RidgeWorth Funds
Summary Prospectus
Seix Floating Rate High Income Fund
AUGUST 1, 2012
Class / Ticker Symbol
A / SFRAX C / SFRCX I / SAMBX
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
http://www.ridgeworth.com/resources/regulatory-tax-info. 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, 2012, 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 85 of the Funds prospectus and Rights of Accumulation on page 62 of the Funds
statement of additional information.
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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 |
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 |
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 |
Management Fees |
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0.41% |
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0.41% |
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0.41% |
Distribution (12b-1) Fees |
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0.30% |
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1.00% |
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None |
Other
Expenses(1) |
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0.16% |
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0.11% |
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0.24% |
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Total Annual Fund Operating Expenses |
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0.87% |
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1.52% |
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0.65% |
Fee Waivers and/or Expense Reimbursements(2) |
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(0.03)% |
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Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
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0.87% |
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1.52% |
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0.62% |
(1) |
Restated to reflect current fees. |
(2) |
The Adviser and Subadviser have contractually agreed to waive fees and reimburse expenses until at least August 1, 2013 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 0.95%, 1.61% and 0.62% 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 $10,000 in the Fund for the time periods
indicated. The Example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same and you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based
on these assumptions your costs would be:
1
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1 Year |
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3 Years |
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5 Years |
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10 Years |
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A Shares |
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$ |
337 |
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$ |
521 |
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$ |
721 |
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$ |
1,300 |
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C Shares |
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$ |
255 |
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$ |
481 |
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$ |
830 |
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$ |
1,818 |
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I Shares |
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$ |
63 |
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$ |
205 |
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$ |
360 |
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$ |
811 |
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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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$ |
337 |
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$ |
521 |
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$ |
721 |
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$ |
1,300 |
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C Shares |
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$ |
155 |
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$ |
481 |
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$ |
830 |
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$ |
1,818 |
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I Shares |
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$ |
63 |
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$ |
205 |
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$ |
360 |
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$ |
811 |
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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 72% 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.
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.
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.
2
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.
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.
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.
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.
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.
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, the risk that the counterparty to the transaction will not meet its obligations, mispricing or
improper valuation and that the other party to a derivative transaction will not meet its obligations. The prices of derivatives may move in unexpected ways, especially in unusual market conditions, and may result in increased volatility and
unexpected losses.
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.
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.
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.
The annual returns in the bar chart which follows are for the I Shares without reflecting payment of
any sales charge; if they did reflect such payment of sales charges, annual returns would be lower.
3
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 |
12.47% |
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-18.40% |
(6/30/09) |
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(12/31/08) |
* |
The performance information shown above is based on a calendar year. The Funds total return for the six months ended June 30, 2012 was 4.04%.
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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.
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AVERAGE ANNUAL TOTAL RETURNS
(for periods ended December 31, 2011) |
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1 Year |
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5 Years |
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Since Inception* |
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A Shares Returns Before Taxes |
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1.81% |
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3.33% |
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3.67% |
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C Shares Returns Before Taxes |
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1.13% |
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2.76% |
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3.21% |
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I Shares Returns Before Taxes |
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2.09% |
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3.65% |
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3.98% |
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I Shares Returns After Taxes on Distributions |
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0.15% |
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1.38% |
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1.69% |
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I Shares Returns After Taxes on Distributions and Sale of Fund Shares |
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1.35% |
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1.75% |
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2.03% |
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Credit Suisse Institutional Leveraged Loan Index (reflects no deduction for fees, expenses or taxes)** |
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2.53% |
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1.26% |
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2.10% |
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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. |
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, C, and I Shares of the Fund through financial institutions or intermediaries that are authorized to place transactions in Fund shares for their customers or for their own
accounts.
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 |
A Shares |
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$2,000 |
C Shares |
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$5,000 ($2,000 for IRAs or other tax qualified accounts) |
I Shares |
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None |
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-0812 |