vigorous risk management.
The Trustees role in risk oversight begins before the inception of a Fund, at which time certain
of the Funds service providers present the Board with information concerning the investment
objectives, strategies and risks of the Fund, as well as proposed investment limitations for the
Fund. Additionally, the Adviser and Subadviser, if any, provide the Board with an overview of,
among other things, their investment philosophy, brokerage practices, and compliance
infrastructure. Thereafter, the Board continues its oversight function as various personnel,
including the Trusts Chief Compliance Officer and Deputy Chief Compliance Officer, as well as
personnel of the Adviser, Subadviser (if applicable), and other service providers such as the
Funds independent accountants, make periodic reports to the Audit Committee or to the Board with
respect to various aspects of risk management. The Board and the Audit Committee oversee efforts by
management and service providers to manage risks to which the funds may be exposed.
The Board is responsible for overseeing the nature, extent and quality of the services provided to
the Funds by the Adviser and Subadvisers and receives information about those services at its
regular meetings. In addition, on an annual basis, in connection with its consideration of whether
to renew the advisory agreements with the Adviser and Subadvisers, the Board meets with the Adviser
and Subadvisers to review the advisory services. Among other things, the Board regularly considers
the Advisers and Subadvisers adherence to the Funds investment restrictions and compliance with
various policies and procedures and with applicable securities regulations. The Board also reviews
information about the Funds investments, including, for example, reports on the Advisers and
Subadvisers use of derivatives in managing the Funds, if many, as well as reports on the Funds
investments in ETFs, if any.
The Trusts Chief Compliance Officer and Deputy Chief Compliance Officer report regularly to the
Board to review and discuss compliance issues and Fund, Adviser and Subadviser risk assessments. At
least annually, the Trusts Chief Compliance Officer or Deputy Chief Compliance Officer provides
the Board with a report reviewing the adequacy and effectiveness of the Trusts policies and
procedures and those of its service providers, including the Adviser and Subadvisers. The report
addresses the operation of the policies and procedures of the Trust and each service provider since
the date of the last report; any material changes to the policies and procedures since the date of
the last report; any recommendations for material changes to the policies and procedures; and any
material compliance matters since the date of the last report.
The Board receives reports from the Funds service providers regarding operational risks and risks
relating to the valuation and liquidity of portfolio securities. The Trusts Valuation Committee
makes regular reports to the Board concerning investments for which market quotations are not
readily available. Annually, the Trusts independent registered public accounting firm reviews with
the Audit Committee its audit of the Funds financial statements, focusing on major areas of risk
encountered by the Funds and noting any significant deficiencies or material weaknesses in the
Funds internal controls. Additionally, in connection with its oversight function, the Board
oversees fund managements implementation of disclosure controls and procedures, which are designed
to ensure that information required to be disclosed by the Trust in its periodic reports with the
SEC are recorded, processed, summarized, and reported within the required time periods. The Board
also oversees the Trusts internal controls over financial reporting, which comprise policies and
procedures designed to provide reasonable assurance regarding the reliability of the Trusts
financial reporting and the preparation of the Trusts financial statements. From their review of
these reports and discussions with the Adviser, Subadvisers, Funds President, Funds Chief
Financial Officer, Chief Compliance Officer and/or Deputy Chief Compliance Officer, independent
registered public accounting firm and other service providers, the Board and the Audit Committee
learn in detail about the material risks of the Funds, thereby facilitating a dialogue about how
management and service providers identify and mitigate those risks.
The Board recognizes that not all risks that may affect the Funds can be identified or quantified,
that it may not be practical or cost-effective to eliminate or mitigate certain risks, that it may
be necessary to bear certain risks (such as investment-related risks) to achieve the Funds goals,
and that the processes, procedures and controls employed to address certain risks may be limited in
their effectiveness. Moreover, reports received by the Trustees as to risk management matters are
typically summaries of the relevant information. Most of the Funds investment management and
business affairs are carried out by or through the Funds Adviser, Subadvisers, and other service
providers, each of
77
which has an independent interest in risk management but whose policies and the
methods by which one or more risk management functions are carried out may differ from the Funds
and each others in the setting of priorities, the resources available, or the effectiveness of
relevant controls. As a result of the foregoing and other factors, the Boards ability to monitor
and manage risk, as a practical matter, is subject to limitations.
Members of the Board. There are seven members of the Board of Trustees, all of whom are not
interested persons of the Trust, as that term is defined in the 1940 Act (Independent
Trustees). Dr. Sidney E. Harris serves as Chairman of the Board. In his role as Chairman of the
Board, Dr. Harris, among other things, presides over board meetings; presides over executive
sessions of the Independent Trustees; oversees the development of agendas for board meetings;
facilitates communication between the Independent Trustees and management, and among the
Independent Trustees; serves as a key point person for dealings between the Independent Trustees
and management; and has such other responsibilities as the Board or Independent Trustees determine
from time to time.
The Trust has determined its leadership structure is appropriate given the specific characteristics
and circumstances of the Trust. The Trust made this determination in consideration of, among other
things, the amount
of assets under management in the Trust, and the number of Funds (and classes of shares) overseen
by the Board. The Board also believes that its leadership structure facilitates the orderly and
efficient flow of information to the Independent Trustees from fund management.
The Board of Trustees has two standing committees, the Audit Committee and Governance and
Nominating Committee, which are chaired by an Independent Trustee and composed entirely of
Independent Trustees. In addition, the Board oversees the Funds Valuation Committee, whose actions
are reported to the Board at least quarterly and more frequently, if appropriate.
Set forth below are the names, dates of birth, position with the Trust, length of term of office,
and the principal occupations and other directorships held during at least the last five years of
each of the persons currently serving as a Trustee of the Trust.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of |
|
|
|
|
|
|
|
|
|
|
Portfolios in |
|
|
|
|
|
|
Term of |
|
|
|
the |
|
|
|
|
Position |
|
Office and |
|
|
|
RidgeWorth |
|
|
Name, Business |
|
Held |
|
Length of |
|
|
|
Complex |
|
Other Directorships |
Address, State of |
|
With the |
|
Time |
|
Principal Occupation(s) |
|
Overseen by |
|
Held By Trustee During the |
Residence, Age |
|
Trust |
|
Served |
|
During the Past 5 Years |
|
Trustees |
|
Past 5 Years |
Jeffrey M. Biggar
3435 Stelzer Road
Columbus, OH 43219
(Ohio)
Age: 60
|
|
Trustee
|
|
Indefinite; since
January 2007
|
|
Retired. Chief
Operating Officer
(Cedar Brook Financial
Partners LLC) (March
2008-January 2010),
Chief Executive
Officer and Senior
Managing Director,
Sterling (National
City Corp.)
(2000-2006)
|
|
|
50 |
|
|
GenSpring Trust |
|
|
|
|
|
|
|
|
|
|
|
|
|
George C. Guynn
3435 Stelzer Road
Columbus, OH 43219
(Georgia)
Age: 67
|
|
Trustee
|
|
Indefinite; since
January 2008
|
|
Retired. President
(1996-October 2006)
and Chief Executive
Officer (1995-October
2006) Federal Reserve
Bank of Atlanta
|
|
|
50 |
|
|
Genuine Parts Company; Oxford
Industries; John Wieland Homes and Neighborhoods Inc..; Acuity Brands Inc.; GenSpring Trust |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sidney E. Harris
3435 Stelzer Road
Columbus, OH 43219
(Georgia)
Age: 61
|
|
Trustee
|
|
Indefinite; since
November 2004
|
|
Professor (since
1997), Dean
(1997-2004), J. Mack
Robinson College of
Business, Georgia
State University
|
|
|
50 |
|
|
Total System Services, Inc.; GenSpring Trust |
78
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|
|
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|
|
Number of |
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|
|
|
|
|
|
|
|
Portfolios in |
|
|
|
|
|
|
Term of |
|
|
|
the |
|
|
|
|
Position |
|
Office and |
|
|
|
RidgeWorth |
|
|
Name, Business |
|
Held |
|
Length of |
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|
|
Complex |
|
Other Directorships |
Address, State of |
|
With the |
|
Time |
|
Principal Occupation(s) |
|
Overseen by |
|
Held By Trustee During the |
Residence, Age |
|
Trust |
|
Served |
|
During the Past 5 Years |
|
Trustees |
|
Past 5 Years |
Warren Y. Jobe
3435 Stelzer Road
Columbus, OH 43219
(Georgia)
Age: 69
|
|
Trustee
|
|
Indefinite; since
November 2004
|
|
Retired. Executive
Vice President and
Chief Financial
Officer, Georgia Power
Company (1982-1998)
and Senior Vice
President, Southern
Company (1998-2001)
|
|
|
50 |
|
|
WellPoint, Inc; UniSource Energy Corp. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Connie D. McDaniel
3435 Stelzer Road
Columbus, OH 43219
(Georgia)
Age: 52
|
|
Trustee
|
|
Indefinite; since
May 2005
|
|
Vice President , Chief
of Internal Audit,
Corporate Audit
Department (August 1,
2009-Present), Vice
President Global
Finance Transformation
(March 2007-July
2009), Vice President
and Controller (1999
February 2007), The
Coca-Cola Company
|
|
|
50 |
|
|
None |
|
|
|
|
|
|
|
|
|
|
|
|
|
Clarence H. Ridley
3435 Stelzer Road
Columbus, OH 43219
(Georgia)
Age: 68
|
|
Trustee
|
|
Indefinite; since
November 2001
|
|
Chairman Emeritus
(March 2010-Present),
Chairman, Havertys
Furniture
Companies(2001-March
2010)
|
|
|
50 |
|
|
Crawford & Co.; Haverty Furniture Companies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Charles D. Winslow
3435 Stelzer Road
Columbus, OH 43219
(Florida)
Age: 75
|
|
Trustee
|
|
Indefinite; since
November 2004
|
|
Retired. Formerly
Partner, Accenture
(consulting)
|
|
|
50 |
|
|
None |
Individual Trustee Qualifications. The Board has concluded that each of the Trustees should serve
on the Board because of his or her ability to review and understand information about the Funds
provided to them by management, to identify and request other information they may deem relevant to
the performance of their duties, to question management and other service providers regarding
material factors bearing on the management and administration of the Funds, and to exercise their
business judgment in a manner that serves the best interests of the Funds shareholders. The Board
has concluded that each of the Trustees should serve as a Trustee based on his or her own
experience, qualifications, attributes and skills as described below.
The Board has concluded that Mr. Biggar should serve as Trustee because of the experience he gained
in a variety of roles with different financial and banking institutions, his knowledge of the
financial services industry, and the experience he has gained serving as a Trustee of the Trust
since 2007.
The Board has concluded that Mr. Guynn should serve as Trustee because of his experience as
President and CEO of the Federal Reserve Bank of Atlanta, his knowledge of the financial services
industry, and the experience he has gained serving as a Trustee of the Trust since 2008.
79
The Board has concluded that Dr. Harris should serve as Trustee because of his background in
business, his knowledge of the financial services industry, and the experience he has gained
serving as a Trustee of the Funds since 2004.
The Board has concluded that Mr. Jobe should serve as Trustee because of the business experience he
gained in a variety of roles, his knowledge of the financial services industry, and the experience
he has gained serving as a Trustee of the Trust since 2004.
The Board has concluded that Ms. McDaniel should serve as Trustee because of her business,
financial and auditing experience, her knowledge of the financial services industry, and the
experience she has gained serving as a Trustee of the Trust since 2005.
The Board has concluded that Mr. Ridley should serve as Trustee because of the business experience
he gained serving in a number of roles, his knowledge of the financial services industry, and the
experience he has gained serving as a Trustee of the Trust since 2001.
The Board has concluded that Mr. Winslow should serve as Trustee because of his business experience
and knowledge of the financial services industry and the experience he has gained serving as a
Trustee of the Trust since 2004.
In its periodic assessment of the effectiveness of the Board, the Board considers the complementary
individual skills and experience of the individual Trustees in the broader context of the Boards
overall composition so that the Board, as a body, possesses the appropriate (and appropriately
diverse) skills and experience to oversee the business of the Funds. Moreover, references to the
qualifications, attributes and skills of Trustees are pursuant to requirements of the SEC, do not
constitute holding out of the Board or any Trustee as having any special expertise or experience,
and shall not be deemed to impose any greater responsibility or liability on any such person or on
the Board by reason thereof.
Board Committees. The Board has established the following committees:
|
|
Audit Committee. The Boards Audit Committee is composed exclusively of independent Trustees
of the Trust. The Audit Committee operates under a written charter approved by the Board. The
principal responsibilities of the Audit Committee include: recommending which firm to engage
as the Trusts independent registered public accounting firm and whether to terminate this
relationship; reviewing the independent registered public accounting firms compensation, the
proposed scope and terms of its engagement, and the firms independence; pre-approving audit
and non-audit services provided by the Trusts independent registered public accounting firm
to the Trust and certain other affiliated entities; serving as a channel of communication
between the independent registered public accounting firm and the Trustees; reviewing the
results of each external audit, including any qualifications in the independent registered
public accounting firms opinion, any related management letter, managements responses to
recommendations made by the independent registered public accounting firm in connection with
the audit, reports submitted to the Committee by the internal auditing department of the
Trusts Administrator that are material to the Trust as a whole, if any, and managements
responses to any such reports; reviewing the
Trusts audited financial statements and considering any significant disputes between the
Trusts management and the independent registered public accounting firm that arose in
connection with the preparation of those financial statements; considering, in consultation
with the independent registered public accounting firm and the Trusts senior internal
accounting executive, if any, the independent registered public accounting firms report on
the adequacy of the Trusts internal financial controls; reviewing, in consultation with the
Trusts independent registered public accounting firm, major changes regarding auditing and
accounting principles and practices to be followed when preparing the Trusts financial
statements; and other audit related matters. Messrs. Biggar, Harris and Winslow and Ms.
McDaniel currently serve as members of the Audit Committee. The Audit Committee meets
periodically, as necessary, and met twice in the most recently completed fiscal year. |
|
|
|
Governance and Nominating Committee. The Boards Governance and Nominating Committee is
composed exclusively of independent Trustees of the Trust. The Governance and Nominating
Committee operates under a written charter approved by the Board. The purposes of the
Governance and Nominating Committee are: to |
80
|
|
evaluate the qualifications of candidates for
Trustee and to make recommendations to the Independent trustees and the entire Board with
respect to nominations for Trustee membership on the Board when necessary or considered
advisable; to review periodically Board governance practices, procedures and operations and to
recommend any appropriate changes to the Board; to review periodically the size and
composition of the Board and to make recommendations to the Independent Trustees and the Board
as to whether it may be appropriate to add to the membership of the Board; to review as
necessary the committees established by the Board and to make recommendations to the Board; to
review periodically Trustee compensation and any other benefits and to recommend any
appropriate changes to the Board and the Independent Trustees; to review periodically and make
recommendations regarding ongoing Trustee education and orientation for new Trustees; to make
recommendations regarding any self-assessment conducted by the Board; and to review as
necessary any other similar matters relating to the governance of the Trust at the request of
any Trustee or on its own initiative. While the Governance and Nominating Committee is solely
responsible for the selection and nomination of Trustees, the Committee may consider nominees
recommended by shareholders. A nomination submission must be sent in writing to the Governance
and Nominating Committee, addressed to the Secretary of the Trust, and must be accompanied by
all information relating to the recommended nominee that is required to be disclosed in
solicitations or proxy statements for the election of Trustees. Nomination submissions must
also be accompanied by a written consent of the individual to stand for election if nominated
by the Board and to serve if elected by the shareholders. Additional information must be
provided regarding the recommended nominee as reasonably requested by the Governance and
Nominating Committee. Messrs. Guynn, Harris, Jobe and Ridley currently serve as members of the
Nominating Committee. The Governance and Nominating Committee meets periodically as necessary.
The Governance and Nominating Committee met twice during the most recently completed fiscal
year. |
|
|
|
|
Valuation Committee. The Board has established the Trusts Valuation Committee which is
composed of various representatives of the Trusts service providers, as appointed by the
Board. The Valuation Committee operates under procedures approved by the Board. The principal
responsibility of the Valuation Committee is to determine the fair value of securities for
which current market quotations are not readily available. The Valuation Committees
determinations are reviewed by the Board. The Valuation Committee meets periodically, as
necessary, and met 134 times during the most recently completed fiscal year. |
|
Fund Shares Owned by Board Members. The following table shows the dollar amount range of each
Trustees beneficial ownership of shares of each of the Funds as of June 30, 2010. Dollar amount
ranges disclosed are established by the SEC. Beneficial ownership is determined in accordance
with Rule 16a-1(a)(2) under the 1934 Act.
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Dollar Range of |
|
|
|
|
|
|
|
|
Shares in All Investment |
|
|
|
|
|
|
|
|
Companies Overseen By |
|
|
|
|
|
|
|
|
Trustee in Family of |
Trustee |
|
Dollar Range of Fund Shares |
|
Investment Companies |
Jeffrey M. Biggar |
|
US Equity 130/30 Fund |
|
$ |
1-$10,000 |
|
|
$ |
50,001-$100,000 |
|
|
|
Corp Bond Fund |
|
$ |
10,001-$50,000 |
|
|
|
|
|
|
|
Investment Grade Bond Fund |
|
$ |
1-$10,000 |
|
|
|
|
|
|
|
Select Large Cap Growth Fund |
|
$ |
1-$10,000 |
|
|
|
|
|
|
|
Large Cap Quantitative Equity Fund |
|
$ |
1-$10,000 |
|
|
|
|
|
|
|
Total Return Bond Fund |
|
$ |
1-$10,000 |
|
|
|
|
|
|
|
High Income Fund |
|
$ |
1-$10,000 |
|
|
|
|
|
|
|
Small Cap Value Fund |
|
$ |
1-$10,000 |
|
|
|
|
|
|
|
Small Cap Growth Stock Fund |
|
$ |
1-$10,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
George C. Guynn |
|
None |
|
|
|
|
|
None |
|
|
|
|
|
|
|
|
|
|
|
|
Sidney E. Harris |
|
Investment Grade Tax Exempt Bond Fund |
|
$ |
10,001-$50,000 |
|
|
Over $100,000 |
|
|
|
Georgia Tax Exempt Bond Fund |
|
$ |
10,001-$50,000 |
|
|
|
|
|
|
|
Prime Quality Money Market Fund |
|
$ |
50,001-$100,000 |
|
|
|
|
|
|
|
Emerging Growth Stock Fund |
|
$ |
1-$10,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warren Jobe |
|
Moderate Allocation Strategy |
|
$ |
10,001-$50,000 |
|
|
Over $100,000 |
|
|
|
Small Cap Growth Stock Fund |
|
$ |
10,001-$50,000 |
|
|
|
|
|
|
|
RidgeWorth Prime Quality Money |
|
|
|
|
|
|
|
|
|
|
Market |
|
Over $100,000 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Connie D. McDaniel |
|
Prime Quality Money Market Fund |
|
$ |
10,001-$50,000 |
|
|
Over $100,000 |
|
|
|
Seix High Yield Fund |
|
$ |
50,001-$100,000 |
|
|
|
|
|
|
|
Floating Rate High Income Fund |
|
$ |
10,001-$50,000 |
|
|
|
|
|
|
|
Investment Grade Bond Fund |
|
$ |
50,001-$100,000 |
|
|
|
|
|
81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Dollar Range of |
|
|
|
|
|
|
|
|
Shares in All Investment |
|
|
|
|
|
|
|
|
Companies Overseen By |
|
|
|
|
|
|
|
|
Trustee in Family of |
Trustee |
|
Dollar Range of Fund Shares |
|
Investment Companies |
|
|
|
|
|
|
|
|
|
|
|
Clarence H. Ridley |
|
Prime Quality Money Market Fund |
|
$ |
10,001-$50,000 |
|
|
Over $100,000 |
|
|
|
Floating Rate High Income Fund |
|
$ |
50,001-$100,000 |
|
|
|
|
|
|
|
Investment Grade Bond Fund |
|
$ |
50,001-$100,000 |
|
|
|
|
|
|
|
Seix High Yield Fund |
|
$ |
10,001-$50,000 |
|
|
|
|
|
|
|
Total Return Bond Fund |
|
$ |
50,001-$100,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charles D. Winslow |
|
Large Cap Growth Stock Fund |
|
$ |
10,001-$50,000 |
|
|
$ |
50,001-$100,000 |
|
|
|
Aggressive Growth Stock Fund |
|
$ |
1-$10,000 |
|
|
|
|
|
|
|
Large Cap Value Equity Fund |
|
$ |
1-$10,000 |
|
|
|
|
|
|
|
Small Cap Growth Stock Fund |
|
$ |
1-$10,000 |
|
|
|
|
|
As of June 30, 2010, the Trustees and Officers as a group owned 1.31% of the Class A Shares of the
Large Cap Quantitative Equity Fund. With respect to the I Shares of this Fund and with respect to
all other Funds, the Trustees and Officers as a group owned less than 1% of the outstanding shares
of each class of each Fund.
As of June 30, 2010, [NAME] owned [ ]% of the [ ] Shares of the [] Fund. With respect to
the C Shares and I Shares of those Funds and with respect to the remaining Funds, the Trustees and
Officers of the Trust as a group owned less than 1% of the outstanding shares of each class of each
Fund.
Board Compensation. The table below shows the compensation paid to the Trustees during the fiscal
year ended March 31, 2010. The Fund Complex referenced in the table consists of the Trust and the
RidgeWorth Variable Trust which no longer exists.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension or |
|
|
|
|
|
|
|
|
|
|
Retirement |
|
|
|
|
|
|
Aggregate |
|
Benefits Accrued |
|
Estimated |
|
|
|
|
Compensation from |
|
as Part of Fund |
|
Annual Benefits |
|
Total Compensation From |
Name of Trustee |
|
the Trust ($) |
|
Expenses |
|
Upon Retirement |
|
the Trust ($) |
Jeffrey M. Biggar |
|
|
113,500 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
113,500 |
|
George C. Guynn |
|
|
113,500 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
113,500 |
|
Sidney E. Harris |
|
|
146,375 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
146,375 |
|
Warren Y. Jobe |
|
|
116,500 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
116,500 |
|
Connie McDaniel |
|
|
116,500 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
116,500 |
|
Clarence H. Ridley |
|
|
113,500 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
113,500 |
|
Charles D. Winslow |
|
|
113,500 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
113,500 |
|
82
Trust Officers. The officers of the Trust, their business addresses, their ages, and their
principal occupations for the last five years are set forth below. The officers of the Trust who
are employees of the Administrator may also serve as officers to one or more mutual funds for which
the Administrator or its affiliates act as administrator or transfer agent. None of the officers
receive compensation from the Trust for their services. Officers of the Trust are elected annually
by the Board and hold office until their respective successors are chosen and qualified, or in each
case until he or she sooner dies, resigns, is removed or becomes disqualified.
|
|
|
|
|
|
|
|
|
|
|
Term of Office |
|
|
Name, Address |
|
Position(s) Held |
|
and Length |
|
|
and Ages |
|
with Trust |
|
of Time Served |
|
Principal Occupation(s) During the Past 5 Years |
Officers: |
|
|
|
|
|
|
Julia R. Short
50 Hurt Plaza
Suite 1400
Atlanta, GA 30303
Age: 37
|
|
President and Chief
Executive Officer
|
|
One year; since June 2007
|
|
Managing Director, Product Manager, RidgeWorth Investments. (since
2004); Relationship Manager, SEI Investments (financial services) (1994
2004) |
|
|
|
|
|
|
|
Patrick A. Paparelli
50 Hurt Plaza
Suite 1400
Atlanta, GA 30303
Age: 47
|
|
Vice President;
Chief Compliance
Officer
|
|
One year; since May 2008;
|
|
Managing Director, Director of Legal and Compliance (since 2001) and
Chief Compliance Officer (since July 2004), RidgeWorth Investments |
|
|
|
|
|
|
|
Diana Hanlin
50 Hurt Plaza
Suite 1400
Atlanta, GA 30303
Age: 42
|
|
Vice President;
Deputy Chief
Compliance Officer
|
|
One year; since May 2008
|
|
Director, RidgeWorth Capital Management, Inc. (Since May, 2008);
Employee of BB&T Asset Management, Inc. ( 2007 2008); Employee of
BISYS Fund Services Ohio, Inc. (1996-2007) |
|
|
|
|
|
|
|
Martin R. Dean
3435 Stelzer Road
Columbus, OH 43219
Age: 46
|
|
Treasurer; Chief
Financial Officer
and Chief
Accounting Officer
|
|
One year; since March 2007
|
|
Senior Vice President, Fund Administration, Citi Fund Services Ohio, Inc. |
|
|
|
|
|
|
|
Jennifer English
100 Summer Street
Suite 1500
Boston, MA 02110
Age: 38
|
|
Secretary
|
|
One year; since February 2010
|
|
Senior Vice President, Regulatory Administration, Citi Fund Services
Ohio, Inc. (2005 present); Assistant Vice President and Assistant
Counsel, PFPC, Inc. (2002-2005) |
|
|
|
|
|
|
|
Danio Mastropieri
100 Summer Street
Suite 1500
Boston, MA 02110
Age: 37
|
|
Assistant Secretary
|
|
One year; since February 2010
|
|
Vice President, Regulatory Administration, Citi Fund Services Ohio, Inc.
(2007 present); Senior Regulatory Administration Specialist, PFPC,
Inc. (2004-2007) |
PURCHASING AND REDEEMING SHARES
Purchases and redemptions of shares of the Equity Funds and Fixed Income Funds may be made on any
day the New York Stock Exchange (NYSE) is open for business. The Trust reserves the right to open
the Fixed Income Funds when the principal bond markets are open for business even if the NYSE is
closed. Purchases and redemptions of shares of the Money Market Funds may be made on any day the
NYSE and the Federal Reserve Bank of New York (the Fed) are open for settlement. The Trust
reserves the right to open the Money Market Funds when the Fed is open for settlement
83
and/or the
principal bond markets are open for business even if the NYSE is closed. Shares of each Fund are
offered and redeemed on a continuous basis. Currently, the NYSE is closed on the days the following
holidays are observed: New Years Day, Martin Luther King, Jr. Day, Presidents Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Currently, the Fed
and the principal bond markets are closed on the same days that the NYSE is closed except for Good
Friday. In addition, the Fed and the principal bond markets are closed on the days that Columbus
Day and Veterans Day are observed.
It is currently the Trusts policy to pay for all redemptions in cash, however, the Trust retains
the right to alter this policy to provide for redemptions in whole or in part by a distribution
in-kind of readily marketable securities held by the Funds in lieu of cash. Shareholders may incur
brokerage charges on the sale of any such securities so received in payment of redemptions. A
shareholder will at all times be entitled to aggregate cash redemptions from all Funds of the Trust
up to the lesser of $250,000 or 1% of the Trusts net assets during any 90-day period. The Board of
Trustees has adopted procedures which permit the Trust to make in-kind redemptions to those
shareholders of the Trust that are affiliated with the Trust solely by their ownership of a certain
percentage of the Trusts investment portfolios.
The Trust reserves the right to suspend the right of redemption and/or to postpone the date of
payment upon redemption for any period during which trading on the NYSE is restricted, or during
the existence of an emergency (as determined by the SEC by rule or regulation) as a result of which
disposal or valuation of a Funds portfolio securities is not reasonably practicable, or for such
other periods as the SEC has by order permitted. The Trust reserves the right to postpone payment
or redemption proceeds for up to seven days if the redemption would harm existing shareholders. The
Trust also reserves the right to suspend sales of shares of a Fund for any period during which the
NYSE, the Adviser, the Administrator and/or the Custodian are not open for business.
The Trust reserves the right to waive any minimum investment requirements or sales charges for
immediate family members of the Trustees or employees of the Adviser and its affiliates.
Immediate Family means a spouse/domestic partner, mother, father, mother-in-law, father-in-law or
children (including step children) age 21 years or under. Currently, the front-end sales charge is
waived on A Shares purchased by Trustees, employees of the Adviser, and its affiliates and their
respective immediate family members.
The Trust will permit an exchange of C Shares of a Fund for A Shares of the same Fund, and will
waive any sales charges that would otherwise apply, for those investors who hold C Shares of the
Fund as a result of (i) reinvesting distributions from qualified employee benefit retirement plans
and rollovers from IRAs previously with the trust department of a bank affiliated with SunTrust or
(ii) investing an amount less than or equal to the value of an account distribution when an account
for which a bank affiliated with SunTrust acted in a fiduciary, administrative, custodial, or
investment advisory capacity is closed.
Rights of Accumulation. In calculating the appropriate sales charge rate, rights of accumulation
allow you to add the market value (at the close of business on the day of the current purchase) of your existing
holdings in any class of shares to the amount of A shares you are currently purchasing.
The Funds will combine the value of your current purchases with the current market value of any
shares previously purchased for
|
|
|
your individual account(s), |
|
|
|
|
|
your spouses/domestic partners account(s), |
|
|
|
|
|
|
joint account(s) with your spouse/domestic partner, |
|
|
|
|
|
your minor childrens trust or custodial accounts. |
A fiduciary purchasing shares for the same fiduciary account, trust or estate may also use this
right of accumulation. To be entitled to a reduced sales charge based on shares already owned, you
must let the Funds know at the time you make the purchase for which you are seeking the reduction
that you qualify for such a reduction. You may be required to provide the Funds with your account
number(s), account name(s), and copies of the account statements, and if applicable, the account
number(s), account name(s), and copies of the account statements, for your spouse/domestic partner
and/or children (and provide the childrens ages). A financial institution may require
documentation or other
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information in order to verify your eligibility for a reduced sales charge.
The Funds may amend or terminate this right of accumulation at any time.
Letter of Intent. A Letter of Intent allows you to purchase shares over a 13-month period and
receive the same sales charge as if you had purchased all the shares at the same time. Reinvested
dividends or capital gain distributions do not apply toward these combined purchases. To be
entitled to a reduced sales charge based on shares you intend to purchase over the 13-month period,
you must send the Funds a Letter of Intent. In calculating the total amount of purchases, you may
include in your Letter purchases made up to 90 days before the date of the Letter. The 13-month
period begins on the date of the first purchase, including those purchases made in the 90-day
period before the date of the Letter. Please note that the purchase price of these prior purchases
will not be adjusted.
You are not legally bound by the terms of your Letter of Intent to purchase the amount of shares
stated in the Letter. The Letter does, however, authorize the Funds to hold in escrow 5.75% for the
following Funds:
Aggressive Growth Allocation Strategy
Aggressive Growth Stock Fund
Emerging Growth Stock Fund
Growth Allocation Strategy
International Equity 130/30 Fund
International Equity Fund
International Equity Index Fund
Large Cap Core Equity Fund
Large Cap Growth Stock Fund
Large Cap Quantitative Equity Fund
Large Cap Value Equity Fund
Mid-Cap Core Equity Fund
Mid-Cap Value Equity Fund
Moderate Allocation Strategy
Real Estate 130/30 Fund
Select Large Cap Growth Stock Fund
Small Cap Growth Stock Fund
Small Cap Value Equity Fund
U.S. Equity 130/30 Fund
4.75% for the following Funds:
Georgia Tax-Exempt Bond Fund
High Grade Municipal Bond Fund
High Income Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Investment Grade Tax-Exempt Bond Fund
Conservative Allocation Strategy
Maryland Municipal Bond Fund
North Carolina Tax-Exempt Bond Fund
Seix Global Strategy Fund
Seix High Yield Fund
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Corporate Bond Fund
Total Return Bond Fund
U.S. Government Securities Fund
Virginia Intermediate Municipal Bond Fund
And 2.50% for the following Funds:
Limited-Term Federal Mortgage Securities Fund
Seix Floating Rate High Income Fund
Short-Term Bond Fund
Short-Term U.S. Treasury Securities Fund
of the total amount you intend to purchase. If you do not complete the total intended purchase at
the end of the 13-month period, the Funds transfer agent will redeem the necessary portion of the
escrowed shares to make up the difference between the reduced rate sales charge (based on the
amount you intended to purchase) and the sales charge that would normally apply (based on the
actual amount you purchased).
DETERMINATION OF NET ASSET VALUE
General Policy. Each of the Funds adheres to Section 2(a)(41), and Rules 2a-4 and 2a-7 thereunder,
of the 1940 Act with respect to the valuation of portfolio securities. In general, securities for
which market quotations are readily available are valued at current market value, and all other
securities are valued at fair value as determined in good faith by the Trusts Board of Trustees.
In complying with the 1940 Act, the Trust relies on guidance provided by the SEC and by the SEC
staff in various interpretive letters and other guidance.
Equity Securities. Securities listed on a securities exchange, market or automated quotation system
for which quotations are readily available (except securities traded on NASDQ), including
securities traded over the counter, are valued at the official closing price or the last quoted
sale price on the principal exchange or market (foreign or domestic) on which they are traded on
valuation date (or at approximately 4:00 p.m., Eastern Time if a securitys principal exchange is
normally open at that time). If there is no official closing price and there is no such reported
sale on the valuation date, the security is valued at the most recent quoted bid price, or if such
prices are not available, the security will be valued at fair value as determined in good faith by
the Trusts Board of Trustees. For securities traded on NASDAQ, the NASDAQ Official Closing Price
is used.
Money Market Securities and other Debt Securities. If available, Money Market Securities and other
debt securities are priced based upon valuations provided by recognized independent, third-party
pricing agents. Such values generally reflect the last reported sales price if the security is
actively traded. The third-party pricing agents may also value debt securities by employing
methodologies that utilize actual market transactions, broker-supplied valuations, or other
methodologies designed to identify the market value for such securities. Such methodologies
generally consider such factors as security prices, yields, maturities, call features, ratings and
developments relating to specific securities in arriving at valuations. Money Market Securities
and other debt securities with remaining maturities of sixty days or less may be valued at their
amortized cost, which approximates market value. If such prices are not available, the security
will be valued at fair value as determined in good faith by the Trusts Board of Trustees.
The prices for foreign securities are reported in local currency and converted to U.S. dollars at
the exchange rate of such currencies against the U.S. dollar, as of the close of regular trading on
the NYSE (usually 4:00 p.m. Eastern Time) as provided by an independent pricing service approved by
the Trusts Board of Trustees.
Use of Third-Party Pricing Agents. Pursuant to contracts with the Trusts Administrator, prices
for most securities held by the Funds are provided daily by third-party independent pricing agents
that are approved by the Board of Trustees of the Trust. The valuations provided by third-party
independent pricing agents are reviewed daily by the Administrator. If a security price cannot be
obtained from an independent pricing service, the Trusts accounting agent will seek to obtain a
bid price from at least one independent broker.
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Investments in other investment companies are valued at their respective daily net asset values.
Amortized Cost Method of Valuation. The amortized cost method involves valuing a security at its
cost on the date of purchase and thereafter (absent unusual circumstances) assuming a constant
amortization to maturity of any discount or premium, regardless of the impact of fluctuations in
general market rates of interest on the value of the instrument. While this method provides
certainty in valuation, it may result in periods during which a securitys value, as determined by
this method, is higher or lower than the price a Fund would receive if it sold the instrument.
During periods of declining interest rates, the daily yield of a Fund may tend to be higher than a
like computation made by a company with identical investments utilizing a method of valuation based
upon market prices and estimates of market prices for all of its portfolio securities. Thus, if the
use of amortized cost by a Fund resulted in a lower aggregate portfolio value on a particular day,
a prospective investor in a Fund would be able to obtain a somewhat higher yield than would result
from investment in a company utilizing solely market values, and existing investors in a Fund would
experience a lower yield. The converse would apply in a period of rising interest rates.
A Funds use of amortized cost and the maintenance of a Funds net asset value at $1.00 are
permitted by regulations promulgated by Rule 2a-7 under the 1940 Act, provided that certain
conditions are met. The regulations also require the Trustees to establish procedures which are
reasonably designed to stabilize the net
asset value per share at $1.00 for the Funds. Such procedures include the determination of the
extent of deviation, if any, of the Funds current net asset value per share calculated using
available market quotations from the Funds amortized cost price per share at such intervals as the
Trustees deem appropriate and reasonable in light of market conditions and periodic reviews of the
amount of the deviation and the methods used to calculate such deviation. In the event that such
deviation exceeds one half of 1%, the Trustees are required to consider promptly what action, if
any, should be initiated, and, if the Trustees believe that the extent of any deviation may result
in material dilution or other unfair results to shareholders, the Trustees are required to take
such corrective action as they deem appropriate to eliminate or reduce such dilution or unfair
results to the extent reasonably practicable. Such actions may include the sale of portfolio
instruments prior to maturity to realize capital gains or losses or to shorten average portfolio
maturity; withholding dividends; redeeming shares in kind; or establishing a net asset value per
share by using available market quotations. In addition, if the Funds incur a significant loss or
liability, the Trustees have the authority to reduce pro rata the number of shares of the Funds in
each shareholders account and to offset each shareholders pro rata portion of such loss or
liability from the shareholders accrued but unpaid dividends or from future dividends while each
other Fund must annually distribute at least 90% of its investment company taxable income.
TAXES
The following is a summary of certain federal income tax considerations generally affecting the
Funds and their investors. No attempt is made to present a detailed explanation of the federal tax
treatment of a Fund or its investors, and the discussion here and in the Trusts prospectuses is
not intended as a substitute for careful tax planning.
Federal Income Tax
This discussion of federal income tax considerations is based on the Internal Revenue Code of 1986
and the regulations issued thereunder, in effect on the date of this SAI. New legislation, as well
as administrative changes or court decisions may change the conclusions expressed herein, and may
have a retroactive effect with respect to the transactions contemplated herein. In order to qualify
for treatment as a regulated investment company (RIC) under the Code, the Funds must distribute
annually to its shareholders at least the sum of 90% of its net investment income excludable from
gross income plus 90% of its investment company taxable income (generally, net investment income
plus the excess, if any, of net short-term capital gain) (the Distribution Requirement) and also
must meet several additional requirements. Among these requirements are the following: (i) at least
90% of a Funds gross income each taxable year must be derived from dividends, interest, payments
with respect to securities loans, and gains from the sale or other disposition of stock or
securities or foreign currencies, or other income derived with respect to its business of investing
in such stock, securities or currencies, and net income derived from interests in qualified
publicly traded partnerships, (ii) at the close of each quarter of a Funds taxable year, at least
50% of the value of its total assets must be represented by cash and cash items, U.S. government
securities, securities of other RICs and other securities, with such other securities limited, in
respect to any one issuer, to an amount that does not exceed 5% of the value of a Funds assets
87
and
that does not represent more than 10% of the outstanding voting securities of such issuer; and
(iii) at the close of each quarter of a Funds taxable year, not more than 25% of the value of the
Funds assets may be invested in securities (other than U.S. government securities or the
securities of other RICs) of any one issuer, or of two or more issuers engaged in same or similar
businesses if a Fund owns at least 20% of the voting power of such issuers, or of one or more
qualified publicly traded partnerships, or the securities of one or more qualified publicly traded
partnerships.
Notwithstanding the Distribution Requirement described above, which only requires a Fund to
distribute at least 90% of its annual investment company taxable income and does not require any
minimum distribution of net capital gains (the excess of net long-term capital gains over net short-term capital loss), a Fund
will be subject to a nondeductible 4% excise tax to the extent it fails to distribute by the end of
any calendar year 98% of its ordinary income for that year and 98% of its capital gain net income
for the one-year period ending on October 31 of that year (and any retained amount from that prior
calendar year on which the Fund paid no federal income tax). The Funds intend to make sufficient
distributions prior to the end of each calendar year to avoid liability for the federal excise tax
applicable to regulated investment companies but can make no assurances that distributions will be
sufficient to avoid this tax.
If a Fund fails to maintain qualification as a RIC for a tax year, that Fund will be subject to
federal income tax on its taxable income and gains at corporate rates, without any benefit for
distributions paid to shareholders, and distributions to shareholders will be taxed as ordinary
income to the extent of that Funds current and accumulated earnings and profits. In such case, the
dividends received deduction generally will be available for eligible corporate shareholders
(subject to certain limitations) and the lower tax rates applicable to qualified dividend income
would be available to individual shareholders. The board reserves the right not to maintain
qualification of a Fund as a RIC if it determines such course of action to be beneficial to
shareholders.
Each Fund may invest in complex securities. These investments may be subject to numerous special
and complex tax rules. These rules could affect whether gains and losses recognized by a Fund are
treated as ordinary income or capital gains, accelerate the recognition of income to a Fund, and/or
defer a Funds ability to recognize losses. In turn, these rules may affect the amount, timing or
character of the income distributed to shareholders by a Fund.
With respect to investments in STRIPs, TRs, and other zero coupon securities which are sold at
original issue discount and thus do not make periodic cash interest payments, a Fund will be
required to include as part of its current income the imputed interest on such obligations even
though the Fund has not received any interest payments on such obligations during that period.
Because each Fund distributes all of its net investment income to its shareholders, a Fund may have
to sell Fund securities to distribute such imputed income at a time when the Adviser would not have
chosen to sell such securities and which may result in taxable gain or loss.
The Fixed Income Funds receive income generally in the form of interest derived from Fund
investments. This income, less expenses incurred in the operation of a Fund, constitutes its net
investment income from which dividends may be paid to shareholders. Any distributions by a Fund may
be taxable to shareholders regardless of whether they are received in cash or additional shares. A
Fund may derive capital gains and losses in connection with sales or other dispositions of its
portfolio securities. Distributions of net short-term capital gains will be taxable to shareholders
as ordinary income. In general, the Fixed Income Funds do not expect to realize net-long term
capital gains because the Bond Funds and the portion of such Funds distributions are expected to
be eligible for the corporate dividends received deduction.
The Equity Funds receive income generally in the form of dividends and interest on Fund
investments. This income, less expenses incurred in the operation of a Fund, constitutes its net
investment income from which dividends may be paid to you. All or a portion of the net investment
income distributions may be treated as qualified dividend income (eligible for the reduced maximum
rate to individuals of 15% (lower rates apply to individuals in lower tax brackets)) to the extent
that a Fund receives qualified dividend income.
Qualified dividend income is, in general, dividend income from taxable domestic corporations and
certain foreign corporations (e.g., foreign corporations incorporated in a possession of the United
States or in certain countries with a comprehensive tax treaty with the United States, or the stock
of which is readily tradable on an established securities market in the United States). In order
for some portion of the dividends received by a Fund shareholder to be qualified dividend income, a
Fund must meet holding period and other requirements with respect to the dividend paying stocks
88
in its portfolio, and the shareholder must meet holding period and other
requirements with respect to a Funds shares. Any distributions by a Fund may be taxable to
shareholders regardless of whether they are received in cash or in additional shares. The Equity
Funds may derive capital gains and losses in connection with sales or other dispositions of each
Funds portfolio securities. Distributions from net short-term capital gains will be taxable to you
as ordinary income. Distributions from net long-term capital gains will be taxable to you as
long-term capital gains regardless of how long you have held your shares in the fund. Currently,
the maximum tax rate on long-term capital gains is 15%.
A Funds participation in loans of securities may affect the amount, timing and character of
distributions to shareholders. If a Fund participates in a securities lending transaction, to the
extent that a Fund makes a distribution of income received by the Fund in lieu of dividends (a
substitute payment) with respect to securities on loan pursuant to such a securities lending
transaction, such income will not constitute qualified dividend income and thus will not be
eligible for taxation at the rates applicable to long-term capital gain. Such income will also not
be qualifying dividends eligible for the dividends received deduction for corporate investors. The
Funds expect to use such substitute payments, if any, to satisfy a Funds expenses, and therefore
expect that their receipt of substitute payments, if any, will not adversely affect the percentage
of distributions qualifying as qualified dividend income. Withholding taxes accrued on dividends
during the period that any security was not directly held by a Fund will not qualify as a foreign
tax paid by a Fund and therefore cannot be passed through to shareholders. As a general practice,
the Funds will not recall securities on loan solely to receive income payments to avoid potential
tax consequences as no Fund is managed in a tax sensitive style.
Absent further legislation, the maximum 15% tax rate on qualified dividend income and long-term
capital gains will cease to apply to taxable years beginning after December 31, 2010.
Shareholders who have not held Fund shares for a full year should be aware that a Fund may
designate and distribute, as ordinary income or capital gain, a percentage of income that is not
equal to the actual amount of such income earned during the period of investment in a Fund.
Each Fund will inform you of the amount of your ordinary income dividends, qualified dividend
income, and capital gain distributions shortly after the close of each calendar year.
If a Funds distributions exceed its taxable income and capital gains realized during a taxable
year, all or a portion of the distributions made in the same taxable year may be recharacterized as
a return of capital to shareholders. A return of capital distribution will generally not be
taxable, but will reduce each shareholders cost basis in a Fund and result in higher reported
capital gain or lower reported capital loss when those shares on which distribution was received
are sold.
If a shareholder that is a tax-exempt investor (e.g., a pension plan, individual retirement
account, 401(k), similar tax-advantaged plan, charitable organization, etc.) incurs debt to finance
the acquisition of its shares, a portion of the income received by that shareholder with respect to
its shares would constitute unrelated business taxable income (UBTI). A tax-exempt investor is
generally subject to federal income tax to the extent that its UBTI for a taxable year exceeds its
annual $1,000 exclusion. If a charitable remainder trust incurs any UBTI in a taxable year, all of
its net income for the taxable year is subject to federal income tax.
Sale, Redemption or Exchange of Fund Shares
Sales, redemptions and exchanges of Fund shares are generally taxable transactions for federal,
state and local income tax purposes.
Any gain or loss recognized on a sale or redemption of shares of a Fund by a shareholder who holds
his or her shares as a capital asset will generally be treated as long-term capital gain or loss if
the shares have been held for more than one year, and short-term if for a year or less. If shares
held for six months or less are sold or redeemed for a loss, two special rules apply. First, if
shares on which a net capital gain distribution has been received are subsequently sold or
redeemed, and such shares have been held for six months or less, any loss recognized will be
treated as long-term capital loss to the extent of the long-term capital gain distributions.
Second, any loss recognized by a shareholder upon the sale or redemption of shares of a tax-exempt
fund held for six months or less will be disallowed to the extent of any
89
exempt interest dividends
received by the shareholder with respect to such shares. All or a portion of any loss that you
realize upon the redemption of your fund shares will be disallowed to the extent that you buy other
shares in a Fund (through reinvestment of dividends or otherwise) within 30 days before or after
your share redemption. Any loss disallowed under these rules will be added to your tax basis in the
new shares you buy.
In certain cases, a Fund will be required to withhold, at the applicable withholding rates, an
amount from any distributions and redemptions to shareholders, and to remit such amount to the
Internal Revenue Service (IRS) if the shareholder: (1) has failed to provide a correct taxpayer
identification number, (2) is subject to backup withholding by the IRS, or (3) has failed to
provide the Fund with certain certifications that are required by the IRS, or (4) has failed to
certify that he or she is a U.S. person (including a U.S. resident alien).
Tax-Exempt Funds
If, at the close of each quarter of its taxable year, at least 50% of the value of a Funds total
assets consists of obligations the interest on which is excludable from gross income, such Fund may
pay exempt interest dividends, as defined in Section 852(b)(5) of the Code, to its shareholders.
As noted in their prospectuses, the Investment Grade Tax-Exempt Bond Fund, and the State Tax-Exempt
Bond Funds intend to pay exempt-interest dividends. Exempt-interest dividends are excludable from a
shareholders gross income for regular federal income tax purposes, but may nevertheless be subject
to the alternative minimum tax (the Alternative Minimum Tax) imposed by Section 55 of the Code.
The Alternative Minimum Tax is imposed at a maximum rate of 28% in the case of non-corporate
taxpayers and at the rate of 20% in the case of corporate taxpayers, to the extent it exceeds the
taxpayers regular tax liability. The Alternative Minimum Tax may be imposed in two circumstances.
First, exempt-interest dividends derived from certain private activity bonds issued after August
7, 1986, will generally be an item of tax preference and therefore potentially subject to the
Alternative Minimum Tax for both corporate and non-corporate taxpayers. Second, in the case of
exempt-interest dividends received by corporate shareholders, all exempt-interest dividends,
regardless of when the bonds from which they are derived were issued or whether they are derived
from private activity bonds, will be included in the corporations adjusted current earnings, as
defined in Section 56(g) of the Code, in calculating the corporations alternative minimum taxable
income for purposes of determining the Alternative Minimum Tax.
Distributions of exempt-interest dividends may result in additional federal income tax consequences
to shareholders in tax-exempt funds. For example, interest on indebtedness incurred by shareholders
to purchase or carry shares of a tax-exempt fund will not be deductible for federal income tax
purposes to the extent that the Fund distributes exempt interest dividends during the taxable year.
The deduction otherwise allowable to property and casualty insurance companies for losses
incurred will be reduced by an amount equal to a portion of exempt-interest dividends received or
accrued during any taxable year. Certain foreign corporations engaged in a trade or business in
the U. S. will be subject to a branch profits tax on their dividend equivalent amount for the
taxable year, which will include exempt-interest dividends. Certain Subchapter S corporations may
also be subject to taxes on their passive investment income, which could include exempt-interest
dividends. Up to 85% of the Social Security benefits or railroad retirement benefits received by an
individual during any taxable year will be included in the gross income of such individual if the
individuals modified adjusted gross income (which includes exempt-interest dividends) plus
one-half of the Social Security benefits or railroad retirement benefits received by such
individual during that taxable year exceeds the base amount described in Section 86 of the Code.
A tax-exempt fund may not be an appropriate investment for persons (including corporations and
other business entities) who are substantial users (or persons related to such users) of
facilities financed by industrial development or private activity bonds. A substantial user is
defined generally to include certain persons who regularly use in a trade or business a facility
financed from the proceeds of industrial development bonds or private activity bonds. Such entities
or persons should consult their tax advisor before purchasing shares of a tax-exempt fund.
Issuers of bonds purchased by a tax-exempt fund (or the beneficiary of such bonds) may have made
certain representations or covenants in connection with the issuance of such bonds to satisfy
certain requirements of the Code that must be satisfied subsequent to the issuance of such bonds.
Investors should be aware that exempt-interest dividends derived from such bonds may become subject
to federal income taxation retroactively to the date of issuance
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of the bonds to which such
dividends are attributable thereof if such representations are determined to have been inaccurate
or if the issuer of such bonds (or the beneficiary of such bonds) fails to comply with such
covenants.
The Funds will make annual reports to shareholders of the federal income tax status of all
distributions.
In certain cases, a Fund will be required to withhold, at the applicable withholding rates, an
amount from any distributions and redemptions to shareholders, and to remit such amount to the
Internal Revenue Service (IRS) if the shareholder: (1) has failed to provide a correct taxpayer
identification number, (2) is subject to backup withholding by the IRS, or (3) has failed to
provide the Fund with certain certifications that are required by the IRS, or (4) has failed to
certify that he or she is a U.S. person (including a U.S. resident alien).
State Taxes
A Fund is not liable for any income or franchise tax in Massachusetts if it qualifies as a RIC for
federal income tax purposes. Distributions by the Funds to investors and the ownership of shares
may be subject to state and local taxes.
Shareholders are urged to consult their tax advisors regarding state and local taxes affecting an
investment in shares of a Fund.
Many states grant tax-free status to dividends paid to you from interest earned on direct
obligations of the U.S. Government, subject in some states to minimum investment requirements that
must be met by a Fund. Investments in Government National Mortgage Association and Fannie Mae
securities, bankers acceptances, commercial paper and repurchase agreements collaterized by U.S.
government securities do not generally qualify for tax-free treatment. The rules on exclusion of
this income are different for corporations.
Foreign Taxes
Dividends and interests received by a Fund may be subject to income, withholding or other taxes
imposed by foreign countries and U.S. possessions that would reduce the yield on the Funds stock
or securities. Tax
conventions between certain countries and the United States may reduce or eliminate these taxes.
Foreign countries generally do not impose taxes on capital gains with respect to investments by
foreign investors.
If the International Equity, International Equity Index and International Equity 130/30 Funds meet
the Distribution Requirement, and if more than 50% of the value of each such Funds total assets at
the close of their respective taxable years consist of stocks or securities of foreign
corporations, each Fund will be eligible to, and intends to, file an election with the Internal
Revenue Service that may enable shareholders, in effect, to receive either the benefit of a foreign
tax credit, or a tax deduction, with respect to any foreign and U.S. possessions income taxes paid
by the Funds, subject to certain limitations. Pursuant to the election, each Fund will treat those
taxes as dividends paid to its shareholders. Each such shareholder will be required to include a
proportionate share of those taxes in gross income as income received from a foreign source and
must treat the amount so included as if the shareholder had paid the foreign tax directly. The
shareholder may then either deduct the taxes deemed paid by him or her in computing his or her
taxable income or, alternatively, use the foregoing information in calculating any foreign tax
credit the shareholder may be entitled to use against such shareholders federal income tax. If
either of the two above-mentioned Funds make the election, such Fund will report annually to its
shareholders the respective amounts per share of the Funds income from sources within, and taxes
paid to, foreign countries and U.S. possessions.
The International Equity, International Equity Index and International Equity 130/30 Funds
transactions in foreign currencies and forward foreign currency contracts will be subject to
special provisions of the Code that, among other things, may affect the character of gains and
losses realized by the Funds (i.e., may affect whether gains or losses are ordinary or capital),
accelerate recognition of income to the Funds and defer losses. These rules could therefore affect
the character, amount and timing of distributions to shareholders. These provisions also may
require the Funds to mark-to-market certain types of positions in their portfolios (i.e., treat
them as if they were closed out) which may cause the Funds to recognize income without receiving
cash with which to make distributions in amounts necessary to satisfy the 90% and 98% distribution
requirements for avoiding income and excise taxes. Each Fund intends to monitor its transactions,
intends to make the appropriate tax elections, and intends to make the appropriate entries in
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its
books and records when it acquires any foreign currency or forward foreign currency contract in
order to mitigate the effect of these rules so as to prevent disqualification of the Fund as a RIC
and minimize the imposition of income and excise taxes.
Excess Inclusion Income of Certain Tax-Exempt Shareholders from an Investment in the Real Estate
130/30 Fund in REITs and REMIC Residual Interests.
Certain tax-exempt shareholders in the Real Estate 130/30 Fund, including qualified pension plans,
individual retirement accounts, salary deferral arrangements (401(k)s) and other tax-exempt
entities, generally are exempt from federal income taxation except with respect to their unrelated
business taxable income (UBTI). Under current law, the Fund serves to block UBTI from being
realized by its tax-exempt shareholders. Notwithstanding the foregoing, a tax exempt shareholder
could realize UBTI by virtue of its investment in the Fund if: (i) the Fund invests in a residual
interest in a real estate mortgage investment conduit (REMIC) or in REITs that hold a REMIC
residual interest (income that is attributable to these residual interests is referred to in the
Internal Revenue Code as an excess inclusion income) or (ii) shares in the Fund constitute
debt-financed property in the hands of the tax exempt shareholder within the meaning of Internal
Revenue Code Section 514(b). In addition, if a REIT, that issues debt securities with more than
one maturity, owns a taxable mortgage pool within the meaning of Internal Revenue Code Section
7701(i) as a portion of the REITs assets, or as a REIT subsidiary, then a portion of the REITs
income may be treated as if it were an excess inclusion from a REMIC. This income generally is
required to be allocated by the Fund to you in proportion to the dividends paid to you with the
same tax consequences as if you received the excess inclusion income directly. If you are a tax-exempt shareholder, this excess
inclusion income may have a tax consequence to you as discussed below.
Under guidance issued by the IRS, the Fund will be taxed at the highest corporate income tax rate
on its excess inclusion income that is allocable to the percentage of its shares held in record
name by a disqualified organization. Disqualified organizations generally include certain
cooperatives, governmental entities and tax-exempt organizations that are exempt from tax on their
unrelated business taxable income. To the extent that Fund shares owned by a disqualified
organization are held in record name by a broker-dealer or other nominee, the broker-dealer or
other nominee would be liable for the corporate level tax on the portion of the Funds excess
inclusion income allocable to Fund shares held by the broker-dealer or other nominee on behalf of
the disqualified organization. The Fund expects that disqualified organizations will own their
shares and will not themselves be pass-through entities. Because this tax is imposed at the Fund
level, all shareholders, including shareholders that are not disqualified organizations, will bear
a portion of the tax cost associated with the Funds receipt of excess inclusion income. However,
to the extent permissible under the Investment Company Act of 1940, as amended, regulated
investment companies such as the Fund are permitted under Treasury Regulations to specially
allocate this tax expense to the disqualified organizations to which it is attributable, without a
concern that such an allocation will constitute a preferential dividend.
In addition, with respect to Fund shareholders who are not nominees, for Fund taxable years
beginning on or after January 1, 2007, the Fund must report excess inclusion income to shareholders
in two cases:
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If the excess inclusion income received by the Fund from all sources exceeds 1% of the
Funds gross income, it must inform the non-nominee shareholder of the amount and
character of excess inclusion income allocated to them; and |
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If the Fund receives excess inclusion income from a REIT whose excess
inclusion income in its most recent tax year ending not later than nine months before
the first day of the Funds taxable year exceeded 3% of the REITs total dividends, the
Fund must inform its non-nominee shareholders of the amount and character of the excess
inclusion income allocated to them from such REIT. |
Any excess inclusion income realized by the Fund and allocated to shareholders under these rules
cannot be offset by net operating losses of the shareholders. If the shareholder is a tax-exempt
entity and not a disqualified organization, then this income is fully taxable as unrelated
business taxable income under the Internal Revenue Code. Charitable reminder trusts do not incur
UBTI by receiving excess inclusion income from the Fund. If the shareholder is a non-U.S. person,
such shareholder would be subject to U.S. federal income tax withholding at a rate of 30% on this
income without reduction or exemption pursuant to any otherwise applicable income tax treaty. If
the shareholder is a REIT, a regulated investment company, common trust fund or other pass-through
entity, such shareholders allocable share of
92
the Funds excess inclusion income would be
considered excess inclusion income of such entity and such entity would be subject to tax at the
highest corporate tax rate on any excess inclusion income allocated to their owners that are
disqualified organizations. Accordingly, investors should be aware that a portion of the Funds
income may be considered excess inclusion income.
Compliance with these requirements will require the Fund to obtain significant cooperation from any
REITs in which it invests. There is no guarantee that the Fund will receive the information that it
needs to implement these requirements and report any excess inclusion income to you on a timely
basis. The Fund will use its best efforts to meet these requirements, and through the Investment
Company Institute, will seek additional guidance from the IRS and the cooperation of REITs in
providing excess inclusion income information on a timely basis.
Tax-exempt shareholders should talk to their tax advisors about the implications of these rules on
their separate tax situations.
Non-U.S. Investors. Non-U.S. investors may be subject to U.S. withholding and estate tax, and are
subject to special U.S. tax certification requirements. Non-U.S. investors should consult their
tax advisors about the applicability of U.S. tax withholding and the use of appropriate forms to
certify their foreign status and to claim any applicable treaty benefits to which they are
entitled.
Investments in U.S. Real Property. The Real Estate 130/30 Fund may invest in equity securities of
corporations that invest in U.S. real property, including REITs. The sale of a U.S. real property
interest by the Fund, or by a REIT or U.S. real property holding corporation in which the Fund
invests, may trigger special tax consequences to the Funds non-U.S. shareholders.
The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) makes non-U.S. persons subject to
U.S. tax on disposition of a U.S. real property interest as if he or she were a U.S. person. Such
gain is sometimes referred to as FIRPTA gain. The Code provides a look-through rule for
distributions of FIRPTA gain by a RIC that is classified as a qualified investment entity. A
qualified investment entity includes a RIC if, in general, more than 50% of the RICs assets
consists of interests in REITs and U.S. real property holding corporations.
If the Fund is classified as a qualified investment entity and you are a non-U.S. shareholder that
owns more than 5% of a class of Fund shares at any time during the one-year period ending on the
date of the distribution, then Fund distributions to you are treated as gain recognized by you from
the disposition of a U.S. real property interest (USRPI) to the extent that the distribution is
attributable to gain from a sale or disposition of a USRPI by the Fund. This will cause any such
distribution to be subject to U.S. withholding tax at a rate of 35%, and require that you file a
nonresident U.S. income tax return.
In general, a USRPI includes stock in a U.S. real property holding corporation (USRPHC). A USRPHC
is a U.S. corporation more than 50% of the assets of which are interests in U.S. real estate.
However, if stock of a class of a USRPHC is publicly traded, stock of such class is treated as a
USRPI only if the Fund owns more than 5% of such class of stock. Stock of a U.S. REIT that is a
USRPHC is a USRPI if the Fund owns more than 5% of the class of REIT shares, except that if U.S.
shareholders control the U.S. REIT, then shares of the REIT are not USRPIs even if the Fund owns
more than 5%.
This treatment applies only if you own more than 5% of a class of Fund shares at any time during
the one-year period ending on the date of the distribution. These look-through rules and the
exemption from withholding for Fund shareholders owning 5% or less of a class of Fund shares sunset
on December 31, 2009, except as provided in the next paragraph.
Even if you are a non-U.S. shareholder and do not own more than 5% of a class of Fund shares at any
time during the one-year period ending on the date of the distribution, Fund distributions to you
that are attributable to gain from disposition of a USRPI by the Fund will be taxable as ordinary
dividends (rather than as a capital gain or short-term capital gain dividend) subject withholding
at 30% or lower treaty rate) if the Fund is classified as a qualified investment entity as
described above. This rule sunsets on December 31, 2009, except that distributions you receive of
short- or long-term capital gains that are attributable to the sale or disposition of a U.S. real
property interest by a REIT
93
in which the Fund invests will continue to be taxable as FIRPTA gain,
subject to 35% withholding and a requirement that you file a U.S. nonresident income tax return, so
long as the Fund remains a qualified investment entity.
FIRPTA Wash Sale Rule. If a non-U.S. shareholder of the Fund, during the 30-day period preceding
a Fund distribution that would have been treated as a distribution from the disposition of a U.S.
real property interest, acquires an identical stock interest during the 61-day period beginning the
first day of such 30-day period preceding the distribution, and does not in fact receive the
distribution in a manner that subjects the non-U.S. shareholder to tax under FIRPTA, then the
non-U.S. shareholder is required to pay U.S. tax on an amount equal to the amount of the
distribution that was not taxed under FIRPTA as a result of the disposition. These Rules also apply
to substitute dividend payments and other similar arrangements; the portion of the substitute
dividend or similar payment treated as FIRPTA gain equals the portion of the RIC distribution such
payment is in lieu of that otherwise would have been treated as FIRPTA gain.
Gain on Sale of Fund Shares As FIRPTA Gain. In addition, a sale or redemption of Fund shares will
be FIRPTA gain only if (i) such non-U.S. shareholder owns more than 5% of a class of shares in the
Fund, (ii) more than 50% of the Funds assets consist of (A) more than 5% interests in publicly
traded companies that are U.S. real property holding companies, (B) interests in non-publicly
traded companies that are U.S. real property holding companies, and (C) interests in U.S. REITs
that are not controlled by U.S. shareholders where the REIT shares are either not publicly traded
or are publicly traded and the Fund owns more than 5%, and (iii) non-U.S. shareholders own 50% or
more of the value of the Fund shares (requirement (iii) sunsets and does not apply after December
31, 2009).
In the unlikely event a sale of Fund shares results in FIRPTA gain, the gain will be taxed as
income effectively connected with a U.S. trade or business. As a result, the non-U.S.
shareholder will be required to pay U.S. income tax on such gain and file a nonresident U.S. income
tax return.
Limitations on Withholding On FIRPTA Gain For Non-U.S. Investors. While the Fund, if classified as
a qualified investment entity, will make every effort to identify and pass-through any FIRPTA gain
that it receives on Fund investments, and to withhold on distributions of this income paid directly
to its non-U.S. shareholders, intermediaries who have assumed tax reporting responsibilities on
managed or omnibus accounts may not have the capacity to identify non-U.S. shareholders who are
paid distributions containing FIRPTA gain and to properly withhold federal income taxes on these
distributions. Shareholders of these accounts should talk to their investment representatives about
any additional tax due on FIRPTA gain.
FUND TRANSACTIONS
Brokerage Transactions. The Trust has no obligation to deal with any dealer or group of dealers in
the execution of transactions in portfolio securities. Subject to policies established by the Board
of Trustees, the Adviser or Subadviser is responsible for placing the orders to execute
transactions for a Fund.
In placing orders, it is the policy of the Trust to seek to obtain the best net results taking into
account such factors as price (including the applicable dealer spread), the size, type and
difficulty of the transaction involved, the firms general execution and operational facilities,
and the firms risk in positioning the securities involved. Where possible, the Adviser or the
Subadviser will deal directly with the dealers who make a market in the securities involved except
in those circumstances where better prices and execution are available elsewhere. Such dealers
usually are acting as principal for their own account. On occasion, securities may be purchased
directly from the issuer. While the Adviser or the Subadviser generally seeks reasonably
competitive spreads or commissions, the Trust will not necessarily be paying the lowest spread or
commission available due to reasons described herein.
The money market securities in which the Funds invest are traded primarily in the over-the-counter
market. Money market and debt securities are generally traded on a net basis and do not normally
involve either brokerage commissions or transfer taxes. Certain Funds may also enter into financial
futures and option contracts,
which normally involve brokerage commissions. The cost of executing fixed income portfolio
securities transactions of the Trust will primarily consist of dealer spreads and underwriting
commissions.
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008, the Funds paid the
following aggregate brokerage commissions on portfolio transactions:
94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Dollar Amount of |
|
|
Brokerage Commissions Paid ($) |
Fund |
|
2010 |
|
2009 |
|
2008 |
Aggressive Growth Allocation Strategy |
|
|
0 |
|
|
|
0 |
|
|
|
198 |
|
Aggressive Growth Stock Fund |
|
|
158,949 |
|
|
|
174,733 |
|
|
|
309,805 |
|
Conservative Allocation Strategy |
|
|
0 |
|
|
|
178 |
|
|
|
0 |
|
Corporate Bond Fund |
|
|
0 |
|
|
|
1,458 |
|
|
|
0 |
|
Emerging Growth Stock Fund |
|
|
212,450 |
|
|
|
184,092 |
|
|
|
326,544 |
|
Georgia Tax-Exempt Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Growth Allocation Strategy |
|
|
239 |
|
|
|
0 |
|
|
|
0 |
|
High Grade Municipal Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
High Income Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Institutional Cash Management Money Market Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Institutional Municipal Cash Reserve Money Market Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Institutional U.S. Government Securities Money Market Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Institutional U.S. Treasury Securities Money Market Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Intermediate Bond Fund |
|
|
0 |
|
|
|
14,067 |
|
|
|
0 |
|
International Equity 130/30 Fund |
|
|
2,394,899 |
|
|
|
1,535,130 |
|
|
|
33,827 |
* |
International Equity Fund |
|
|
749,514 |
|
|
|
3,114,967 |
|
|
|
3,859,246 |
|
International Equity Index Fund |
|
|
783,468 |
|
|
|
753,277 |
|
|
|
496,517 |
|
Investment Grade Bond Fund |
|
|
0 |
|
|
|
6,670 |
|
|
|
0 |
|
Investment Grade Tax-Exempt Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Large Cap Core Equity Fund |
|
|
895,945 |
|
|
|
1,663,380 |
|
|
|
2,326,184 |
|
Large Cap Growth Stock Fund |
|
|
649,250 |
|
|
|
651,259 |
|
|
|
1,708,240 |
|
Large Cap Quantitative Equity Fund |
|
|
472,586 |
|
|
|
781,165 |
|
|
|
1,555,391 |
|
Large Cap Value Equity Fund |
|
|
2,945,483 |
|
|
|
3,322,504 |
|
|
|
2,105,464 |
|
Limited Duration Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Limited-Term Federal Mortgage Securities Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Maryland Municipal Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Mid-Cap Core Equity Fund |
|
|
228,909 |
|
|
|
219,414 |
|
|
|
373,784 |
|
Mid-Cap Value Equity Fund |
|
|
3,707,025 |
|
|
|
1,757,702 |
|
|
|
1,272,227 |
|
95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Dollar Amount of |
|
|
Brokerage Commissions Paid ($) |
Fund |
|
2010 |
|
2009 |
|
2008 |
Moderate Allocation Strategy |
|
|
0 |
|
|
|
982 |
|
|
|
0 |
|
North Carolina Tax-Exempt Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Prime Quality Money Market Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Real Estate 130/30 Fund |
|
|
286,106 |
|
|
|
98,795 |
|
|
|
20,096 |
* |
Seix Floating Rate High Income Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Global Strategy Fund |
|
|
0 |
|
|
|
0 |
|
|
|
* |
* |
Seix High Yield Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Select Large Cap Growth Stock Fund |
|
|
155,076 |
|
|
|
125,553 |
|
|
|
103,577 |
|
Short-Term Bond Fund |
|
|
0 |
|
|
|
3 |
|
|
|
136 |
|
Short-Term U.S. Treasury Securities Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Small Cap Growth Stock Fund |
|
|
1,206,700 |
|
|
|
1,584,818 |
|
|
|
2,104,421 |
|
Small Cap Value Equity Fund |
|
|
973,879 |
|
|
|
942,891 |
|
|
|
1,297,749 |
|
Tax-Exempt Money Market Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Total Return Bond Fund |
|
|
0 |
|
|
|
10,485 |
|
|
|
0 |
|
Ultra-Short Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
U.S. Equity 130/30 Fund |
|
|
109,181 |
|
|
|
48,525 |
|
|
|
18,777 |
* |
U.S. Government Securities Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
U.S. Government Securities Money Market Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
U.S. Government Securities Ultra-Short Bond Fund |
|
|
2,075 |
|
|
|
0 |
|
|
|
0 |
|
U.S. Treasury Money Market Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Virginia Intermediate Municipal Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Virginia Tax-Free Money Market Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
* |
|
Represents the period from December 26, 2007 (the commencement of operations) through March 31,
2008. |
|
|
** |
|
Not in operation during the period. |
Brokerage Selection. The Trust does not expect to use one particular broker or dealer, and when one
or more brokers is believed capable of providing the best combination of price and execution, the
Funds Adviser or Subadviser may select a broker based upon brokerage or research services provided
to the Adviser or Subadviser. The Adviser or Subadviser may pay a higher commission than otherwise
obtainable from other brokers in return for such services only if a good faith determination is
made that the commission is reasonable in relation to the services provided.
96
Section 28(e) of the 1934 Act permits the Adviser or Subadviser, under certain circumstances, to
cause each Fund to pay a broker or dealer a commission for effecting a transaction in excess of the
amount of commission another broker or dealer would have charged for effecting the transaction in
recognition of the value of brokerage and research services provided by the broker or dealer. In
addition to agency transactions, the Adviser or Subadviser may receive brokerage and research
services in connection with certain riskless principal transactions, in accordance with applicable
SEC guidance. Brokerage and research services include: (1) furnishing advice as to the value of
securities, the advisability of investing in, purchasing or selling securities, and the
availability of securities or purchasers or sellers of securities; (2) furnishing analyses and
reports concerning issuers, industries, securities, economic factors and trends, portfolio
strategy, and the performance of accounts; and (3) effecting securities transactions and performing
functions incidental thereto (such as clearance, settlement, and custody). In the case of research
services, the Adviser or Subadviser believes that access to independent investment research is
beneficial to their investment decision-making processes and, therefore, to each Fund.
To the extent research services may be a factor in selecting brokers, such services may be in
written form or through direct contact with individuals and may include information as to
particular companies and securities as well as market, economic, or institutional areas and
information which assists in the valuation and pricing of investments. Examples of
research-oriented services for which the Adviser or Subadviser might utilize Fund commissions
include research reports and other information on the economy, industries, sectors, groups of
securities, individual companies, statistical information, political developments, technical market
action, pricing and appraisal services, credit analysis, risk measurement analysis, performance and
other analysis. The Adviser or Subadviser may use research services furnished by brokers in
servicing all client accounts and not all services may necessarily be used in connection with the
account that paid commissions to the broker providing such services. Information so received by the
Adviser or Subadviser will be in addition to and not in lieu of the services required to be
performed by the Funds Adviser or Subadviser under the Advisory or Subadvisory Agreement. Any
advisory or other fees paid to the Adviser or Subadviser are not reduced as a result of the receipt
of research services.
In some cases the Adviser or Subadviser may receive a service from a broker that has both a
research and a non-research use. When this occurs, the Adviser or Subadviser makes a good faith
allocation, under all the circumstances, between the research and non-research uses of the service.
The percentage of the service that is used for research purposes may be paid for with client
commissions, while the Adviser or Subadviser will use its own funds to pay for the percentage of
the service that is used for non-research purposes. In making this good faith allocation, the
Adviser or Subadviser faces a potential conflict of interest, but the Adviser or Subadviser
believes that its allocation procedures are reasonably designed to ensure that it appropriately
allocates the anticipated use of such services to their research and non-research uses.
From time to time, the Funds may purchase new issues of securities for clients in a fixed price
offering. In these situations, the seller may be a member of the selling group that will, in
addition to selling securities, provide the Adviser or Subadviser with research services. FINRA has
adopted rules expressly permitting these types of arrangements under certain circumstances.
Generally, the seller will provide research credits in these situations
at a rate that is higher than that which is available for typical secondary market transactions.
These arrangements may not fall within the safe harbor of Section 28(e).
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008, the Funds paid the
following commissions on brokerage transactions directed to brokers pursuant to an agreement or
understanding whereby the broker provides research or other brokerage services to the Adviser or
Subadviser:
97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Dollar Amount of |
|
Total Dollar Amount of Transactions |
|
|
Brokerage Commissions for |
|
Involving Brokerage Commissions |
|
|
Research Services ($) |
|
For Research Services ($) |
Fund |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
Aggressive Growth Stock Fund |
|
|
150,863 |
|
|
|
164,360 |
|
|
|
299,120 |
|
|
|
137,552,350 |
|
|
|
168,967,733 |
|
|
|
368,118,249 |
|
Emerging Growth Stock Fund |
|
|
201,480 |
|
|
|
172,097 |
|
|
|
319,050 |
|
|
|
133,547,185 |
|
|
|
117,772,648 |
|
|
|
276,916,476 |
|
International Equity Fund |
|
|
748,595 |
|
|
|
3,051,186 |
|
|
|
3,833,659 |
|
|
|
470,397,755 |
|
|
|
2,778,498,649 |
|
|
|
3,508,350,785 |
|
International Equity Index Fund |
|
|
783,468 |
|
|
|
753,323 |
|
|
|
498,729 |
|
|
|
852,457,813 |
|
|
|
948,101,136 |
|
|
|
486,498,523 |
|
International Equity 130/30 Fund |
|
|
2,394,899 |
|
|
|
599,825 |
|
|
|
13,111 |
* |
|
|
2,245,755,252 |
|
|
|
1,424,235,368 |
|
|
|
28,087,654 |
* |
Large Cap Core Equity Fund |
|
|
834,988 |
|
|
|
1,459,584 |
|
|
|
1,071,709 |
|
|
|
770,392,393 |
|
|
|
1,971,167,229 |
|
|
|
1,497,041,369 |
|
Large Cap Growth Stock Fund |
|
|
588,413 |
|
|
|
553,233 |
|
|
|
638,357 |
|
|
|
742,172,128 |
|
|
|
892,280,608 |
|
|
|
1,146,120,351 |
|
Large Cap Quantitative Equity Fund |
|
|
450,328 |
|
|
|
673,248 |
|
|
|
867,840 |
|
|
|
369,436,309 |
|
|
|
849,044,541 |
|
|
|
1,582,366,860 |
|
Large Cap Value Equity Fund |
|
|
2,670,315 |
|
|
|
2,945,971 |
|
|
|
1,150,339 |
|
|
|
2,369,528,067 |
|
|
|
2,808,542,183 |
|
|
|
1,486,254,599 |
|
Mid-Cap Core Equity |
|
|
215,278 |
|
|
|
201,994 |
|
|
|
149,481 |
|
|
|
182,460,052 |
|
|
|
192,558,578 |
|
|
|
221,613,616 |
|
Mid-Cap Value Equity Fund |
|
|
3,395,010 |
|
|
|
1,550,183 |
|
|
|
672,453 |
|
|
|
2,096,320,372 |
|
|
|
1,065,611,172 |
|
|
|
808,248 |
|
Real Estate 130/30 Fund |
|
|
286,106 |
|
|
|
37,048 |
|
|
|
7,840 |
* |
|
|
181,722,309 |
|
|
|
71,487,146 |
|
|
|
24,144,997 |
* |
Select Large Cap Growth Stock Fund |
|
|
145,971 |
|
|
|
112,390 |
|
|
|
43,809 |
|
|
|
163,580,096 |
|
|
|
149,639,354 |
|
|
|
94,902,059 |
|
Small Cap Growth Stock Fund |
|
|
953,067 |
|
|
|
1,231,703 |
|
|
|
932,764 |
|
|
|
606,870,220 |
|
|
|
1,176,981,591 |
|
|
|
1,360,762,051 |
|
Small Cap Value Equity Fund |
|
|
810,299 |
|
|
|
810,645 |
|
|
|
744,327 |
|
|
|
531,446,344 |
|
|
|
523,716,550 |
|
|
|
675,491,068 |
|
U.S. Equity 130/30 Fund |
|
|
109,181 |
|
|
|
18,197 |
|
|
|
7,042 |
* |
|
|
105,824,524 |
|
|
|
42,051,313 |
|
|
|
26,694,936 |
* |
|
|
|
* |
|
With respect to the 130/30 Funds, represents brokerage commissions paid for research services
during the period from December 27, 2007 (the commencement of operations) through March 31, 2008. |
Brokerage with Fund Affiliates. A Fund may execute brokerage or other agency transactions
through registered broker-dealer affiliates of the Fund, the Adviser, the Subadviser or the
Distributor for a commission in conformity with the 1940 Act, the Securities Exchange Act of 1934
(the 1934 Act) and rules promulgated by the SEC. Under the 1940 Act, affiliated broker-dealers
are permitted to receive and retain compensation for effecting portfolio transactions for the Fund
if written procedures are in effect expressly permitting the affiliate to receive and retain such
compensation. These rules further require that commissions paid to the affiliate by the Fund for
exchange transactions not exceed usual and customary brokerage commissions. The rules define
usual and customary commissions to include amounts which are reasonable and fair compared to the
commission, fee or other remuneration received or to be received by other brokers in connection
with comparable transactions involving similar securities being purchased or sold on a securities
exchange during a comparable period of time. For those transactions not occurring on an exchange,
the rules generally require that no more than two percent be charged if the sale is effected in
connection
98
with a secondary distribution or more than one percent of the purchase or sale price if the sale is
effected otherwise. The Trustees, including those who are not interested persons of the Fund, as
defined in the 1940 Act, have adopted procedures for evaluating the reasonableness of commissions
paid to affiliates and review these procedures periodically.
For the fiscal years ended March 31, 2010, March 31, 2009 and March 31, 2008 the Funds paid the
following aggregate brokerage commissions on portfolio transactions effected by affiliated brokers.
All amounts shown reflect fees paid in connection with Fund repurchase agreement transactions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage |
|
Percentage of Total |
|
|
Aggregate Dollar Amount of |
|
Commissions/Fees |
|
Brokerage Transactions |
|
|
Brokerage Commissions/Fees |
|
Paid to Affiliated Brokers |
|
Effected Through Affiliated |
|
|
Paid to Affiliated Brokers ($)+ |
|
(%)++ |
|
Brokers (%) |
Fund |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
Aggressive Growth Stock Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Corporate Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Emerging Growth Stock Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Georgia Tax-Exempt Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
High Grade Municipal Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
344 |
|
|
|
0 |
|
|
|
0 |
|
|
|
100 |
|
|
|
0 |
|
|
|
0 |
|
|
|
100 |
|
High Income Fund |
|
|
0 |
|
|
|
0 |
|
|
|
865 |
|
|
|
0 |
|
|
|
0 |
|
|
|
100 |
|
|
|
0 |
|
|
|
0 |
|
|
|
100 |
|
Institutional Cash Management
Money Market Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Institutional Municipal Cash
Reserve Money Market Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Institutional U.S. Government
Securities Money Market Fund |
|
|
7,542 |
|
|
|
247,775 |
|
|
|
328,121 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
Institutional U.S. Treasury
Securities Money Market Fund |
|
|
7,654 |
|
|
|
422,687 |
|
|
|
848,773 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
Intermediate Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
International Equity 130/30 Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
* |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
* |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
* |
International Equity Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
International Equity Index Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Investment Grade Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Investment Grade Tax-Exempt Bond
Fund |
|
|
0 |
|
|
|
0 |
|
|
|
382 |
|
|
|
0 |
|
|
|
0 |
|
|
|
100 |
|
|
|
0 |
|
|
|
0 |
|
|
|
100 |
|
99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage |
|
Percentage of Total |
|
|
Aggregate Dollar Amount of |
|
Commissions/Fees |
|
Brokerage Transactions |
|
|
Brokerage Commissions/Fees |
|
Paid to Affiliated Brokers |
|
Effected Through Affiliated |
|
|
Paid to Affiliated Brokers ($)+ |
|
(%)++ |
|
Brokers (%) |
Fund |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
Large Cap Core Equity Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Large Cap Growth Stock Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Large Cap Quantitative Equity Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Large Cap Value Equity Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Aggressive Growth Allocation
Strategy |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Conservative Allocation Strategy |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Growth Allocation Strategy |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Moderate Allocation Strategy |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Limited Duration Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Limited-Term Federal Mortgage
Securities Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Maryland Municipal Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Mid-Cap Core Equity Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Mid-Cap Value Equity Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
North Carolina Tax-Exempt Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Prime Quality Money Market Fund |
|
|
757 |
|
|
|
41,002 |
|
|
|
129,327 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
Real Estate 130/30 Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
* |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
* |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
* |
Seix Floating Rate High Income Fund |
|
|
0 |
|
|
|
0 |
|
|
|
14,589 |
|
|
|
0 |
|
|
|
0 |
|
|
|
100 |
|
|
|
0 |
|
|
|
0 |
|
|
|
100 |
|
Seix Global Strategy Fund |
|
|
0 |
|
|
|
0 |
|
|
|
* |
* |
|
|
0 |
|
|
|
0 |
|
|
|
* |
* |
|
|
0 |
|
|
|
0 |
|
|
|
* |
* |
Seix High Yield Fund |
|
|
0 |
|
|
|
0 |
|
|
|
8,300 |
|
|
|
0 |
|
|
|
0 |
|
|
|
100 |
|
|
|
0 |
|
|
|
0 |
|
|
|
100 |
|
Select Large Cap Growth Stock Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Short-Term Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Short-Term U.S. Treasury
Securities Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Small Cap Growth Stock Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage |
|
Percentage of Total |
|
|
Aggregate Dollar Amount of |
|
Commissions/Fees |
|
Brokerage Transactions |
|
|
Brokerage Commissions/Fees |
|
Paid to Affiliated Brokers |
|
Effected Through Affiliated |
|
|
Paid to Affiliated Brokers ($)+ |
|
(%)++ |
|
Brokers (%) |
Fund |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
|
2010 |
|
2009 |
|
2008 |
Small Cap Value Equity Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Tax-Exempt Money Market Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Total Return Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
U.S. Equity 130/30 Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
* |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
* |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
* |
U.S. Government Securities Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
U.S. Government Securities Money
Market Fund |
|
|
1,863 |
|
|
|
254,919 |
|
|
|
296,508 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
U.S. Government Securities
Ultra-Short Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
U.S. Treasury Securities Money
Market Fund |
|
|
3,045 |
|
|
|
231,783 |
|
|
|
387,373 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
Ultra-Short Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Virginia Intermediate Municipal
Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Virginia Tax-Free Money Market Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
+ |
|
For the fiscal year ended March 31, 2010 the Funds paid affiliated broker SunTrust Robinson
Humphrey $20,861 through a reduction in the yield earned by the Funds on those repurchase
agreements in aggregate. |
|
|
++ |
|
For most Fixed Income Funds, transactions in repurchase agreements, which are generally traded
through an affiliated broker-dealer, are the only transactions that result in the payment of fees.
Therefore, it might appear, based on the percentage of commissions/fees paid, that all of the Fixed
Income Funds portfolio transactions are made through affiliated broker-dealers. However,
transactions in repurchase agreements make up only a small part of a Fixed Income Funds portfolio
transactions. |
|
|
* |
|
Represents fees paid during the period from December 27, 2007 (the commencement of operations)
through March 31, 2008. |
|
|
|
** |
|
Not in operation during the period. |
|
PORTFOLIO TURNOVER RATE
Portfolio turnover rate is defined under SEC rules as the value of the securities purchased or
securities sold, excluding all securities whose maturities at the time of acquisition were one-year
or less, divided by the average monthly value of such securities owned during the year. Based on
this definition, instruments with remaining maturities of less than one-year are excluded from the
calculation of the portfolio turnover rate. Instruments excluded from the calculation of portfolio
turnover generally would include the futures contracts and option contracts in which the Funds
invest since such contracts generally have remaining maturities of less than one-year. The Funds
may at times hold investments in other short-term instruments such as money market instruments and
repurchase agreements, which are excluded for purposes of computing portfolio turnover. Each Funds
portfolio turnover rate for the fiscal years ended March 31, 2009 and 2010 is shown in the table
below. Variations in turnover rate may be due to market conditions, fluctuating volume of
shareholder purchases and redemptions or changes in the Advisers investment outlook.
101
|
|
|
|
|
|
|
|
|
|
|
Turnover Rate (%) |
Fund |
|
2010 |
|
2009 |
Aggressive Growth Allocation Strategy |
|
|
23 |
|
|
|
25 |
|
Aggressive Growth Stock Fund |
|
|
27 |
|
|
|
27 |
|
Conservative Allocation Strategy |
|
|
29 |
|
|
|
48 |
|
Corporate Bond Fund1 |
|
|
75 |
|
|
|
357 |
|
Emerging Growth Stock Fund |
|
|
87 |
|
|
|
71 |
|
Georgia Tax-Exempt Bond Fund |
|
|
45 |
|
|
|
63 |
|
Growth Allocation Strategy |
|
|
21 |
|
|
|
28 |
|
High Grade Municipal Bond Fund |
|
|
123 |
|
|
|
209 |
|
High Income Fund |
|
|
466 |
|
|
|
368 |
|
Intermediate Bond Fund |
|
|
122 |
|
|
|
217 |
|
International Equity 130/30 Fund2 |
|
|
628 |
|
|
|
491 |
|
International Equity Fund |
|
|
95 |
|
|
|
193 |
|
International Equity Index Fund |
|
|
36 |
|
|
|
47 |
|
Investment Grade Bond Fund3 |
|
|
99 |
|
|
|
208 |
|
Investment Grade Tax-Exempt Bond Fund |
|
|
169 |
|
|
|
221 |
|
Large Cap Core Equity Fund |
|
|
81 |
|
|
|
89 |
|
Large Cap Growth Stock Fund |
|
|
62 |
|
|
|
85 |
|
Large Cap Quantitative Equity Fund |
|
|
523 |
|
|
|
500 |
|
Large Cap Value Equity Fund |
|
|
105 |
|
|
|
114 |
|
Limited Duration Fund |
|
|
124 |
|
|
|
44 |
|
Limited-Term Federal Mortgage Securities Fund |
|
|
435 |
|
|
|
337 |
|
Maryland Municipal Bond Fund |
|
|
35 |
|
|
|
26 |
|
Mid-Cap Core Equity Fund |
|
|
91 |
|
|
|
52 |
|
Mid-Cap Value Equity Fund |
|
|
195 |
|
|
|
213 |
|
Moderate Allocation Strategy |
|
|
21 |
|
|
|
31 |
|
North Carolina Tax-Exempt Bond Fund |
|
|
65 |
|
|
|
74 |
|
Real Estate 130/30 Fund4 |
|
|
704 |
|
|
|
404 |
|
Seix Floating Rate High Income Fund |
|
|
117 |
|
|
|
226 |
|
Seix Global Strategy Fund5 |
|
|
|
|
|
|
741 |
|
Seix High Yield Fund |
|
|
116 |
|
|
|
114 |
|
Select Large Cap Growth Stock Fund |
|
|
65 |
|
|
|
65 |
|
|
|
|
|
|
|
|
|
|
102
|
|
|
|
|
|
|
|
|
|
|
Turnover Rate (%) |
Fund |
|
2010 |
|
2009 |
Short-Term Bond Fund |
|
|
122 |
|
|
|
122 |
|
Short-Term U.S. Treasury Securities Fund |
|
|
147 |
|
|
|
144 |
|
Small Cap Growth Stock Fund |
|
|
103 |
|
|
|
157 |
|
Small Cap Value Equity Fund |
|
|
62 |
|
|
|
71 |
|
Total Return Bond Fund 6 |
|
|
326 |
|
|
|
199 |
|
U.S. Equity 130/30 Fund |
|
|
382 |
|
|
|
312 |
|
U.S. Government Securities Fund |
|
|
85 |
|
|
|
130 |
|
U.S. Government Securities Ultra-Short Bond |
|
|
119 |
|
|
|
92 |
|
Ultra-Short Bond Fund |
|
|
130 |
|
|
|
88 |
|
Virginia Intermediate Municipal Bond Fund |
|
|
33 |
|
|
|
20 |
|
PORTFOLIO HOLDINGS
The Board of Trustees has approved a policy and procedures that govern the timing and circumstances
regarding the disclosure of Fund portfolio holdings information to shareholders and third parties.
These policies and procedures are designed to ensure that disclosure of information regarding the
Funds portfolio securities is in the best interests of Fund shareholders, and include procedures
to address conflicts between the interests of the Funds shareholders, on the one hand, and those
of the Funds investment adviser, principal underwriter or any affiliated person of the Funds, its
investment adviser, or its principal underwriter, on the other. Pursuant to such procedures, the
Board has authorized the Advisers Chief Compliance Officer (the CCO) to authorize the release of
the Funds portfolio holdings, as necessary, in conformity with the foregoing principles and as
further described below.
Pursuant to applicable law, each Fund is required to disclose its complete portfolio holdings
quarterly, within 60 days of the end of each fiscal quarter (currently, each March 31, June 30,
September 30, and December 31). Each Fund discloses a complete schedule of investments in each
Semi-Annual Report and Annual Report to Fund shareholders or, following the first and third fiscal
quarters, in quarterly holdings reports filed with the SEC on Form N-Q. Semi-Annual and Annual
Reports are distributed to Fund shareholders. Quarterly holdings reports filed with the SEC on Form
N-Q are not distributed to Fund shareholders, but are available, free of charge, on the EDGAR
database on the SECs website at www.sec.gov and may be reviewed and copied at the SECs public
reference room. Information on the operation and terms of usage of the SEC public reference room is
available at http://www.sec.gov/info/edgar/prrrules.htm or by calling 1-800-SEC-0330. The
Funds Annual Reports and Semi-Annual Reports are available, free of charge, on the Trusts website
at www.ridgeworth.com.
The Trusts website will provide complete portfolio holdings for each Fund on the 15th
day of each month (or on the next business day should the 15th be other than a business
day) as of the end of the most recent month. Information will remain available until updated.
Effective October 7, 2010, as of the September 30, 2010 month-end, portfolio holdings for each
Money Market Fund will be available by the 5th business day of each month on the Trusts
website.
Portfolio holdings for previous month-ends are available for each series of the Trust. To request
this historical information without charge, call 1-888-784-3863, or write to the Trust at
RidgeWorth Funds, c/o Citi Fund Services, Ohio, Inc., 3435 Stelzer Road, Columbus, Ohio 43219.
In addition to information provided to shareholders and the general public, from time to time
rating and ranking organizations, such as S&P and Morningstar, Inc., may request complete portfolio
holdings information in connection
|
|
|
|
1. |
|
Turnover was higher during 2009 as a result of the Funds change in investment strategy when the Strategic Income Fund became the Corporate Bond Fund. |
|
|
|
2. |
|
During 2010, equities experienced a significantly higher level of volatility which caused the Fund to trade more frequently then normal. |
|
|
|
3. |
|
The Fund ceased using mortgages as an opportunistic allocation in the fall, resulting in lower turnover in the second half of the fiscal year. |
|
|
|
4. |
|
During 2010, REITs experienced a significantly higher level of volatility which caused the Fund to trade more frequently than normal. |
|
|
|
5. |
|
The SEC man dated portfolio turnover calculation
includes longer term securities (defined as greater than 12 months)
and excludes short term securities (defined as less than 12 months).
During the 2010 period, the Fund held few longer term securities as
compared to those held during the 2009 period. |
|
|
|
6. |
|
The Fund increased its use of mortgage dollar rolls and took advantage of some of the opportunities available as a result of the market volatility created, in part, by the actions of FNMA & FHLMC. |
|
|
103
with rating the Funds. In most cases, portfolio holdings information is provided to ratings
agencies by the Trusts Administrator, Citi Fund Services, Ohio, Inc. Institutional investors,
financial planners, pension plan sponsors and/or their consultants may request a complete list of
portfolio holdings in order to assess the risks of a Funds portfolio along with related
performance attribution statistics. The Trust believes that these third parties, which include
affiliated persons, have legitimate objectives in requesting such portfolio holdings information.
The Trust may also disclose the portfolio holdings to broker-dealers in order to allow the Funds
to potentially sell portfolio securities. The Trusts policies and procedures provide that the
Advisers CCO may authorize disclosure of portfolio holdings information to such parties at
differing times and/or with different lag times to such third parties provided that the recipient
is by contractual agreement (i) required to maintain the confidentiality of the information and
(ii) prohibited from using the information to facilitate or assist in any securities transactions.
The Trust requires any third party receiving non-public holdings information to enter into a
confidentiality agreement with the Adviser. The confidentiality agreement provides, among other
things, that non-public portfolio holdings information will be kept secret and confidential and
that such information will be used solely for the purpose of analysis and evaluation of the Funds.
Specifically, the confidentiality agreement prohibits anyone in possession of non-public portfolio
holdings information from purchasing or selling securities for their own benefit based on such
information, or from disclosing such information to other persons, except for those who are
actually engaged in, and need to know, such information to perform the analysis or evaluation of
the Funds.
Currently, the Trust has an arrangement to provide disclosure of portfolio holdings on a weekly
basis with a week lag time to S&P. Similarly, the Trust has an arrangement to provide disclosure of
portfolio holdings on a monthly basis with a minimum 7 business day lag to Moodys. In addition,
the Trust has arrangements to provide disclosure of portfolio holdings on a periodic basis with no
lag time to SunTrust Personal Asset Management and SunTrust Wealth and Investment Management These
entities are institutional investors affiliated with the Adviser who request portfolio holdings
information to perform due diligence relating to their investments in the Funds.
In addition, the Trusts service providers, such as the custodian, securities lending agent, prime
broker, administrator and transfer agent, may receive portfolio holdings information in connection
with their services to the Funds. Financial printers, proxy voting service providers and pricing
vendors may receive portfolio holdings information, as necessary, in connection with their services
to the Funds. The Funds operations are dependent on the services performed by these service
providers. Persons employed by these service providers are not required to sign and return a
confidentiality agreement, if in the course of normal business the holdings information of the
Funds is disclosed, based on the assumption that such persons generally are bound by
confidentiality under their respective service agreements. Likewise, certain temporary insiders,
such as legal counsel and accountants, will not be asked to sign a confidentiality agreement, based
on the assumption that they are subject to professional duties of confidentiality.
No compensation or other consideration is paid to or received by any party in connection with the
disclosure of portfolio holdings information, including the Funds, the Adviser and its affiliates
or recipient of the Funds portfolio holdings information.
DESCRIPTION OF SHARES
The Declaration of Trust authorizes the issuance of an unlimited number of shares of the Funds each
of which represents an equal proportionate interest in that Fund with each other share. Shares are
entitled upon liquidation to a pro rata share in the net assets of the Funds. Shareholders have no
preemptive rights. The Declaration of Trust provides that the Trustees of the Trust may create
additional series of shares. All consideration received by the Trust for shares of any additional
series and all assets in which such consideration is invested would belong to that series and would
be subject to the liabilities related thereto. Share certificates representing shares will not be
issued.
VOTING RIGHTS
Each share held entitles the shareholder of record to one vote for each dollar invested. In other
words, each shareholder of record is entitled to one vote for each full share held on the record
date for any shareholder meeting. Each Fund will vote separately on matters relating solely to it.
As a Massachusetts business trust, the Trust is not required, and does not intend, to hold annual
meetings of shareholders. Shareholder approval will be sought, however, for certain changes in the
operation of the Trust and for the election of Trustees under certain circumstances. Under
104
the Declaration of Trust, the Trustees have the power to liquidate one or more Funds without
shareholder approval. While the Trustees have no present intention of exercising this power, they
may do so if a Fund fails to reach or maintain a viable size or for some other extraordinary
reason.
In addition, a Trustee may be removed by the remaining Trustees or by shareholders at a special
meeting called upon written request of shareholders owning at least 10% of the outstanding shares
of the Trust. In the event that such a meeting is requested, the Trust will provide appropriate
assistance and information to the shareholders requesting the meeting.
SHAREHOLDER LIABILITY
The Trust is an entity of the type commonly known as a Massachusetts business trust. Under
Massachusetts law, shareholders of such a trust could, under certain circumstances, be held
personally liable as partners for the obligations of the trust. Even if, however, the Trust were
held to be a partnership, the possibility of the shareholders incurring financial loss for that
reason appears remote because the Trusts Declaration of Trust contains an express disclaimer of
shareholder liability for obligations of the Trust and requires that notice of such disclaimer be
given in each agreement, obligation or instrument entered into or executed by or on behalf of the
Trust or the Trustees, and because the Declaration of Trust provides for indemnification out of the
Trust property for any investor held personally liable for the obligations of the Trust.
LIMITATION OF TRUSTEES LIABILITY
The Declaration of Trust provides that a Trustee shall be liable only for his own willful defaults
and, if reasonable care has been exercised in the selection of officers, agents, employees or
investment advisers, shall not be liable for any neglect or wrongdoing of any such person. The
Declaration of Trust also provides that the Trust will indemnify its Trustees and officers against
liabilities and expenses incurred in connection with actual or threatened litigation in which they
may be involved because of their offices with the Trust unless it is determined in the manner
provided in the Declaration of Trust that they have not acted in good faith in the reasonable
belief that their actions were in the best interests of the Trust. However, nothing in the
Declaration of Trust shall protect or indemnify a Trustee against any liability for his willful
misfeasance, bad faith, gross negligence or reckless disregard of his duties. Nothing contained in
this section attempts to disclaim a Trustees individual liability in any manner inconsistent with
the federal securities laws.
CODES OF ETHICS
The Board of the Trust has adopted a Code of Ethics pursuant to Rule 17j-1 under the 1940 Act. In
addition, the Adviser, the Subadvisers and the Distributor have adopted Codes of Ethics pursuant to
Rule 17j-1. These Codes of Ethics apply to the personal investing activities of trustees, officers
and certain employees (access persons). Rule 17j-1 and the Codes of Ethics are designed to
prevent unlawful practices in connection with the purchase or sale of securities by access persons.
The Code of Ethics adopted by each of these entities governs the manner and extent to which
certain persons associated with that entity may invest in securities for their own accounts,
including securities that may be purchased or held by the Trust. Under each Code of Ethics, access
persons are permitted to engage in personal securities transactions, but are required to report
their personal securities transactions for monitoring purposes. In addition, certain access
persons of the Adviser and the Subadvisers are generally prohibited from acquiring beneficial
ownership of securities offered in connection with initial public offerings. Certain access
persons of the Adviser and Subadvisers are required to obtain approval before investing in limited
offerings. Copies of these Codes of Ethics are on file with the SEC and are available to the
public.
105
PROXY VOTING
The Board has delegated the responsibility for decisions regarding proxy voting for securities held
by the Funds to the Adviser. The Adviser will vote such proxies in accordance with its proxy
policies and procedures, summaries of which are included in Appendix B to this SAI.
Information regarding how the Funds voted proxies during the most recent twelve-month period ended
June 30 has been filed with the SEC on Form N-PX. The Funds proxy voting record, along with the
Funds full proxy voting policies and procedures, is available on the Funds website at
www.ridgeworth.com, , without charge upon request by calling 1-888-784-3863, or by writing to the
Funds at RidgeWorth Funds, c/o Citi Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, Ohio
43219. The Funds proxy voting record is also available on the SECs website at www.sec.gov.
5% AND 25% SHAREHOLDERS
As of June 30, 2010, the following persons were the only persons who were record owners (or to the
knowledge of the Trust, beneficial owners) of 5% or more of the shares of the respective Funds.
Persons who owned of record or beneficially more than 25% of a Funds outstanding shares may be
deemed to control the Fund within the meaning of the 1940 Act. The nature of ownership for each
position listed is Record unless otherwise indicated. The Trust believes that most of the shares
of the Funds were held for the record owners fiduciary, agency or custodial customers.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
SEIX FLOATING RATE HIGH INCOME FUND A |
|
|
|
|
|
|
LPL FINANCIAL CORPORATION |
|
ONE BEACON STREET |
|
BOSTON MA 02108 |
|
|
34.91 |
% |
UBS FINANCIAL SERVICES INC. |
|
1200 HARBOR BLVD |
|
WEEHAWKEN NJ 07087 |
|
|
19.98 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
16.86 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
10.97 |
% |
UBS FINANCIAL SERVICES INC. |
|
1200 HARBOR BLVD |
|
WEEHAWKEN NJ 07087 |
|
|
6.14 |
% |
UBS FINANCIAL SERVICES INC. |
|
1200 HARBOR BLVD |
|
WEEHAWKEN NJ 07087 |
|
|
5.90 |
% |
SEIX FLOATING RATE HIGH INCOME FUND C |
|
|
|
|
|
|
LPL FINANCIAL CORPORATION |
|
ONE BEACON STREET |
|
BOSTON MA 02108 |
|
|
53.13 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
19.79 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
7.39 |
% |
MESIROW FINANCIAL, INC. |
|
350 N. CLARK STREET |
|
CHICAGO IL 60610 |
|
|
6.82 |
% |
106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
SEIX FLOATING RATE HIGH INCOME FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
31.56 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
18.29 |
% |
CHARLES SCHWAB & CO., INC. |
|
101 MONTGOMERY STREET |
|
SAN FRANCISCO CA 94104 |
|
|
16.82 |
% |
LPL FINANCIAL CORPORATION |
|
ONE BEACON STREET |
|
BOSTON MA 02108 |
|
|
6.94 |
% |
INTERNATIONAL EQUITY 130/30 FUND A |
|
|
|
|
|
|
SCOTTRADE, INC. |
|
12855 FLUSHING MEADOW DR. |
|
ST LOUIS MO 63131 |
|
|
100.00 |
% |
INTERNATIONAL EQUITY 130/30 FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
96.26 |
% |
U.S. EQUITY 130/30 FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
64.52 |
% |
RIDGEWORTH CAPITAL MANAGEMENT INC |
|
50 HURT PLZ SUITE 1400 |
|
ATLANTA GA 30303 |
|
|
35.40 |
% |
REAL ESTATE 130/30 FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
74.73 |
% |
MERRILL LYNCH, PIERCE, FENNER & SMITH |
|
4800 DEER LAKE DR E 3RD FLOOR |
|
JACKSONVILLE FL 32246 |
|
|
23.44 |
% |
REAL ESTATE 130/30 FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
54.19 |
% |
RIDGEWORTH CAPITAL MANAGEMENT INC |
|
50 HURT PLZ SUITE 1400 |
|
ATLANTA GA 30303 |
|
|
32.00 |
% |
MERRILL LYNCH, PIERCE, FENNER & SMITH |
|
4800 DEER LAKE DR E 3RD FLOOR |
|
JACKSONVILLE FL 32246 |
|
|
13.00 |
% |
SMALL CAP GROWTH STOCK FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
30.86 |
% |
|
|
|
|
|
|
|
|
|
107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
NATIONWIDE INVESTMENT SERVICES CORP. |
|
ONE NATIONWIDE PLAZA 1-13-G1 |
|
COLUMBUS OH 43215 |
|
|
19.13 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
85.58 |
% |
MID-CAP VALUE EQUITY FUND C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
37.70 |
% |
MERRILL LYNCH, PIERCE, FENNER & SMITH |
|
4800 DEER LAKE DR E 3RD FLOOR |
|
JACKSONVILLE FL 32246 |
|
|
9.06 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
5.78 |
% |
MID-CAP VALUE EQUITY FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
58.77 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
13.91 |
% |
CHARLES SCHWAB & CO., INC. |
|
101 MONTGOMERY STREET |
|
SAN FRANCISCO CA 94104 |
|
|
9.54 |
% |
WELLS FARGO BANK NA FBO |
|
OMNIBUS ACCOUNT REINV REINV |
|
MINNEAPOLIS MN 55480 |
|
|
6.03 |
% |
CORPORATE BOND FUND C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
87.98 |
% |
CORPORATE BOND FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
63.23 |
% |
COMMUNITY FOUNDATION |
|
333 WEST FORT ST SUITE 2010 |
|
DETROIT MI 48226 |
|
|
9.30 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
7.77 |
% |
KENYON COLLEGE |
|
209 CHASE AVE |
|
GAMBIER OH 43022 |
|
|
7.01 |
% |
CHARLES SCHWAB & CO., INC. |
|
101 MONTGOMERY STREET |
|
SAN FRANCISCO CA 94104 |
|
|
5.59 |
% |
PRIME QUALITY MONEY MARKET FUND I |
|
|
|
|
|
|
SUNTRUST BANK |
|
P O BOX 105504 |
|
ATLANTA GA 303485504 |
|
|
83.52 |
% |
|
|
|
|
|
|
|
|
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
8.25 |
% |
SUNTRUST BANKS |
|
P O BOX 105870 |
|
ATLANTA GA 303485870 |
|
|
7.37 |
% |
PRIME QUALITY MONEY MARKET FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
99.63 |
% |
U.S. GOVT SECURITIES MONEY MARKET FD-I |
|
|
|
|
|
|
SUNTRUST BANK |
|
P O BOX 105504 |
|
ATLANTA GA 303485504 |
|
|
99.32 |
% |
U.S. GOVT SECURITIES MONEY MARKET FD-A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
99.37 |
% |
TAX EXEMPT MONEY MARKET FUND I |
|
|
|
|
|
|
SUNTRUST BANK |
|
P O BOX 105504 |
|
ATLANTA GA 303485504 |
|
|
99.98 |
% |
TAX EXEMPT MONEY MARKET FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
99.71 |
% |
INVESTMENT GRADE BOND FUND I |
|
|
|
|
|
|
SUNTRUST BANKS |
|
P O BOX 105870 |
|
ATLANTA GA 303485870 |
|
|
34.73 |
% |
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
31.16 |
% |
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
23.78 |
% |
INVESTMENT GRADE BOND FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
22.77 |
% |
NATIONWIDE INVESTMENT SERVICES CORP. |
|
ONE NATIONWIDE PLAZA 1-13-G1 |
|
COLUMBUS OH 43215 |
|
|
16.24 |
% |
UBS FINANCIAL SERVICES INC. |
|
1200 HARBOR BLVD |
|
WEEHAWKEN NJ 07087 |
|
|
6.21 |
% |
UBS FINANCIAL SERVICES INC. |
|
1200 HARBOR BLVD |
|
WEEHAWKEN NJ 07087 |
|
|
5.38 |
% |
|
|
|
|
|
|
|
|
|
109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
FIRST CLEARING, LLC |
|
ONE NORTH JEFFERSON AVENUE |
|
ST. LOUIS MO 63103 |
|
|
5.14 |
% |
INVESTMENT GRADE TAX-EXEMPT BD FD I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
64.21 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
15.24 |
% |
CHARLES SCHWAB & CO., INC. |
|
101 MONTGOMERY STREET |
|
SAN FRANCISCO CA 94104 |
|
|
13.15 |
% |
INVESTMENT GRADE TAX-EXEMPT BD FD A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
53.63 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
8.45 |
% |
LARGE CAP GROWTH STOCK FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
68.22 |
% |
SUNTRUST BANKS |
|
P O BOX 105870 |
|
ATLANTA GA 303485870 |
|
|
26.30 |
% |
LARGE CAP GROWTH STOCK FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
44.05 |
% |
NATIONWIDE INVESTMENT SERVICES CORP. |
|
ONE NATIONWIDE PLAZA 1-13-G1 |
|
COLUMBUS OH 43215 |
|
|
6.11 |
% |
LARGE CAP VALUE EQUITY FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
73.04 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
9.16 |
% |
SUNTRUST BANKS |
|
P O BOX 105870 |
|
ATLANTA GA 303485870 |
|
|
8.54 |
% |
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
7.29 |
% |
LARGE CAP VALUE EQUITY FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
48.42 |
% |
|
|
|
|
|
|
|
|
|
110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
NATIONWIDE INVESTMENT SERVICES CORP. |
|
ONE NATIONWIDE PLAZA 1-13-G1 |
|
COLUMBUS OH 43215 |
|
|
7.26 |
% |
SHORT-TERM U.S. TREASURY SEC FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
77.38 |
% |
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
21.54 |
% |
SHORT-TERM U.S. TREASURY SEC FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
62.98 |
% |
NATIONWIDE INVESTMENT SERVICES CORP. |
|
ONE NATIONWIDE PLAZA 1-13-G1 |
|
COLUMBUS OH 43215 |
|
|
18.44 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
13.06 |
% |
SHORT-TERM BOND FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
85.06 |
% |
SUNTRUST BANKS |
|
P O BOX 105870 |
|
ATLANTA GA 303485870 |
|
|
8.83 |
% |
SHORT-TERM BOND FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
52.88 |
% |
NATIONWIDE INVESTMENT SERVICES CORP. |
|
ONE NATIONWIDE PLAZA 1-13-G1 |
|
COLUMBUS OH 43215 |
|
|
30.12 |
% |
LPL FINANCIAL CORPORATION |
|
ONE BEACON STREET |
|
BOSTON MA 02108 |
|
|
7.69 |
% |
MID-CAP CORE EQUITY FUND I |
|
|
|
|
|
|
SUNTRUST BANKS |
|
P O BOX 105870 |
|
ATLANTA GA 303485870 |
|
|
54.32 |
% |
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
37.71 |
% |
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
6.31 |
% |
MID-CAP CORE EQUITY FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
65.40 |
% |
|
|
|
|
|
|
|
|
|
111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
NATIONWIDE INVESTMENT SERVICES CORP. |
|
ONE NATIONWIDE PLAZA 1-13-G1 |
|
COLUMBUS OH 43215 |
|
|
12.15 |
% |
HIGH GRADE MUNICIPAL BOND FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
84.10 |
% |
MERRILL LYNCH, PIERCE, FENNER & SMITH |
|
4800 DEER LAKE DR E 3RD FLOOR |
|
JACKSONVILLE FL 32246 |
|
|
8.95 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
75.65 |
% |
MERRILL LYNCH, PIERCE, FENNER & SMITH |
|
4800 DEER LAKE DR E 3RD FLOOR |
|
JACKSONVILLE FL 32246 |
|
|
13.74 |
% |
GEORGIA TAX-EXEMPT BOND FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
98.79 |
% |
GEORGIA TAX-EXEMPT BOND FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
52.25 |
% |
CHARLES SCHWAB & CO., INC. |
|
101 MONTGOMERY STREET |
|
SAN FRANCISCO CA 94104 |
|
|
21.90 |
% |
CHARLES SCHWAB & CO., INC. |
|
101 MONTGOMERY STREET |
|
SAN FRANCISCO CA 94104 |
|
|
14.79 |
% |
INTERNATIONAL EQUITY INDEX FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
79.52 |
% |
SUNTRUST BANKS |
|
P O BOX 105870 |
|
ATLANTA GA 303485870 |
|
|
7.12 |
% |
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
5.88 |
% |
INTERNATIONAL EQUITY INDEX FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
72.31 |
% |
FRONTIER TRUST COMPANY FBO |
|
P O BOX 10758 |
|
FARGO ND 58106 |
|
|
12.88 |
% |
U.S. GOVERNMENT SECURITIES FUND I |
|
|
|
|
|
|
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
51.66 |
% |
|
|
|
|
|
|
|
|
|
112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
43.09 |
% |
U.S. GOVERNMENT SECURITIES FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
54.98 |
% |
NATIONWIDE INVESTMENT SERVICES CORP. |
|
ONE NATIONWIDE PLAZA 1-13-G1 |
|
COLUMBUS OH 43215 |
|
|
7.07 |
% |
NEW YORK LIFE TRUST COMPANY |
|
169 LACKAWANNA AVE 2ND FLOOR |
|
PARSIPPANY NJ 07054 |
|
|
6.74 |
% |
LIMITED TERM FEDERAL MORTGAGE SEC I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
59.33 |
% |
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
30.09 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
6.99 |
% |
LIMITED TERM FEDERAL MORTGAGE SEC A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
58.42 |
% |
NATIONWIDE INVESTMENT SERVICES CORP. |
|
ONE NATIONWIDE PLAZA 1-13-G1 |
|
COLUMBUS OH 43215 |
|
|
15.17 |
% |
LPL FINANCIAL CORPORATION |
|
ONE BEACON STREET |
|
BOSTON MA 02108 |
|
|
14.28 |
% |
INTERNATIONAL EQUITY FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
94.39 |
% |
INTERNATIONAL EQUITY FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
78.17 |
% |
NATIONWIDE INVESTMENT SERVICES CORP. |
|
ONE NATIONWIDE PLAZA 1-13-G1 |
|
COLUMBUS OH 43215 |
|
|
5.70 |
% |
SMALL CAP VALUE EQUITY FUND C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
66.98 |
% |
AGGRESSIVE GROWTH STOCK FUND I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
SUNTRUST BANKS |
|
P O BOX 105870 |
|
ATLANTA GA 303485870 |
|
|
46.65 |
% |
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
45.23 |
% |
INVESTMENT GRADE BOND FUND R |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
70.81 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
6.06 |
% |
LARGE CAP GROWTH STOCK FUND C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
91.27 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
83.11 |
% |
SHORT-TERM U.S. TREASURY SEC FUND C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
76.35 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
20.20 |
% |
SHORT-TERM BOND FUND C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
93.89 |
% |
MID-CAP CORE EQUITY FUND C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
86.12 |
% |
U.S. GOVERNMENT SECURITIES FUND C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
94.67 |
% |
LIMITED TERM FEDERAL MORTGAGE SEC C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
90.05 |
% |
EMERGING GROWTH STOCK FUND A |
|
|
|
|
|
|
MERRILL LYNCH, PIERCE, FENNER & SMITH |
|
4800 DEER LAKE DR E 3RD FLOOR |
|
JACKSONVILLE FL 32246 |
|
|
60.25 |
% |
|
|
|
|
|
|
|
|
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
30.87 |
% |
SMALL CAP VALUE EQUITY FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
25.30 |
% |
CHARLES SCHWAB & CO., INC. |
|
101 MONTGOMERY STREET |
|
SAN FRANCISCO CA 94104 |
|
|
24.21 |
% |
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
16.21 |
% |
STATE STREET BANK 10/01/02 |
|
105 ROSEMONT AVE |
|
WESTWOOD MA 02090 |
|
|
7.46 |
% |
NATIONWIDE INVESTMENT SERVICES CORP. |
|
ONE NATIONWIDE PLAZA 1-13-G1 |
|
COLUMBUS OH 43215 |
|
|
5.44 |
% |
JPMORGAN CHASE BANK AS TRUSTEE |
|
PO BOX 419784 |
|
KANSAS CITY MO 64141 |
|
|
5.06 |
% |
EMERGING GROWTH STOCK FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
93.76 |
% |
INSTL CASH MGMT MNY MRKT-IS |
|
|
|
|
|
|
SUNTRUST BANK |
|
P O BOX 105504 |
|
ATLANTA GA 303485504 |
|
|
71.77 |
% |
SUNTRUST BANK |
|
303 PEACHTREE ST |
|
ATLANTA GA 30308 |
|
|
18.45 |
% |
INST US TREAS SEC MNY MRKT FD-IS |
|
|
|
|
|
|
SUNTRUST BANK |
|
MAIL CENTER 3133 |
|
ATLANTA GA 303485504 |
|
|
42.79 |
% |
SUNTRUST BANK |
|
303 PEACHTREE ST |
|
ATLANTA GA 30308 |
|
|
33.62 |
% |
HARE & CO |
|
111 SANDERS CREEK PKWY |
|
EAST SYRACUSE NY 13057 |
|
|
13.76 |
% |
GOLDMAN SACHS GLOBAL CASH SERVICES |
|
71 S WACKER SUITE 500 |
|
CHICAGO IL 60606 |
|
|
8.02 |
% |
SMALL CAP GROWTH STOCK FUND C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
70.97 |
% |
SCOTT & STRINGFELLOW, INC. |
|
909 E MAIN STREET |
|
RICHMOND VA 23219 |
|
|
7.86 |
% |
|
|
|
|
|
|
|
|
|
115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
SMALL CAP GROWTH STOCK FUND I |
|
|
|
|
|
|
WELLS FARGO BANK TRUSTEE |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 80111 |
|
|
29.94 |
% |
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
24.80 |
% |
SUNTRUST BANKS |
|
P O BOX 105870 |
|
ATLANTA GA 303485870 |
|
|
21.61 |
% |
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
7.48 |
% |
HIGH INCOME FUND I |
|
|
|
|
|
|
CHARLES SCHWAB & CO., INC. |
|
101 MONTGOMERY STREET |
|
SAN FRANCISCO CA 94104 |
|
|
35.75 |
% |
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
16.10 |
% |
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
9.69 |
% |
INDEPENDENCE TRUST |
|
325 BRIDGE STREET |
|
FRANKLIN TN 370682188 |
|
|
9.11 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
7.51 |
% |
STRAFE CO |
|
P O BOX 6924 |
|
NEWARK DE 197146924 |
|
|
7.29 |
% |
SELECT LARGE CAP GROWTH STOCK I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
92.82 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
92.70 |
% |
LARGE CAP QUANTITATIVE EQUITY FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
96.19 |
% |
HIGH INCOME FUND R |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
90.18 |
% |
HIGH INCOME FUND A |
|
|
|
|
|
|
US BANK NA |
|
PREMIER |
|
MILWAUKEE WI 532011787 |
|
|
47.06 |
% |
|
|
|
|
|
|
|
|
|
116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
11.65 |
% |
LPL FINANCIAL CORPORATION |
|
ONE BEACON STREET |
|
BOSTON MA 02108 |
|
|
5.63 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
5.11 |
% |
AGGRESSIVE GROWTH ALLOCATION STRATEGY-A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
91.59 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
7.02 |
% |
AGGRESSIVE GROWTH ALLOCATION STRATEGY-C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
89.63 |
% |
FIRST CLEARING, LLC |
|
ONE NORTH JEFFERSON AVENUE |
|
ST. LOUIS MO 63103 |
|
|
6.91 |
% |
CONSERVATIVE ALLOCATION STRATEGY A |
|
|
|
|
|
|
ORCHARD TRUST CO LLC TRUST CUST |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 80111 |
|
|
42.92 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
20.61 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
8.54 |
% |
WELLS FARGO INVESTMENTS, LLC |
|
625 MARQUESTTED AVE 12TH FLOOR |
|
MINNEAPOLIS MN 55402 |
|
|
5.98 |
% |
CONSERVATIVE ALLOCATION STRATEGY I |
|
|
|
|
|
|
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
44.95 |
% |
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
21.67 |
% |
ORCHARD TRUST CO LLC TRUST CUST |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 80111 |
|
|
13.44 |
% |
MERRILL LYNCH, PIERCE, FENNER & SMITH |
|
4800 DEER LAKE DR E 3RD FLOOR |
|
JACKSONVILLE FL 32246 |
|
|
10.47 |
% |
CONSERVATIVE ALLOCATION STRATEGY C |
|
|
|
|
|
|
FIRST CLEARING, LLC |
|
ONE NORTH JEFFERSON AVENUE |
|
ST. LOUIS MO 63103 |
|
|
43.35 |
% |
|
|
|
|
|
|
|
|
|
117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
25.54 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
6.06 |
% |
GROWTH ALLOCATION STRATEGY C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
96.17 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
94.46 |
% |
MODERATE ALLOCATION STRATEGY A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
82.07 |
% |
ORCHARD TRUST CO LLC TRUST CUST |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 80111 |
|
|
8.17 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
90.83 |
% |
MARYLAND MUNICIPAL BOND FUND A |
|
|
|
|
|
|
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
6.21 |
% |
MODERATE ALLOCATION STRATEGY C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
88.85 |
% |
NORTH CAROLINA TAX-EXEMPT BOND FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
97.77 |
% |
NORTH CAROLINA TAX EXEMPT BOND FD A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
87.74 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
6.62 |
% |
MERRILL LYNCH, PIERCE, FENNER & SMITH |
|
4800 DEER LAKE DR E 3RD FLOOR |
|
JACKSONVILLE FL 32246 |
|
|
5.63 |
% |
MID-CAP VALUE EQUITY FUND A |
|
|
|
|
|
|
HARTFORD LIFE INSURANCE COMPANY |
|
1 GRIFFIN ROAD NORTH |
|
WINDSOR CT 060951512 |
|
|
28.65 |
% |
|
|
|
|
|
|
|
|
|
118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
12.20 |
% |
NEW YORK LIFE TRUST COMPANY |
|
169 LACKAWANNA AVE 2ND FLOOR |
|
PARSIPPANY NJ 07054 |
|
|
7.46 |
% |
SMALL CAP VALUE EQUITY FUND A |
|
|
|
|
|
|
HARTFORD LIFE INSURANCE COMPANY |
|
1 GRIFFIN ROAD NORTH |
|
WINDSOR CT 060951512 |
|
|
47.37 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
7.86 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
6.51 |
% |
GPC SECURITIES, INC. |
|
715 PEACHTREE ST. N.E. 10TH FLOOR |
|
ATLANTA GA 30308 |
|
|
6.24 |
% |
VALLEE CO FBO 4B |
|
11270 W PARK PL STE 400 |
|
MILWAUKEE WI 53224 |
|
|
5.44 |
% |
CORPORATE BOND FUND A |
|
|
|
|
|
|
LPL FINANCIAL CORPORATION |
|
ONE BEACON STREET |
|
BOSTON MA 02108 |
|
|
41.10 |
% |
PERSHING LLC |
|
1 PERSHING PLAZA |
|
JERSEY CITY NJ 07399 |
|
|
22.17 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
16.99 |
% |
GFR RETIREMENT SAVINGS PLAN |
|
153 PONCE DE LEON AVE 8TH FLOOR |
|
SAN JUAN PR 00917 |
|
|
13.77 |
% |
LARGE CAP QUANTITATIVE EQUITY FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
89.77 |
% |
ROBERT F ASARO |
|
8550 N HICKORY ST APT 321 |
|
KANSAS CITY MO 641554122 |
|
|
5.61 |
% |
SELECT LARGE CAP GROWTH STOCK A |
|
|
|
|
|
|
MORGAN STANLEY SMITH BARNEY LLC |
|
2000 WESTCHESTER AVE LD |
|
PURCHASE NY 10577 |
|
|
58.00 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
34.46 |
% |
STERNE, AGEE & LEACH, INC. |
|
813 SHADES CREEK PKWY |
|
BIRMINGHAM AL 35209 |
|
|
6.11 |
% |
US TREASURY MONEY MARKET FUND A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
99.07 |
% |
TOTAL RETURN BOND FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
70.44 |
% |
CHARLES SCHWAB & CO., INC. |
|
101 MONTGOMERY STREET |
|
SAN FRANCISCO CA 94104 |
|
|
5.46 |
% |
TOTAL RETURN BOND FUND A |
|
|
|
|
|
|
TAYNIK & CO |
|
1200 CROWN COLONY DRIVE |
|
QUINCY MA 02169 |
|
|
18.82 |
% |
FRONTIER TRUST COMPANY FBO |
|
P O BOX 10758 |
|
FARGO ND 58106 |
|
|
8.20 |
% |
STERNE, AGEE & LEACH, INC. |
|
813 SHADES CREEK PKWY |
|
BIRMINGHAM AL 35209 |
|
|
7.72 |
% |
ORCHARD TRUST CO LLC TRUST CUST |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 80111 |
|
|
6.05 |
% |
TOTAL RETURN BOND FUND R |
|
|
|
|
|
|
LPL FINANCIAL CORPORATION |
|
ONE BEACON STREET |
|
BOSTON MA 02108 |
|
|
47.84 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
32.67 |
% |
RAYMOND JAMES FINANCIAL SERVICES, INC. |
|
880 CARRILON PARKWAY |
|
SAINT PETERSBURG FL 33716 |
|
|
5.95 |
% |
LIMITED DURATION FUND I |
|
|
|
|
|
|
SEIX ADVISORS AS MANAGER |
|
10 MOUNTAINVIEW RD STE C200 |
|
UPPER SADDLE RIVER NJ 074581937 |
|
|
48.39 |
% |
SEIX ADVISORS AS MANAGER |
|
10 MOUNTAINVIEW RD STE C200 |
|
UPPER SADDLE RIVER NJ 074581937 |
|
|
30.30 |
% |
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
15.71 |
% |
SEIX ADVISORS AS MANAGER |
|
10 MOUNTAINVIEW RD STE C200 |
|
UPPER SADDLE RIVER NJ 074581937 |
|
|
5.57 |
% |
INTERMEDIATE BOND FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
62.19 |
% |
CHARLES SCHWAB & CO., INC. |
|
101 MONTGOMERY STREET |
|
SAN FRANCISCO CA 94104 |
|
|
22.15 |
% |
|
|
|
|
|
|
|
|
|
120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
INTERMEDIATE BOND FUND A |
|
|
|
|
|
|
FIFTH THIRD BANK TTEE |
|
PO BOX 3385 |
|
CINCINNATI OH 45263 |
|
|
14.55 |
% |
NEW YORK LIFE TRUST COMPANY |
|
169 LACKAWANNA AVE 2ND FLOOR |
|
PARSIPPANY NJ 07054 |
|
|
12.54 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
10.91 |
% |
ORCHARD TRUST CO LLC TRUST CUST |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 80111 |
|
|
9.28 |
% |
MG TRUST COMPANY |
|
SUITE 300 |
|
DENVER CO 80202 |
|
|
5.82 |
% |
INTERMEDIATE BOND FUND R |
|
|
|
|
|
|
TAYNIK & CO |
|
1200 CROWN COLONY DRIVE |
|
QUINCY MA 02169 |
|
|
73.62 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
10.37 |
% |
SEIX HIGH YIELD FUND I |
|
|
|
|
|
|
WELLS FARGO BANK NA FBO |
|
OMNIBUS ACCOUNT REINV REINV |
|
MINNEAPOLIS MN 55480 |
|
|
23.87 |
% |
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
10.93 |
% |
CHARLES SCHWAB & CO., INC. |
|
101 MONTGOMERY STREET |
|
SAN FRANCISCO CA 94104 |
|
|
10.13 |
% |
NOVA SCOTIA TEACHERS PENSION FUND |
|
1949 UPPER WATER STREET |
|
HALIFAX NOVA SCOTIA B3J-3N3 |
|
|
8.06 |
% |
NS PUBLIC SERVICE SUPERANNUATION FUND |
|
1949 UPPER WATER STREET |
|
HALIFAX NOVA SCOTIA B3J-3N3 |
|
|
6.84 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
5.01 |
% |
SEIX HIGH YIELD FUND A |
|
|
|
|
|
|
TD AMERITRADE CLEARING, INC. |
|
1005 NORTH AMERITRADE PLACE |
|
BELLEVUE NE 68005 |
|
|
38.75 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
31.28 |
% |
SEIX HIGH YIELD FUND R |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
55.09 |
% |
|
|
|
|
|
|
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
UBS FINANCIAL SERVICES INC. |
|
1200 HARBOR BLVD |
|
WEEHAWKEN NJ 07087 |
|
|
6.90 |
% |
INST MUNI CASH RESERVE MM IS |
|
|
|
|
|
|
SUNTRUST BANK |
|
MAIL CENTER 3133 |
|
ATLANTA GA 303485504 |
|
|
100.00 |
% |
US GOVT SECURITIES ULTRA SHORT BOND FD-I |
|
|
|
|
|
|
CHARLES SCHWAB & CO., INC. |
|
101 MONTGOMERY STREET |
|
SAN FRANCISCO CA 94104 |
|
|
57.25 |
% |
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
18.51 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
10.45 |
% |
ULTRA SHORT BOND FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
67.25 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
12.66 |
% |
SAXON CO |
|
P O BOX 7780-1888 |
|
PHILADELPHIA PA 19182 |
|
|
9.52 |
% |
STATE STREET BANK AS CUSTODIAN |
|
125 SUNNYNOLL CT STE 200 |
|
WINSTON-SALEM NC 27106 |
|
|
5.66 |
% |
INSTL US TREAS SEC MNY MKT FD-CT |
|
|
|
|
|
|
SUNTRUST BANK |
|
MAIL CENTER 3133 |
|
ATLANTA GA 303485504 |
|
|
99.99 |
% |
INSTL US GOVT SEC MNY MRKT FD-IS |
|
|
|
|
|
|
SUNTRUST BANK |
|
MAIL CENTER 3133 |
|
ATLANTA GA 303485504 |
|
|
75.57 |
% |
INSTL US GOVT SEC MNY MRKT FD-IS |
|
|
|
|
|
|
SUNTRUST BANK |
|
303 PEACHTREE ST |
|
ATLANTA GA 30308 |
|
|
13.18 |
% |
MODERATE ALLOCATION STRATEGY I |
|
|
|
|
|
|
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
93.54 |
% |
GROWTH ALLOCATION STRATEGY I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
97.09 |
% |
AGGRESSIVE GROWTH ALLOCATION STRATEGY-I |
|
|
|
|
|
|
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
83.45 |
% |
ORCHARD TRUST CO LLC TRUST CUST |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 80111 |
|
|
7.55 |
% |
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
7.15 |
% |
US TREASURY MONEY MARKET FUND I |
|
|
|
|
|
|
SUNTRUST BANK |
|
MAIL CENTER 3133 |
|
ATLANTA GA 303485504 |
|
|
98.35 |
% |
VIRGINIA TAX FREE MONEY MARKET I |
|
|
|
|
|
|
SUNTRUST BANK |
|
MAIL CENTER 3133 |
|
ATLANTA GA 303485504 |
|
|
78.08 |
% |
GOLDMAN SACHS GLOBAL CASH SERVICES |
|
71 S WACKER SUITE 500 |
|
CHICAGO IL 60606 |
|
|
21.91 |
% |
VIRGINIA TAX FREE MONEY MARKET A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
99.93 |
% |
VIRGINIA INTERMEDIATE MUNICIPAL BOND-I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
95.37 |
% |
VIRGINIA INTERMEDIATE MUNICIPAL BOND-A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
83.25 |
% |
TD AMERITRADE CLEARING, INC. |
|
1005 NORTH AMERITRADE PLACE |
|
BELLEVUE NE 68005 |
|
|
5.15 |
% |
MARYLAND MUNICIPAL BOND FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
99.45 |
% |
LARGE CAP CORE EQUITY FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
60.83 |
% |
|
|
|
|
|
|
|
|
|
123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
Fund, Class and Shareholder Address |
|
Owned |
SUNTRUST BANKS |
|
P O BOX 105870 |
|
ATLANTA GA 303485870 |
|
|
21.29 |
% |
SUNTRUST BANK AND VARIOUS BENEFIT PLANS |
|
8515 E ORCHARD RD 2T2 |
|
GREENWOOD VILLAGE CO 801115002 |
|
|
7.29 |
% |
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
6.78 |
% |
LARGE CAP CORE EQUITY FUND A |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
65.85 |
% |
NATIONWIDE INVESTMENT SERVICES CORP. |
|
ONE NATIONWIDE PLAZA 1-13-G1 |
|
COLUMBUS OH 43215 |
|
|
12.71 |
% |
LARGE CAP CORE EQUITY FUND C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
93.91 |
% |
SEIX GLOBAL STRATEGY FUND I |
|
|
|
|
|
|
SEI PRIVATE TRUST CO |
|
ONE FREEDOM VALLEY DRIVE |
|
OAKS PA 19456 |
|
|
35.78 |
% |
SEIX ADVISORS AS MANAGER |
|
10 MOUNTAINVIEW RD STE C200 |
|
UPPER SADDLE RIVER NJ 074581937 |
|
|
14.62 |
% |
SEIX ADVISORS AS MANAGER |
|
10 MOUNTAINVIEW RD STE C200 |
|
UPPER SADDLE RIVER NJ 074581937 |
|
|
14.41 |
% |
SEIX ADVISORS AS MANAGER |
|
10 MOUNTAINVIEW RD STE C200 |
|
UPPER SADDLE RIVER NJ 074581937 |
|
|
9.70 |
% |
SEIX ADVISORS AS MANAGER |
|
10 MOUNTAINVIEW RD STE C200 |
|
UPPER SADDLE RIVER NJ 074581937 |
|
|
7.57 |
% |
C O PEOPLE S UNITED BANK |
|
2 BURLINGTON SQ |
|
BURLINGTON VT 05402 |
|
|
6.46 |
% |
SEIX ADVISORS AS MANAGER |
|
10 MOUNTAINVIEW RD STE C200 |
|
UPPER SADDLE RIVER NJ 074581937 |
|
|
5.22 |
% |
PRIME QUALITY MONEY MARKET FUND C |
|
|
|
|
|
|
NATIONAL FINANCIAL SERVICES LLC |
|
200 LIBERTY STREET |
|
MANHATTAN NY 10281 |
|
|
95.09 |
% |
FINANCIAL STATEMENTS
The financial statements for the Trusts fiscal year ended March 31, 2010 including notes thereto
and the reports of PricewaterhouseCoopers LLP thereon, are incorporated into this Statement of
Additional Information by reference from the 2010 Annual Report to Shareholders. Copies of the 2010
Annual Report will be provided without charge to each person receiving this Statement of Additional
Information.
124
INVESTMENT RATINGS
STANDARD & POORS (S&P) SHORT-TERM MUNICIPAL OBLIGATION RATINGS
An S&P note rating reflects the liquidity concerns and market access risks unique to notes.
SP-1Strong capacity to pay principal and interest. An issue determined to possess a very strong
capacity to pay debt service is given a plus sign (+) designation.
SP-2Satisfactory capacity to pay principal and interest, with some vulnerability to adverse
financial and economic changes over the term of the notes.
S&P VARIABLE RATE DEMAND NOTES (VRDNs) AND TENDER OPTION BONDS (TOBs) RATINGS
S&P assigns dual ratings to all long-term debt issues that have as part of their provisions a
demand feature. The first rating addresses the likelihood of repayment of principal and interest as
due, and the second rating addresses only the demand feature. The long-term debt rating symbols are
used for bonds to denote the long-term maturity and the commercial paper rating symbols are usually
used to denote the put (demand) options (i.e., AAA/A-1+). Normally demand notes receive note-rating
symbols combined with commercial paper symbols (i.e., SP-1+/A-1+).
S&P COMMERCIAL PAPER (CP) RATINGS
An S&P commercial paper rating is a current assessment of the likelihood of timely payment of debt
having an original maturity of no more than 365 days.
A-1A Short-term obligation rated A-1 is rated in the highest category by Standard & Poors. The
obligors capacity to meet its financial commitment on the obligation is strong. Within this
category, certain obligations are designated with a plus sign (+). This indicates that the
obligors capacity to meet its financial commitment on these obligations is extremely strong.
A-2A Short-term obligation rated A-2 is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than obligations in higher rating categories.
However, the obligors capacity to meet its financial commitment on the obligation is satisfactory.
S&P LONG-TERM DEBT RATINGS
AAAHighest credit quality. AAA ratings denote the lowest expectation of credit risk. They are
assigned only in case of exceptionally strong capacity for timely payment of financial commitments.
This capacity is highly unlikely to be adversely affected by foreseeable events.
AAVery high credit quality. AA ratings denote a very low expectation of credit risk. They
indicate very strong capacity for timely payment of financial commitments. This capacity is not
significantly vulnerable to foreseeable events.
AHigh credit quality. A ratings denote a low expectation of credit risk. The capacity for
timely payment of financial commitments is considered strong. This capacity may, nevertheless, be
more vulnerable to changes in circumstances or in economic conditions than is the case for higher
ratings.
BBBGood credit quality. BBB ratings indicate that there is currently a low expectation of
credit risk. The capacity for timely payment of financial commitments is considered adequate, but
adverse changes in circumstances and in economic conditions are more likely to impair this
capacity. This is the lowest investment-grade category.
A-2
BBSpeculative. BB ratings indicate that there is a possibility of credit risk developing,
particularly as the result of adverse economic change over time; however, business or financial
alternatives may be available to allow financial commitments to be met. Securities rated in this
category are not investment-grade.
BHighly speculative. B ratings indicate that significant credit risk is present, but a limited
margin of safety remains. Financial commitments are currently being met; however, capacity for
continued payment is contingent upon a sustained, favorable business and economic environment.
CCC, CC, CHigh default risk. Default is a real possibility. Capacity for meeting financial
commitments is solely reliant upon sustained, favorable business or economic developments. A CC
rating indicates that default of some kind appears probable. C ratings signal imminent default.
DIn payment default. The D rating category is used when payments on a financial commitment are
not made on the date due even if the applicable grace period has not expired, unless Standard &
Poors believes that such payments will be made during such grace period. The D rating also will
be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on a
financial commitment are jeopardized.
MOODYS INVESTORS SERVICE (MOODYS) SHORT-TERM MUNICIPAL OBLIGATION RATINGS
Moodys short-term ratings are designated Moodys Investment Grade (MIG or VMIG). (See below.) The
purpose of the MIG or VMIG ratings is to provide investors with a simple system by which the
relative investment qualities of short-term obligations may be evaluated.
MIG1This designation denotes best quality. There is present strong protection by established cash
flows, superior liquidity support or demonstrated broad based access to the market for refinancing.
MIG2This designation denotes high quality. Margins of protection are ample although not so large
as in the preceding group.
MOODYS VARIABLE RATE DEMAND NOTES (VRDNs) AND TENDER OPTION BONDS (TOBs) RATINGS
Short-term ratings on issues with demand features are differentiated by the use of the VMIG symbol
to reflect such characteristics as payment upon periodic demand rather than fixed maturity dates
and
payment relying on external liquidity. In this case, two ratings are usually assigned, (for
example, Aaa/VMIG-1); the first representing an evaluation of the degree of risk associated with
scheduled principal and interest payments, and the second representing an evaluation of the degree
of risk associated with the demand feature. The VMIG rating can be assigned a 1 or 2 designation
using the same definitions described above for the MIG rating.
MOODYS COMMERCIAL PAPER (CP) RATINGS
Prime-1Issuers rated Prime-1 (or supporting institutions) have a superior ability for repayment of
senior short-term debt obligations.
Prime-1 repayment ability will often be evidenced by many of the following characteristics: leading
market positions in well established industries, high rates of return on funds employed,
conservative capitalization structure with moderate reliance on debt and ample asset protection,
broad margins in earning coverage of fixed financial charges and high internal cash generation, and
well-established access to a range of financial markets and assured sources of alternate liquidity.
Prime-2Issuers rated Prime-2 (or supporting institutions) have a strong ability for repayment of
senior short-term debt obligations. This will normally be evidenced by many of the characteristics
cited above, but to a lesser degree. Earnings trends and coverage ratios, while sound, will be more
subject to variation.
A-3
Capitalization characteristics, while still appropriate, may be more affected
by external conditions. Ample alternate liquidity is maintained.
MOODYS LONG-TERM DEBT RATINGS
AaaBonds and preferred stock which are rated Aaa are judged to be of the best quality. They carry
the smallest degree of investment risk and are generally referred to as gilt edged. Interest
payments are protected by a large or by an exceptionally stable margin and principal is secure.
While the various protective elements are likely to change, such changes as can be visualized are
most unlikely to impair the fundamentally strong position of such issues.
AaBonds and preferred stock which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high-grade bonds. They are
rated lower than the best bonds because margins of protection may not be as large as in Aaa
securities or fluctuation of protective elements may be of greater amplitude or there may be other
elements present which make the long-term risk appear somewhat larger than the Aaa securities.
ABonds and preferred stock which are rated A possess many favorable investment attributes and are
to be considered as upper medium-grade obligations. Factors giving security to principal and
interest are considered adequate, but elements may be present which suggest a susceptibility to
impairment sometime in the future.
BaaBonds and preferred stock which are rated Baa are considered as medium-grade obligations (i.e.,
they are neither highly protected nor poorly secured). Interest payments and principal security
appear adequate for the present but certain protective elements may be lacking or may be
characteristically unreliable over any great length of time. Such bonds lack outstanding investment
characteristics and in fact have speculative characteristics as well.
BaBonds and preferred stock which are rated Ba are judged to have speculative elements; their
future cannot be considered as well-assured. Often the protection of interest and principal
payments may be very moderate, and thereby not well safeguarded during both good and bad times over
the future. Uncertainty of position characterizes bonds in this class.
BBonds and preferred stock which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of other terms of the
contract over any long period of time may be small.
CaaBonds and preferred stock which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or interest.
CaBonds and preferred stock which are rated Ca are highly speculative and are likely in, or very
near, default, with some prospect of recovery of principal and interest.
CBonds and preferred stock which are rated C are the lowest rated class of bonds and are typically
in default, with little prospect for recovery of principal or interest.
NRIndicates that both the bonds and the obligor or credit enhancer are not currently rated by S&P
or Moodys with respect to short-term indebtedness. However, management considers them to be of
comparable quality to securities rated A-1 or P-1.
NR(1)The underlying issuer/obligor/guarantor has other outstanding debt rated AAA by S&P or Aaa by
Moodys.
A-4
NR(2)The underlying issuer/obligor/guarantor has other outstanding debt rated AA by S&P or Aa by
Moodys.
NR(3)The underlying issuer/obligor/guarantor has other outstanding debt rated A by S&P or Moodys.
FITCH RATINGS SHORT-TERM DEBT RATING DEFINITIONS
F-1Indicates the strongest capacity for timely payment of financial commitments relative to other
issuers or issues in the same country. Under their national rating scale, this rating is assigned
to the best credit risk relative to all others in the same country and is normally assigned to
all financial commitments issued or guaranteed by the sovereign state. Where the credit risk is
particularly strong, a + is added to the assigned rating.
F-2Indicates a satisfactory capacity for timely payment of financial commitments relative to other
issuers or issues in the same country. However, the margin of safety is not as great as in the case
of the higher ratings.
F-3Indicates an adequate capacity for timely payment of financial commitments relative to other
issuers or issues in the same country. However, such capacity is more susceptible to near-term
adverse changes than for financial commitments in higher rated categories.
FITCH RATINGS COMMERCIAL PAPER RATING DEFINITIONS
F-1Indicates the strongest capacity for timely payment of financial commitments relative to other
issuers or issues in the same country. Under their national rating scale, this rating is assigned
to the best credit risk relative to all others in the same country and is normally assigned to
all financial commitments issued or guaranteed by the sovereign state. Where the credit risk is
particularly strong, a + is added to the assigned rating.
F-2Indicates a satisfactory capacity for timely payment of financial commitments relative to other
issuers or issues in the same country. However, the margin of safety is not as great as in the case
of the higher ratings.
FITCH RATINGS LONG-TERM DEBT RATING DEFINITIONS
AAAHighest credit quality. AAA ratings denote the lowest expectation of credit risk. They are
assigned only in case of exceptionally strong capacity for timely payment of financial commitments.
This capacity is highly unlikely to be adversely affected by foreseeable events.
AAVery high credit quality. AA ratings denote a very low expectation of credit risk. They
indicate very strong capacity for timely payment of financial commitments. This capacity is not
significantly vulnerable to foreseeable events.
AHigh credit quality. A ratings denote a low expectation of credit risk. The capacity for timely
payment of financial commitments is considered strong. This capacity may, nevertheless, be more
vulnerable to changes in circumstances or in economic conditions than is the case for higher
ratings.
BBBGood credit quality. BBB ratings indicate that there is currently a low expectation of credit
risk. The capacity for timely payment of financial commitments is considered adequate, but adverse
changes in circumstances and in economic conditions are more likely to impair this capacity. This
is the lowest investment-grade category.
BBSpeculative. BB ratings indicate that there is a possibility of credit risk developing,
particularly as the result of adverse economic change over
time; however, business or financial alternatives may be available to allow financial commitments
to be met. Securities rated in this category are not investment-grade.
A-5
BHighly Speculative. B ratings indicate that significant credit risk is present, but a limited
margin of safety remains. Financial commitments are currently being met; however, capacity for
continued payment is contingent upon a sustained, favorable business and economic environment.
DBRS SHORT-TERM DEBT AND COMMERCIAL PAPER RATING DEFINITIONS
As is the case with all Dominion Bond Rating Service (DBRS) rating scales, commercial paper
ratings are meant to give an indication of the risk that the borrower will not fulfill its
obligations in a timely manner.
R-1 (high) Short-term debt rated R-1 (high) is of the highest credit quality, and indicates an
entity which possesses unquestioned ability to repay current liabilities as they fall due. Entities
rated in this category normally maintain strong liquidity positions, conservative debt levels and
profitability which is both stable and above average. Companies achieving an R-1 (high) rating
are normally leaders in structurally sound industry segments with proven track records, sustainable
positive future results and no substantial qualifying negative factors. Given the extremely tough
definition which DBRS has established for an R-1 (high), few entities are strong enough to
achieve this rating.
R-1 (middle) Short-term debt rated R-1 (middle) is of superior credit quality and, in most cases,
ratings in this category differ from R-1 (high) credits to only a small degree. Given the
extremely tough definition which DBRS has for the R-1 (high) category (which few companies are
able to achieve), entities rated R-1 (middle) are also considered strong credits which typically
exemplify above average strength in key areas of consideration for debt protection.
R-1 (low) Short-term debt rated R-1 (low) is of satisfactory credit quality. The overall strength
and outlook for key liquidity, debt and profitability ratios is not normally as favorable as with
higher rating categories, but these considerations are still respectable. Any qualifying negative
factors which exist are considered manageable, and the entity is normally of sufficient size to
have some influence in its industry.
R-2 (high), R-2 (middle), R-2 (low) Short-term debt rated R-2 is of adequate credit quality and
within the three subset grades, debt protection ranges from having reasonable ability for timely
repayment to a level which is considered only just adequate. The liquidity and debt ratios of
entities in the R-2 classification are not as strong as those in the R-1 category, and the past
and future trend may suggest some risk of maintaining the strength of key ratios in these areas.
Alternative sources of liquidity support are considered satisfactory; however, even the strongest
liquidity support will not improve the commercial paper rating of the issuer. The size of the
entity may restrict its flexibility, and its relative position in the industry is not typically as
strong as an R-1 credit. Profitability trends, past and future, may be less favorable, earnings
not as stable, and there are often negative qualifying factors present which could also make the
entity more vulnerable to adverse changes in financial and economic conditions.
DBRS LONG-TERM DEBT RATING DEFINITIONS
As is the case with all DBRS rating scales, long-term debt ratings are meant to give an indication
of the risk that the borrower will not fulfill its full obligations in a timely manner with respect
to both interest and principal commitments.
AAA Bonds rated AAA are of the highest credit quality, with exceptionally strong protection for
the timely repayment of principal and interest. Earnings are considered stable, the structure of
the industry in which the entity operates is strong, and the outlook for future profitability is
favorable. There are few qualifying factors present which would detract from the performance of the
entity, the strength of liquidity and coverage ratios is unquestioned and the entity has
established a creditable track record of superior performance. Given the extremely tough definition
which DBRS has established for this category, few entities are able to achieve a AAA rating.
A-6
AA Bonds rated AA are of superior credit quality, and protection of interest and principal is
considered high. In many cases, they differ from bonds rated AAA only to a small degree. Given the
extremely tough definition which DBRS has for the AAA category (which few companies are able to
achieve), entities rated AA are also considered to be strong credits which typically exemplify
above average strength in key areas of consideration and are unlikely to be significantly affected
by reasonably foreseeable events.
A Bonds rated A are of satisfactory credit quality. Protection of interest and principal is
still substantial, but the degree of strength is less than with AA rated entities. While a
respectable rating, entities in the A category are considered to be more susceptible to adverse
economic conditions and have greater cyclical tendencies than higher rated companies.
BBB Bonds rated BBB are of adequate credit quality, with acceptable protection of principal and
interest; Issuers in this category are fairly susceptible to adverse changes in financial and
economic conditions.
BB Bonds rated BBB are of speculative credit quality, with uncertain protection of principal
and interest, particularly during periods of economic recession.
B Bonds rated B are of highly speculative credit quality, with a reasonably high level of
uncertainty as to the ability of the issuers to pay principal and interest on a continuing basis in
the future, especially in periods of economic recession or industry adversity.
CCC, CC, C Bonds rated CCC, CC, or C are of very highly speculative credit quality, with
principal and interest being in danger of default. In practice, there is little difference between
the categories.
D For bonds rated D, the issuer has either not met a scheduled payment of principal or interest
or interest issuer has made it clear that it will miss such a payment in the near future.
High or low grades are used to indicate the relative standing of a credit within a particular
rating category. The lack of one of these designations indicates a rating which is essentially in
the middle of the category. Note that high and low grades are not used for the AAA category.
A.M. BEST SHORT-TERM DEBT RATINGS
An A.M. Best Short-Term Debt Rating (issue credit rating) is an opinion as to the issuers ability
to meet its obligations having maturities generally less than one year, such as commercial paper.
AMB-1+Strongest. Assigned to issues where the issuer has, in A.M. Bests opinion, the strongest
ability to repay short-term debt obligations.
AMB-1Outstanding. Assigned to issues where the issuer has, in A.M. Bests opinion, an outstanding
ability to repay short-term debt obligations.
AMB-2Satisfactory. Assigned to issues where the issuer has, in A.M. Bests opinion, a satisfactory
ability to repay short-term debt obligations.
AMB-3Adequate. Assigned to issues where the issuer has, in A.M. Bests opinion, an adequate
ability to repay short-term debt obligations; however, adverse economic conditions will likely lead
to a reduced capacity to meet its financial commitments on short-term debt obligations.
A.M. BEST LONG-TERM DEBT RATINGS
An A.M. Best Long-Term Debt Rating (issue credit rating) is an opinion as to the issuers ability
to meet its financial obligations to security holders when due. These ratings are assigned to debt
and preferred stock issues.
A-7
aaaExceptional. Assigned to issues where the issuer has, in A.M. Bests opinion, an exceptional
ability to meet the terms of the obligation.
aaVery Strong. Assigned to issues where the issuer has, in A.M. Bests opinion, a very strong
ability to meet the terms of the obligation.
aStrong. Assigned to issues where the issuer has, in A.M. Bests opinion, a strong ability to meet
the terms of the obligation.
bbbAdequate. Assigned to issues where the issuer has, in A.M. Bests opinion, an adequate ability
to meet the terms of the obligation; however, is more susceptible to changes in economic or other
conditions.
bb Speculative. Assigned to issues where the issuer has, in A.M. Bests
opinion, speculative credit characteristics, generally due to a moderate margin of principal and
interest payment protection and vulnerability to economic changes.
bVery Speculative. Assigned to issues where the issuer has, in A.M. Bests opinion, very
speculative credit characteristics, generally due to a modest
margin of principal and interest payment protection and extreme vulnerability to economic changes.
ccc,cc, c Extremely Speculative. Assigned to issues where the issuer has, in A.M. Bests opinion,
extremely speculative credit characteristics, generally due to a minimal margin of principal and
interest payment protection and/or limited ability to withstand adverse changes in economic or
other conditions.
dIn Default. In default on payment of principal, interest or other terms and conditions. The
rating also is utilized when a bankruptcy petition, or similar action, has been filed.
Ratings from aa to ccc may be enhanced with a + (plus) or - (minus) to indicate whether
credit quality is near the top or bottom of a category. A companys Long-Term Credit Rating also
may be assigned an Under Review modifier(u) that generally is event-driven (positive, negative or
developing) and indicates that the companys A.M. Best Rating opinion is under review and may be
subject to near-term change. Ratings prefixed with an (i) denote indicative ratings. Ratings
may also be assigned a Public Data modifier (pd) which indicates that a company does not
subscribe to A.M. Bests interactive rating process.
A.M. BEST RATING OUTLOOK
A.M. Best Credit Ratings (aaa to c) are assigned a Rating Outlook that indicates the potential
direction of a companys rating for an intermediate period, generally defined as the next 12 to 36
months. Public Data Ratings are not assigned an Outlook. Ratings Outlooks are as follows:
PositiveIndicates a companys financial/market trends are favorable, relative to its current
rating level, and if continued, the company has a good possibility of having its rating upgraded.
NegativeIndicates a company is experiencing unfavorable financial/market trends, relative to its
current rating level, and if continued, the company has a good possibility of having its rating
downgraded.
StableIndicates a company is experiencing stable financial/market trends and that there is a low
likelihood that its rating will change in the near term.
A-8
RIDGEWORTH CAPITAL MANAGEMENT, INC. PROXY DISCLOSURE TO THE RIDGEWORTH
FUNDS SHAREHOLDERS
Dear Shareholders:
Securities and Exchange Commission rules under the Investment Advisers Act of 1940 and the
Investment Company Act of 1940 address an investment advisers fiduciary obligation to its clients
when the adviser has authority to vote their proxies. Under our current contractual agreement,
RidgeWorth Capital Management, Inc. (RidgeWorth), is authorized to vote proxies on behalf of the
RidgeWorth Funds.
The rules require an investment company to adopt policies and procedures reasonably designed to
ensure that the fund: 1) votes proxies in the best interests of clients; 2) discloses information
about those policies and procedures and how to obtain copies; 3) discloses how clients may obtain
information about proxy votes cast; and 4) maintains appropriate records relating to actual proxy
voting.
The RidgeWorth Funds board has delegated voting authority to RidgeWorth and accordingly has
adopted RidgeWorths proxy voting policies.
RidgeWorths existing Proxy Voting Committee (Committee) is structured to seek to ensure
compliance with all of the requirements. After an extensive review, the Committee determined that
the use of a professional proxy voting administration servicing agency would be the most efficient
and effective course of action to accommodate certain portions of the regulations. The Committee
conducted comprehensive due diligence of the most established and capable proxy voting servicing
agencies in the industry and chose to hire Glass Lewis & Co. as RidgeWorths agent to assist us
with meeting the administrative, clerical, functional, and recordkeeping aspects of our fiduciary
obligations.
Several of the determining factors in choosing Glass Lewis & Co. as an agent to provide such
services included its excellent research tools and advanced, state of the art technical
capabilities and large scale system support required to accommodate an advisor of our size.
The Committee recognizes that each proxy vote must be evaluated on its own merits. Factors such as
a companys organizational structure, executive and operational management, structure of the board
of directors, corporate culture and governance process, and the impact of economic, environmental
and
social implications remain key elements in all voting decisions. Management believes that it is
in the best interest of shareholders to abstain from voting shares of securities in countries that
participate in share blocking.
B-2
To address material conflicts of interest, as defined by SEC regulations, involving RidgeWorth
relationships, the Committee will engage the services of an independent fiduciary voting service to
vote on any proxies for securities for which the Committee determines a material conflict of
interest exists so as to provide shareholders with the most beneficial and objective proxy voting
possible.
Material conflicts might occur, for example, (1) in the case of securities of a company where a
director or officer may serve as an independent director on RidgeWorths, SunTrust Banks, Inc.
(SunTrust) or a related SunTrust affiliates board of directors or (2) where an issuer has
substantial banking or other financial relationships with RidgeWorth and/or SunTrust, or a SunTrust
affiliate.
If the Committee engages an independent fiduciary voting service to perform the voting analysis,
Glass Lewis & Co., as our agent for administrative, clerical and recordkeeping proxy services, will
then vote the shares according to the directions of the independent fiduciary. RidgeWorth will
have no power to participate in, alter or change the decision or final vote for any proxy matters
entrusted to the properly appointed independent fiduciary.
Please be assured that although RidgeWorth has engaged Glass Lewis & Co. to assist with physical
proxy voting matters, we retain the primary obligation of proxy voting and will review all issues
and actively monitor all information prior to determining each vote placed on behalf of
shareholders. RidgeWorth will continue to utilize available resources in order to make
well-informed, qualified proxy vote decisions.
Further information, such as copies of RidgeWorths Proxy Policies and Procedures and voting
records of the RidgeWorth Funds, may be obtained without charge by contacting the RidgeWorth Funds
by telephone at 1-800-874-4770, Option 5 or by visiting www.ridgeworthfunds.com. The policies and
procedures are also available in the RidgeWorth Funds Statement of Additional Information. Actual
voting records will also be filed and available on the SECs website.
Again, please know that, as with all matters relating to the RidgeWorth Funds, we at RidgeWorth
take our fiduciary proxy voting obligations very seriously, and will continue to do our utmost to
protect the interests of each and every shareholder.
Regards,
RidgeWorth Capital Management, Inc.
B-3
RidgeWorth Capital Management, Inc. Proxy Policy
RidgeWorth Capital Management, Inc (RidgeWorth or the Firm) has a Proxy Committee (Committee)
that is responsible for establishing policies and a procedure designed to enable the Firm to
ethically and effectively discharge its fiduciary obligation to vote all applicable proxies on
behalf of all discretionary client accounts and funds. Annually (or more often as needed), the
Committee will review, reaffirm and/or amend guidelines, strategies and proxy policies for all
domestic and international client accounts, funds and product lines.
After an extensive review of established service providers including size, experience and
technical capabilities, the Firm contracted with Glass Lewis & Co. as its agent to provide certain
administrative, clerical, functional recordkeeping and support services related to the firms proxy
voting processes/procedures, which include, but are not limited to:
1. The collection and coordination of proxy material from each custodian for each the Firm
clients account(s),
2. The facilitation of the mechanical act of proxy voting, reconciliation, and disclosure
for each of the Firms clients account(s), in accordance with the Firms proxy policies
and the Committees direction.
3. Required record keeping and voting record retention of all the Firm proxy voting
on behalf the Firms clients.
As reflected in the Firms proxy policies, the Committee will affirmatively vote proxies for
proposals that it interprets are deemed to be in the best economic interest of its clients as
shareholders and beneficiaries to those actions.
The Committee will retain the ability to consider client specific preferences and/or develop
and apply criteria unique to its client base and product lines, where appropriate. As needed, this
information will be communicated to Glass Lewis as the Firms agent so that the relative shares
proxies will be voted accordingly. The Committee has reviewed Glass Lewis capabilities as agent
for the administerial services above and is confident in its abilities to effectively provide these
services. The Committee will monitor such capability on an ongoing basis.
An Independent, Objective Approach to Proxy Issues
In the absence of express contractual provisions to the contrary, the Committee will vote proxies
for all the Firms discretionary investment management clients.
As indicated above, the Committee utilizes the services of Glass Lewis, an independent third party
agent, to assist with facilitating the administrative, clerical, functional and recordkeeping proxy
duties and to assist in managing certain aspects of our proxy obligations. Accordingly, the Firm
maintains its own proxy policies for U.S. domestic and global proxy voting issues, as well as
guidelines applicable to Taft Hartley plans and relationships. ERISA accounts will be voted in
accordance with the U.S. domestic proxy policy as ERISA specific guidelines and requirements are
incorporated into this policy.
The Firm provides and maintains the following standard proxy voting policies:
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RidgeWorth U.S. Domestic Proxy Policy (applied to both ERISA and Non-ERISA related
accounts and funds) |
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RidgeWorth Taft Hartley Proxy Policy |
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RidgeWorth Global/International Proxy Policy |
B-4
These policies are available as described below. Both brief and extended summaries are available
for the RidgeWorth Taft Hartley Proxy Policy and the RidgeWorth Global/International Proxy Policy.
The Committees process includes a review and evaluation of relevant, information related to the
issuers proxy, applying the firms proxy voting policy in a prudent and appropriate manner
ensuring votes are cast in the best interest of our clients.
Under the Firm Global/International Proxy Policy, the Committee generally votes in a manner similar
to that recommended by Glass Lewis for an accounts international holdings including, to the
extent permitted by law, international holdings in ERISA accounts.* In this regard the
Committee has reviewed and will monitor Glass Lewis capabilities and conflict policies with
respect to international securities proxy vote recommendations.
Exceptions to Policy
The Firm Proxy Policies and guidelines as outlined herein generally will not be applied where the
Firm has further delegated discretionary investment management and the authority to vote shares to
a properly appointed subadvisor, such as may be the case in some managed separate accounts, wrap
programs, and funds.
In those situations proxy votes cast by the subadvisor may be governed by the subadvisors proxy
voting policies and procedures. However, currently all subadvisors to the RidgeWorth Funds have
either adopted the same proxy policy as RidgeWorth or RidgeWorth votes the proxies on the
subadvised funds.
Conflicts of Interest
Due to its diversified client base, numerous product lines, and affiliation with SunTrust Banks,
Inc., and its subsidiaries, the Committee may determine a potential conflict exists in connection
with a proxy vote based on the SEC guidelines. In such instances, the Committee will review the
potential conflict to determine if it is material.
Examples of material conflicts of interest which may arise could include those where the shares to
be voted involve:
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Common stock of SunTrust Banks, Inc., The Coca-Cola Company, Inc., and/or other public
corporate issuers with which either the Firm or SunTrust Banks, Inc. or its affiliates, may
have a similar significant on-going non-investment management associated relationship. |
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An issuer with a director, officer or employee who presently serves as an independent
director on the board of the Firm or SunTrust Banks, Inc. or any of its affiliates. |
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An issuer having substantial and numerous banking, investment, or other financial
relationships with the Firm, SunTrust Banks, Inc. or its affiliates. |
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A director or senior officer of the Firm or SunTrust Banks, Inc. serving on the board
of a publicly held company. |
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A direct common stock ownership position of five percent (5%) or greater held
individually by the Firm, or in conjunction with the Firm and SunTrust Banks, Inc. and/or
its affiliates |
Although the Firm utilizes a pre-determined proxy voting policy, occasions may arise in which
a conflict of interest could be deemed to be material. In this case, the Committee will determine
the most fair and reasonable procedure to be followed in order to properly address all conflict
concerns. The Committee may employ one or more of the options listed below:
B-5
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Retain an independent fiduciary to vote the shares. |
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Send the proxy material to the client (in the case of mutual funds, the funds
shareholders) so he or she may vote the proxies. |
Although the Firm does its best to alleviate or diffuse known conflicts, there is no guarantee that
all situations have been or will be mitigated through proxy policy incorporation.
Securities Lending Program
The Firm also manages assets for several clients (including mutual funds, such as the
RidgeWorth Funds) which engage in securities lending programs. In a typical securities lending
program such as this one, clients or funds lend securities from their accounts/ portfolios to
approved broker-dealers against cash collateral. The Firm seeks to balance the economic benefits of
continuing to participate in an open securities lending transaction against the inability to vote
proxies. The Firm will call loaned securities back to vote proxies, or to otherwise obtain rights
to vote or consent with respect to a material event affecting securities on loan when the Advisor
believes it is necessary to vote.
Additional Information
RidgeWorth clients:
RidgeWorth follows different voting recommendations for different categories of clients such that
votes cast on behalf of some clients may oppose votes cast on behalf of other clients.
Extended summaries of the RidgeWorth Capital Management Inc. U.S. Domestic Proxy Policy
(applies to ERISA and non-ERISA accounts and funds,) Taft Hartley Proxy Policy (which votes per the
general guidelines put forth by the AFL-CIO), and Global/International Proxy Policy and voting
records are available to clients upon request. (Complete copies are quite voluminous but are also
available.) For this information, or to obtain information about specific voting issues, please
contact RidgeWorth Capital Management, Inc.. Attn: Proxy Voting Committee Administrator, 50 Hurt
Plaza, 14th Floor, Atlanta, Georgia, 30303, by telephone at 404.827.6177, or via e-mail
at: PMP.operations@ridgeworth.com.
RidgeWorth Funds shareholders:
Although another investment advisor may sub-advise some or all of these funds, all proxy votes are
conducted by the Funds adviser, RidgeWorth Capital Management, Inc. Shareholders of the
RidgeWorth Funds may access fund related proxy voting information by calling 1-888-(784-3863) or by
visiting www.ridgeworthfunds.com.
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Management believes that it is in the best interest of shareholders not to vote in shareblocking
markets and has instructed Glass Lewis to take no action on these proxies. |
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RidgeWorth Capital Management, Inc. International Proxy Voting Guidelines
B-6
May 22, 2009
Following is a concise summary of general policies for voting global proxies. In addition,
RidgeWorth has country- and market-specific policies, which are not captured below.
I. ELECTION OF DIRECTORS
Board of Directors
Boards are put in place to represent shareholders and protect their interests. RidgeWorth seeks
boards with a proven record of protecting shareholders and delivering value over the medium- and
long-term. In our view, boards working to protect and enhance the best interests of shareholders
typically include some independent directors (the percentage will vary by local market practice and
regulations), boast a record of positive performance and appoint directors with a breadth and depth
of experience.
Board Composition
When possible, we look at each individual on the board and examine his or her relationships with
the company, the companys executives and with other board members. The purpose of this inquiry is
to determine whether pre-existing personal, familial or financial relationships are likely to
impact the decisions of that board member.
We vote in favor of governance structures that will drive positive performance and enhance
shareholder value. The most crucial test of a boards commitment to the company and to its
shareholders is the performance of the board and its members. The performance of directors in their
capacity as board members and as executives of the company, when applicable, and in their roles at
other companies where they serve is critical to this evaluation.
We believe a director is independent if he or she has no material financial, familial or other
current relationships with the company, its executives or other board members except for service on
the board and standard fees paid for that service. Relationships that have existed within the five
years prior to the inquiry are usually considered to be current for purposes of this test.
In our view, a director is affiliated if he or she has a material financial, familial or other
relationship with the company or its executives, but is not an employee of the company. This
includes directors whose employers have a material financial relationship with the Company. This
also includes a director who owns or controls 25% or more of the companys voting stock.
We define an inside director as one who simultaneously serves as a director and as an employee of
the company. This category may include a chairman of the board who acts as an employee of the
company or is paid as an employee of the company.
Although we typically vote for the election of directors, we will withhold from directors for the
following reasons:
A director who attends less than 75% of the board and applicable committee meetings.
B-7
A director who is also the CEO of a company where a serious restatement has occurred after the
CEO certified the pre-restatement financial statements.
We also feel that the following conflicts of interest may hinder a directors performance and will
therefore withhold from a:
CFO who presently sits on the board.
Director who presently sits on an excessive number of boards.
Director, or a director whose immediate family member, provides material professional services to
the company at any time during the past five years.
Director, or a director whose immediate family member, engages in airplane, real estate or other
similar deals, including perquisite type grants from the company.
Director with an interlocking directorship.
Board Committee Composition
We believe that independent directors should serve on a companys audit, compensation, nominating
and governance committees. We will support boards with such a structure and encourage change where
this is not the case.
Classified Boards
RidgeWorth favors the repeal of staggered boards in favor of the annual election of directors. We
believe that staggered boards are less accountable to shareholders than annually elected boards.
Furthermore, we feel that the annual election of directors encourages board members to focus on
protecting the interests of shareholders.
II. FINANCIAL REPORTING
Accounts and Reports
Many countries require companies to submit the annual financial statements, director reports and
independent auditors reports to shareholders at a general meeting. Shareholder approval of such a
proposal does not discharge the board or management. We will usually recommend voting in favor of
these proposals except when there are concerns about the integrity of the statements/reports.
However, should the audited financial statements, auditors report and/or annual report not be
published at the writing of our report, we will recommend that shareholders abstain from voting on
this proposal.
Income Allocation (Distribution of Dividend)
In many countries, companies must submit the allocation of income for shareholder approval. We will
generally recommend voting for such a proposal. However, we will
give particular scrutiny to cases where the companys dividend payout ratio is exceptionally low or
excessively high relative to its peers and the company has not provided a satisfactory explanation.
We generally recommend abstaining from dividends with payout ratios of less than 10% or more than
200%.
Appointment of Auditors and Authority to Set Fees
B-8
We believe that role of the auditor is crucial in protecting shareholder value. Like directors,
auditors should be free from conflicts of interest and should assiduously avoid situations that
require them to make choices between their own interests and the interests of the shareholders.
We generally support managements recommendation regarding the selection of an auditor and support
granting the board the authority to fix auditor fees except in cases where we believe the
independence of an incumbent auditor or the integrity of the audit has been compromised.
However, we recommend voting against ratification of the auditor and/or authorizing the board to
set auditor fees for the following reasons:
When audit fees added to audit-related fees total less than one-third of total fees.
When there have been any recent restatements or late filings by the company where the auditor
bears some responsibility for the restatement or late filing (e.g., a restatement due to a
reporting error).
When the company has aggressive accounting policies.
When the company has poor disclosure or lack of transparency in financial statements.
When there are other relationships or issues of concern with the auditor that might suggest a
conflict between the interest of the auditor and the interests of shareholders.
When the company is changing auditors as a result of a disagreement between the company and the
auditor on a matter of accounting principles or practices, financial statement disclosure or
auditing scope or procedures.
III. COMPENSATION
Compensation Report/Compensation Policy
We will usually recommend voting against approval of the compensation report or policy when any of
the following occur:
Executives are employed without service contracts;
Service contracts provide for notice periods longer than one year;
Service contracts provide for the enhancement of employment terms or compensation rights in
excess of one year in the event of a change of control;
Payments have been made or longer-term obligations entered into (including pension obligations)
to compensate an executive who has voluntary left the company and this has not been fully disclosed
and justified;
Ex gratia or other non-contractual payments have been made and the reasons for making the
payments have not been fully explained or the explanation is unconvincing; or
Egregious or excessive bonuses, equity awards or severance payments.
Long Term Incentive Plans
B-9
RidgeWorth recognizes the value of equity-based incentive programs. When used appropriately, they
can provide a vehicle for linking an employees pay to a companys performance, thereby aligning
their interests with those of shareholders. Tying a portion of an employees compensation to the
performance of the Company provides an incentive to maximize share value. In addition, equity-based
compensation is an effective way to attract, retain and motivate key employees.
In order to allow for meaningful shareholder review, we believe that incentive programs should
generally include: (i) specific and appropriate performance goals; (ii) a maximum award pool; and
(iii) a maximum award amount per employee. In addition, the payments made should be reasonable
relative to the performance of the business and total compensation to those covered by the plan
should be in line with compensation paid by the Companys peers.
Performance-Based Equity Compensation
RidgeWorth believes in performance-based equity compensation plans for senior executives. We feel
that executives should be compensated with equity when their performance and that of the company
warrants such rewards. While we do not believe that equity-based compensation plans for all
employees need to be based on overall company performance, we do support such limitations for
grants to senior executives (although even some equity-based compensation of senior executives
without performance criteria is acceptable, such as in the case of moderate incentive grants made
in an initial offer of employment).
Boards often argue that such a proposal would hinder them in attracting talent. We believe that
boards can develop a consistent, reliable approach, as boards of many companies have, that would
still attract executives who believe in their ability to guide the company to achieve its targets.
We generally recommend that shareholders vote in favor of performance-based option requirements.
There should be no retesting of performance conditions for all share- and option- based incentive
schemes. We will generally recommend that shareholders vote against performance-based equity
compensation plans that allow for re-testing.
Director Compensation
RidgeWorth believes that non-employee directors should receive compensation for the time and effort
they spend serving on the board and its committees. In particular, we support compensation plans
that include equity-based awards, which help to align the interests of outside directors with those
of shareholders. Director fees should be reasonable in order to retain and attract qualified
individuals.
RidgeWorth compares the costs of these plans to the plans of peer companies with similar market
capitalizations in the same country to help inform its judgment on this issue.
Retirement Benefits for Directors
We will typically recommend voting against proposals to grant retirement benefits to non-executive
directors. Such extended payments can impair the objectivity and independence of these board
members. Directors should receive adequate compensation for their board service through initial and
annual fees.
B-10
Limits on Executive Compensation
As a general rule, RidgeWorth believes that shareholders should not be involved in setting
executive compensation. Such matters should be left to the boards compensation committee. We view
the election of directors, and specifically those who sit on the compensation committee, as the
appropriate mechanism for shareholders to express their disapproval or support of board policy on
this issue. Further, we believe that companies whose pay-for-performance is in line with their
peers should be granted the flexibility to compensate their executives in a manner that drives
growth and profit.
However, RidgeWorth favors performance-based compensation as an effective means of motivating
executives to act in the best interests of shareholders. Performance-based compensation may be
limited if a chief executives pay is capped at a low level rather than flexibly tied to the
performance of the company.
IV. GOVERNANCE STRUCTURE
Amendments to the Articles of Association
We will evaluate proposed amendments to a companys articles of association on a case-by-case
basis. We are opposed to the practice of bundling several amendments under a single proposal
because it might force shareholders to vote in favor of amendments that they might otherwise reject
had they been submitted as separate proposals. In such cases, we will analyze each change
individually. We will recommend voting for the proposal only when we believe that all of the
amendments are in the best interests of shareholders.
Anti-Takeover Measures
Poison Pills (Shareholder Rights Plans)
RidgeWorth believes that poison pill plans generally are not in the best interests of shareholders.
Specifically, they can reduce management accountability by substantially limiting opportunities for
corporate takeovers. Rights plans can thus prevent shareholders from receiving a buy-out premium
for their stock.
We believe that boards should be given wide latitude in directing the activities of the company and
charting the companys course. However, on an issue such as this where the link between the
financial interests of shareholders and their right to consider and accept buyout offers is so
substantial, we believe that shareholders should be allowed to vote on whether or not they support
such a plans implementation.
In certain limited circumstances, we will support a limited poison pill to accomplish a particular
objective, such as the closing of an important merger, or a pill that contains what we believe to
be a reasonable qualifying offer clause.
Increase in Authorized Shares
RidgeWorth believes that adequate capital stock is important to the operation of a company. We will
generally support proposals when a company could reasonably use the requested shares for financing,
stock splits and stock dividends. While we think that having adequate shares to allow management to
make quick decisions and effectively operate the business is critical, we prefer that, for
significant transactions, management
B-11
come to shareholders to justify their use of additional shares
rather than providing a blank check in the form of large pools of unallocated shares available for
any purpose. 8
In general, we will support proposals to increase authorized shares up to 100% of the number of
shares currently authorized unless, after the increase the company would be left with less than 30
% of its authorized shares outstanding.
Issuance of Shares
Issuing additional shares can dilute existing holders in limited circumstances. Further, the
availability of additional shares, where the board has discretion to implement a poison pill, can
often serve as a deterrent to interested suitors. Accordingly, where we find that the company has
not disclosed a detailed plan for use of the proposed shares, or where the number of shares
requested are excessive, we typically recommend against the issuance. In the case of a private
placement, we will also consider whether the company is offering a discount to its share price.
In general, we will support proposals to issue shares (with pre-emption rights) when the requested
increase is the lesser of (i) the unissued ordinary share capital; or (ii) a sum equal to one-third
of the issued ordinary share capital. This authority should not exceed five years. In some
countries, if the proposal contains a figure greater than one-third, the company should explain the
nature of the additional amounts.
We will also generally support proposals to suspend pre-emption rights for a maximum of 5% of the
issued ordinary share capital of the company. If the proposal contains a figure greater than 5%,
the company should provide an explanation. This authority should not exceed five years, or less for
some countries.
Repurchase of Shares
We will recommend voting in favor of a proposal to repurchase shares when the plan includes the
following provisions: (i) a maximum number of shares which may be purchased (typically not more
than 15% of the issued share capital); and (ii) a maximum price which may be paid for each share
(as a percentage of the market price).
Supermajority Vote Requirements
RidgeWorth favors a simple majority voting structure. Supermajority vote requirements act as
impediments to shareholder action on ballot items that are critical to our interests. One key
example is in the takeover context where supermajority vote requirements can strongly limit
shareholders input in making decisions on such crucial matters as selling the business.
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Management believes that it is in the best interest of shareholders to abstain from voting shares
in countries that participate in share blocking for securities held in the RidgeWorth International
Equity 130/30 Fund.
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B-12
DOMESTIC PROXY VOTING POLICY UPDATED 5/22/2009
RIDGEWORTH CAPITAL MANAGEMENT, INC.
APPLIED TO ERISA AND NON-ERISA ACCOUNTS AND FUNDS
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Ballot Item / Proposal |
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Chapter |
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[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
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Vote |
1. 0.
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Operational Items
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Adjourn Meeting
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To provide management with the authority to adjourn an annual or special meeting, except in cases where it
does not benefit shareholders
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F |
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1.1.
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Operational Items
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Amend Quorum
Requirements
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To reduce quorum requirements for shareholder meetings below a majority of the shares outstanding
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A |
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1.2.
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Operational Items
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Amend Minor Bylaws
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To make housekeeping changes (updates or corrections) to bylaw or charter, except in cases where there is an
adverse effect on shareholder value
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F |
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1.3.
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Operational Items
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Change Company Name
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To change the corporate name
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F |
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1.4.
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Operational Items
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Date, Time, or
Location of Annual
Meeting
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Management proposals to change the date/time/location of the annual meeting
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F |
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1.5.
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Operational Items
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Date, Time, or
Location of Annual
Meeting
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Shareholder proposals To change the date/time/location of the annual meeting
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A |
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1.6.
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Operational Items
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Auditors
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To ratify auditors (except as described below)
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F |
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1.6.a
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Operational Items
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Auditors
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To ratify auditors if significant material restatement, the auditors contract contains certain provisions
that require the company to use alternative dispute resolution, the audit contract has limited liability
clauses or any other situation is identified that may impair the auditors ability to perform an independent
audit (this can include: audit fees too low or too high, the auditor performs other work than the audit such
as tax-shelter work, etc.).
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1.7.
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Operational Items
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Auditors
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Shareholder proposals asking companies to prohibit their auditors from engaging in non-audit services
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1.8.
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Operational Items
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Auditors
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Shareholder proposals to require audit firm rotation
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1.9.
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Operational Items
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Transact Other
Business
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To approve other business when it appears as voting item
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2. 0.
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Board of Directors
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Voting on Director
Nominees in
Uncontested Elections
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Director nominees are evaluated taking into consideration independence, performance, experience, and
corporate governance.
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2.1.
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Board of Directors
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Age Limits
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To limit the tenure of outside directors either through term limits or mandatory retirement ages.
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2.2.
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Board of Directors
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Board Size
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To fix the board size or designate a range for the board size
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2.3.
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Board of Directors
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Board Size
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To give management the ability to alter the size of the board outside of a specified range without
shareholder approval
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2.4.
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Board of Directors
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Classification/Declassification
of
the Board
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Management and shareholder proposals to classify the board
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2.5.
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Board of Directors
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Classification/Declassification
of
the Board
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Management and shareholder proposals to repeal classified boards and to elect all directors annually.
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B-13
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Ballot Item / Proposal |
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[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
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Vote |
2.6.
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Board of Directors
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Cumulative Voting
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To eliminate cumulative voting.
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2.7.
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Board of Directors
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Cumulative Voting
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To restore or permit cumulative voting when a company has some form of majority voting in place, has not
adopted anti takeover protections and has been responsive to shareholders.
|
|
A |
|
|
|
|
|
|
|
|
|
|
|
2.8.
|
|
Board of Directors
|
|
Cumulative Voting
|
|
To restore or permit cumulative voting when a company does not have any form of majority voting in place
|
|
F |
|
|
|
|
|
|
|
|
|
|
2.9.
|
|
Board of Directors
|
|
Director and Officer
Indemnification and
Liability Protection
|
|
Proposals on director and officer indemnification and liability protection not particularly described below.
|
|
C |
|
|
|
|
|
|
|
|
|
2.10.
|
|
Board of Directors
|
|
Director and Officer
Indemnification and
Liability Protection
|
|
To eliminate entirely directors and officers liability for monetary damages for violating the duty of care.
|
|
A |
|
|
|
|
|
|
|
|
|
2.11.
|
|
Board of Directors
|
|
Director and Officer
Indemnification and
Liability Protection
|
|
To expand coverage beyond just legal expenses to acts, such as negligence, that are more serious violations
of fiduciary obligation than mere carelessness
|
|
A |
|
|
|
|
|
|
|
|
|
2.12.
|
|
Board of Directors
|
|
Director and Officer
Indemnification and
Liability Protection
|
|
To expand coverage in cases when a directors or officers legal defense was unsuccessful if: (1) the
director was found to have acted in good faith and in a manner that he reasonably believed was in the best
interests of the company, and (2) only if the directors legal expenses would be covered.
|
|
F |
|
|
|
|
|
|
|
|
|
2.13.
|
|
Board of Directors
|
|
Establish/ Amend
Nominee Qualifications
|
|
To establish or amend director qualifications
|
|
A |
|
|
|
|
|
|
|
|
|
2.14.
|
|
Board of Directors
|
|
Establish/ Amend
Nominee Qualifications
|
|
Shareholder proposals requiring two candidates per board seat
|
|
A |
|
|
|
|
|
|
|
|
|
2.15.
|
|
Board of Directors
|
|
Filling Vacancies/Removal
of Directors
|
|
To provide that directors may be removed only for cause.
|
|
A |
|
|
|
|
|
|
|
|
|
2.16.
|
|
Board of Directors
|
|
Filling Vacancies/Removal
of Directors
|
|
To restore shareholder ability to remove directors with or without cause.
|
|
F |
|
|
|
|
|
|
|
|
|
2.17.
|
|
Board of Directors
|
|
Filling Vacancies/Removal
of Directors
|
|
To provide that only continuing directors may elect replacements to fill board vacancies.
|
|
A |
|
|
|
|
|
|
|
|
|
2.18.
|
|
Board of Directors
|
|
Filling Vacancies/Removal
of Directors
|
|
To permit shareholders to elect directors to fill board vacancies.
|
|
F |
|
|
|
|
|
|
|
|
|
2.19.
|
|
Board of Directors
|
|
Independent Chairman
(Separate Chairman/CEO)
|
|
To recommend that the positions of chairman and CEO be combined.
|
|
C |
|
|
|
|
|
|
|
|
|
|
2.20.
|
|
Board of Directors
|
|
Independent
Chairman(Separate
Chairman/CEO
|
|
To recommend that the positions of chairman and CEO be separate and distinct positions held by 2 different
individuals.
|
|
A |
|
|
|
|
|
|
|
|
|
|
2.21.
|
|
Board of Directors
|
|
Majority of
Independent
Directors/Establishment
of
Committees
|
|
Shareholder proposals to require that a majority or more of directors be independent
|
|
F |
B-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ballot Item / Proposal |
|
|
Number |
|
Chapter |
|
Section |
|
[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
|
Vote |
2.22.
|
|
Board of Directors
|
|
Majority of
Independent
Directors/Establishment
of
Committees
|
|
Shareholder proposals asking that board audit, compensation, and/or nominating committees be composed
exclusively of independent directors
|
|
F |
|
|
|
|
|
|
|
|
|
2.23.
|
|
Board of Directors
|
|
Open Access
|
|
Shareholder proposals asking for open access
|
|
A |
|
|
|
|
|
|
|
|
|
2.24.
|
|
Board of Directors
|
|
Stock Ownership
Requirements
|
|
Shareholder proposals that mandate a minimum amount of stock that directors must own in order to qualify as
a director or to remain on the board
|
|
A |
|
|
|
|
|
|
|
|
|
2.25.
|
|
Board of Directors
|
|
Stock Ownership
Requirements
|
|
Shareholder proposals asking that the company adopt a holding or retention period for its executives (for
holding stock after the vesting or exercise of equity awards)
|
|
A |
|
|
|
|
|
|
|
|
|
2.26.
|
|
Board of Directors
|
|
Term Limits
|
|
Shareholder or management proposals to limit the tenure of outside directors
|
|
A |
|
|
|
|
|
|
|
|
|
2.30.
|
|
Board of Directors
|
|
Majority Voting
Standard
|
|
Shareholder proposals requesting a majority voting standard on election of directors
|
|
F |
|
|
|
|
|
|
|
|
|
3. 0.
|
|
Proxy Contests
|
|
Voting for Director
Nominees in Contested
Elections
|
|
Votes in a contested election of directors
|
|
C |
|
|
|
|
|
|
|
|
|
3.1.a
|
|
Proxy Contests
|
|
Reimbursing Proxy
Solicitation Expenses
|
|
To reimburse proxy solicitation expenses if dissident wins
|
|
F |
|
|
|
|
|
|
|
|
|
3.1.b
|
|
Proxy Contests
|
|
Reimbursing Proxy
Solicitation Expenses
|
|
To reimburse proxy solicitation expenses (unless described above)
|
|
A |
|
|
|
|
|
|
|
|
|
3.2.
|
|
Proxy Contests
|
|
Confidential Voting
|
|
Shareholder proposals requesting that corporations adopt confidential voting, use independent vote
tabulators and use independent inspectors of election
|
|
A |
|
|
|
|
|
|
|
|
|
3.3.
|
|
Proxy Contests
|
|
Confidential Voting
|
|
Management proposals to adopt confidential voting.
|
|
A |
|
|
|
|
|
|
|
|
|
4. 0.
|
|
Antitakeover
Defenses and Voting
Related Issues
|
|
Advance Notice
Requirements for
Shareholder
Proposals/Nominations
|
|
Advance notice proposals
|
|
F |
|
|
|
|
|
|
|
|
|
4.1.
|
|
Antitakeover
Defenses and Voting
Related Issues
|
|
Amend Bylaws without
Shareholder Consent
|
|
Proposals giving the board exclusive authority to amend the bylaws
|
|
F |
B-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ballot Item / Proposal |
|
|
Number |
|
Chapter |
|
Section |
|
[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
|
Vote |
4.2.
|
|
Antitakeover
Defenses and Voting
Related Issues
|
|
Amend Bylaws without
Shareholder Consent
|
|
Proposals giving the board the ability to amend the bylaws in addition to shareholders
|
|
F |
|
|
|
|
|
|
|
|
|
4.3.
|
|
Antitakeover
Defenses and Voting
Related Issues
|
|
Poison Pills
|
|
Shareholder proposals that ask a company to submit its poison pill for shareholder ratification
|
|
C |
|
|
|
|
|
|
|
|
|
4.4.
|
|
Antitakeover
Defenses and Voting
Related Issues
|
|
Poison Pills
|
|
Shareholder proposals asking that any future pill be put to a shareholder vote
|
|
F |
|
|
|
|
|
|
|
|
|
4.5.a
|
|
Antitakeover
Defenses and Voting
Related Issues
|
|
Poison Pills
|
|
Management proposals to ratify a poison pill
|
|
C |
|
|
|
|
|
|
|
|
|
4.6.
|
|
Antitakeover
Defenses and Voting
Related Issues
|
|
Shareholder Ability
to Act by Written
Consent
|
|
To restrict or prohibit shareholder ability to take action by written consent
|
|
A |
|
|
|
|
|
|
|
|
|
4.7.
|
|
Antitakeover
Defenses and Voting
Related Issues
|
|
Shareholder Ability
to Act by Written
Consent
|
|
To allow or make easier shareholder action by written consent
|
|
F |
|
|
|
|
|
|
|
|
|
4.8.
|
|
Antitakeover
Defenses and Voting
Related Issues
|
|
Shareholder Ability
to Call Special
Meetings
|
|
To restrict or prohibit shareholder ability to call special meetings.
|
|
A |
|
|
|
|
|
|
|
|
|
4.9.
|
|
Antitakeover
Defenses and Voting
Related Issues
|
|
Shareholder Ability
to Call Special
Meetings
|
|
To remove restrictions on the right of shareholders to act independently of management.
|
|
F |
|
|
|
|
|
|
|
|
|
4.10.
|
|
Antitakeover
Defenses and Voting
Related Issues
|
|
Supermajority Vote
Requirements
|
|
To require a supermajority shareholder vote pertaining to issues other than election of directors.
|
|
A |
|
|
|
|
|
|
|
|
|
4.11.
|
|
Antitakeover
Defenses and Voting
Related Issues
|
|
Supermajority Vote
Requirements
|
|
To lower supermajority vote requirements pertaining to issues other than election of directors.
|
|
F |
B-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ballot Item / Proposal |
|
|
Number |
|
Chapter |
|
Section |
|
[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
|
Vote |
5. 0.
|
|
Mergers and
Corporate
Restructurings
|
|
Appraisal Rights
|
|
To restore, or provide shareholders with, rights of appraisal.
|
|
A |
|
|
|
|
|
|
|
|
|
5.1.
|
|
Mergers and
Corporate
Restructurings
|
|
Asset Purchases
|
|
On asset purchase proposals
|
|
C |
|
|
|
|
|
|
|
|
|
5.2.
|
|
Mergers and
Corporate
Restructurings
|
|
Asset Sales
|
|
Asset sales
|
|
C |
|
|
|
|
|
|
|
|
|
5.3.
|
|
Mergers and
Corporate
Restructurings
|
|
Bundled Proposals
|
|
Bundled or conditioned proxy proposals
|
|
C |
|
|
|
|
|
|
|
|
|
5.4.
|
|
Mergers and
Corporate
Restructurings
|
|
Conversion of
Securities
|
|
Proposals regarding conversion of securities, absent penalties or likely bankruptcy.
|
|
C |
|
|
|
|
|
|
|
|
|
5.5.
|
|
Mergers and
Corporate
Restructurings
|
|
Conversion of
Securities
|
|
Proposals regarding conversion of securities, if it is expected that the company will be subject to onerous
penalties or will be forced to file for bankruptcy if the transaction is not approved.
|
|
F |
|
|
|
|
|
|
|
|
|
5.6.
|
|
Mergers and
Corporate
Restructurings
|
|
Corporate
Reorganization
|
|
Proposals to increase common and/or preferred shares and to issue shares as part of a debt restructuring
plan, absent likely bankruptcy.
|
|
C |
|
|
|
|
|
|
|
|
|
5.7.
|
|
Mergers and
Corporate
Restructurings
|
|
Corporate
Reorganization
|
|
Proposals to increase common and/or preferred shares and to issue shares as part of a debt restructuring
plan where bankruptcy is likely if the transaction is not approved
|
|
F |
|
|
|
|
|
|
|
|
|
5.8.
|
|
Mergers and
Corporate
Restructurings
|
|
Formation of Holding
Company
|
|
To form a holding company
|
|
C |
|
|
|
|
|
|
|
|
|
5.9.
|
|
Mergers and
Corporate
Restructurings
|
|
Going Private
Transactions (LBOs
and Minority Squeeze
outs)
|
|
To make the company private rather than public
|
|
C |
|
|
|
|
|
|
|
|
|
5.10.
|
|
Mergers and
Corporate
Restructurings
|
|
Joint Ventures
|
|
To form joint ventures
|
|
C |
|
|
|
|
|
|
|
|
|
5.11.
|
|
Mergers and
Corporate
Restructurings
|
|
Liquidations
|
|
To liquidate when bankruptcy is not likely
|
|
C |
|
|
|
|
|
|
|
|
|
5.12.
|
|
Mergers and
Corporate
Restructurings
|
|
Liquidations
|
|
To liquidate when bankruptcy is likely
|
|
F |
|
|
|
|
|
|
|
|
|
5.13.
|
|
Mergers and
Corporate
Restructurings
|
|
Mergers and
Acquisitions/Issuance
of Shares to
Facilitate Merger or
Acquisition
|
|
To merge with or acquire another company
|
|
C |
|
|
|
|
|
|
|
|
|
5.14.
|
|
Mergers and
Corporate
Restructurings
|
|
Private Placements/Warrants/Convertible
Debentures
|
|
To issue a private placement security when bankruptcy is not likely
|
|
C |
B-17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ballot Item / Proposal |
|
|
Number |
|
Chapter |
|
Section |
|
[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
|
Vote |
5.15.
|
|
Mergers and
Corporate
Restructurings
|
|
Private Placements/ Warrants/Convertible
Debentures
|
|
To issue a private placement security when bankruptcy is likely
|
|
F |
|
|
|
|
|
|
|
|
|
5.16.
|
|
Mergers and
Corporate
Restructurings
|
|
Spin-offs
|
|
To spin off a unit or line of business
|
|
C |
|
|
|
|
|
|
|
|
|
5.17.
|
|
Mergers and
Corporate
Restructurings
|
|
Value Maximization Proposals
|
|
To maximize shareholder value by hiring a financial advisor to explore strategic alternatives,
selling the company or liquidating the company and distributing the proceeds to shareholders.
|
|
C |
|
|
|
|
|
|
|
|
|
6. 0.
|
|
State of
Incorporation
|
|
Control Share Acquisition
Provisions
|
|
To opt out of control share acquisition statutes
|
|
F |
|
|
|
|
|
|
|
|
|
6.1.
|
|
State of
Incorporation
|
|
Control Share Acquisition
Provisions
|
|
To amend the charter to include control share acquisition provisions.
|
|
A |
|
|
|
|
|
|
|
|
|
6.2.
|
|
State of
Incorporation
|
|
Control Share Acquisition
Provisions
|
|
To restore voting rights to the control shares.
|
|
F |
|
|
|
|
|
|
|
|
|
6.3.
|
|
State of
Incorporation
|
|
Control Share Cash out
Provisions
|
|
To opt out of control share cash out statutes.
|
|
F |
|
|
|
|
|
|
|
|
|
6.4.
|
|
State of
Incorporation
|
|
Disgorgement Provisions
|
|
To opt out of state disgorgement provisions.
|
|
F |
|
|
|
|
|
|
|
|
|
6.5.
|
|
State of
Incorporation
|
|
Fair Price Provisions
|
|
To adopt fair price provisions
|
|
C |
|
|
|
|
|
|
|
|
|
6.6.
|
|
State of
Incorporation
|
|
Fair Price Provisions
|
|
To adopt fair price provisions with shareholder vote requirements greater than a majority of
disinterested shares.
|
|
A |
|
|
|
|
|
|
|
|
|
6.7.
|
|
State of
Incorporation
|
|
Freeze Out
|
|
proposals to opt out of state freeze out provisions
|
|
F |
|
|
|
|
|
|
|
|
|
6.8.
|
|
State of
Incorporation
|
|
Greenmail
|
|
To adopt anti greenmail charter of bylaw amendments
Or otherwise restrict a companys ability to make greenmail payments.
|
|
F |
|
|
|
|
|
|
|
|
|
6.9.
|
|
State of
Incorporation
|
|
Greenmail
|
|
To adopt anti greenmail proposals when they are bundled with other charter or bylaw amendments.
|
|
F |
|
|
|
|
|
|
|
|
|
6.10.
|
|
State of
Incorporation
|
|
Reincorporation Proposals
|
|
To change a companys state of incorporation
|
|
C |
|
|
|
|
|
|
|
|
|
6.11.
|
|
State of
Incorporation
|
|
Stakeholder Provisions
|
|
To consider non-shareholder constituencies or other non-financial effects when evaluating a merger
or business combination.
|
|
A |
|
|
|
|
|
|
|
|
|
6.12.
|
|
State of
Incorporation
|
|
State Anti takeover Statutes
|
|
To opt in or out of state takeover statutes (including control share acquisition statutes, control
share cash-out statutes, freeze out provisions, fair price provisions, stakeholder laws, poison
pill endorsements, severance pay and labor contract provisions, anti greenmail provisions, and
disgorgement provisions).
|
|
C |
|
|
|
|
|
|
|
|
|
7. 0.
|
|
Capital Structure
|
|
Adjustments to Par Value of
Common Stock
|
|
Management proposals to reduce or eliminate the par value of common stock.
|
|
F |
|
|
|
|
|
|
|
|
|
7.1.
|
|
Capital Structure
|
|
Common Stock Authorization
|
|
To increase the number of shares of common stock authorized for issuance
|
|
C |
|
|
|
|
|
|
|
|
|
7.2.
|
|
Capital Structure
|
|
Common Stock Authorization
|
|
To increase the number of authorized shares of the class of stock that has superior voting rights.
|
|
C |
|
|
|
|
|
|
|
|
|
7.3.
|
|
Capital Structure
|
|
Common Stock Authorization
|
|
To approve increases beyond the allowable increase when a companys shares are in danger of being
de-listed or if a companys ability to continue to operate as a going concern is uncertain
|
|
F |
B-18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ballot Item / Proposal |
|
|
Number |
|
Chapter |
|
Section |
|
[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
|
Vote |
7.4.
|
|
Capital Structure
|
|
Dual-class Stock
|
|
Proposals to create a new class of common stock with superior voting rights
|
|
A |
|
|
|
|
|
|
|
|
|
7.5.
|
|
Capital Structure
|
|
Dual-class Stock
|
|
To create a new class of nonvoting
or sub-voting common stock if:
It is intended for financing purposes with minimal or no dilution to current shareholders
It is not designed to preserve the voting power of an insider or significant shareholder
|
|
F |
|
|
|
|
|
|
|
|
|
7.6.
|
|
Capital Structure
|
|
Issue Stock for Use with
Rights Plan
|
|
To increase authorized common stock for the explicit purpose of implementing a shareholder rights
plan (poison pill).
|
|
A |
|
|
|
|
|
|
|
|
|
7.7.
|
|
Capital Structure
|
|
Preemptive Rights
|
|
Shareholder proposals that seek preemptive rights
|
|
C |
|
|
|
|
|
|
|
|
|
7.8.
|
|
Capital Structure
|
|
Preferred Stock
|
|
To authorizing the creation of new classes of preferred stock with unspecified voting, conversion,
dividend distribution, and other rights (blank check preferred stock).
|
|
A |
|
|
|
|
|
|
|
|
|
7.9.
|
|
Capital Structure
|
|
Preferred Stock
|
|
To create declawed blank check preferred stock (stock that cannot be used as a takeover defense).
|
|
F |
|
|
|
|
|
|
|
|
|
7.10.
|
|
Capital Structure
|
|
Preferred Stock
|
|
To authorize preferred stock in cases where the company specifies the voting, dividend, conversion,
and other rights of such stock and the terms of the preferred stock appear reasonable
|
|
F |
|
|
|
|
|
|
|
|
|
7.11.
|
|
Capital Structure
|
|
Preferred Stock
|
|
To increase the number of blank check preferred stock authorized for issuance when no shares have
been issued or reserved for a specific purpose.
|
|
A |
|
|
|
|
|
|
|
|
|
7.12.
|
|
Capital Structure
|
|
Preferred Stock
|
|
To increase the number of blank check preferred shares
|
|
A |
|
|
|
|
|
|
|
|
|
7.13.
|
|
Capital Structure
|
|
Recapitalization
|
|
Recapitalizations (reclassifications of securities)
|
|
C |
|
|
|
|
|
|
|
|
|
7.14.
|
|
Capital Structure
|
|
Reverse Stock Splits
|
|
Management proposals to implement a reverse stock split when the number of authorized shares will
be proportionately reduced
|
|
F |
|
|
|
|
|
|
|
|
|
7.15.
|
|
Capital Structure
|
|
Reverse Stock Splits
|
|
Management proposals to implement a reverse stock split to avoid delisting.
|
|
F |
|
|
|
|
|
|
|
|
|
7.16.
|
|
Capital Structure
|
|
Reverse Stock Splits
|
|
To implement a reverse stock splits that do not proportionately reduce the number of shares
authorized or considered going dark transactions.
|
|
C |
|
|
|
|
|
|
|
|
|
7.17.
|
|
Capital Structure
|
|
Share Repurchase Programs
|
|
Management proposals to institute open-market share repurchase plans in which all shareholders may
participate on equal terms
|
|
F |
|
|
|
|
|
|
|
|
|
7.17.a
|
|
Capital Structure
|
|
Share Repurchase Programs
|
|
Management proposals to institute open-market share repurchase plans in which derivatives may be
utilized
|
|
C |
|
|
|
|
|
|
|
|
|
7.18.
|
|
Capital Structure
|
|
Stock Distributions: Splits
and Dividends
|
|
Management proposals to increase the common share authorization for a stock split or share
dividend, provided that the increase in authorized shares would not result in an excessive number
of shares available for issuance
|
|
F |
|
|
|
|
|
|
|
|
|
7.19.
|
|
Capital Structure
|
|
Tracking Stock
|
|
To authorize the creation of tracking stock
|
|
C |
|
|
|
|
|
|
|
|
|
8.0.
|
|
Executive and
Director
Compensation
|
|
Executive Compensation
|
|
Executive compensation plans or plan amendments.
|
|
C |
|
|
|
|
|
|
|
|
|
8.1.
|
|
Executive and
Director
Compensation
|
|
Director Compensation
|
|
Plans for director compensation
|
|
C |
|
|
|
|
|
|
|
|
|
8.5.
|
|
Executive and
Director
Compensation
|
|
Employee Stock Purchase Plans
|
|
Employee stock purchase plans .
|
|
C |
|
|
|
|
|
|
|
|
|
8.6.
|
|
Executive and
Director
Compensation
|
|
Shareholder Proposals
Regarding Executive and
Director Pay
|
|
Shareholder proposals seeking additional disclosure of executive and director pay information,
|
|
A |
B-19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ballot Item / Proposal |
|
|
Number |
|
Chapter |
|
Section |
|
[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
|
Vote |
8.7.
|
|
Executive and
Director
Compensation
|
|
Shareholder Proposals
Regarding Executive and
Director Pay
|
|
Shareholder proposals seeking to set absolute levels on compensation or otherwise dictate the
amount or form of compensation.
|
|
A |
|
|
|
|
|
|
|
|
|
8.8.
|
|
Executive and
Director
Compensation
|
|
Shareholder Proposals
Regarding Executive and
Director Pay
|
|
Shareholder proposals requiring director fees be paid in stock only
|
|
A |
|
|
|
|
|
|
|
|
|
8.9.
|
|
Executive and
Director
Compensation
|
|
Shareholder Proposals
Regarding Executive and
Director Pay
|
|
Shareholder proposals to put option re-pricings to a shareholder vote
|
|
F |
|
|
|
|
|
|
|
|
|
8.10.
|
|
Executive and
Director
Compensation
|
|
Shareholder Proposals
Regarding Executive and
Director Pay
|
|
For all other shareholder proposals regarding executive and director pay
|
|
C |
|
|
|
|
|
|
|
|
|
8. 25
|
|
Executive and
Director
Compensation
|
|
Performance-Based Stock Options
|
|
Shareholder proposals advocating the use of performance-based stock options (indexed,
premium-priced, and performance-vested options).
|
|
C |
|
|
|
|
|
|
|
|
|
8.26.
|
|
Executive and
Director
Compensation
|
|
Golden Parachutes and
Executive Severance Agreements
|
|
Shareholder proposals to require golden parachutes or executive severance agreements to be
submitted for shareholder ratification
|
|
A |
|
|
|
|
|
|
|
|
|
8.27.
|
|
Executive and
Director
Compensation
|
|
Golden Parachutes and
Executive Severance Agreements
|
|
Proposals to ratify or cancel golden parachutes.
|
|
C |
|
|
|
|
|
|
|
|
|
8.28.
|
|
Executive and
Director
Compensation
|
|
Pension Plan Income Accounting
|
|
Shareholder proposals to exclude pension plan income in the calculation of earnings used in
determining executive bonuses/compensation
|
|
F |
|
|
|
|
|
|
|
|
|
8.29.
|
|
Executive and
Director
Compensation
|
|
Supplemental Executive
Retirement Plans (SERPs)
|
|
Shareholder proposals requesting to put extraordinary benefits contained in SERP agreements to a
shareholder vote
|
|
A |
|
|
|
|
|
|
|
|
|
8.31.
|
|
Executive and
Director
Compensation
|
|
Equity Based Compensation Plans
|
|
Management proposals for equity plans
|
|
C |
|
|
|
|
|
|
|
|
|
8.32
|
|
Executive and
Director
Compensation
|
|
Transferable Stock Options
|
|
Management and shareholder proposals for new on-going Transferable Stock option plans if the total
cost of the companys equity plans is less than the companys allowable cap.
|
|
F |
|
|
|
|
|
|
|
|
|
9.0.
|
|
Social and
Environmental
Issues
|
|
CONSUMER ISSUES AND PUBLIC SAFETY:
Animal Rights
|
|
To phase out the use of animals in product testing
|
|
A |
|
|
|
|
|
|
|
|
|
9.1.
|
|
Social and
Environmental
Issues
|
|
CONSUMER ISSUES AND PUBLIC SAFETY:
Animal Rights
|
|
Report on animal welfare
|
|
A |
|
|
|
|
|
|
|
|
|
9.2.
|
|
Social and
Environmental
Issues
|
|
CONSUMER ISSUES AND PUBLIC SAFETY:
Animal Rights
|
|
Adopt animal welfare policy
|
|
A |
B-20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ballot Item / Proposal |
|
|
Number |
|
Chapter |
|
Section |
|
[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
|
Vote |
9.3.
|
|
Social and
Environmental Issues
|
|
CONSUMER ISSUES AND PUBLIC SAFETY:
|
|
To implement price restraints on pharmaceutical products
|
|
A |
|
|
|
|
Drug Pricing |
|
|
|
|
|
|
|
|
|
|
|
|
|
9.4.
|
|
Social and
Environmental
Issues
|
|
CONSUMER ISSUES AND PUBLIC SAFETY:
Drug Reimportation
|
|
Proposals requesting that companies report on the financial and legal
impact of their policies regarding prescription drug reimportation or proposals requesting that
companies adopt specific policies to
encourage or constrain prescription drug reimportation
|
|
A |
|
|
|
|
|
|
|
|
|
9.5.
|
|
Social and
Environmental
Issues
|
|
CONSUMER ISSUES AND PUBLIC SAFETY:
Genetically Modified Foods
|
|
To voluntarily label genetically engineered
(GE) ingredients in their products or alternatively to provide interim labeling and eventually
eliminate GE ingredients due to the costs and feasibility of labeling and/or phasing out the use of
GE ingredients.
|
|
A |
|
|
|
|
|
|
|
|
|
9.6.
|
|
Social and
Environmental
Issues
|
|
Genetically Modified Foods
|
|
A report on the feasibility of labeling products containing GE ingredients
|
|
A |
|
|
|
|
|
|
|
|
|
9.7.
|
|
Social and
Environmental
Issues
|
|
Genetically Modified Foods
|
|
A report on the financial, legal, and environmental impact of continued use of GE ingredients/seeds
|
|
A |
|
|
|
|
|
|
|
|
|
9.8.
|
|
Social and
Environmental
Issues
|
|
Genetically Modified Foods
|
|
Report on the health and environmental effects of genetically modified organisms (GMOs)
|
|
A |
|
|
|
|
|
|
|
|
|
9.9.
|
|
Social and
Environmental
Issues
|
|
Genetically Modified Foods
|
|
To completely phase out GE ingredients from the companys products or proposals asking for reports
outlining the steps necessary to eliminate GE ingredients from the companys products. Such
resolutions presuppose that there are proven health risks to GE ingredients
|
|
A |
|
|
|
|
|
|
|
|
|
9.10.
|
|
Social and
Environmental Issues
|
|
CONSUMER ISSUES AND PUBLIC SAFETY:
|
|
Reports on a companys policies aimed at curtailing gun violence in the United States
|
|
A |
|
|
|
|
Handguns |
|
|
|
|
|
|
|
|
|
|
|
|
|
9.11.
|
|
Social and
Environmental
Issues
|
|
CONSUMER ISSUES AND PUBLIC SAFETY:
HIV/AIDS
|
|
Reports outlining the impact of the health pandemic (HIV/AIDS, malaria and tuberculosis) on the
companys Sub-Saharan operations
|
|
A |
|
|
|
|
|
|
|
|
|
9.12.
|
|
Social and
Environmental
Issues
|
|
HIV/AIDS
|
|
To establish, implement, and report on a standard of response to the HIV/AIDS, tuberculosis and
malaria health pandemic in Africa and other developing countries
|
|
A |
|
|
|
|
|
|
|
|
|
9.13.
|
|
Social and
Environmental
Issues
|
|
CONSUMER ISSUES AND PUBLIC SAFETY:
Predatory Lending
|
|
Reports on the companys procedures for preventing predatory lending, including the establishment
of a board committee for oversight,
|
|
A |
|
|
|
|
|
|
|
|
|
9.14.
|
|
Social and
Environmental
Issues
|
|
CONSUMER ISSUES AND PUBLIC SAFETY:
Tobacco
|
|
Proposals seeking stronger product warnings
|
|
A |
|
|
|
|
|
|
|
|
|
9.15.
|
|
Social and
Environmental
Issues
|
|
Tobacco
|
|
Proposals asking that the companys operating facilities be smoke-free
|
|
A |
|
|
|
|
|
|
|
|
|
9.16.
|
|
Social and
Environmental
Issues
|
|
Tobacco
|
|
Proposals dealing with product placement in stores or advertising to youth.
|
|
A |
|
|
|
|
|
|
|
|
|
9.17.
|
|
Social and
Environmental
Issues
|
|
Tobacco
|
|
Proposals asking the company to cease production of tobacco-related products or cease selling
products to tobacco companies.
|
|
A |
|
|
|
|
|
|
|
|
|
9.18.
|
|
Social and
Environmental
Issues
|
|
Tobacco
|
|
Proposals to spin-off tobacco-related businesses:
|
|
A |
B-21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ballot Item / Proposal |
|
|
Number |
|
Chapter |
|
Section |
|
[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
|
Vote |
9.19.
|
|
Social and
Environmental
Issues
|
|
Tobacco
|
|
Proposals prohibiting investment in tobacco equities.
|
|
A |
|
|
|
|
|
|
|
|
|
9.20.
|
|
Social and
Environmental
Issues
|
|
CONSUMER ISSUES AND PUBLIC SAFETY:
Toxic Chemicals
|
|
Proposals requesting that a company discloses its policies related to toxic chemicals, proposals
requesting that companies evaluate and disclose the potential financial and legal risks associated
with utilizing certain chemicals, or proposals requiring that a company reformulate its products
within a certain timeframe.
|
|
A |
|
|
|
|
|
|
|
|
|
9.21.
|
|
Social and
Environmental
Issues
|
|
ENVIRONMENT AND ENERGY:
Arctic National Wildlife Refuge
|
|
Requests for reports outlining potential environmental damage from drilling in the Arctic National
Wildlife Refuge (ANWR)
|
|
A |
|
|
|
|
|
|
|
|
|
9.22.
|
|
Social and
Environmental
Issues
|
|
ENVIRONMENT AND ENERGY:
CERES Principles
|
|
Proposals to adopt the CERES Principles
|
|
A |
|
|
|
|
|
|
|
|
|
9.23.
|
|
Social and
Environmental
Issues
|
|
ENVIRONMENT AND ENERGY:
Environmental-Economic Risk
Report
|
|
Proposals requests reports assessing economic risks of environmental pollution or climate change or
reports outlining potential environmental damage from operations in protected regions, including
wildlife refuges.
|
|
A |
|
|
|
|
|
|
|
|
|
9.24.
|
|
Social and
Environmental
Issues
|
|
Environmental Reports
|
|
Proposals for reports disclosing the companys environmental policies.
|
|
A |
|
|
|
|
|
|
|
|
|
9.25.
|
|
Social and
Environmental
Issues
|
|
Nuclear Safety
|
|
Proposals requesting that companies report on
risks associated with their nuclear reactor designs and/or the production and interim storage of
irradiated fuel rods
|
|
A |
|
|
|
|
|
|
|
|
|
9.26.
|
|
Social and
Environmental
Issues
|
|
ENVIRONMENT AND ENERGY:
Global Warming
|
|
Proposals to make reports on the level of greenhouse gas emissions from the companys operations
and products.
|
|
A |
|
|
|
|
|
|
|
|
|
9.27.
|
|
Social and
Environmental
Issues
|
|
ENVIRONMENT AND ENERGY:
Recycling
|
|
Proposals to adopt a comprehensive recycling strategy
|
|
A |
|
|
|
|
|
|
|
|
|
9.28.
|
|
Social and
Environmental
Issues
|
|
ENVIRONMENT AND ENERGY:
Renewable Energy
|
|
Proposals to invest in renewable energy sources.
|
|
A |
|
|
|
|
|
|
|
|
|
9.29.
|
|
Social and
Environmental
Issues
|
|
Renewable Energy
|
|
Requests for reports on the feasibility of developing renewable energy sources
|
|
A |
|
|
|
|
|
|
|
|
|
9.30.
|
|
Social and
Environmental
Issues
|
|
ENVIRONMENT AND ENERGY:
Sustainability Report
|
|
Proposals to make report on its policies and practices related to social, environmental, and
economic sustainability
|
|
A |
|
|
|
|
|
|
|
|
|
9.31.
|
|
Social and
Environmental
Issues
|
|
ENVIRONMENT AND ENERGY:
Efficiency Report
|
|
Report on energy efficiency
|
|
A |
|
|
|
|
|
|
|
|
|
9.32.
|
|
Social and
Environmental
Issues
|
|
ENVIRONMENT AND ENERGY:
Kyoto Protocol
|
|
Proposals requesting that companies outline their preparations to comply with standards established
by Kyoto Protocol signatory markets
|
|
A |
|
|
|
|
|
|
|
|
|
9.33.
|
|
Social and
Environmental
Issues
|
|
LAND USE
|
|
Proposals that request the disclosure of detailed information on a companys policies related to
land use or development
|
|
A |
B-22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ballot Item / Proposal |
|
|
Number |
|
Chapter |
|
Section |
|
[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
|
Vote |
9.34.
|
|
Social and
Environmental
Issues
|
|
CAFOs
|
|
Proposals requesting that companies report to shareholders on the risks and liabilities associated
with concentrated animal feeding operations (CAFOs)
|
|
A |
|
|
|
|
|
|
|
|
|
9.35.
|
|
Social and
Environmental
Issues
|
|
GENERAL CORPORATE ISSUES:
Charitable/ Political
Contributions
|
|
Proposals to affirm political nonpartisanship in the workplace
|
|
A |
|
|
|
|
|
|
|
|
|
9.36.
|
|
Social and
Environmental
Issues
|
|
Charitable/ Political
Contributions
|
|
Proposals to report or publish in newspapers the companys political and/or charitable contributions
|
|
A |
|
|
|
|
|
|
|
|
|
9.37.
|
|
Social and
Environmental
Issues
|
|
Charitable/ Political
Contributions
|
|
Proposals to prohibit the company from making political contributions
|
|
A |
|
|
|
|
|
|
|
|
|
9.38.
|
|
Social and
Environmental
Issues
|
|
Charitable/ Political
Contributions
|
|
Proposals to restrict the company from making charitable contributions
|
|
A |
|
|
|
|
|
|
|
|
|
9.39.
|
|
Social and
Environmental
Issues
|
|
Charitable/ Political
Contributions
|
|
Proposals to publish a list of company executives, directors, consultants, legal counsels,
lobbyists, or investment bankers that have prior government service and whether such service had a
bearing on the business of the company
|
|
A |
|
|
|
|
|
|
|
|
|
9.40.
|
|
Social and
Environmental
Issues
|
|
GENERAL CORPORATE ISSUES:
Link Executive Compensation to
Social Performance
|
|
Proposals to review ways of linking executive compensation to social factors
|
|
A |
|
|
|
|
|
|
|
|
|
9.41.
|
|
Social and
Environmental Issues
|
|
LABOR STANDARDS AND HUMAN RIGHTS:
|
|
Proposals to implement the China Principles.
|
|
A |
|
|
|
|
China Principles |
|
|
|
|
|
|
|
|
|
|
|
|
|
9.42.
|
|
Social and
Environmental
Issues
|
|
LABOR STANDARDS AND HUMAN RIGHTS:
Country-specific human rights
reports
|
|
Proposals to make reports detailing the companys operations in a particular country and steps to
protect human rights
|
|
A |
|
|
|
|
|
|
|
|
|
9.43.
|
|
Social and
Environmental
Issues
|
|
LABOR STANDARDS AND HUMAN RIGHTS:
International Codes of
Conduct/Vendor Standards
|
|
Proposals to implement certain human rights standards at company facilities or those of its
suppliers and to commit to outside, independent monitoring
|
|
A |
|
|
|
|
|
|
|
|
|
9.44.
|
|
Social and
Environmental Issues
|
|
LABOR STANDARDS AND HUMAN RIGHTS:
|
|
Proposals to endorse or increase activity on the MacBride Principles.
|
|
A |
|
|
|
|
MacBride Principles |
|
|
|
|
|
|
|
|
|
|
|
|
|
9.45.
|
|
Social and
Environmental
Issues
|
|
MILITARY BUSINESS:
Foreign
Military Sales/Offsets
|
|
Proposals to make reports on foreign military sales or offsets.
|
|
A |
B-23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ballot Item / Proposal |
|
|
Number |
|
Chapter |
|
Section |
|
[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
|
Vote |
9.46.
|
|
Social and
Environmental
Issues
|
|
MILITARY BUSINESS:
Landmines
and Cluster Bombs
|
|
Proposals asking the company to renounce future involvement in antipersonnel landmine production
|
|
A |
|
|
|
|
|
|
|
|
|
9.47.
|
|
Social and
Environmental
Issues
|
|
MILITARY BUSINESS:
Nuclear Weapons
|
|
Proposals asking the company to cease production of nuclear weapons components and delivery
systems, including disengaging from current and proposed contracts
|
|
A |
|
|
|
|
|
|
|
|
|
9.48.
|
|
Social and
Environmental
Issues
|
|
MILITARY BUSINESS:
Operations in Nations Sponsoring
Terrorism (Iran)
|
|
Proposals asking the company to appoint a board committee review and report outlining the companys
financial and reputational risks from its operations in Iran,
|
|
A |
|
|
|
|
|
|
|
|
|
9.49.
|
|
Social and
Environmental
Issues
|
|
MILITARY BUSINESS:
Spaced-Based Weaponization
|
|
Proposals asking the company to make reports on a companys involvement in spaced-based
weaponization
|
|
A |
|
|
|
|
|
|
|
|
|
9.50.
|
|
Social and
Environmental
Issues
|
|
WORKPLACE DIVERSITY:
Board Diversity
|
|
Requests for reports on the companys efforts to diversify the board
|
|
A |
|
|
|
|
|
|
|
|
|
9.51.
|
|
Social and
Environmental
Issues
|
|
WORKPLACE DIVERSITY:
Board Diversity
|
|
Proposals asking the company to increase the representation of women and minorities on the board
|
|
C |
|
|
|
|
|
|
|
|
|
9.52.
|
|
Social and
Environmental
Issues
|
|
WORKPLACE DIVERSITY:
Equal Employment Opportunity (EEO)
|
|
Proposals to increase regulatory oversight of EEO programs
|
|
A |
|
|
|
|
|
|
|
|
|
9.53.
|
|
Social and
Environmental
Issues
|
|
WORKPLACE DIVERSITY:
Glass Ceiling
|
|
To increase regulatory oversight of EEO programs and Glass Ceiling proposals
|
|
A |
|
|
|
|
|
|
|
|
|
9.54.
|
|
Social and
Environmental
Issues
|
|
WORKPLACE DIVERSITY:
Sexual Orientation
|
|
Exclude reference to sexual orientation from the EEO statement
|
|
A |
|
|
|
|
|
|
|
|
|
9.55.
|
|
Social and
Environmental
Issues
|
|
WORKPLACE DIVERSITY:
Sexual Orientation
|
|
Proposals to amend a companys EEO statement in order to prohibit discrimination based on sexual
orientation
|
|
A |
|
|
|
|
|
|
|
|
|
9.56.
|
|
Social and
Environmental
Issues
|
|
Sexual Orientation
|
|
Proposals to extend company benefits to or eliminate benefits from domestic partners
|
|
A |
|
|
|
|
|
|
|
|
|
9.57
|
|
Social and
Environmental
Issues
|
|
Outsourcing
|
|
Proposals asking for companies to report on the risks associated with outsourcing or offshoring.
|
|
A |
|
|
|
|
|
|
|
|
|
9.58
|
|
Social and
Environmental
Issues
|
|
Community Impact Assessment
|
|
Proposals asking for reports outling the potential community impact of company operations in
specific regions.
|
|
A |
|
|
|
|
|
|
|
|
|
9.59
|
|
Social and
Environmental
Issues
|
|
Internet Privacy and Censorship
|
|
Proposals requesting the disclosure and implementation of Internet privacy and censorship policies
and procedures.
|
|
F |
|
|
|
|
|
|
|
|
|
10. 0
|
|
Mutual Fund Proxies
|
|
Election of Directors
|
|
Director nominees who are not described below
|
|
F |
|
|
|
|
|
|
|
|
|
10.1.
|
|
Mutual Fund Proxies
|
|
Election of Directors
|
|
Ignore a shareholder proposal that is approved by a majority of the votes cast for two consecutive
years
|
|
W |
|
|
|
|
|
|
|
|
|
10.2.
|
|
Mutual Fund Proxies
|
|
Convert Closed-end Fund to
Open-end Fund
|
|
Conversion Proposals
|
|
C |
B-24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ballot Item / Proposal |
|
|
Number |
|
Chapter |
|
Section |
|
[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
|
Vote |
10.3.
|
|
Mutual Fund Proxies
|
|
Proxy Contests
|
|
Proxy Contests
|
|
C |
|
|
|
|
|
|
|
|
|
10.4.
|
|
Mutual Fund Proxies
|
|
Investment Advisory Agreements
|
|
Investment Advisory Agreements
|
|
F |
|
|
|
|
|
|
|
|
|
10.5.
|
|
Mutual Fund Proxies
|
|
Approve New Classes or Series
of Shares
|
|
The establishment of new classes or series of shares.
|
|
F |
|
|
|
|
|
|
|
|
|
10.6.
|
|
Mutual Fund Proxies
|
|
Change Fundamental Restriction
to Nonfundamental Restriction
|
|
Proposals to change a funds fundamental restriction to a non fundamental restriction
|
|
C |
|
|
|
|
|
|
|
|
|
10.7.
|
|
Mutual Fund Proxies
|
|
Change Fundamental Investment
Objective to Nonfundamental
|
|
Proposals to change a funds fundamental investment objective to a non fundamental investment
objective
|
|
C |
|
|
|
|
|
|
|
|
|
10.8.
|
|
Mutual Fund Proxies
|
|
Name Change Proposals
|
|
Name change proposals.
|
|
F |
|
|
|
|
|
|
|
|
|
10.9.
|
|
Mutual Fund Proxies
|
|
Change in Funds Sub
classification
|
|
To change a funds sub-classification
|
|
F |
|
|
|
|
|
|
|
|
|
10.10.
|
|
Mutual Fund Proxies
|
|
Disposition of
Assets/Termination/Liquidation
|
|
To dispose of assets, liquidate or terminate the fund
|
|
F |
|
|
|
|
|
|
|
|
|
10.11.
|
|
Mutual Fund Proxies
|
|
Changes to the Charter Document
|
|
To make changes to the charter document
|
|
C |
|
|
|
|
|
|
|
|
|
10.12.
|
|
Mutual Fund Proxies
|
|
Changes to the Charter Document
|
|
Removal shareholder approval requirement to reorganize or terminate the trust or any of its series
|
|
F |
|
|
|
|
|
|
|
|
|
10.13.
|
|
Mutual Fund Proxies
|
|
Changes to the Charter Document
|
|
Removal of shareholder approval requirement for amendments to the new declaration of trust
|
|
F |
|
|
|
|
|
|
|
|
|
10.14.
|
|
Mutual Fund Proxies
|
|
Changes to the Charter Document
|
|
Removal of shareholder approval requirement to amend the funds management contract, allowing the
contract to be modified by the investment manager and the trust management, as permitted by the
1940 Act
|
|
F |
|
|
|
|
|
|
|
|
|
10.15.
|
|
Mutual Fund Proxies
|
|
Changes to the Charter Document
|
|
Allow the trustees to impose other fees in addition to sales charges on investment in a fund, such
as deferred sales charges and redemption fees that may be imposed upon redemption of a funds
shares
|
|
F |
|
|
|
|
|
|
|
|
|
10.16.
|
|
Mutual Fund Proxies
|
|
Changes to the Charter Document
|
|
Removal of shareholder approval requirement to engage in and terminate Sub-advisory arrangements
|
|
F |
|
|
|
|
|
|
|
|
|
10.17.
|
|
Mutual Fund Proxies
|
|
Changes to the Charter Document
|
|
Removal of shareholder approval requirement to change the domicile of the fund
|
|
F |
|
|
|
|
|
|
|
|
|
10.18.
|
|
Mutual Fund Proxies
|
|
Change the Funds Domicile
|
|
Funds Reincorporation
|
|
C |
|
|
|
|
|
|
|
|
|
10.19.
|
|
Mutual Fund Proxies
|
|
Authorize the Board to Hire
and Terminate Subadvisors
Without
Shareholder Approval
|
|
Proposals authorizing the board to hire/terminate sub-advisors without shareholder approval.
|
|
F |
B-25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ballot Item / Proposal |
|
|
Number |
|
Chapter |
|
Section |
|
[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
|
Vote |
10.20.
|
|
Mutual Fund Proxies
|
|
Distribution Agreements
|
|
Distribution agreements
|
|
F |
|
|
|
|
|
|
|
|
|
10.21.
|
|
Mutual Fund Proxies
|
|
Master-Feeder Structure
|
|
Establishment of a master-feeder structure.
|
|
F |
|
|
|
|
|
|
|
|
|
10.22.
|
|
Mutual Fund Proxies
|
|
Mergers
|
|
Mergers and Acquisitions
|
|
C |
|
|
|
|
|
|
|
|
|
10.23.
|
|
Mutual Fund Proxies
|
|
Shareholder Proposals to
Establish Director Ownership
Requirement
|
|
To mandate a specific minimum amount of stock that directors must own in order to qualify as a
director or to remain on the board
|
|
A |
|
|
|
|
|
|
|
|
|
10.24.a
|
|
Mutual Fund Proxies
|
|
Shareholder Proposals to
Reimburse Proxy Solicitation
Expenses
|
|
To reimburse proxy solicitation expenses if dissident wins
|
|
F |
|
|
|
|
|
|
|
|
|
10.24.b
|
|
Mutual Fund Proxies
|
|
Shareholder Proposals to
Reimburse Proxy Solicitation
Expenses
|
|
To reimburse proxy solicitation expenses (except as described above)
|
|
A |
|
|
|
|
|
|
|
|
|
10.25.
|
|
Mutual Fund Proxies
|
|
Shareholder Proposals to
Terminate Investment Advisor
|
|
To terminate the investment advisor
|
|
C |
B-26
THIS FUND IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY MSCI INC. (MSCI), ANY OF
ITS AFFILIATES, ANY OF ITS INFORMATION PROVIDERS OR ANY OTHER THIRD PARTY INVOLVED IN, OR RELATED
TO, COMPILING, COMPUTING OR CREATING ANY MSCI INDEX (COLLECTIVELY, THE MSCI
PARTIES). THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX
NAMES ARE SERVICE MARK(S) OF MSCI OR ITS AFFILIATES AND HAVE BEEN LICENSED FOR USE FOR CERTAIN
PURPOSES BY [LICENSEE]. NONE OF THE MSCI PARTIES MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR
IMPLIED, TO THE ISSUER OR OWNERS OF THIS FUND OR ANY OTHER PERSON OR ENTITY REGARDING THE
ADVISBILITY OF INVESTING IN FUNDS GENERALLY OR IN THIS FUND PARTICULARLY OR THE ABILITY OF ANY MSCI
INDEX TO TRACK CORRESPONDING STOCK MARKET PERFORMANCE. MSCI OR ITS AFFILIATES ARE THE LICENSORS OF
CERTAIN TRADEMARKS, SERVICE MARKS AND TRADE NAMES AND OF THE MSCI INDEXES WHICH ARE DETERMINED,
COMPOSED AND CALCULATED BY MSCI WITHOUT REGARD TO THIS FUND OR THE ISSUER OR OWNERS OF THIS FUND OR
ANY OTHER PERSON OR ENTITY. NONE OF THE MSCI PARTIES HAS ANY OBLIGATION TO TAKE THE NEEDS OF THE
ISSUER OR OWNERS OF THIS FUND OR ANY OTHER PERSON OR ENTITY INTO CONSIDERATION IN DETERMINING,
COMPOSING OR CALCULATING THE MSCI INDEXES. NONE OF THE MSCI PARTIES IS RESPONSIBLE FOR OR HAS
PARTICIPATED IN THE DETERMINATION OF THE TIMING OF, PRICES AT, OR QUANTITIES OF THIS FUND TO BE
ISSUED OR IN THE DETERMINATION OR CALCULATION OF THE EQUATION BY OR THE CONSIDERATION INTO WHICH
THIS FUND IS REDEEMABLE. FURTHER, NONE OF THE MSCI PARTIES HAS ANY OBLIGATION OR LIABILITY TO THE
ISSUER OR OWNERS OF THIS FUND OR ANY OTHER PERSON OR ENTITY IN CONNECTION WITH THE ADMINISTRATION,
MARKETING OR OFFERING OF THIS FUND.
ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE
MSCI INDEXES FROM SOURCES THAT MSCI CONSIDERS RELIABLE, NONE OF THE MSCI PARTIES WARRANTS OR
GUARANTEES THE ORIGINALITY, ACCURACY AND/OR THE COMPLETENESS OF ANY MSCI INDEX OR ANY DATA INCLUDED
THEREIN. NONE OF THE MSCI PARTIES MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE
OBTAINED BY THE ISSUER OF THE FUND, OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY, FROM THE USE
OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES SHALL HAVE ANY LIABILITY
FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS OF OR IN CONNECTION WITH ANY MSCI INDEX OR ANY DATA
INCLUDED THEREIN. FURTHER, NONE OF THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OF ANY
KIND, AND THE MSCI PARTIES HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY AND FITNESS
FOR A PARTICULAR PURPOSE, WITH RESPECT TO EACH MSCI INDEX AND ANY DATA INCLUDED THEREIN. WITHOUT
LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY
DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS)
EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
C-2
PART C: OTHER INFORMATION
POST-EFFECTIVE AMENDMENT NO. 82
ITEM 28. Exhibits:
|
|
|
(a)(1)
|
|
Agreement and Declaration of Trust of STI Classic Funds (now,
RidgeWorth Funds) (the Registrant) dated January 15, 1992, is
incorporated herein by reference to Exhibit 1 of Post-Effective
Amendment No. 15 to the Registrants Registration Statement on Form
N-1A (File No. 033-45671), as filed with the U.S. Securities and
Exchange Commission (the SEC) via EDGAR Accession No.
0000912057-96-015938 on July 31, 1996. |
|
|
|
(a)(2)
|
|
Amendment dated March 31, 2008 to the Registrants Agreement and
Declaration of Trust dated January 15, 1992 is incorporated herein
by reference to Exhibit (a)(2) of Post-Effective Amendment No. 74
to the Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950152-08-004114 on May 16, 2008. |
|
|
|
(b)(1)
|
|
Registrants Amended and Restated By-Laws, as approved by the Board
of Trustees on August 15, 2000, are incorporated herein by
reference to Exhibit (b) of Post-Effective Amendment No. 37 to the
Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000935069-00-000528 on September 21, 2000. |
|
|
|
(b)(2)
|
|
Amendment dated March 31, 2008 to the Registrants Amended and
Restated By-Laws, as approved by the Board of Trustees on August
15, 2000, is incorporated herein by reference to Exhibit (b)(2) of
Post-Effective Amendment No. 75 to the Registrants Registration
Statement filed with the SEC via EDGAR Accession No.
0000950152-08-004343 on May 30, 2008. |
|
|
|
(c)
|
|
Not applicable. |
|
|
|
(d)(1)
|
|
Amended and Restated Investment Advisory Agreement dated November
14, 2006 between the Registrant and Trusco Capital Management, Inc.
(now, RidgeWorth Capital Management, Inc.) is incorporated herein
by reference to Exhibit (d)(1) of Post-Effective Amendment No. 67
to the Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950152-07-004809 on May 30, 2007. |
|
|
|
(d)(2)
|
|
Amended Schedule A, as last amended July 29, 2009, to the Amended
and Restated Investment Advisory Agreement dated November 14, 2006
between the Registrant and RidgeWorth Capital Management, Inc.
(formerly, Trusco Capital Management, Inc.) is incorporated herein
by reference to Exhibit (d)(2) of Post-Effective Amendment No. 80
to the Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950123-09-026997 on July 29, 2009. |
|
|
|
(d)(3)
|
|
Amendment dated April 1, 2008 to the Amended and Restated
Investment Advisory Agreement dated November 14, 2006 between the
Registrant and RidgeWorth Capital Management, Inc. (formerly,
Trusco Capital Management, Inc.) is incorporated herein by
reference to Exhibit (d)(3) of Post-Effective Amendment No. 74 to
the Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950152-08-004114 on May 16, 2008. |
|
|
|
(d)(4)
|
|
Expense Limitation Agreement dated January 9, 2008 between the
Registrant, Trusco Capital Management, Inc. (now, RidgeWorth
Capital Management, Inc.) and Alpha Equity Management LLC, is
incorporated herein by reference to Exhibit (d)(5) of
Post-Effective Amendment No. 76 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950152-08-005746 on July 29, 2008. |
C-1
|
|
|
(d)(5)
|
|
Expense Limitation Agreement dated August 1, 2008 among the
Registrant, RidgeWorth Capital Management, Inc., Alpha Equity
Management LLC and StableRiver Capital Management, LLC is
incorporated herein by reference to Exhibit (d)(5) of
Post-Effective Amendment No. 78 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950152-09-001279 on February 12, 2009. |
|
|
|
|
(d)(6)
|
|
Expense Limitation Agreement dated August 1, 2009 among the
Registrant, RidgeWorth Capital Management, Inc., Alpha Equity
Management LLC and StableRiver Capital Management, LLC is
incorporated herein by reference to Exhibit (d)(6) of
Post-Effective Amendment No. 81 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950123-10-054158 on May 28, 2010. |
|
|
|
|
|
(d)(7)
|
|
Expense Limation Agreement dated August 1, 2010 among the
Registrant, RidgeWorth Capital Management, Inc., Alpha Equity
Management LLC and StableRiver Capital Management, LLC is filed
herewith. |
|
|
|
|
(d)(8)
|
|
Investment Subadvisory Agreement dated December 19, 2008 between
RidgeWorth Capital Management, Inc. and Zevenbergen Capital
Investments, LLC is incorporated herein by reference to Exhibit
(d)(6) of Post-Effective Amendment No. 78 to the Registrants
Registration Statement on Form N-1A (File No. 033-45671, as filed
with the SEC via EDGAR Accession No. 0000950152-09-001279 on
February 12, 2009. |
|
|
|
(d)(9)
|
|
Investment Subadvisory Agreement dated December 13, 2007 between
Trusco Capital Management, Inc. (now, RidgeWorth Capital
Management, Inc.) and Alpha Equity Management LLC is incorporated
herein by reference to Exhibit (d)(7) of Post-Effective Amendment
No. 74 to the Registrants Registration Statement on Form N-1A
(File No. 033-45671), as filed with the SEC via EDGAR Accession
No. 0000950152-08-004114 on May 16, 2008. |
|
|
|
(d)(10)
|
|
Amendment dated April 1, 2008 to the Investment Subadvisory
Agreement dated December 13, 2007 between RidgeWorth Capital
Management, Inc. (formerly, Trusco Capital Management, Inc.) and
Alpha Equity Management LLC is incorporated herein by reference to
Exhibit (d)(8) of Post-Effective Amendment No. 74 to the
Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950152-08-004114 on May 16, 2008. |
|
|
|
|
(d)(11)
|
|
Investment Subadvisory Agreement dated March 31, 2008 between
RidgeWorth Capital Management, Inc. (formerly, Trusco Capital
Management, Inc.) and Ceredex Value Advisors LLC is incorporated
herein by reference to Exhibit (d)(10) of Post-Effective Amendment
No. 74 to the Registrants Registration Statement on Form N-1A
(File No. 033-45671), as filed with the SEC via EDGAR Accession
No. 0000950152-08-004114 on May 16, 2008. |
|
|
|
|
(d)(12)
|
|
Investment Subadvisory Agreement dated March 31, 2008 between
RidgeWorth Capital Management, Inc. (formerly, Trusco Capital
Management, Inc.) and Certium Asset Management LLC is incorporated
herein by reference to Exhibit (d)(11) of Post-Effective Amendment
No. 74 to the Registrants Registration Statement on Form N-1A
(File No. 033-45671), as filed with the SEC via EDGAR Accession
No. 0000950152-08-004114 on May 16, 2008. |
|
|
|
(d)(13)
|
|
Investment Subadvisory Agreement dated March 31, 2008 between
RidgeWorth Capital Management, Inc. (formerly, Trusco Capital
Management, Inc.) and IronOak Advisors LLC is incorporated herein
by reference to Exhibit (d)(12) of Post-Effective Amendment No. 74
to the Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950152-08-004114 on May 16, 2008. |
C-2
|
|
|
(d)(14)
|
|
Investment Subadvisory Agreement dated March 31, 2008 between
RidgeWorth Capital Management, Inc. (formerly, Trusco Capital
Management, Inc.) and Seix Investment Advisors LLC is incorporated
herein by reference to Exhibit (d)(15) of Post-Effective Amendment
No. 76 to the Registrants Registration Statement on Form N-1A
(File No. 033-45671), as filed with the SEC via EDGAR Accession
No. 0000950152-08-005746 on July 29, 2008. |
|
|
|
(d)(15)
|
|
Amended Schedule A to the Investment Subadvisory Agreement dated
March 31, 2008 between RidgeWorth Capital Management, Inc.
(formerly, Trusco Capital Management, Inc.) and Seix Investment
Advisors LLC is incorporated herein by reference to Exhibit
(d)(13) of Post-Effective Amendment No. 79 to the Registrants
Registration Statement on Form N-1A (File No. 033-45671), as filed
with the SEC via EDGAR Accession No. 0000950135-09-004376 on May
29, 2009. |
|
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(d)(16)
|
|
Investment Subadvisory Agreement dated March 31, 2008 between
RidgeWorth Capital Management, Inc. (formerly, Trusco Capital
Management, Inc.) and Silvant Capital Management LLC is
incorporated herein by reference to Exhibit (d)(14) of
Post-Effective Amendment No. 74 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950152-08-004114 on May 16, 2008. |
|
|
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(d)(17)
|
|
Investment Subadvisory Agreement dated March 31, 2008 between
RidgeWorth Capital Management, Inc. (formerly, Trusco Capital
Management, Inc.) and StableRiver Capital Management LLC is
incorporated herein by reference to Exhibit (d)(15) of
Post-Effective Amendment No. 74 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950152-08-004114 on May 16, 2008. |
|
|
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(e)(1)
|
|
Distribution Agreement dated March 31, 2009 between the Registrant
and RidgeWorth Distributors LLC is incorporated herein by
reference to Exhibit (e) of Post-Effective Amendment No. 80 to the
Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950123-09-026997 on July 29, 2009. |
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(e)(2)
|
|
First Amendment to Distribution Agreement dated August 1, 2009
between the Registrant and RidgeWorth Distributors LLC is
incorporated herein by reference to Exhibit (e)(2) of
Post-Effective Amendment No. 81 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950123-10-054158 on May 28, 2010. |
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(f)
|
|
Not applicable. |
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(g)(1)
|
|
Custodian Agreement dated February 1, 1994 between the Registrant
and Trust Company Bank (now, SunTrust Bank) is incorporated herein
by reference to Exhibit 8(b) of Post-Effective Amendment No. 15 to
the Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000912057-96-015938 on July 31, 1996. |
|
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(g)(2)
|
|
Securities Lending Amendment dated October 1, 2002 to the
Custodian Agreement dated February 1, 1994 between the Registrant
and SunTrust Bank is incorporated herein by reference to Exhibit
(g)(2) of Post-Effective Amendment No. 47 to the Registrants
Registration Statement on Form N-1A (File No. 033-45671), as filed
with the SEC via EDGAR Accession No. 0000935069-03-001371 on
September 30, 2003. |
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(g)(3)
|
|
Amendment dated July 1, 2003 to the Custodian Agreement between
the Registrant and SunTrust Bank, dated February 1, 1994, as
amended October 1, 2002, and Schedule A of such Agreement amended
as of August 16, 1995 and January 1, 1996, is incorporated herein
by reference to Exhibit (g)(3) of Post-Effective Amendment No. 48
to the Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000935069-03-001651 on December 10, 2003. |
C-3
|
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(g)(4)
|
|
Amendment dated November 25, 2003 to the Custodian Agreement dated
February 1, 1994 between the Registrant and SunTrust Bank is
incorporated herein by reference to Exhibit (g)(6) of
Post-Effective Amendment No. 50 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950152-04-005770 on July 30, 2004. |
|
|
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(g)(5)
|
|
Amendment dated August 19, 2005 to the Custodian Agreement dated
February 1, 1994 between the Registrant and SunTrust Bank is
incorporated herein by reference to Exhibit (g)(5) of
Post-Effective Amendment No. 80 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950123-09-026997 on July 29, 2009. |
|
|
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(g)(6)
|
|
Amendment dated March 31, 2008 to the Custodian Agreement dated
February 1, 1994 between the Registrant and SunTrust Bank is
incorporated herein by reference to Exhibit (g)(6) of
Post-Effective Amendment No. 76 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950152-08-005746 on July 29, 2008. |
|
|
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(g)(7)
|
|
Form of Amendment to the Securities Lending Amendment to Custodian
Agreement dated February 1, 1994 between the Registrant and
SunTrust Bank is incorporated herein by reference to Exhibit
(g)(7) of Post-Effective Amendment No. 80 to the Registrants
Registration Statement on Form N-1A (File No. 033-45671), as filed
with the SEC via EDGAR Accession No. 0000950123-09-026997 on July
29, 2009. |
|
|
|
(g)(8)
|
|
Amended Schedule A dated May 29, 2009 to the Custodian Agreement
dated February 1, 1994 between the Registrant and SunTrust Bank is
incorporated herein by reference to Exhibit (g)(8) of
Post-Effective Amendment No. 80 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950123-09-026997 on July 29, 2009. |
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(g)(9)
|
|
Amendment to Custodian Agreement dated October 1, 2009 between the
Registrant and SunTrust Bank (formerly known as Trust Company
Bank) is incorporated herein by reference to Exhibit (g)(9) of
Post-Effective Amendment No. 81 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950123-10-054158 on May 28, 2010. |
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(g)(10)
|
|
Custodian Agreement dated January 29, 2003 among the Registrant,
STI Classic Variable Trust (now, RidgeWorth Variable Trust) and
Brown Brothers Harriman & Co., with respect to the Institutional
Cash Management Fund, International Equity Fund, International
Equity Index Fund, International Equity 130/30 Fund, Real Estate
130/30 Fund, U.S. Equity 130/30 Fund, Seix Global Strategy Fund
and Strategic Income Fund, is incorporated herein by reference to
Exhibit (g)(7) of Post-Effective Amendment No. 13 to the
Registration Statement of the STI Classic Variable Trust (now,
RidgeWorth Variable Trust) (SEC No. 033-91476), as filed with the
SEC via EDGAR Accession No. 0000935069-03-00052 on April 25, 2003. |
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(g)(11)
|
|
First Amendment dated March 31, 2008 to the Custodian Agreement
dated January 29, 2003 among the Registrant, RidgeWorth Variable
Trust (formerly, STI Classic Variable Trust) and Brown Brothers
Harriman & Co., with respect to the Institutional Cash Management
Fund, International Equity Fund, International Equity Index Fund,
International Equity 130/30 Fund, Real Estate 130/30 Fund, U.S.
Equity 130/30 Fund, Seix Global Strategy Fund and Strategic Income
Fund, is incorporated herein by reference to Exhibit (g)(9) of
Post-Effective Amendment No. 76 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950152-08-005746 on July 29, 2008. |
|
|
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(h)(1)
|
|
Master Services Agreement dated July 16, 2004 between the
Registrant and Citi Fund Services Ohio, Inc. (formerly, BISYS Fund
Services, Ohio, Inc.) is incorporated herein by reference to
Exhibit (h)(1) of Post-Effective Amendment No. 51 to the
Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950152-04-007101 on September 28, 2004. |
C-4
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(h)(2)
|
|
Revised Schedule A to the Master Services Agreement dated July 16,
2004 between the Registrant and Citi Fund Services Ohio, Inc.
(formerly, BISYS Fund Services, Ohio, Inc.) is incorporated herein
by reference to Exhibit(h)(2) of Post-Effective Amendment No. 74
to the Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950152-08-004114 on May 16, 2008. |
|
|
|
(h)(3)
|
|
Amendment dated as of August 11, 2004 to the Master Services
Agreement dated July 16, 2004 between the Registrant and Citi Fund
Services Ohio, Inc. (formerly, BISYS Fund Services, Ohio, Inc.) is
incorporated herein by reference to Exhibit (h)(2) of
Post-Effective Amendment No. 51 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950152-04-007101 on September 28,
2004. |
|
|
|
(h)(4)
|
|
Amendment dated November 5, 2004 to the Master Services Agreement
dated July 16, 2004 between the Registrant and Citi Fund Services,
Ohio, Inc. (formerly, BISYS Fund Services, Ohio, Inc.) is
incorporated by reference to Exhibit (h)(3) of Post-Effective
Amendment No. 53 to the Registrants Registration Statement on
Form N-1A (File No. 033-45671), as filed with the SEC via EDGAR
Accession No. 0000950152-04-009220 on December 30, 2004. |
|
|
|
(h)(5)
|
|
Amendment dated November 18, 2005 to the Master Services Agreement
dated July 16, 2004 between the Registrant and Citi Fund Services
Ohio, Inc. (formerly, BISYS Fund Services, Ohio, Inc.) is
incorporated herein by reference to Exhibit (h)(4) of Post
Effective Amendment No. 63 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950152-06-002527 on March 24, 2006. |
|
|
|
(h)(6)
|
|
Amendment dated July 1, 2007 to the Master Services Agreement
dated July 16, 2004 between the Registrant and Citi Fund Services,
Ohio, Inc. (formerly, BISYS Fund Services, Ohio, Inc.) is
incorporated herein by reference to Exhibit (h)(6) of
Post-Effective Amendment No. 72 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950152-07-009632 on December 14, 2007. |
|
|
|
(h)(7)
|
|
Amendment dated May 15, 2007 to the Master Services Agreement
dated July 16, 2004 between the Registrant and Citi Fund Services,
Ohio, Inc., (formerly, BISYS Fund Services, Ohio, Inc.) is
incorporated herein by reference to Exhibit (h)(7) of
Post-Effective Amendment No. 74 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950152-08-004114 on May 16, 2008. |
|
|
|
(h)(8)
|
|
Amendment dated August 21, 2007 to the Master Services Agreement
dated July 16, 2004 between the Registrant and Citi Fund Services,
Ohio, Inc., (formerly, BISYS Fund Services, Ohio, Inc.) is
incorporated herein by reference to Exhibit (h)(8) of
Post-Effective Amendment No. 74 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950152-08-004114 on May 16, 2008. |
|
|
|
|
(h)(9)
|
|
Amendment dated April 1, 2008 to the Master Services Agreement
dated July 16, 2004 between the Registrant and Citi Fund Services,
Ohio, Inc. (formerly, BISYS Fund Services, Ohio, Inc.) is filed
herewith. |
|
|
|
|
(h)(10)
|
|
Amendment dated May 20, 2008 to the Master Services Agreement
dated July 16, 2004 between the Registrant and Citi Fund Services
Ohio, Inc. (formerly, BISYS Fund Services, Ohio, Inc.), is
incorporated herein by reference to Exhibit (h)(10) of
Post-Effective Amendment No. 76 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950152-08-005746 on July 29, 2008. |
C-5
|
|
|
|
(h)(11)
|
|
Amendment dated January 16, 2009 to the Master Services
Agreement dated July 16, 2004 between the Registrant and Citi
Fund Services Ohio, Inc. (formerly, BISYS Fund Services, Ohio,
Inc.) is incorporated herein by reference to Exhibit (h)(11)
of Post-Effective Amendment No. 81 to the Registrants
Registration Statement on Form N-1A (File No. 033-45671), as
filed with the SEC via EDGAR Accession No.
0000950123-10-054158 on May 28, 2010. |
|
|
|
|
|
(h)(12)
|
|
Amendment dated May 20, 2009 to the Master Services Agreement
dated July 16, 2004 between the Registrant and Citi Fund
Services Ohio, Inc. is incorporated herein by reference to
Exhibit (h)(12) of Post-Effective Amendment No. 81 to the
Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950123-10-054158 on May 28, 2010. |
|
|
|
|
|
(h)(13)
|
|
Amendment dated November 20, 2009 to the Master Services
Agreement dated July 16, 2004 between the Registrant and Citi
Fund Services Ohio, Inc. is filed herewith. |
|
|
|
|
|
(h)(14)
|
|
Compliance Services Agreement dated October 1, 2004 among the
Registrant, STI Classic Variable Trust (now, RidgeWorth
Variable Trust) and Citi Fund Services, Inc. (formerly, BISYS
Fund Services, Ohio, Inc.) is incorporated herein by reference
to Exhibit (h)(8) of Post-Effective Amendment No. 64 to the
Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950152-06-004792 on May 30, 2006. |
|
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|
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(h)(15)
|
|
Amendment dated May 1, 2008 to the Compliance Services
Agreement dated October 1, 2004 among the Registrant,
RidgeWorth Variable Trust (formerly, STI Classic Variable
Trust) and Citi Fund Services Ohio, Inc. (formerly, BISYS Fund
Services, Ohio, Inc.) is filed herewith. |
|
|
|
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(h)(16)
|
|
Shareholder Service Plan and Agreement relating to Corporate
Trust Shares dated June 1, 1999 between the Registrant and
SunTrust Bank is incorporated herein by reference to Exhibit
(h)(15) of Post-Effective Amendment No. 81 to the Registrants
Registration Statement on Form N-1A (File No. 033-45671), as
filed with the SEC via EDGAR Accession No.
0000950123-10-054158 on May 28, 2010. |
|
|
|
|
|
(h)(17)
|
|
First Amendment to the Shareholder Service Plan and Agreement
relating to Corporate Trust Shares dated March 31, 2008
between the Registrant and SunTrust Bank is incorporated
herein by reference to Exhibit (h)(16) of Post-Effective
Amendment No. 81 to the Registrants Registration Statement on
Form N-1A (File No. 033-45671), as filed with the SEC via
EDGAR Accession No. 0000950123-10-054158 on May 28, 2010. |
|
|
|
|
|
(h)(18)
|
|
Shareholder Servicing Plan dated November 20, 2008, relating
to R Shares, is incorporated herein by reference to Exhibit
(h)(12) of Post-Effective Amendment No. 77 to the Registrants
Registration Statement on Form N-1A (File No. 033-45671), as
filed with the SEC via EDGAR Accession No.
0000950152-08-010270 on December 15, 2008. |
|
|
|
|
|
(h)(19)
|
|
Amended Schedule A to the Shareholder Servicing Plan dated
November 20, 2008, amended August 1, 2009 relating to R
Shares, is incorporated herein by reference to Exhibit (h)(17)
of Post-Effective Amendment No. 80 to the Registrants
Registration Statement on Form N-1A (File No. 033-45671), as
filed with the SEC via EDGAR Accession No.
0000950123-09-026997 on July 29, 2009. |
|
|
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(h)(20)
|
|
Shareholder Servicing Plan dated May 14, 2009 with respect to
A Shares and I Shares is incorporated herein by reference to
Exhibit (d)(2) of Post-Effective Amendment No. 79 to the
Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950135-09-004376 on May 29, 2009. |
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|
|
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(h)(21)
|
|
Amended and Restated Securities Lending Management Agreement
dated January 16, 2009 between the Registrant and Credit
Suisse First Boston is incorporated herein by reference to
Exhibit (h)(14) of Post-Effective Amendment No. 78 to the
Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950152-09-001279 on February 12, 2009. |
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C-6
|
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(h)(22)
|
|
First Amendment to the Amended and Restated Securities Lending Management
Agreement dated March 4, 2009 between the Registrant and Credit Suisse
First Boston is incorporated herein by reference to Exhibit (h)(21) of
Post-Effective Amendment No. 81 to the Registrants Registration Statement
on Form N-1A (File No. 033-45671), as filed with the SEC via EDGAR
Accession No. 0000950123-10-054158 on May 28, 2010. |
|
|
|
|
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(h)(23)
|
|
Shareholder Service Fee Allocation Agreement dated August 1, 2009 between
the Registrant and RidgeWorth Capital Management, Inc. is incorporated
herein by reference to Exhibit (h)(22) of Post-Effective Amendment No. 81
to the Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950123-10-054158 on May 28, 2010. |
|
|
|
|
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(h)(24)
|
|
Fund Services Agreement dated March 31, 2009 between the Registrant and
RidgeWorth Capital Management, Inc. is filed herewith. |
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(i)
|
|
Opinion and Consent of Counsel is filed herewith. |
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(j)
|
|
Consent of independent registered public accounting firm is filed herewith. |
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(k)
|
|
Not applicable. |
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(l)
|
|
Not applicable. |
|
|
|
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(m)(1)
|
|
Distribution and Service Plan dated May 17, 2005, as amended March 31,
2008 relating to A Shares is incorporated herein by reference to Exhibit
(m)(1) of Post-Effective Amendment No. 81 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC via
EDGAR Accession No. 0000950123-10-054158 on May 28, 2010. |
|
|
|
|
|
(m)(2)
|
|
Amended Schedule A dated August 1, 2008, as amended August 1, 2009 to the
Distribution and Service Plan dated May 17, 2005, relating to A Shares is
incorporated herein by reference to Exhibit (m)(2) of Post-Effective
Amendment No. 81 to the Registrants Registration Statement on Form N-1A
(File No. 033-45671), as filed with the SEC via EDGAR Accession No.
0000950123-10-054158 on May 28, 2010. |
|
|
|
|
|
(m)(3)
|
|
Distribution and Service Plan dated February 11, 2003, amended March 31,
2008 relating to B Shares, is incorporated herein by reference to Exhibit
(m)(3) of Post-Effective Amendment No. 81 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC via
EDGAR Accession No. 0000950123-10-054158 on May 28, 2010. |
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|
|
(m)(4)
|
|
Distribution and Service Plan dated May 17, 2005, as amended May 14, 2009,
relating to C Shares, is incorporated herein by reference to Exhibit
(m)(4) of Post-Effective Amendment No. 79 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC via
EDGAR Accession No. 0000950135-09-004376 on May 29, 2009. |
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|
|
(m)(5)
|
|
Distribution and Service Plan dated May 14, 2009, relating to R Shares, is
incorporated herein by reference to Exhibit (m)(5) of Post-Effective
Amendment No. 79 to the Registrants Registration Statement on Form N-1A
(File No. 033-45671), as filed with the SEC via EDGAR Accession No.
0000950135-09-004376 on May 29, 2009. |
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(n)
|
|
Rule 18f-3 Multiple Class Plan is incorporated herein by reference to
Exhibit (n) of Post-Effective Amendment No. 79 to the Registrants
Registration Statement on Form N-1A (File No. 033-45671), as filed with
the SEC via EDGAR Accession No. 0000950135-09-004376 on May 29, 2009. |
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(o)
|
|
Not applicable. |
C-7
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|
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(p)(1)
|
|
Registrants Code of Ethics is incorporated herein by reference to
Exhibit (p)(1) of Post-Effective Amendment No. 75 to the
Registrants Registration Statement on Form N-1A (File No.
033-45671), as filed with the SEC via EDGAR Accession No.
0000950152-08-004343 on May 30, 2008. |
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(p)(2)
|
|
Code of Ethics for RidgeWorth Capital Management, Inc., Ceredex
Value Advisors LLC, Certium Asset Management LLC, IronOak Advisors
LLC, Silvant Capital Management LLC and StableRiver Capital
Management LLC is incorporated herein by reference to Exhibit
(p)(2) of Post-Effective Amendment No. 78 to the Registrants
Registration Statement on Form N-1A (File No. 033-45671), as filed
with the SEC via EDGAR Accession No. 0000950152-09-001279 on
February 12, 2009. |
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(p)(3)
|
|
Code of Ethics for Zevenbergen Capital Investments LLC dated
September 29, 2009 is incorporated herein by reference to Exhibit
(p)(3) of Post-Effective Amendment No. 81 to the Registrants
Registration Statement on Form N-1A (File No. 033-45671), as filed
with the SEC via EDGAR Accession No. 0000950123-10-054158 on May
28, 2010. |
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(p)(4)
|
|
Code of Ethics for Alpha Equity Management LLC is incorporated
herein by reference to Exhibit (p)(4) of Post-Effective Amendment
No. 77 to the Registrants Registration Statement on Form N-1A
(File No. 033-45671), as filed with the SEC via EDGAR Accession No.
0000950152-08-010270 on December 15, 2008. |
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(p)(5)
|
|
Code of Ethics for Seix Investment Advisors LLC dated June 24, 2009
is incorporated herein by reference to Exhibit (p)(5) of
Post-Effective Amendment No. 81 to the Registrants Registration
Statement on Form N-1A (File No. 033-45671), as filed with the SEC
via EDGAR Accession No. 0000950123-10-054158 on May 28, 2010. |
|
ITEM 29. Persons Controlled by or under Common Control with Registrant:
See the prospectus and Statement of Additional Information regarding the Registrants control
relationships.
ITEM 30. Indemnification:
Article VIII of the Agreement and Declaration of Trust filed as Exhibit (a) to the Registrants
Registration Statement is incorporated herein by reference. Insofar as indemnification for
liabilities arising under the Securities Act of 1933 (the Act) may be permitted to trustees,
directors, officers and controlling persons of the Registrant by the Registrant pursuant to the
Declaration of Trust or otherwise, the Registrant is aware that in the opinion of the U.S.
Securities and Exchange Commission, such indemnification is against public policy as expressed in
the Act and, therefore, is unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred or paid by
trustees, directors, officers or controlling persons of the Registrant in connection with the
successful defense of any act, suit or proceeding) is asserted by such trustees, directors,
officers or controlling persons in connection with the shares being registered, the Registrant
will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final adjudication of
such issues.
C-8
ITEM 31. Business and Other Connections of the Investment Adviser:
Other business, profession, vocation, or employment of a substantial nature in which each director
or principal officer of each investment adviser is or has been, at any time during the last two
fiscal years, engaged for his own account or in the capacity of director, officer, employee,
partner or trustee are as follows:
Investment Adviser:
RidgeWorth Capital Management, Inc.
RidgeWorth Capital Management, Inc. (formerly, Trusco Capital Management, Inc.) (the Adviser)
serves as the investment adviser for each of the Registrants series. The Advisers principal
address is 50 Hurt Plaza, Suite 1400, Atlanta, Georgia 30303.
|
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CONNECTION |
|
|
NAME OF OTHER |
|
WITH OTHER |
NAME |
|
COMPANY |
|
COMPANY |
David Eidson
Chairman &
|
|
SunTrust Banks, Inc.
|
|
Senior Vice President |
Chief Executive
Officer
|
|
SunTrust Bank
|
|
Executive Vice President |
|
|
SunTrust Capital Markets
|
|
Board Member |
|
|
|
|
|
Ashi Parikh
President & CIO
|
|
CeredexValue Advisors
LLC (Ceredex)
|
|
CEO |
|
|
IronOak Advisors LLC
(IronOak)
|
|
CEO |
|
|
Silvant Capital
Management LLC
(Silvant)
|
|
CEO |
|
|
StableRiver Capital
Management LLC
(StableRiver)
|
|
Chairman |
|
|
Certium Asset
Management LLC
(Certium)
|
|
CEO |
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|
|
|
|
Andrew S. Atkins
Vice President
|
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|
|
Steve R. Bendrick
Vice President
|
|
|
|
|
|
|
|
|
|
Sabrina Bowens
Vice President
|
|
|
|
|
|
|
|
|
|
Charles H. Boyt
Vice President
|
|
|
|
|
|
|
|
|
|
John C. Brennan
Vice President
|
|
|
|
|
|
|
|
|
|
Sheraun Y.
Britton-
Paris
Vice President
|
|
|
|
|
C-9
|
|
|
|
|
|
|
|
|
CONNECTION |
|
|
NAME OF OTHER |
|
WITH OTHER |
NAME |
|
COMPANY |
|
COMPANY |
Jennifer A. Brockwell
Vice President
|
|
|
|
|
|
|
|
|
|
Matthew B. Carney
|
|
Ceredex
|
|
Officer |
Director
|
|
Certium
|
|
Officer |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Muriel L. Chrisman
Associate
|
|
|
|
|
|
|
|
|
|
David M. Craig
Director
|
|
|
|
|
|
|
|
|
|
Dara B. Day
Associate
|
|
|
|
|
|
|
|
|
|
Christopher J.
Dimacale
Associate
|
|
|
|
|
|
|
|
|
|
Douglas J. Farmer
Vice President
|
|
|
|
|
|
|
|
|
|
Alan M. Gayle
Managing Director
|
|
|
|
|
|
|
|
|
|
Diana Hanlin
|
|
Ceredex
|
|
Officer |
Director
|
|
Certium
|
|
Officer |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
Seix
|
|
Officer |
|
|
StableRiver
|
|
Officer |
|
|
|
|
|
James B. Hester
Associate
|
|
|
|
|
|
|
|
|
|
Felecia B. Holston
Associate |
|
|
|
|
|
|
|
|
|
Deborah A. Hopkins
Vice President
|
|
|
|
|
|
|
|
|
|
Zhigang Jin
Associate
|
|
|
|
|
|
|
|
|
|
Jay Karpinsky
Vice President
|
|
|
|
|
C-10
|
|
|
|
|
|
|
|
|
CONNECTION |
|
|
NAME OF OTHER |
|
WITH OTHER |
NAME |
|
COMPANY |
|
COMPANY |
Dana E. Keithley
Associate |
|
|
|
|
|
|
|
|
|
Mary S. Kelly
Vice President
|
|
|
|
|
|
|
|
|
|
William J. Laplante, Jr.
Vice President
|
|
|
|
|
|
|
|
|
|
Jason M. Lewis
Associate
|
|
|
|
|
|
|
|
|
|
Matthew D. Lota
Vice President
|
|
|
|
|
|
|
|
|
|
Steve Loncar
Vice President
|
|
SunTrust Bank
|
|
Officer |
|
|
|
|
|
Tina Y. Long
Vice President
|
|
|
|
|
|
|
|
|
|
Anthony J. Lynch
Associate
|
|
|
|
|
|
|
|
|
|
Jeanine L. Martin
Vice President
|
|
|
|
|
|
|
|
|
|
David B. McElroy
Director
|
|
|
|
|
|
|
|
|
|
Daniella Moiseyev-
Cunniffe
Vice President
|
|
|
|
|
|
|
|
|
|
Laura B. Newberg
|
|
Ceredex
|
|
Officer |
Vice President
|
|
Certium
|
|
Officer |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Patrick A. Paparelli
|
|
SunTrust Banks, Inc.
|
|
Officer |
Managing Director/
|
|
SunTrust Bank
|
|
Officer |
Secretary
|
|
Silvant
|
|
CCO |
|
|
Certium
|
|
CCO |
|
|
StableRiver
|
|
Officer |
|
|
Seix
|
|
Officer |
|
|
Ceredex
|
|
Officer |
|
|
IronOak
|
|
Officer |
|
|
|
|
|
Ty E. Parrish
Director
|
|
|
|
|
C-11
|
|
|
|
|
|
|
|
|
CONNECTION |
|
|
NAME OF OTHER |
|
WITH OTHER |
NAME |
|
COMPANY |
|
COMPANY |
Gregory L. Phillips
Director
|
|
|
|
|
|
|
|
|
|
Paul J. Pilcher
Associate
|
|
|
|
|
|
|
|
|
|
Sean D. Porrello
Director
|
|
|
|
|
|
|
|
|
|
Konda I. Pulliam
Associate
|
|
|
|
|
|
|
|
|
|
David W. Reidy
Vice President
|
|
|
|
|
|
|
|
|
|
Dina E. Romeo
Vice President
|
|
|
|
|
|
|
|
|
|
Josie C. Rosson
|
|
SunTrust Bank
|
|
Officer |
Managing Director
|
|
Ceredex
|
|
CCO |
|
|
IronOak
|
|
CCO |
|
|
Certium
|
|
Officer |
|
|
StableRiver
|
|
CCO |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Julia R. Short
Managing Director
|
|
|
|
|
|
|
|
|
|
Paul Slakter
Director
|
|
|
|
|
|
|
|
|
|
Stephen Smith
Vice President
|
|
|
|
|
|
|
|
|
|
Jeffrey P. St. Amand
Director
|
|
|
|
|
|
|
|
|
|
John H. Stebbins
|
|
SunTrust Banks, Inc.
|
|
Officer |
Managing Director
|
|
SunTrust Bank
|
|
Officer |
|
|
Ceredex
|
|
CFO |
|
|
IronOak
|
|
CFO |
|
|
Silvant
|
|
CFO |
|
|
Certium
|
|
CFO |
|
|
StableRiver
|
|
CFO |
|
|
Seix
|
|
Officer |
|
|
|
|
|
Kimberly Jean Strickland
Vice President
|
|
|
|
|
C-12
|
|
|
|
|
|
|
|
|
CONNECTION |
|
|
NAME OF OTHER |
|
WITH OTHER |
NAME |
|
COMPANY |
|
COMPANY |
James Stueve
Managing Director
|
|
|
|
|
|
|
|
|
|
Jessica Lacey Thompson
|
|
Certium
|
|
Officer |
Director
|
|
StableRiver
|
|
Officer |
|
|
Ceredex
|
|
Officer |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Matthew M. Tollison
Vice President
|
|
|
|
|
|
|
|
|
|
William A. Turner
|
|
Certium
|
|
Officer |
Director
|
|
StableRiver
|
|
Officer |
|
|
Seix
|
|
Officer |
|
|
Ceredex
|
|
Officer |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Darlene van Nostrand
Associate
|
|
|
|
|
|
|
|
|
|
Joseph Ward
Vice President
|
|
Ceredex
Certium
IronOak
Silvant
|
|
Officer
Officer
Officer
Officer |
|
|
|
|
|
Gustina Lee Warren
Associate
|
|
|
|
|
|
|
|
|
|
Angela V. Watterson
Vice President
|
|
|
|
|
|
|
|
|
|
Elizabeth Wilson
Managing Director
|
|
SunTrust Bank
|
|
Officer |
|
|
|
|
|
Kevin D. Wright
Vice President
|
|
|
|
|
C-13
Investment Sub-Advisers:
Alpha Equity Management LLC
Alpha Equity Management LLC (Alpha Equity) serves as the investment sub-adviser for the
Registrants International Equity 130/30 Fund, the Real Estate 130/30 Fund and the U.S. Equity
130/30 Fund. The principal address of Alpha Equity is 90 State House Square, Suite 1100, Hartford,
CT 06103.
|
|
|
|
|
|
|
|
|
CONNECTION WITH OTHER |
NAME |
|
NAME OF OTHER COMPANY |
|
COMPANY |
|
Kevin Means
Managing Partner, Chief Investment Officer,
Chief Compliance Officer
|
|
|
|
|
|
|
|
|
|
Vince Fioramonti
Partner, Director of Trading and IT
|
|
|
|
|
|
|
|
|
|
Donald Townswick
Partner, Director of Research
|
|
|
|
|
|
|
|
|
|
Neil Kochen
Partner, Chief Risk Officer, Chief
Financial Officer
|
|
|
|
|
Ceredex Value Advisors LLC
Ceredex Value Advisors LLC (Ceredex) serves as the investment sub-adviser for the Registrants
Large Cap Value Equity Fund, Mid-Cap Value Equity Fund and Small Cap Value Equity Fund. The
principal address of Ceredex is 300 South Orange Avenue, Suite 1600, Orlando, Florida 32801.
|
|
|
|
|
|
|
|
|
|
|
CONNECTION WITH OTHER |
|
|
NAME |
|
NAME OF OTHER COMPANY |
|
COMPANY |
|
|
Brett L. Barner
Managing Director
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Matthew B. Carney
|
|
RidgeWorth Capital Management, Inc.
|
|
Director |
|
|
Officer
|
|
Certium
|
|
Officer |
|
|
|
|
IronOak
|
|
Officer |
|
|
|
|
Silvant
|
|
Officer |
|
|
|
|
|
|
|
|
|
Charlie E. Carter
|
|
Certium
|
|
Officer |
|
|
Director
|
|
Seix
|
|
Officer |
|
|
|
|
Silvant
|
|
Officer |
|
|
|
|
IronOak
|
|
Officer |
|
|
|
|
StableRiver
|
|
Officer |
|
|
|
|
|
|
|
|
|
Jennifer N. Graff
Director
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nicole
Blakely
Vice President
|
|
|
|
|
|
|
|
|
|
|
|
Hein Hanekom
Associate
|
|
|
|
|
|
|
C-14
|
|
|
|
|
|
|
|
|
CONNECTION WITH OTHER |
NAME |
|
NAME OF OTHER COMPANY |
|
COMPANY |
Diana Hanlin
|
|
RidgeWorth Capital Management, Inc.
|
|
Director |
Officer
|
|
Certium
|
|
Officer |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
Seix
|
|
Officer |
|
|
StableRiver
|
|
Officer |
|
|
|
|
|
Melissa K. Miller
Director
|
|
|
|
|
|
|
|
|
|
Laura B. Newberg
|
|
RidgeWorth Capital Management, Inc.
|
|
Vice President |
Officer
|
|
Certium
|
|
Officer |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Ashi Parikh
|
|
RidgeWorth Capital Management, Inc.
|
|
President & CIO |
CEO
|
|
IronOak
|
|
CEO |
|
|
Silvant
|
|
CEO |
|
|
Certium
|
|
CEO |
|
|
StableRiver
|
|
Chairman |
|
|
|
|
|
Mills Riddick
|
|
RidgeWorth Capital Management, Inc.
|
|
Officer |
President/CIO |
|
|
|
|
|
|
|
|
|
Josie Rosson
|
|
RidgeWorth Capital Management, Inc.
|
|
Managing Director |
CCO
|
|
SunTrust Bank
|
|
Officer |
|
|
IronOak
|
|
CCO |
|
|
Certium
|
|
Officer |
|
|
StableRiver
|
|
CCO |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Cody Smith
|
|
|
|
|
Vice President |
|
|
|
|
|
|
|
|
|
John Stebbins
|
|
RidgeWorth Capital Management, Inc.
|
|
Managing Director |
CFO
|
|
SunTrust Banks, Inc.
|
|
Officer |
|
|
SunTrust Bank
|
|
Officer |
|
|
IronOak
|
|
CFO |
|
|
Silvant
|
|
CFO |
|
|
Certium
|
|
CFO |
|
|
StableRiver
|
|
CFO |
|
|
Seix
|
|
Officer |
|
|
|
|
|
Jessica Lacey Thompson
|
|
Certium
|
|
Officer |
Officer |
|
|
|
|
|
|
StableRiver
|
|
Officer |
|
|
RidgeWorth Capital Management, Inc.
|
|
Director |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
C-15
|
|
|
|
|
|
|
|
|
CONNECTION WITH OTHER |
NAME |
|
NAME OF OTHER COMPANY |
|
COMPANY |
William A. Turner
|
|
Certium
|
|
Officer |
Officer |
|
|
|
|
|
|
StableRiver
|
|
Officer |
|
|
Seix
|
|
Officer |
|
|
RidgeWorth Capital Management, Inc.
|
|
Director |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Sarah A. Thompson
|
|
|
|
|
Associate |
|
|
|
|
|
|
|
|
|
Joseph Ward
|
|
RidgeWorth Capital Management
|
|
Vice President |
Officer
|
|
Certium
|
|
Officer |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Don Wordell
|
|
|
|
|
Managing Director |
|
|
|
|
Certium Asset Management LLC
Certium Asset Management LLC serves as the investment sub-adviser for the Registrants
International Equity Fund, International Equity Index Fund and Large Cap Quantitative Equity Fund.
The principal address of Certium is 50 Hurt Plaza, Suite 1400, Atlanta, Georgia 30303.
|
|
|
|
|
|
|
|
|
CONNECTION WITH |
NAME |
|
NAME OF OTHER COMPANY |
|
OTHER COMPANY |
Matthew B. Carney
|
|
RidgeWorth Capital Management, Inc.
|
|
Director |
Officer
|
|
Ceredex
|
|
Officer |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Chad Deakins
|
|
RidgeWorth Capital Management, Inc.
|
|
Officer |
President/CEO |
|
|
|
|
|
|
|
|
|
Charles East
|
|
|
|
|
Vice President |
|
|
|
|
|
|
|
|
|
Risei Goto
|
|
|
|
|
Vice President |
|
|
|
|
|
|
|
|
|
Diana Hanlin
|
|
RidgeWorth Capital Management, Inc.
|
|
Director |
Officer
|
|
Ceredex
|
|
Officer |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
Seix
|
|
Officer |
|
|
StableRiver
|
|
Officer |
C-16
|
|
|
|
|
|
|
|
|
CONNECTION WITH OTHER |
NAME |
|
NAME OF OTHER COMPANY |
|
COMPANY |
Laura B. Newberg
|
|
RidgeWorth Capital Management, Inc.
|
|
Vice President |
Officer
|
|
Ceredex
|
|
Officer |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Patrick Papparelli
|
|
RidgeWorth Capital Management, Inc.
|
|
Managing Director |
CCO
|
|
SunTrust Banks, Inc.
|
|
Officer |
|
|
SunTrust Bank |
|
|
|
|
Ceredex |
|
|
|
|
IronOak |
|
|
|
|
StableRiver |
|
|
|
|
Seix |
|
|
|
|
Silvant |
|
|
|
|
|
|
|
Ashi Parikh
|
|
RidgeWorth Capital Management, Inc.
|
|
President and CIO |
CEO
|
|
Ceredex |
|
|
|
|
IronOak |
|
|
|
|
Silvant |
|
|
|
|
StableRiver |
|
|
|
|
|
|
|
Greg Peters
|
|
|
|
|
Vice President |
|
|
|
|
|
|
|
|
|
Josie Rosson
|
|
RidgeWorth Capital Management, Inc.
|
|
Managing Director |
CCO
|
|
SunTrust Bank
|
|
Officer |
|
|
IronOak
|
|
CCO |
|
|
Ceredex
|
|
CCO |
|
|
StableRiver
|
|
CCO |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Sowmdeb Sen
|
|
|
|
|
Vice President |
|
|
|
|
|
|
|
|
|
John Stebbins
|
|
RidgeWorth Capital Management, Inc.
|
|
Managing Director |
CFO
|
|
SunTrust Banks, Inc.
|
|
Officer |
|
|
SunTrust Bank |
|
|
|
|
Ceredex |
|
|
|
|
IronOak |
|
|
|
|
Silvant |
|
|
|
|
StableRiver |
|
|
|
|
Seix |
|
|
|
|
|
|
|
Jessica Lacey Thompson
|
|
Ceredex
|
|
Officer |
Officer
|
|
IronOak
|
|
Officer |
|
|
StableRiver
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
RidgeWorth Capital Management, Inc.
|
|
Director |
C-17
|
|
|
|
|
|
|
|
|
CONNECTION WITH OTHER |
NAME |
|
NAME OF OTHER COMPANY |
|
COMPANY |
William A. Turner
|
|
Ceredex
|
|
Officer |
Officer |
|
|
|
|
|
|
StableRiver
|
|
Officer |
|
|
Seix
|
|
Officer |
|
|
RidgeWorth Capital Management, Inc.
|
|
Director |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Joseph Ward
|
|
RidgeWorth Capital Management
|
|
Vice President |
Officer
|
|
Ceredex
|
|
Officer |
|
|
IronOak
|
|
Officer |
|
|
Silvant
|
|
Officer |
|
|
|
|
|
Matthew H. Welden
|
|
|
|
|
Director |
|
|
|
|
IronOak Advisors LLC
IronOak Advisors LLC (IronOak) serves as the investment sub-adviser for the Registrants Large
Cap Core Equity Fund and Mid-Cap Core Equity Fund. The principal address of IronOak is 919 East
Main Street, Richmond, Virginia 23219.
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CONNECTION WITH |
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NAME OF OTHER COMPANY |
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OTHER COMPANY |
Charles Arrington
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Director |
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Frank Ashby
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Vice President |
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Frances Aylor
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Director |
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Matthew B. Carney
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RidgeWorth Capital Management, Inc.
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Director |
Officer
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Ceredex
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Officer |
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Certium
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Officer |
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Silvant
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Officer |
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Diana Hanlin
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RidgeWorth Capital Management, Inc.
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Director |
Officer
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Ceredex
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Officer |
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Certium
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Officer |
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Silvant
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Officer |
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Seix
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Officer |
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StableRiver
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Officer |
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Jim Mallory
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Vice President |
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Jeffrey Markunas
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Ceredex
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Officer |
President/CIO
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Silvant
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Officer |
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Certium
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Officer |
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RidgeWorth Capital Management, Inc.
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Officer |
C-18
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CONNECTION WITH |
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NAME OF OTHER COMPANY |
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OTHER COMPANY |
Laura B. Newberg
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RidgeWorth Capital Management, Inc.
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Vice President |
Officer
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Ceredex
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Officer |
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Certium
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Officer |
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Silvant
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Officer |
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Thomas ONeil
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Vice President |
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Ashi Parikh
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RidgeWorth Capital Management, Inc.
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President & CIO |
CEO
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Ceredex
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CEO |
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Silvant
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CEO |
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Certium
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CEO |
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StableRiver
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Chairman |
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Josie Rosson
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RidgeWorth Capital Management, Inc.
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Managing Director |
CCO
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SunTrust Bank
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Officer |
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Ceredex
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CCO |
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Certium
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Officer |
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StableRiver
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CCO |
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Silvant
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Officer |
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James Savage
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RidgeWorth Capital Management, Inc.
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Officer |
Director |
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John L. Snow III
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Vice President |
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Jessica Lacey Thompson
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Ceredex
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Officer |
Officer
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Certium
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Officer |
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StableRiver
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Officer |
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Silvant
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Officer |
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RidgeWorth Capital Management, Inc.
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Director |
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William A. Turner
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Ceredex
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Officer |
Officer |
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StableRiver
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Officer |
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Seix
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Officer |
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RidgeWorth Capital Management, Inc.
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Director |
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Certium
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Officer |
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Silvant
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Officer |
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Joseph Ward
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RidgeWorth Capital Management
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Vice President |
Officer
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Ceredex
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Officer |
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Certium
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Officer |
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Silvant
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Officer |
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Denise L. Wells
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Associate |
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C-19
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CONNECTION WITH OTHER |
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NAME OF OTHER COMPANY |
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COMPANY |
John Stebbins
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RidgeWorth Capital Management, Inc.
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Managing Director |
CFO
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SunTrust Bank, Inc.
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Officer |
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SunTrust Bank
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Officer |
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Ceredex
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CFO |
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Silvant
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CFO |
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Certium
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CFO |
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StableRiver
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CFO |
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Seix
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Officer |
Seix Investment Advisors LLC
Seix Investment Advisors LLC serves as the investment sub-adviser for the Registrants High Income
Fund, Intermediate Bond Fund, Investment Grade Bond Fund, Limited Duration Fund, Limited-Term
Federal Mortgage Securities Bond Fund, Seix Floating Rate High Income Fund, Seix High Yield Fund,
Strategic Income Fund, Total Return Bond Fund and U.S. Government Securities Fund. The principal
address of Seix is 10 Mountainview Road, Suite C-200, Upper Saddle River, New Jersey 07458.
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CONNECTION WITH |
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NAME OF OTHER COMPANY |
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OTHER COMPANY |
Mark E. Ahern
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Managing Director |
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Jeannell Anthony
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Associate |
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Seth Antiles
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Managing Director |
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John E. Cashwell, Jr.
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Managing Director |
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Carlos Catoya
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Vice President |
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David Chou
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Associate |
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Stacy Culver
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Vice President |
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William Davis
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Vice President |
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Christopher DeGaetano
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Vice President |
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Jorge Delgado
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Associate |
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Lisa Didonato
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Associate |
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C-20
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CONNECTION WITH |
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NAME OF OTHER COMPANY |
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OTHER COMPANY |
Deirdre Dillon
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RidgeWorth Capital Management, Inc.
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Officer |
CCO |
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Rebecca Ehrhart
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Vice President |
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James Fitzpatrick
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Managing Director |
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Vincent Flanagan
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Vice President |
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Elena Fyodorova
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Vice President |
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Michelle Gallo
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Vice President |
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Leo Goldstein
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Vice President |
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George Goudelias
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Managing Director |
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Paul Guevera
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Associate |
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Diana Hanlin
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RidgeWorth Capital Management, Inc.
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Director |
Officer
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Ceredex
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Officer |
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Certium
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Officer |
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Silvant
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Officer |
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IronOak
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Officer |
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StableRiver
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Officer |
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James Keegan
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Seix Structured Products LLC
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Manager |
CIO
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RidgeWorth Capital Management, Inc.
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Officer |
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Soo Kim
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Associate |
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Nathaniel King
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Vice President |
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Michael Kirkpatrick
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Managing Director |
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Raymond Kramer
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Vice President |
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Scott Kupchinsky
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Vice President |
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C-21
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CONNECTION WITH |
NAME |
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NAME OF OTHER COMPANY |
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OTHER COMPANY |
Gerard Leen
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Vice President |
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Charles Leonard
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Managing Director |
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Biron Lim
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Managing Director |
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Laura Linnartz
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Associate |
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Paula Madonna
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Associate |
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Michael McEachern
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President |
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Claudia J. McPherson
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Vice President |
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Sharon Moran
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Vice President |
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Brian Nold
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Managing Director |
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Andrea Pagnozzi
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Vice President |
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Cynthia Panebianco
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Vice President |
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Brian Reid
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Vice President |
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Michael Reiger
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Managing Director |
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David Schwartzman
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Vice President |
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Robert Sherman |
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CEO |
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Robin Shulman
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Managing Director |
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Atul Sibal
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Vice President |
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C-22
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CONNECTION WITH OTHER |
NAME |
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NAME OF OTHER COMPANY |
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COMPANY |
Damanjit Singh
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Associate |
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Robert Stampfl |
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Associate |
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Eric Storch
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Managing Director |
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Perry Troisi
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Managing Director |
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William A. Turner
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Ceredex
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Officer |
Officer |
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StableRiver
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Officer |
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IronOak
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Officer |
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RidgeWorth Capital Management, Inc.
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Director |
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Certium
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Officer |
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Silvant
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Officer |
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Julie Vinar
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Associate |
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Ania Wacht
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Vice President |
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George Way
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CFO |
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Adrien Webb
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Managing Director |
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Ellen Welsh
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Managing Director |
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Ann Williams
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Associate |
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Thomas Winters
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Managing Director |
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Jonathan Yozzo
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Vice President |
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Samuel Zona
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Managing Director |
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C-23
Silvant Capital Management LLC
Silvant Capital Management LLC serves as the investment sub-adviser for the Registrants Large Cap
Growth Stock Fund, Select Large Cap Growth Stock Fund and Small Cap Growth Stock Fund. The
principal address of Silvant is 50 Hurt Plaza, Atlanta, Georgia 30303.
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CONNECTION WITH |
NAME |
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NAME OF OTHER COMPANY |
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OTHER COMPANY |
Brandi Allen
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Director |
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Michael A. Bain
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Director |
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Sandeep Bhatia
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Director |
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Matthew B. Carney
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RidgeWorth Capital Management, Inc.
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Director |
Officer
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Ceredex
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Officer |
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Certium
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Officer |
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IronOak
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Officer |
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Brad Erwin
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Director |
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Jim Foster
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Managing Director |
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Christopher Guinther
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RidgeWorth Capital Management, Inc.
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Officer |
President/CIO |
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Diana Hanlin
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RidgeWorth Capital Management, Inc.
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Director |
Officer
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Ceredex
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Officer |
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Certium
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Officer |
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Silvant
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Officer |
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IronOak
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Officer |
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StableRiver
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Officer |
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Randy Loving
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Director |
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Laura B. Newberg
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RidgeWorth Capital Management, Inc.
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Vice President |
Officer
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Ceredex
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Officer |
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Certium
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Officer |
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IronOak
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Officer |
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Patrick Paparelli
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RidgeWorth Capital Management, Inc.
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Managing Director |
CCO
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SunTrust Banks, Inc.
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Officer |
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SunTrust Bank
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Officer |
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Certium
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CCO |
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StableRiver
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Officer |
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Seix
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Officer |
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IronOak
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Officer |
C-24
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CONNECTION WITH OTHER |
NAME |
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NAME OF OTHER COMPANY |
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COMPANY |
Ashi Parikh
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RidgeWorth Capital Management, Inc.
|
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President & CIO |
CEO
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Ceredex
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CEO |
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Iron Oak
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CEO |
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Certium
|
|
CEO |
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StableRiver
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Chairman |
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Joe Ransom
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Managing Director |
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Josie Rosson
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RidgeWorth Capital Management, Inc.
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Managing Director |
Officer
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SunTrust Bank
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Officer |
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IronOak
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CCO |
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Certium
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Officer |
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StableRiver
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CCO |
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Ceredex
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Officer |
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Kristin Ribic
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Director |
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Michael Sansoterra
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Certium
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Officer |
Managing Director
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Seix
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Officer |
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StableRiver
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Officer |
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Ceredex
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Officer |
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IronOak
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Officer |
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RidgeWorth Capital Management, Inc.
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Officer |
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Marc Schneidau
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RidgeWorth Capital Management, Inc.
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Officer |
Managing Director |
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Jennifer Stewart
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Associate |
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Jessica Lacey Thompson
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Ceredex
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Officer |
Officer
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Certium
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Officer |
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StableRiver
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Officer |
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IronOak
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Officer |
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RidgeWorth Capital Management, Inc.
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Director |
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William A. Turner
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Ceredex
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Officer |
Officer |
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StableRiver
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|
Officer |
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IronOak
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|
Officer |
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RidgeWorth Capital Management, Inc.
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|
Director |
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Certium
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|
Officer |
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|
Seix
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|
Officer |
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|
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|
|
Joseph Ward
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|
RidgeWorth Capital Management
|
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Vice President |
Officer
|
|
Ceredex
|
|
Officer |
|
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Certium
|
|
Officer |
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IronOak
|
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Officer |
C-25
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|
|
|
|
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|
|
CONNECTION WITH OTHER |
NAME |
|
NAME OF OTHER COMPANY |
|
COMPANY |
John Stebbins
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|
RidgeWorth Capital Management, Inc.
|
|
Managing Director |
CFO
|
|
SunTrust Banks, Inc.
|
|
Officer |
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|
SunTrust Bank
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Officer |
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Ceredex
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CFO |
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IronOak
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CFO |
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Certium
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CFO |
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Seix
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Officer |
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StableRiver
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CFO |
StableRiver Capital Management LLC
StableRiver Capital Management LLC (StableRiver) serves as the investment sub-adviser for the
Registrants Georgia Tax-Exempt Bond Fund, High Grade Municipal Bond Fund, Investment Grade
Tax-Exempt Bond Fund, Maryland Municipal Bond Fund, North Carolina Tax-Exempt Bond Fund, Short-Term
Bond Fund, Short-Term U.S. Treasury Securities Fund, U.S. Government Securities Ultra-Short Bond
Fund, Ultra-Short Bond Fund, Virginia Intermediate Municipal Bond Fund, Institutional Cash
Management Money Market Fund, Institutional Municipal Cash Reserve Money Market Fund, Institutional
U.S. Government Securities Money Market Fund, Institutional U.S. Treasury Securities Money Market
Fund, Prime Quality Money Market Fund, Tax-Exempt Money Market Fund, U.S. Government Securities
Money Market Fund, U.S. Treasury Securities Money Market Fund and the Virginia Tax-Free Money
Market Fund. The principal address of StableRiver is 50 Hurt Plaza, Suite 1400, Atlanta, GA 30303.
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CONNECTION WITH |
NAME |
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NAME OF OTHER COMPANY |
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OTHER COMPANY |
Kaltrina Baraliu Carney
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Associate |
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Matthew Boden
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Director |
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George Calvert
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Director |
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Christopher Carter
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Director |
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Kimberly Cook
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Associate |
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Robert Corner
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RidgeWorth Capital Management, Inc.
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Officer |
Managing Director |
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Elizabeth P. Cunningham
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Associate |
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Christopher Giglio
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Director |
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Matt Edelstein
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Vice President |
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Gregory Hallman
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Vice President |
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C-26
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CONNECTION WITH |
NAME |
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NAME OF OTHER COMPANY |
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OTHER COMPANY |
Diana Hanlin
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RidgeWorth Capital Management, Inc.
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Director |
Officer
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Ceredex
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Officer |
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Certium
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Officer |
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Silvant
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Officer |
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IronOak
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Officer |
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Seix
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Officer |
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Michael Honshurak
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Director |
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Phillip H. Hooks
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Vice President |
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Mark Kallis
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Director |
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Kimberly Maichle
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Director |
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Doug Mitchell
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Vice President |
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Hassan Moss
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Associate |
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Rick Nelson
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RidgeWorth Capital Management, Inc.
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Officer |
CEO/CIO |
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William H. Peck
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Director |
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Paul Robertson, III
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SunTrust Banks, Inc.
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Officer |
President
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SunTrust Bank
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Officer |
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Josie Rosson
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SunTrust Bank
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Officer |
CCO
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Ceredex
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CCO |
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Certium
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Officer |
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IronOak
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CCO |
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Silvant
RidgeWorth Capital Management, Inc.
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Officer
Managing Director |
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Ron Schwartz
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Managing Director |
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Michael Sebesta
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Managing Director |
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Dusty Self
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Director |
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Mark Smith
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Associate |
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C-27
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CONNECTION WITH |
NAME |
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NAME OF OTHER COMPANY |
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OTHER COMPANY |
John Stebbins
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RidgeWorth Capital Management, Inc.
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Managing Director |
CFO
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SunTrust Banks, Inc.
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Officer |
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SunTrust Bank |
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Ceredex |
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IronOak |
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Silvant |
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StableRiver |
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Seix |
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Chad Stephens
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Managing Director |
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Sonny Surkin
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Director |
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Jessica Lacey Thompson
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Ceredex
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Officer |
Officer
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Certium
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Officer |
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Silvant
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Officer |
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IronOak
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Officer |
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RidgeWorth Capital Management, Inc.
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Director |
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William A. Turner
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Ceredex
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Officer |
Officer |
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Silvant
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Officer |
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IronOak
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Officer |
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RidgeWorth Capital Management, Inc.
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Director |
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Certium
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Officer |
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Seix
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Officer |
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J.P. Yarusinski
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Director |
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Scott Yuschak
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Vice President |
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Justin Wu
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Vice President |
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C-28
Zevenbergen Capital Investments LLC
Zevenbergen Capital Investments LLC (ZCI) serves as the investment subadviser for the
Registrants Aggressive Growth Stock and Emerging Growth Stock Funds. The principal address of ZCI
is 601 Union Street, Seattle, Washington 98101.
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NAME OF OTHER |
NAME |
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COMPANY |
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Brooke de Boutray
Managing Director, Portfolio Manager
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Rivendell Capital Inc.
Seattle University
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Vice President and Director
Member, Department of
Finance Advisory Board |
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Lisa Foley
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Rivendell Capital Inc.
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Secretary |
Managing Director, Investment Officer |
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Leslie Tubbs
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Rivendell Capital Inc.
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Treasurer |
Managing Director, Portfolio Manager
and Chief Compliance Officer |
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Nancy A. Zevenbergen
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Rivendell Capital Inc.
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President and Director |
President and Chief Investment Officer
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Seattle Pacific
University Foundation
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Director |
ITEM 32. Principal Underwriters:
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Item 32(a) |
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RidgeWorth Distributors LLC (the Distributor) acts as principal underwriter for
the following investment companies:
RidgeWorth Funds |
The Distributor is registered with the U.S. Securities and Exchange Commission as a broker-dealer
and is a member of the Financial Regulatory Authority or FINRA. The Distributor has its main
address at Three Canal Plaza, Suite 100, Portland, Maine 04101. The Distributor is an indirect
wholly-owned subsidiary of Foreside Financial Group LLC.
Item 32(b) Information about the Directors and Officers of the Distributor is as follows:
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Name |
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Address |
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Position with Underwriter |
Mark S. Redman
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690 Taylor Road, Suite 150, Gahanna, OH 43230
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President & Manager |
Richard J. Berthy
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Three Canal Plaza, Suite 100, Portland, ME 04101
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Vice President, Treasurer & Manager |
Jennifer E. Hoopes
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Three Canal Plaza, Suite 100, Portland, ME 04101
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Secretary |
Paul F. Hahesy
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Three Canal Plaza, Suite 100, Portland, ME 04101
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Chief Compliance Officer |
Mark A. Fairbanks
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Three Canal Plaza, Suite 100, Portland, ME 04101
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Vice President & Director of Compliance |
Item 32(c) Not applicable.
C-29
ITEM 33. Location of Accounts and Records:
Books or other documents required to be maintained by Section 31(a) of the Investment Company Act
of 1940, and the rules promulgated thereunder, are maintained as follows:
(a) With respect to Rules 31a-1(a); 31a-1(b)(1); (2)(a) and (b); (3); (6); (8); (12); and
31a-1(d), the required books and records are maintained at the offices of Registrants custodians:
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SunTrust Bank |
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303 Peachtree Street, N.E. |
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Atlanta, GA 30308 |
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Brown Brothers Harriman & Co. |
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40 Water Street |
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Boston, MA 02109 |
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(Institutional Cash Management Money Market Fund, International Equity Fund, International
Equity Index Fund, Seix Global Strategy Fund, International Equity 130/30 Fund, Real Estate
130/30 Fund and U.S. Equity 130/30 Fund) |
(b) With respect to Rules 31a-1(a); 31a-1(b)(1),(4); (2)(C) and (D); (4); (5); (6); (8); (9); (10);
(11); and 31a-1(f), the required books and records are maintained at the offices of Registrants
administrator:
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Citi Fund Services Ohio, Inc. (formerly, BISYS Fund Services, Ohio, Inc.) |
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3435 Stelzer Road |
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Columbus, Ohio 43219 |
(c) With respect to Rules 31a-1(b)(5), (6), (9) and (10) and 31a-1(f), the required books and
records are maintained at the principal offices of the Registrants adviser and subadviser:
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RidgeWorth Capital Management, Inc. |
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50 Hurt Plaza, Suite 1400 |
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Atlanta, Georgia 30303 |
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Alpha Equity Management LLC |
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90 State House Square |
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Suite 1100 |
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Hartford, CT 06103 |
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Ceredex Value Advisers LLC |
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300 South Orange Avenue, Suite 1600 |
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Orlando, FL 32801 |
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(records relating to its function as subadviser) |
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Certium Asset Management LLC |
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50 Hurt Plaza, Suite 1400 |
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Atlanta, GA 30303 |
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(records relating to its function as subadviser) |
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IronOak Advisors LLC |
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919 East Main Street |
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Richmond, VA 23219 |
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(records relating to its function as subadviser) |
C-30
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Seix Investment Advisors LLC |
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10 Mountain View Road |
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Suite C-200 |
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Upper Saddle River, New Jersey 07458 |
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Silvant Capital Management LLC |
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50 Hurt Plaza, Suite 1400 |
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Atlanta, GA 30303 |
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(records relating to its function as subadviser) |
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StableRiver Capital Management LLC |
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50 Hurt Plaza, Suite 1400 |
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Atlanta, GA 30303 |
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(records relating to its function as subadviser) |
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Zevenbergen Capital Investments LLC |
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601 Union Street |
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Seattle, Washington 98101 |
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(records relating to its function as subadviser) |
(d) RidgeWorth Distributors LLC
Three Canal Plaza, Suite 100
Portland, Maine 04101
(records relating to its function as distributor)
ITEM 34. Management Services: None.
ITEM 35. Undertakings: None.
C-31
NOTICE
A copy of the Agreement and Declaration of Trust for the Registrant is on file with the Secretary
of State of the Commonwealth of Massachusetts and notice is hereby given that this Registration
Statement has been executed on behalf of the Registrant by an officer of the Registrant as an
officer and by its trustees as trustees and not individually and the obligations of or arising out
of this Registration Statement are not binding upon any of the trustees, officers, or shareholders
individually but are binding only upon the assets and property of the Registrant.
C-32
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 (the Securities Act) and the
Investment Company Act of 1940, as amended, the Registrant certifies that it meets the requirement
for effectiveness of this registration statement under Rule 485(b) of the Securities Act and has
duly caused this Post-Effective Amendment No. 82 to the Registrants Registration Statement (the
Amendment) to be signed on its behalf by the undersigned, duly authorized, in the City of
Atlanta, State of Georgia on the 28th day of July, 2010.
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By: |
/s/ Julia R. Short
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Julia R. Short, |
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President and Chief Executive Officer |
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Pursuant to the requirements of the Securities Act, this Amendment has been signed below by the
following persons in the capacity and as of the dates indicated.
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*
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Trustee |
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*
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Trustee |
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*
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Trustee |
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*
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Trustee |
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*
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Trustee |
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*
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Trustee |
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*
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Trustee |
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/s/ Julia R. Short
Julia R. Short
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President and Chief Executive Officer |
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/s/ Martin R. Dean
Martin R. Dean
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Treasurer and Chief Financial Officer |
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* By:
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/s/ Jennifer English
Jennifer English, pursuant to the powers of attorney filed herewith
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C-33
RIDGEWORTH FUNDS
RIDGEWORTH VARIABLE TRUST
POWER OF ATTORNEY
KNOWN ALL MEN BY THESE PRESENTS, that each of the undersigned as trustees of RidgeWorth Funds
and RidgeWorth Variable Trust (each, a Trust), business trusts organized under the laws of the
Commonwealth of Massachusetts, hereby constitutes and appoints Jennifer English and Danio
Mastropieri, and each of them singly, his or her true and lawful attorney-in-fact and agent with
full power of substitution and resubstitution, to sign for him or her and in his or her name, place
and stead, and in the capacity indicated below, to sign any and all Registration Statements and all
amendments thereto relating to the offering of each Trusts shares under the provisions of the
Investment Company Act of 1940 and/or the Securities Act of 1933, each such Act as amended, and to
file the same, with all exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of
them, acting alone, full power and authority to do and perform each and every act and thing
requisite or necessary to be done in and about the premises, as fully to all intents and purposes
as he or she might or could do in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any of them, or their substitute or substitutes, may lawfully do or
cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned have herewith set their names as of the 26th
day of February 2010.
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/s/ Jeffrey Biggar
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/s/ George C. Guynn
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Jeffrey M. Biggar, Trustee
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George C. Guynn, Trustee |
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/s/ Sidney E. Harris
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/s/ Warren Y. Jobe |
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Sidney E. Harris, Trustee
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Warren Y. Jobe, Trustee |
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/s/ Connie McDaniel
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/s/ Clarence Ridley |
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Connie D. McDaniel, Trustee
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Clarence H. Ridley, Trustee |
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/s/ Charles D. Winslow
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Charles D. Winslow, Trustee |
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C-34
Exhibit Index
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Exhibit |
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Document |
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|
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D7
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Expense Limation Agreement dated August 1, 2010 among the
Registrant, RidgeWorth Capital Management, Inc., Alpha Equity
Management LLC and StableRiver Capital Management, LLC. |
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|
|
H9
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Amendment dated April 1, 2008 to the Master Services Agreement
dated July 16, 2004 between the Registrant and Citi Fund Services,
Ohio, Inc. (formerly, BISYS Fund Services, Ohio, Inc.). |
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|
|
H13
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|
Amendment dated November 20, 2009 to the Master Services Agreement
dated July 16, 2004 between the Registrant and Citi Fund Services
Ohio, Inc. |
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|
|
H15
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|
Amendment dated May 1, 2008 to the Compliance Services Agreement
dated October 1, 2004 among the Registrant, RidgeWorth Variable
Trust (formerly, STI Classic Variable Trust) and Citi Fund
Services, Inc. (formerly, BISYS Fund Services, Ohio, Inc.). |
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|
|
H24
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Fund Services Agreement dated March 31, 2009 between the
Registrant and RidgeWorth Capital Management, Inc. |
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|
|
I
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|
Opinion and Consent of Counsel. |
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|
|
J
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|
Consent of independent registered public accounting firm. |
C-34