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Summary Prospectus
Seix Floating Rate High Income Fund
AUGUST 1, 2011
Class / Ticker Symbol A / SFRAX C / SFRCX I / SAMBX
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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 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 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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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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2.50%
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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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0.42%
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0.42%
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0.42%
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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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0.12%
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0.08%
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0.09%
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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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0.85%
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1.51%
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0.52%
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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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335
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$
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515
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$
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711
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$
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1,277
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C Shares
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$
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254
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$
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478
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$
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825
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$
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1,807
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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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656
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August 1,
2011
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1
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Summary Prospectus
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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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335
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$
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515
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$
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711
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$
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1,277
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C Shares
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$
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154
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$
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478
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$
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825
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$
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1,807
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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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656
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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 104% of the average
value of its portfolio.
Principal
Investment Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets (plus any borrowings for investment purposes) 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 the London Interbank Offered Rate
(LIBOR). 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 (Seix or
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
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.
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
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Summary
Prospectus |
2
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August 1, 2011
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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.
Senior Loan Risk: 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.
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.
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 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.
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.
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 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. 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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12.47%
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-18.40%
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(6/30/09)
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(12/31/08)
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August 1,
2011
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3
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Summary Prospectus
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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 2.61%.
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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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1 Year
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Inception*
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A Shares Returns Before Taxes
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9.48%
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4.06%
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C Shares Returns Before Taxes
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8.76%
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3.65%
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I Shares Returns Before Taxes
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9.97%
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4.38%
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I Shares Returns After Taxes on Distributions
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7.69%
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2.01%
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I Shares Returns After Taxes on Distributions and Sale of
Fund Shares
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6.41%
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2.31%
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Credit Suisse Institutional Leveraged Loan Index (reflects no
deduction for fees, expenses or taxes)**
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7.63%
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2.01%
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*
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Since inception of the I Shares of the Fund on March 1,
2006. Benchmark return since February 28, 2006 (benchmark
returns available only on a month end basis).
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**
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Index returns reflect the returns of the Credit Suisse First
Boston Leveraged Loan Index, the Funds former benchmark
index, through January 31, 2010 and the Credit Suisse
Institutional Leveraged Loan Index thereafter.
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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. George Goudelias, Managing Director and Senior
Portfolio Manager of Seix, has co-managed the Fund since its
inception. Vincent Flanagan, Vice President and Portfolio
Manager of Seix, has co-managed the Fund since 2011.
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.
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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 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 or C Shares must be made in amounts
of at least $1,000. The Fund may accept investments of smaller
amounts for either class of shares at its discretion. There are
no minimums for subsequent investments in 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-SFR-0811
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