RidgeWorth Funds
Summary Prospectus
Intermediate Bond Fund
AUGUST 1, 2012
Class / Ticker Symbol
A / IBASX R / IBLSX I / SAMIX
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
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 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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R Shares |
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I Shares |
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 |
Management Fees |
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0.24% |
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0.24% |
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0.24% |
Distribution (12b-1) Fees |
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0.25% |
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0.50% |
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None |
Other
Expenses(1) |
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0.14% |
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0.30% |
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0.11% |
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Total Annual Fund Operating Expenses |
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0.63% |
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1.04% |
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0.35% |
(1) |
Restated to reflect current fees.
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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
$10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same and you reinvest all dividends and distributions. Although your
actual costs may be higher or lower, based on these assumptions your costs would be:
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1 Year |
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3 Years |
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5 Years |
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10 Years |
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A Shares |
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$ |
536 |
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$ |
667 |
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$ |
810 |
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$ |
1,227 |
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R Shares |
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$ |
106 |
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$ |
331 |
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$ |
575 |
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$ |
1,276 |
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I Shares |
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$ |
36 |
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$ |
113 |
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$ |
197 |
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$ |
445 |
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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 139% of the average value of its
portfolio.
Principal Investment Strategies
The Fund invests in various types of income producing debt securities including mortgage-and asset-backed securities, government and agency obligations, corporate obligations and floating rate loans. The Fund may
invest in debt securities of U.S. and non-U.S. issuers, including emerging market debt. The Funds investment in
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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 corporate obligations 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.
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.
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.
Certain debt securities may be restricted securities,
which are not registered with the SEC and thus may not be not be sold publicly until registration has been made. Therefore, there is the absence of a public market and there is limited investor information.
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
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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, 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.
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.
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 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.
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.
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 |
6.44% |
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-2.33% |
(12/31/08) |
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(6/30/04) |
* |
The performance information shown above is based on a calendar year. The Funds total return for the six months ended June 30, 2012 was 1.87%.
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3
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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10 Years |
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A Shares Returns Before Taxes |
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6.31% |
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6.36% |
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5.09% |
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R Shares Returns Before
Taxes* |
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5.74% |
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5.83% |
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4.68% |
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I Shares Returns Before Taxes |
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6.49% |
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6.59% |
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5.29% |
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I Shares Returns After Taxes on Distributions |
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4.83% |
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4.75% |
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3.62% |
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I Shares Returns After Taxes on Distributions and Sale of Fund Shares |
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4.56% |
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4.61% |
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3.57% |
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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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5.80% |
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5.88% |
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5.20% |
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* |
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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, R, 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 |
I Shares |
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None |
R Shares |
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None |
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-0812 |