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Summary Prospectus
Intermediate Bond Fund
AUGUST 1, 2011
Class / Ticker Symbol A / IBASX R / IBLSX I / SAMIX
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Before you invest, you may want to review the Funds
Prospectus and Statement of Additional Information, which
contain more information about the Fund and its risks. You can
find the Funds Prospectus, Statement of Additional
Information and other information about the Fund online at
www.ridgeworth.com/prospectus. You can also get this information
at no cost by calling the Funds at
1-888-784-3863
or by sending an email request to info@ridgeworth.com. The
current Prospectus and Statement of Additional Information,
dated August 1, 2011, are incorporated by reference into
this summary prospectus.
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 91 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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R 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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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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R Shares
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I Shares
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Management Fees
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0.24%
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0.24%
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0.24%
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Distribution (12b-1) Fees
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0.25%
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0.50%
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None
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Other Expenses
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0.11%
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0.36%
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0.10%
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Total Annual Fund Operating Expenses
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0.60%
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1.10%
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0.34%
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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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534
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$
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658
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$
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795
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$
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1,193
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R Shares
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$
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112
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$
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350
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$
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607
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$
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1,345
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I Shares
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$
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35
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$
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109
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$
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191
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$
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433
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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 128% 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
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August 1,
2011
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1
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Summary Prospectus
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in
non-U.S. issuers
may at times be significant. Under normal circumstances, the
Fund invests at least 80% of its net assets (plus any borrowings
for investment purposes) 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, (Seix or 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 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
You may lose money if you invest in the Fund. 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.
Debt Securities Risk: Debt securities, such as bonds,
involve credit risk. Credit risk is the risk that the borrower
will not make timely payments of principal and interest. Changes
in an issuers credit rating or the markets
perception of an issuers creditworthiness may also affect
the value of the Funds investment in that issuer. The
degree of credit risk depends on the issuers financial
condition and on the terms of the securities. Debt securities
are also subject to interest rate risk, which is the risk that
the value of a debt security may fall when interest rates rise.
In general, the market price of debt securities with longer
maturities will go up or down more in response to changes in
interest rates than the market price of shorter term securities.
Mortgage-Backed and Asset-Backed Securities 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 adjustable-rate securities 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 security could underperform and affect the
Funds net asset value.
Prepayment and Call Risk: During periods of falling
interest rates, an issuer of a callable bond held by the Fund
may call or prepay the bond before its stated
maturity date. When mortgages and other obligations are prepaid
and when securities are called, the Fund may have to reinvest
the proceeds 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
and/or a
decline in the Funds income.
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: Securities that
are rated below investment grade (sometimes referred to as
junk bonds), including those bonds rated lower than
BBB- by Standard and Poors and Fitch, Inc. or
Baa3 by Moodys Investors Services, Inc.), or
that are unrated but judged by the Subadviser to be of
comparable quality, at the time of purchase, 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, and may
cause income and principal losses for the Fund.
Floating Rate Loan Risk: The value of the collateral
securing a floating rate loan can decline, be insufficient to
meet the obligations of the borrower, or be difficult to
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Summary
Prospectus |
2
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August 1, 2011
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liquidate. As a result, a floating rate loan may not be fully
collateralized and can decline significantly in value. Floating
rate loans generally are subject to contractual restrictions on
resale. The liquidity of floating rate loans, including the
volume and frequency of secondary market trading in such loans,
varies significantly over time and among individual floating
rate loans. During periods of infrequent trading, valuing a
floating rate loan can be more difficult; and buying and selling
a floating rate loan at an acceptable price can also be more
difficult and delayed. Difficulty in selling a floating rate
loan can result in a loss.
Derivatives Risk: In the course of pursuing its
investment strategies, the Fund may invest in certain types of
derivatives including swaps, foreign currency forward contracts
and futures. The Fund is exposed to additional volatility and
potential loss with these investments. Losses in these
investments may exceed the Funds initial investment.
Derivatives may be difficult to value, may become illiquid and
may not correlate perfectly with the overall securities market.
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 and interest rate 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 or decrease 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 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.
U.S. Government Issuers Risk: U.S. Treasury
obligations may differ in their interest rates, maturities,
times of issuance and other characteristics. Similar to other
issuers, changes to the financial condition or credit rating of
the U.S. government may cause the value of its Treasury
obligations to decline. Obligations of U.S. government
agencies and authorities are supported by varying degrees of
credit, but generally are not backed by the full faith and
credit of the U.S. government. U.S. government debt
securities may underperform other segments of the fixed income
market or the fixed income market as a whole.
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. Updated performance
information is available by contacting the RidgeWorth Funds at
1-888-784-3863 or by visiting www.ridgeworth.com.
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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6.44%
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-2.33%
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(12/31/08)
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(06/30/04)
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The performance information shown above is based on a
calendar year. The Funds total return for the six months
ended June 30, 2011 was 2.36%.
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The following table compares the Funds average annual
total returns for the periods indicated with those of a broad
measure of market performance.
AVERAGE ANNUAL
TOTAL RETURNS
(for periods ended
December 31, 2010)
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1 Year
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5 Years
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10 Years
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A Shares Returns Before Taxes
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4.71%
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5.78%
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5.16%
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R Shares Returns Before Taxes*
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4.25%
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5.21%
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4.81%
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I Shares Returns Before Taxes
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4.97%
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6.05%
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5.34%
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I Shares Returns After Taxes on Distributions
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3.28%
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4.23%
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3.53%
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I Shares Returns After Taxes on Distributions and Sale of Fund
Shares
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3.50%
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4.13%
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3.49%
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Barclays Capital Intermediate U.S. Government/Credit Bond Index
(reflects no deduction for fees, expenses or taxes)
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5.89%
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5.53%
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5.51%
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August 1,
2011
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3
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Summary Prospectus
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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.
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After-tax returns are calculated using the historical highest
individual U.S. 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 (IRAs). After-tax returns are
shown for only the I Shares. After-tax returns for other share
classes will vary.
Investment
Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser
(the Adviser). Seix Investment Advisors LLC is the
Funds Subadviser.
Portfolio
Management
Mr. James F. Keegan, Chief Investment Officer and Chief
Executive 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 share class are
shown below, although these minimums may be reduced or waived in
some cases.
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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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R Shares
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$5,000 ($2,000 for IRAs or other tax qualified accounts)
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I Shares
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None
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Subsequent investments in A Shares must be made in amounts of at
least $1,000. The Fund may accept investments of smaller amounts
at its discretion. There are no minimums for subsequent
investments in R or I 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 IRA.
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.
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RFSUM-IB-0811
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