e497k
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Summary Prospectus
High Income Fund
AUGUST 1, 2011
Class / Ticker Symbol A / SAHIX R / STHIX I / STHTX
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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 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 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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0.60%
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0.60%
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0.60%
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Distribution (12b-1) Fees
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0.30%
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0.50%
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None
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Other Expenses
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0.10%
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0.30%
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0.10%
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Acquired Fund Fees and
Expenses(1)
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0.01%
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0.01%
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0.01%
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Total Annual Fund Operating Expenses
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1.01%
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1.41%
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0.71%
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(1) |
Acquired Fund Fees and Expenses reflect the
Funds pro rata share of the fees and expenses incurred by
investing in other investment companies. The impact of Acquired
Fund Fees and Expenses is included in the total returns of
the Fund. Acquired Fund Fees and Expenses are not used to
calculate the Funds NAV and are not included in the
calculation of the ratio of expenses to average net assets shown
in the Financial Highlights section of the Funds
prospectus.
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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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573
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$
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782
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$
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1,008
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$
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1,657
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R Shares
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$
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144
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$
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447
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$
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773
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$
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1,697
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I Shares
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$
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73
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$
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227
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$
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396
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$
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886
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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 269% of the average
value of its portfolio.
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August 1,
2011
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1
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Summary Prospectus
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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 (Seix or 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: (i) industries that have sound fundamentals;
(ii) companies that have good business prospects and
increasing credit strength; and (iii) 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
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.
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 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
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.
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.
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.
Futures Contract Risk: The risks associated with futures
include: the Subadvisers ability to manage these
instruments, the potential inability to terminate or sell
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Summary
Prospectus |
2
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August 1, 2011
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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 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.
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.
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
U.S. 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 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. 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 R Shares from year to year.*
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Best Quarter
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Worst Quarter
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17.94%
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-22.06%
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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 for the six months
ended June 30, 2011 was 5.57%.
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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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Since
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Since
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Inception
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Inception
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1 Year
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5 Years
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10 Years
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of A Shares*
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of I Shares*
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A Shares Returns Before Taxes
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17.06%
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9.47%
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N/A
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9.25%
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N/A
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R Shares Returns Before Taxes
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16.89%
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8.89%
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8.20%
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N/A
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N/A
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I Shares Returns Before Taxes
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17.43%
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9.81%
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N/A
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N/A
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9.48%
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R Shares Returns After Taxes on Distributions**
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14.02%
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5.85%
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5.07%
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N/A
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N/A
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R Shares Returns After Taxes on Distributions and Sale of Fund
Shares**
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10.88%
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5.72%
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5.11%
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N/A
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N/A
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Barclays Capital U.S. Corporate High Yield Bond Index
(reflects no deduction for fees, expenses or taxes)
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15.12%
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8.91%
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8.88%
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8.70%
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9.69%
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*
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Since inception of the A Shares on October 27, 2003 and
the I Shares on October 3, 2001. Benchmark returns since
September 30, 2001.
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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.
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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
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August 1,
2011
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3
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Summary Prospectus
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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 R 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. Brian Nold, M.D., Managing Director and Senior
Portfolio Manager, has co-managed the High Income Fund since
August 2006. Mr. Michael Kirkpatrick, Managing Director and
Senior Portfolio Manager, has co-managed the High Income Fund
since August 2011.
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-HI-0811
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