Ridgeworth Funds
Summary Prospectus
Core Bond
Fund
AUGUST 1, 2013
Class / Ticker Symbol
A / STGIX R / SCIGX I / STIGX
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, 2013, are incorporated by reference into this summary prospectus.
Investment Objective
The Core
Bond Fund (the Fund) seeks total return (comprised of capital appreciation and income) that consistently exceeds the total return of the U.S. dollar-denominated investment grade bond market.
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 91 of the Funds prospectus and Rights of Accumulation on page 60 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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0.25% |
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0.25% |
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0.25% |
Distribution (12b-1) Fees |
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0.30% |
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0.50% |
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None |
Other
Expenses(1) |
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0.15% |
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0.09% |
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0.15% |
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Total Annual Fund Operating Expenses |
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0.70% |
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0.84% |
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0.40% |
(1) |
Restated to reflect current fees. |
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
$10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year, that the Funds operating expenses remain the same and that you reinvest all dividends and distributions. The example
reflects contractual fee waivers and reimbursements for the first year only. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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1 Year |
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3 Years |
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5 Years |
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10 Years |
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A Shares |
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$ |
543 |
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$ |
689 |
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$ |
847 |
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$ |
1,308 |
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R Shares |
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$ |
86 |
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$ |
268 |
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$ |
467 |
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$ |
1,042 |
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I Shares |
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$ |
41 |
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$ |
129 |
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$ |
225 |
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$ |
508 |
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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 151% 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, and corporate obligations. The Fund may invest in debt
1
obligations of U.S. and non-U.S. issuers, including investment grade rated emerging market debt. The Funds investment in non-U.S. issuers may at times be significant. Under normal
circumstances, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in investment grade fixed income securities. These securities will be chosen from the broad universe of available fixed income securities
rated investment grade, or unrated securities that the Funds Subadviser, Seix Investment Advisors LLC (Seix or the Subadviser), believes are of comparable quality. A securitys rating will be governed by the
Barclays methodology as follows: when Standard & Poors Financial Services LLC, Moodys Investors Service, Inc. and Fitch, Inc. provide a rating, Seix will assign the middle rating of the three; if only two of those three rating
agencies rate the security, Seix will assign the lowest rating; if only one rating agency assigns a rating, Seix will use that rating. If none of the three provide a rating, Seix may rely on a rating provided by another nationally recognized
statistical ratings organization (NRSRO). The Fund can hold up to 5% of its net assets in securities that are downgraded below investment grade. The Fund may also invest a portion of its assets in securities that are restricted as to
resale. As a result of its investment strategy, the Funds portfolio turnover rate may be 100% or more.
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. The
Subadviser anticipates that the Funds modified-adjusted duration will generally range from 3 to 6 years, similar to that of the Barclays U.S. Aggregate Bond Index, the Funds comparative benchmark. Duration measures a bond or
Funds sensitivity to interest rate changes and is expressed as a number of years. The higher the number, the greater the risk. Under normal circumstances, for example, if a portfolio has a duration of 5 years, its value will change by 5% if
rates change by 1%. Shorter duration bonds result in lower expected volatility.
The Fund may use U.S. Treasury Securities futures as a vehicle to adjust
duration and manage its interest rate exposure. The Fund may also utilize Treasury Inflation Protected Securities (TIPS) opportunistically. The Fund will not buy or sell any other types of derivative instruments (such as foreign currency
forward contracts, swaps, including credit default swaps, OTC futures, credit linked notes, options, inverse floaters and warrants). The Fund may count the value of exchange traded futures and TIPS towards its policy to invest, under normal
circumstances, at least 80% of its net assets in fixed income securities.
Principal Investment Risks
You may lose money if you invest in the Fund. A Fund share is not a bank deposit and it is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Debt Securities Risk: Debt securities, such as bonds, involve credit risk. Credit risk is the risk that the borrower will not make timely payments of
principal or interest or will default. 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.
Foreign Companies Risk: Dollar denominated securities of foreign issuers involve special risks such as economic or financial instability, lack of timely or reliable financial information and unfavorable
political or legal developments. These risks are increased for investments in emerging 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.
Frequent Trading Risk: Frequent buying and selling of investments may involve higher trading costs and other
expenses and may affect the Funds performance over time. High rates of portfolio turnover may result in the realization of short-term capital gains and losses. The payment of taxes on these gains could adversely affect your after tax return on
your investment in the Fund. Any distributions resulting from such gains or losses may be considered ordinary income for federal income tax purposes.
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.
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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 and may 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.
Restricted Securities Risk: Certain debt securities may be restricted securities, which are not registered with the SEC and thus may not be sold publicly until registration has been made. Therefore, there is
the absence of a public market and there is limited investor information.
U.S. Government Securities Risk: U.S. Treasury securities are backed by
the full faith and credit of the U.S. government, while other types of securities issued or guaranteed by federal agencies, instrumentalities, and U.S. government-sponsored entities may or may not be backed by the full faith and credit of the U.S.
government. U.S. government 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. 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 |
8.51% |
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-3.47% |
(12/31/2008) |
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(6/30/2004) |
* |
The performance information shown above is based on a calendar year. The Funds total return for the six months ended June 30, 2013 was -2.65%.
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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, 2012) |
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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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3.45% |
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6.40% |
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5.20% |
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R Shares Returns Before
Taxes(1) |
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3.28% |
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6.00% |
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4.68% |
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I Shares Returns Before Taxes |
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3.78% |
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6.72% |
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5.55% |
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I Shares Returns After Taxes on Distributions |
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2.77% |
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4.90% |
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3.90% |
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I Shares Returns After Taxes on Distributions and Sale of Fund Shares |
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2.52% |
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4.77% |
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3.83% |
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Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) |
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4.22% |
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5.95% |
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5.18% |
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(1) |
At the close of business on July 31, 2009, all outstanding C Shares converted to R Shares. R Share performance shown prior to that date is that of
C Shares and has not been adjusted to reflect R Shares expenses. |
3
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 of Seix,
has been a member of the Funds management team since 2008. Mr. Adrien Webb, CFA, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Funds management team since 2004. Mr. Perry Troisi, Managing
Director and Senior Portfolio Manager of Seix, has been a member of the Funds management team since 2004. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Funds management team
since 2007.
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 |
R Shares |
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None |
I 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, which may be taxed upon withdrawal.
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-COREB-0813 |