Ridgeworth Funds
As filed with the Securities and Exchange Commission on July 28, 2016
Securities Act File No. 033-45671
Investment Company Act File No. 811-06557
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION
STATEMENT
UNDER
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THE SECURITIES ACT OF 1933 |
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Post-Effective Amendment No. 108 |
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and/or
REGISTRATION STATEMENT
UNDER
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THE INVESTMENT COMPANY ACT OF 1940 |
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Amendment No. 110 |
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RIDGEWORTH FUNDS
(Exact
Name of Registrant as Specified in Charter)
3333 Piedmont
Road, Suite 1500
Atlanta, GA 30305
(Address of Principal Executive Office) (Zip Code)
Registrants Telephone Number, including Area Code: 1-888-784-3863
Julia R. Short
President
RidgeWorth
Funds
3333 Piedmont Road, Suite 1500
Atlanta, GA 30305
(Name
and Address of Agent for Service)
Copies to:
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W. John McGuire, Esq.
Morgan, Lewis & Bockius LLP
1111 Pennsylvania Avenue, NW
Washington, DC 20004 |
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Thomas S. Harman, Esq.
Morgan, Lewis & Bockius LLP
1111 Pennsylvania Avenue, NW
Washington, DC 20004 |
It is proposed that this filing will become effective (check appropriate box):
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Immediately upon filing pursuant to paragraph (b) |
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On August 1, 2016 pursuant to paragraph (b) |
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60 days after filing pursuant to paragraph (a)(1) |
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On pursuant to paragraph (a)(1) |
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75 days after filing pursuant to paragraph (a)(2) |
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On pursuant to paragraph (a)(2) of Rule 485 |
If appropriate, check the following box:
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This post-effective amendment designates a new effective date for a previously-filed post-effective amendment. |
ALLOCATION STRATEGIES
A, C & I SHARES
PROSPECTUS
August 1, 2016
Investment Adviser: RidgeWorth Investments
|
A
Shares |
|
C
Shares |
|
I
Shares |
•
Aggressive Growth Allocation Strategy |
SLAAX
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|
CLVLX
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CVMGX
|
•
Conservative Allocation Strategy |
SVCAX
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SCCLX
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|
SCCTX
|
•
Growth Allocation Strategy |
SGIAX
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SGILX
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|
CLVGX
|
•
Moderate Allocation Strategy |
SVMAX
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SVGLX
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|
CLVBX
|
The Securities and
Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
August 1, 2016
RidgeWorth Investments is the trade name of
RidgeWorth Capital Management LLC
Aggressive Growth
Allocation Strategy
Summary Section
A Shares, C Shares and I Shares
Investment Objective
The Aggressive Growth Allocation Strategy (the
“Fund”) seeks to provide a high level of capital appreciation.
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 29 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
5.75%
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
Management
Fees |
0.10%
|
|
0.10%
|
|
0.10%
|
Distribution
(12b-1) Fees |
0.30%
|
|
1.00%
|
|
None
|
Other
Expenses |
1.17%
|
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1.13%
|
|
1.45%
|
Acquired
Fund Fees and Expenses(1) |
0.71%
|
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0.71%
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0.71%
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Total
Annual Fund Operating Expenses |
2.28%
|
|
2.94%
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|
2.26%
|
Fee
Waivers and/or Expense Reimbursements(2) |
(0.87)%
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|
(0.93)%
|
|
(1.05)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
1.41%
|
|
2.01%
|
|
1.21%
|
(1)
|
“Acquired Fund Fees and
Expenses” reflect the Fund’s 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 Fund’s net asset value per share (“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 Fund’s
prospectus. |
(2)
|
The Adviser has contractually
agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on securities sold short,
interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.70%, 1.30% and 0.50% for the A, C |
and I Shares, respectively. This agreement may be terminated
upon written notice to the Adviser by RidgeWorth Funds.
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 and then redeem all of your shares at the end of those periods. The example
also assumes that your investment has a 5% return each year, that the Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$710
|
$1,168
|
$1,650
|
$2,977
|
C
Shares |
$304
|
$
822 |
$1,466
|
$3,195
|
I
Shares |
$123
|
$
605 |
$1,114
|
$2,513
|
You would pay the
following expenses if you did not redeem your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$710
|
$1,168
|
$1,650
|
$2,977
|
C
Shares |
$204
|
$
822 |
$1,466
|
$3,195
|
I
Shares |
$123
|
$
605 |
$1,114
|
$2,513
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 43% of the average value of its portfolio.
Principal Investment Strategies
The Fund invests pursuant to an asset allocation strategy in a
combination of RidgeWorth Equity Funds and exchange-traded funds (“ETFs”) that invest in equities (together, “Underlying Equity Funds”), and, to a lesser extent, RidgeWorth Fixed Income Funds and ETFs that invest in bonds
(together, “Underlying Fixed Income Funds”). The Fund invests between 70% and 90% of its assets in Underlying Equity Funds and between 10% and 30% of its assets in Underlying Fixed Income Funds (together, “Underlying Funds”).
The Fund’s remaining assets may be invested in cash and cash equivalents, including unaffiliated money market funds, securities issued by the U.S. government, its agencies or instrumentalities, repurchase agreements and short-term paper.
Aggressive
Growth Allocation Strategy
The Fund may invest in Underlying Funds that:
–
|
invest in common stocks of
real estate investment trusts and companies principally engaged in the real estate industry. |
–
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invest in common stocks,
other equity securities and debt instruments, including mortgage- and asset-backed instruments and securities restricted as to resale, of U.S. and non-U.S. companies. The Underlying Fund may invest in companies of any size and in both developed and
emerging markets. |
–
|
invest in bank loans and
other below investment grade instruments. |
–
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invest in
inflation-protected public obligations of the U.S. Treasury (“TIPS”), which are securities issued by the U.S. Treasury that are designed to provide inflation protection to investors. |
In selecting a diversified portfolio of Underlying Funds, the
Adviser analyzes many factors, including the Underlying Funds’ investment objectives, total return, volatility and expenses. The table that follows shows how the Adviser currently expects to allocate the Fund’s portfolio among asset
classes. The table also shows the sectors within those asset classes to which the Fund may have exposure.
Asset
Class |
Investment
Range (Percentage of the Aggressive Growth Allocation Strategy’s Assets) |
Underlying
Equity Funds |
70-90%
|
U.S.
Equities |
|
International
Equities |
|
Emerging
Market Equities (All Market Capitalizations) |
|
Underlying
Fixed Income Funds |
10-30%
|
U.S.
Investment Grade Bonds |
|
U.S.
High Yield Bonds |
|
U.S.
Floating Rate Securities (including bank loans) |
|
International
Bonds |
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Emerging
Market Bonds |
|
Underlying
Money Market Investments |
0-20%
|
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.
The value of an investment in the Fund is based primarily on
the performance of the Underlying Funds and the allocation of the Fund’s assets among them. The Adviser’s asset allocation decisions may not anticipate market trends successfully. The risks of the Fund will directly correspond to the
risks of the Underlying Funds in which it invests. These risks will vary
depending upon how the assets are allocated among the Underlying Funds.
Certain risks associated with investing in the Underlying Funds are described in this section.
Asset Allocation Risk: Asset
allocation risk is the risk that the Fund could lose money as a result of less than optimal or poor asset allocation decisions as to how its assets are allocated or re-allocated.
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 & Poor’s Financial Services LLC and
Fitch, Inc. or “Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These instruments have a higher degree of default risk and may
be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of high yield investments generally, and
less secondary market liquidity. This potential lack of liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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.
Equity Securities Risk: The price of equity securities fluctuates from time to time based on changes in a company’s financial condition or overall market and economic conditions. As a result, the value of the Fund’s equity
securities may fluctuate drastically from day to day.
Exchange-Traded Fund Risk:
ETFs, like mutual funds, have expenses associated with their operation, including advisory fees. When a Fund invests in an ETF, in addition to directly bearing expenses associated with its own operations, the Fund bears its pro rata portion of the
ETF’s expenses. The impact of these additional expenses, if any, would be shown as part of “Acquired Fund Fees and Expenses” in the Annual Fund Operating Expenses table.
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
Aggressive Growth
Allocation Strategy
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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to sell or realize the full value of its loans in the event of a need
to liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be considered securities and, therefore, the Fund may not have the protections of the federal
securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
Growth Stock Risk:
“Growth” stocks can react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. “Growth” stocks typically are sensitive to market movements because their
market prices tend to reflect future expectations. When it appears those expectations will not be met, the prices of growth stocks typically fall.
Large-Capitalization Companies Risk: Large-cap stocks can perform differently from other segments of the equity market or the equity market as a whole. Large-capitalization companies may be less flexible in evolving markets or unable to implement change as
quickly as small-capitalization companies.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting
to prevailing market rates. In such an event, the security could underperform and affect the Fund’s net asset value.
Prepayment and Call Risk:
During periods of falling interest rates, an issuer of a callable bond held by the Fund or an Underlying 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 or an Underlying 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 Fund’s income.
Real
Estate Investment Risk: The Fund or an Underlying ETF invests in companies that invest in real estate (e.g. real estate investment trusts) and is exposed to risks specific to the real estate market, including interest rate risk, leverage risk, property risk and management risk.
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.
Small- and Mid-Capitalization Companies
Risk: Small- and mid-capitalization stocks tend to perform differently from other segments of the equity market or the equity market as a whole, and can be more volatile than stocks of large-capitalization
companies. Small- and mid-capitalization companies may be newer or less established, and may have limited resources, products and markets, and may be less liquid.
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.
Value Investing Risk:
“Value” investing attempts to identify strong companies whose stocks are selling at a discount from their perceived true worth. It is subject to the risk that the stocks’ intrinsic values may never be fully recognized or realized
by the market, their prices may go down, or that stocks judged to be undervalued by the Fund or an Underlying Fund may actually be appropriately priced.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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.
Aggressive
Growth Allocation Strategy
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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
16.09%
|
-21.29%
|
(6/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 0.33%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(6.90)%
|
5.52%
|
4.27%
|
C
Shares Return Before Taxes |
(2.44)%
|
6.13%
|
4.20%
|
I
Shares Return Before Taxes |
(1.10)%
|
7.02%
|
5.17%
|
I
Shares Return After Taxes on Distributions |
(6.15)%
|
3.82%
|
2.67%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
3.35%
|
5.15%
|
3.83%
|
Hybrid
80/20 Blend of the two Indices below (reflects no deduction for fees, expenses or taxes) |
1.37%
|
10.78%
|
6.95%
|
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
1.38%
|
12.57%
|
7.31%
|
Barclays
U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) |
0.55%
|
3.25%
|
4.51%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”).
Portfolio Management
Mr. Alan Gayle, Managing Director of the Adviser, has managed
the Fund since its inception.
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, waived, or not applicable in some cases.
Aggressive Growth
Allocation Strategy
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
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 Fund’s distributions are generally taxable as
ordinary income, qualified dividend income, or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Conservative
Allocation Strategy
Summary Section
A Shares, C Shares and I Shares
Investment Objective
The Conservative Allocation Strategy (the “Fund”)
seeks to provide a high level of capital appreciation and current income.
Fees and Expenses of the Fund
This table describes the fees and expenses
that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in RidgeWorth Funds. More information about these and other
discounts is available from your financial professional and in Sales Charges on page 29 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
4.75%
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
Management
Fees |
0.10%
|
|
0.10%
|
|
0.10%
|
Distribution
(12b-1) Fees |
0.30%
|
|
1.00%
|
|
None
|
Other
Expenses |
0.27%
|
|
0.22%
|
|
0.34%
|
Acquired
Fund Fees and Expenses(1) |
0.46%
|
|
0.46%
|
|
0.46%
|
Total
Annual Fund Operating Expenses |
1.13%
|
|
1.78%
|
|
0.90%
|
Fee
Waivers and/or Expense Reimbursements(2) |
(0.07)%
|
|
(0.02)%
|
|
(0.14)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
1.06%
|
|
1.76%
|
|
0.76%
|
(1)
|
“Acquired Fund Fees and
Expenses” reflect the Fund’s 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 Fund’s net asset value per share (“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 Fund’s
prospectus. |
(2)
|
The Adviser has contractually
agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on securities sold short,
interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.60%, 1.30% and 0.30% for the A, C |
and I Shares, respectively. This agreement may be terminated
upon written notice to the Adviser by RidgeWorth Funds.
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 and then redeem all of your shares at the end of those periods. The example
also assumes that your investment has a 5% return each year, that the Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$578
|
$810
|
$1,061
|
$1,778
|
C
Shares |
$279
|
$558
|
$
963 |
$2,093
|
I
Shares |
$
78 |
$273
|
$
485 |
$1,095
|
You would pay the
following expenses if you did not redeem your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$578
|
$810
|
$1,061
|
$1,778
|
C
Shares |
$179
|
$558
|
$
963 |
$2,093
|
I
Shares |
$
78 |
$273
|
$
485 |
$1,095
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 40% of the average value of its portfolio.
Principal Investment Strategies
The Fund invests pursuant to an asset allocation strategy in a
combination of RidgeWorth Fixed Income Funds and exchange-traded funds (“ETFs”) that invest in bonds (together, “Underlying Fixed Income Funds”), and to a lesser extent, RidgeWorth Equity Funds and ETFs that invest in
equities (together, “Underlying Equity Funds”). The Fund invests between 50% and 80% of its assets in Underlying Fixed Income Funds, and between 20% and 40% of its assets in Underlying Equity Funds (together, “Underlying
Funds”). The Fund’s remaining assets may be invested in cash and cash equivalents, including unaffiliated money market funds, securities issued by the U.S. government, its agencies or instrumentalities, repurchase agreements and
short-term paper.
Conservative Allocation
Strategy
The Fund may invest in Underlying Funds that:
–
|
invest in debt instruments,
including mortgage- and asset-backed instruments, securities restricted as to resale, common stocks and other equity securities of U.S. and non-U.S. companies including those in both developed and emerging markets. |
–
|
invest in bank loans and
other below investment grade instruments. |
–
|
invest in
inflation-protected public obligations of the U.S. Treasury (“TIPS”), which are securities issued by the U.S. Treasury that are designed to provide inflation protection to investors. |
In selecting a diversified portfolio of Underlying Fixed Income
Funds and Underlying Equity Funds (together, “Underlying Funds”), the Adviser analyzes many factors, including the Underlying Funds’ investment objectives, total return, volatility and expenses.
The table that follows shows how the Adviser currently expects
to allocate the Fund’s portfolio among asset classes. The table also shows the sectors within those asset classes to which the Fund will currently have exposure.
Asset
Class |
Investment
Range (Percentage of the Conservative Allocation Strategy’s Assets) |
Underlying
Fixed Income Funds |
50-80%
|
U.S.
Investment Grade Bonds |
|
U.S.
High Yield Bonds |
|
U.S.
Floating Rate Securities (including bank loans) |
|
International
Bonds |
|
Emerging
Market Bonds |
|
Underlying
Equity Funds |
20-40%
|
U.S.
Equities |
|
International
Equities |
|
Emerging
Market Equities (All Market Capitalizations) |
|
Underlying
Money Market Investments |
0-20%
|
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.
The value of an investment in the Fund is based primarily on
the performance of the Underlying Funds and the allocation of the Fund’s assets among them. The Adviser’s asset allocation decisions may not anticipate market trends successfully. The risks of the Fund will directly correspond to the
risks of the Underlying Funds in which it invests. These risks will vary depending upon how the assets are allocated among the Underlying Funds. Certain risks associated with investing in the Underlying Funds are described in this section.
Asset Allocation Risk: Asset allocation risk
is the risk that the Fund could lose money as a result of less than optimal or poor asset allocation decisions as to how its assets are allocated or re-allocated.
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 & Poor’s Financial Services LLC and
Fitch, Inc. or “Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These instruments have a higher degree of default risk and may
be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of high yield investments generally, and
less secondary market liquidity. This potential lack of liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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.
Equity Securities Risk: The price of equity securities fluctuates from time to time based on changes in a company’s financial condition or overall market and economic conditions. As a result, the value of the Fund’s equity
securities may fluctuate drastically from day to day.
Exchange-Traded Fund Risk:
ETFs, like mutual funds, have expenses associated with their operation, including advisory fees. When a Fund invests in an ETF, in addition to directly bearing expenses associated with its own operations, the Fund bears its pro rata portion of the
ETF’s expenses. The impact of these additional expenses, if any, would be shown as part of “Acquired Fund Fees and Expenses” in the Annual Fund Operating Expenses table.
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
Conservative
Allocation Strategy
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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to sell or realize the full value of its loans in the event of a need to
liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be considered securities and, therefore, the Fund may not have the protections of the federal
securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
Growth Stock Risk:
“Growth” stocks can react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. “Growth” stocks typically are sensitive to market movements because their
market prices tend to reflect future expectations. When it appears those expectations will not be met, the prices of growth stocks typically fall.
Large-Capitalization Companies Risk: Large-cap stocks can perform differently from other segments of the equity market or the equity market as a whole. Large-capitalization companies may be less flexible in evolving markets or unable to implement change as
quickly as small-capitalization companies.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s net asset value.
Prepayment and Call Risk: During periods of
falling interest rates, an issuer of a callable bond held by the Fund or an Underlying 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 or an Underlying 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
Fund’s income.
Real Estate Investment Risk: The Fund or an Underlying ETF invests in companies that invest in real estate (e.g. real estate investment trusts) and
is exposed to risks specific to the real estate market, including interest rate risk, leverage risk, property risk and management risk.
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.
Small- and Mid-Capitalization Companies
Risk: Small- and mid-capitalization stocks tend to perform differently from other segments of the equity market or the equity market as a whole, and can be more volatile than stocks of large-capitalization
companies. Small- and mid-capitalization companies may be newer or less established, and may have limited resources, products and markets, and may be less liquid.
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.
Value Investing Risk:
“Value” investing attempts to identify strong companies whose stocks are selling at a discount from their perceived true worth. It is subject to the risk that the stocks’ intrinsic values may never be fully recognized or realized
by the market, their prices may go down, or that stocks judged to be undervalued by the Fund or an Underlying Fund may actually be appropriately priced.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. I Shares commenced operations on November 6, 2003, A Shares
commenced operations on November 11, 2003 and C Shares commenced operations on April 3, 2005. Performance between March 11, 2003 and the commencement of operations of A Shares, C Shares and I Shares is that of the B Shares of the
Fund, which converted into A Shares of the Fund on July 16, 2010, and has not been adjusted to reflect A Share, C Share or I Share expenses. If it had been performance for the C Shares would
Conservative Allocation
Strategy
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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
7.57%
|
-4.15%
|
(9/30/2009)
|
(9/30/2011)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 3.02%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(5.59)%
|
3.64%
|
4.68%
|
C
Shares Return Before Taxes |
(2.59)%
|
3.92%
|
4.44%
|
I
Shares Return Before Taxes |
(0.68)%
|
4.96%
|
5.49%
|
I
Shares Return After Taxes on Distributions |
(1.96)%
|
3.46%
|
3.97%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.15%
|
3.44%
|
3.84%
|
Hybrid
30/70 Blend of the two Indices below (reflects no deduction for fees, expenses or taxes) |
1.01%
|
6.13%
|
5.61%
|
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
1.38%
|
12.57%
|
7.31%
|
Barclays
U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) |
0.55%
|
3.25%
|
4.51%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”).
Portfolio Management
Mr. Alan Gayle, Managing Director of the Adviser, has managed
the Fund since its inception.
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, waived, or not applicable in some cases.
Conservative
Allocation Strategy
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
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 Fund’s distributions are generally taxable as
ordinary income, qualified dividend income, or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Growth Allocation
Strategy
Summary Section
A Shares, C Shares and I Shares
Investment Objective
The Growth Allocation Strategy (the “Fund”) seeks
to provide long-term capital appreciation.
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 29 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
5.75%
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
Management
Fees |
0.10%
|
|
0.10%
|
|
0.10%
|
Distribution
(12b-1) Fees |
0.30%
|
|
1.00%
|
|
None
|
Other
Expenses |
0.27%
|
|
0.21%
|
|
0.60%
|
Acquired
Fund Fees and Expenses(1) |
0.66%
|
|
0.66%
|
|
0.66%
|
Total
Annual Fund Operating Expenses |
1.33%
|
|
1.97%
|
|
1.36%
|
Fee
Waivers and/or Expense Reimbursements(2) |
—
|
|
(0.01)%
|
|
(0.20)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
1.33%
|
|
1.96%
|
|
1.16%
|
(1)
|
“Acquired Fund Fees and
Expenses” reflect the Fund’s 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 Fund’s net asset value per share (“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 Fund’s
prospectus. |
(2)
|
The Adviser has contractually
agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on securities sold short,
interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.70%, 1.30% and 0.50% for the A, C |
and I Shares, respectively. This agreement may be terminated
upon written notice to the Adviser by RidgeWorth Funds.
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 and then redeem all of your shares at the end of those periods. The example
also assumes that your investment has a 5% return each year, that the Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$703
|
$972
|
$1,262
|
$2,084
|
C
Shares |
$299
|
$617
|
$1,061
|
$2,295
|
I
Shares |
$118
|
$411
|
$
726 |
$1,618
|
You would pay the
following expenses if you did not redeem your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$703
|
$972
|
$1,262
|
$2,084
|
C
Shares |
$199
|
$617
|
$1,061
|
$2,295
|
I
Shares |
$118
|
$411
|
$
726 |
$1,618
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 29% of the average value of its portfolio.
Principal Investment Strategies
The Fund invests pursuant to an asset allocation strategy in a
combination of RidgeWorth Equity Funds and exchange-traded funds (“ETFs”) that invest in equities (together, “Underlying Equity Funds”), and, to a lesser extent, RidgeWorth Fixed Income Funds and ETFs that invest in bonds
(together, “Underlying Fixed Income Funds”). The Fund invests between 60% and 80% of its assets in Underlying Equity Funds and between 10% and 40% of its assets in Underlying Fixed Income Funds (together, “Underlying Funds”).
The Fund’s remaining assets may be invested in cash and cash equivalents, including unaffiliated money market funds, securities issued by the U.S. government, its agencies or instrumentalities, repurchase agreements and short-term paper.
Growth
Allocation Strategy
The Fund may invest in Underlying Funds that:
–
|
invest in common stocks,
other equity securities and debt instruments, including mortgage- and asset-backed instruments and securities restricted as to resale, of U.S. and non-U.S. companies. The Underlying Fund may invest in companies of any size and in both developed and
emerging markets. |
–
|
invest in bank loans and
other below investment grade instruments. |
–
|
invest in
inflation-protected public obligations of the U.S. Treasury (“TIPS”), which are securities issued by the U.S. Treasury that are designed to provide inflation protection to investors. |
In selecting a diversified portfolio of Underlying Funds, the
Adviser analyzes many factors, including the Underlying Funds’ investment objectives, total returns, volatility and expenses. The table that follows shows how the Adviser currently expects to allocate the Fund’s portfolio among asset
classes. The table also shows the sectors within those asset classes to which the Fund will currently have exposure.
Asset
Class |
Investment
Range (Percentage of the Growth Allocation Strategy’s Assets) |
Underlying
Equity Funds |
60-80%
|
U.S.
Equities |
|
International
Equities |
|
Emerging
Market Equities (All Market Capitalizations) |
|
Underlying
Fixed Income Funds |
10-40%
|
U.S.
Investment Grade Bonds |
|
U.S.
High Yield Bonds |
|
U.S.
Floating Rate Securities (including bank loans) |
|
International
Bonds |
|
Emerging
Market Bonds |
|
Underlying
Money Market Investments |
0-20%
|
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.
The value of an investment in the Fund is based primarily on
the performance of the Underlying Funds and the allocation of the Fund’s assets among them. The Adviser’s asset allocation decisions may not anticipate market trends successfully. The risks of the Fund will directly correspond to the
risks of the Underlying Funds in which it invests. These risks will vary depending upon how the assets are allocated among the Underlying Funds. Certain risks associated with investing in the Underlying Funds are described in this section.
Asset Allocation Risk: Asset allocation risk
is the risk that the Fund could lose money as a result of less than optimal or poor asset allocation decisions as to how its assets are allocated or re-allocated.
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 & Poor’s Financial Services LLC and
Fitch, Inc. or “Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These instruments have a higher degree of default risk and may
be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of high yield investments generally, and
less secondary market liquidity. This potential lack of liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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.
Equity Securities Risk: The price of equity securities fluctuates from time to time based on changes in a company’s financial condition or overall market and economic conditions. As a result, the value of the Fund’s equity
securities may fluctuate drastically from day to day.
Exchange-Traded Fund Risk:
ETFs, like mutual funds, have expenses associated with their operation, including advisory fees. When a Fund invests in an ETF, in addition to directly bearing expenses associated with its own operations, the Fund bears its pro rata portion of the
ETF’s expenses. The impact of these additional expenses, if any, would be shown as part of “Acquired Fund Fees and Expenses” in the Annual Fund Operating Expenses table.
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
Growth Allocation
Strategy
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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to sell or realize the full value of its loans in the event of a need to
liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be considered securities and, therefore, the Fund may not have the protections of the federal
securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
Growth Stock Risk:
“Growth” stocks can react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. “Growth” stocks typically are sensitive to market movements because their
market prices tend to reflect future expectations. When it appears those expectations will not be met, the prices of growth stocks typically fall.
Large-Capitalization Companies Risk: Large-cap stocks can perform differently from other segments of the equity market or the equity market as a whole. Large-capitalization companies may be less flexible in evolving markets or unable to implement change as
quickly as small-capitalization companies.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s net asset value.
Prepayment and Call Risk: During periods of
falling interest rates, an issuer of a callable bond held by the Fund or an Underlying 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 or an Underlying 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
Fund’s income.
Real Estate Investment Risk: The Fund or an Underlying ETF invests in companies that invest in real estate (e.g. real estate investment trusts) and
is exposed to risks specific to the real estate market, including interest rate risk, leverage risk, property risk and management risk.
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.
Value Investing Risk:
“Value” investing attempts to identify strong companies whose stocks are selling at a discount from their perceived true worth. It is subject to the risk that the stocks’ intrinsic values may never be fully recognized or realized
by the market, their prices may go down, or that stocks judged to be undervalued by the Fund or an Underlying Fund may actually be appropriately priced.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. A Shares commenced operations on November 5, 2003 and C Shares
commenced operations on April 5, 2005. Performance prior to the commencement of operations of each respective class, is that of I Shares of the Fund, and has not been adjusted to reflect expenses associated with other classes. 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.
Growth
Allocation Strategy
This bar chart shows the changes in performance of the
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
13.13%
|
-14.19%
|
(9/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 1.17%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(6.65)%
|
5.51%
|
4.88%
|
C
Shares Return Before Taxes |
(2.50)%
|
6.09%
|
4.78%
|
I
Shares Return Before Taxes |
(0.89)%
|
7.00%
|
5.78%
|
I
Shares Return After Taxes on Distributions |
(2.94)%
|
5.09%
|
4.01%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.96%
|
5.12%
|
4.24%
|
Hybrid
70/30 Blend of the two Indices below (reflects no deduction for fees, expenses or taxes) |
1.34%
|
9.87%
|
6.73%
|
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
1.38%
|
12.57%
|
7.31%
|
Barclays
U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) |
0.55%
|
3.25%
|
4.51%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”).
Portfolio Management
Mr. Alan Gayle, Managing Director of the Adviser, has managed
the Fund since its inception.
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, waived, or not applicable in some cases.
Growth Allocation
Strategy
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
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 Fund’s distributions are generally taxable as
ordinary income, qualified dividend income, or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Moderate
Allocation Strategy
Summary Section
A Shares, C Shares and I Shares
Investment Objective
The Moderate Allocation Strategy (the “Fund”) seeks
to provide capital appreciation and current income.
Fees
and Expenses of the Fund
This table describes the fees and expenses
that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in RidgeWorth Funds. More information about these and other
discounts is available from your financial professional and in Sales Charges on page 29 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
5.75%
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
Management
Fees |
0.10%
|
|
0.10%
|
|
0.10%
|
Distribution
(12b-1) Fees |
0.30%
|
|
1.00%
|
|
None
|
Other
Expenses |
0.28%
|
|
0.16%
|
|
0.47%
|
Acquired
Fund Fees and Expenses(1) |
0.56%
|
|
0.56%
|
|
0.56%
|
Total
Annual Fund Operating Expenses |
1.24%
|
|
1.82%
|
|
1.13%
|
Fee
Waivers and/or Expense Reimbursements(2) |
—
|
|
—
|
|
(0.07)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
1.24%
|
|
1.82%
|
|
1.06%
|
(1)
|
“Acquired Fund Fees and
Expenses” reflect the Fund’s 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 Fund’s net asset value per share (“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 Fund’s
prospectus. |
(2)
|
The Adviser has contractually
agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on securities sold short,
interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.70%, 1.30% and 0.50% for the A, C |
and I Shares, respectively. This agreement may be terminated
upon written notice to the Adviser by RidgeWorth Funds.
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 and then redeem all of your shares at the end of those periods. The example
also assumes that your investment has a 5% return each year, that the Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$694
|
$946
|
$1,217
|
$1,989
|
C
Shares |
$285
|
$572
|
$
985 |
$2,137
|
I
Shares |
$108
|
$352
|
$
616 |
$1,368
|
You would pay the
following expenses if you did not redeem your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$694
|
$946
|
$1,217
|
$1,989
|
C
Shares |
$185
|
$572
|
$
985 |
$2,137
|
I
Shares |
$108
|
$352
|
$
616 |
$1,368
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 26% of the average value of its portfolio.
Principal Investment Strategies
The Fund invests pursuant to an asset allocation strategy in a
combination of RidgeWorth Equity Funds and exchange-traded funds (“ETFs”) (together, “Underlying Equity Funds”), and, to a lesser extent, RidgeWorth Fixed Income Funds and ETFs that invest in bonds (together,
“Underlying Fixed Income Funds”). The Fund invests between 40% and 60% of its assets in Underlying Equity Funds and between 30% and 60% of its assets in Underlying Fixed Income Funds (together, “Underlying Funds”). The
Fund’s remaining assets may be invested in cash and cash equivalents, including unaffiliated money market funds, securities issued by the U.S. government, its agencies or instrumentalities, repurchase agreements and short-term paper.
Moderate Allocation
Strategy
The Fund may invest in Underlying Funds that:
–
|
invest in common stocks,
other equity securities and debt instruments, including mortgage- and asset-backed instruments and securities restricted as to resale, of U.S. and non-U.S. companies. The Underlying Fund may invest in companies of any size and in both developed and
emerging markets. |
–
|
invest in bank loans and
other below investment grade instruments. |
–
|
invest in
inflation-protected public obligations of the U.S. Treasury (“TIPS”), which are securities issued by the U.S. Treasury that are designed to provide inflation protection to investors. |
In selecting a diversified portfolio of Underlying Funds, the
Adviser analyzes many factors, including the Underlying Funds’ investment objectives, total returns, volatility and expenses.
The table that follows shows how the Adviser currently expects
to allocate the Fund’s portfolio among asset classes. The table also shows the sectors within those asset classes to which the Fund will currently have exposure.
Asset
Class |
Investment
Range (Percentage of the Moderate Allocation Strategy’s Assets) |
Underlying
Equity Funds |
40-60%
|
U.S.
Equities |
|
International
Equities |
|
Emerging
Market Equities (All Market Capitalizations) |
|
Underlying
Fixed Income Funds |
30-60%
|
U.S.
Investment Grade Bonds |
|
U.S.
High Yield Bonds |
|
U.S.
Floating Rate Securities (including bank loans) |
|
International
Bonds |
|
Emerging
Market Bonds |
|
Underlying
Money Market Investments |
0-20%
|
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.
The value of an investment in the Fund is based primarily on
the performance of the Underlying Funds and the allocation of the Fund’s assets among them. The Adviser’s asset allocation decisions may not anticipate market trends successfully. The risks of the Fund will directly correspond to the
risks of the Underlying Funds in which it invests. These risks will vary depending upon how the assets are allocated among the Underlying Funds. Certain risks associated with investing in the Underlying Funds are described in this section.
Asset Allocation Risk: Asset allocation risk
is the risk that the Fund could lose money as a result of less than optimal or poor asset allocation decisions as to how its assets are allocated or re-allocated.
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 & Poor’s Financial Services LLC and
Fitch, Inc. or “Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These instruments have a higher degree of default risk and may
be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of high yield investments generally, and
less secondary market liquidity. This potential lack of liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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.
Equity Securities Risk: The price of equity securities fluctuates from time to time based on changes in a company’s financial condition or overall market and economic conditions. As a result, the value of the Fund’s equity
securities may fluctuate drastically from day to day.
Exchange-Traded Fund Risk:
ETFs, like mutual funds, have expenses associated with their operation, including advisory fees. When a Fund invests in an ETF, in addition to directly bearing expenses associated with its own operations, the Fund bears its pro rata portion of the
ETF’s expenses. The impact of these additional expenses, if any, would be shown as part of “Acquired Fund Fees and Expenses” in the Annual Fund Operating Expenses table.
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
Moderate
Allocation Strategy
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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to sell or realize the full value of its loans in the event of a need to
liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be considered securities and, therefore, the Fund may not have the protections of the federal
securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
Growth Stock Risk:
“Growth” stocks can react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. “Growth” stocks typically are sensitive to market movements because their
market prices tend to reflect future expectations. When it appears those expectations will not be met, the prices of growth stocks typically fall.
Large-Capitalization Companies Risk: Large-cap stocks can perform differently from other segments of the equity market or the equity market as a whole. Large-capitalization companies may be less flexible in evolving markets or unable to implement change as
quickly as small-capitalization companies.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s net asset value.
Prepayment and Call Risk: During periods of
falling interest rates, an issuer of a callable bond held by the Fund or an Underlying 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 or an Underlying 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
Fund’s income.
Real Estate Investment Risk: The Fund or an Underlying ETF invests in companies that invest in real estate (e.g. real estate investment trusts) and
is exposed to risks specific to the real estate market, including interest rate risk, leverage risk, property risk and management risk.
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.
Value Investing Risk:
“Value” investing attempts to identify strong companies whose stocks are selling at a discount from their perceived true worth. It is subject to the risk that the stocks’ intrinsic values may never be fully recognized or realized
by the market, their prices may go down, or that stocks judged to be undervalued by the Fund or an Underlying Fund may actually be appropriately priced.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. A Shares commenced operations on October 10, 2003 and C Shares
commenced operations on April 5, 2005. Performance prior to the commencement of operations of each respective class is that of I Shares of the Fund, and has not been adjusted to reflect expenses associated with other classes. 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.
Moderate Allocation
Strategy
This bar chart shows the changes in performance of the
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
10.52%
|
-9.12%
|
(9/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 1.98%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(6.71)%
|
4.55%
|
4.70%
|
C
Shares Return Before Taxes |
(2.45)%
|
5.16%
|
4.62%
|
I
Shares Return Before Taxes |
(0.86)%
|
6.02%
|
5.58%
|
I
Shares Return After Taxes on Distributions |
(4.85)%
|
3.70%
|
3.67%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
2.30%
|
4.31%
|
4.00%
|
Hybrid
50/50 Blend of the two Indices below (reflects no deduction for fees, expenses or taxes) |
1.21%
|
8.02%
|
6.22%
|
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
1.38%
|
12.57%
|
7.31%
|
Barclays
U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) |
0.55%
|
3.25%
|
4.51%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”).
Portfolio Management
Mr. Alan Gayle, Managing Director of the Adviser, has managed
the Fund since its inception.
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, waived, or not applicable in some cases.
Moderate
Allocation Strategy
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
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 Fund’s distributions are generally taxable as
ordinary income, qualified dividend income, or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
More Information
More Information About Principal Investment Strategies
Please see the section entitled “Principal Investment
Strategies” in the “Summary Section” for each Fund for a complete discussion of each Fund’s principal investment strategies.
More Information About Principal Risks
Asset Allocation Risk
All Funds
A Fund’s particular asset allocation can have a
significant effect on performance. Asset allocation risk is the risk that the selection of the Underlying Funds and the allocation of the Underlying Funds’ assets among the various market segments may cause a Fund to underperform other funds
with similar investment objectives. Because the risks and returns of different asset classes can vary widely over any given time period, a Fund’s performance could suffer if a particular asset class does not perform as expected.
Below Investment Grade Securities Risk
All Funds
Securities that are rated below investment grade (commonly
referred to as “junk bonds,” which include those bonds rated lower than “BBB-” by Standard & Poor’s Financial Services LLC and Fitch, Inc. or “Baa3” by Moody’s Investors Service), or are unrated
but judged by the Subadviser to be of comparable quality at the time of purchase, may be more volatile than higher-rated securities of similar maturity.
High yield securities may also be subject to greater levels of
credit or default risk than higher-rated securities. The value of high yield securities can be adversely affected by overall economic conditions, such as an economic downturn or a period of rising interest rates, and high yield securities may be
less liquid and more difficult to sell at an advantageous time or price or to value than higher-rated securities.
In particular, high yield securities are often issued by
smaller, less creditworthy or highly leveraged (indebted) issuers, which are generally less able than more financially stable issuers to make scheduled payments of interest and principal.
Debt Securities Risk
All Funds
The prices of an Underlying Fund’s fixed income
securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments. Generally, an Underlying Fund’s fixed income securities will
decrease in value if interest rates rise and vice versa. Treasury Inflation Protected Securities (“TIPS”) can also exhibit such price movements as a result of changing inflation expectations and seasonal inflation patterns.
Long-term debt securities generally are more sensitive to changes in interest
rates, usually making them more volatile than short-term debt securities and thereby increasing risk.
Debt securities are also subject to credit risk, which is the
possibility than an issuer will fail to make timely payments of interest or principal or go bankrupt. The lower the ratings of such debt securities, the greater their risks. In addition, lower-rated securities have higher risk characteristics, and
changes in economic conditions are likely to cause issuers of these securities to be unable to meet their obligations.
Debt securities are also subject to income risk, which is the
possibility that falling interest rates will cause an Underlying Fund’s income to decline. Income risk is generally higher for short-term bonds.
An additional risk of debt securities is reinvestment risk,
which is the possibility that an Underlying Fund may not be able to reinvest interest or dividends earned from an investment in such a way that they earn the same rate of return as the invested funds that generated them. For example, falling
interest rates may prevent bond coupon payments from earning the same rate of return as the original bond. Furthermore, pre-funded loans and issues may cause an Underlying Fund to reinvest those assets at a rate lower than originally
anticipated.
Equity Securities Risk
All Funds
Equity securities include public and
privately issued equity securities, common and preferred stocks, warrants, rights to subscribe to common stock and convertible securities. Individual companies may report poor results or be negatively affected by industry and/or economic trends and
developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in funds that primarily hold equity securities. Historically,
the equity market has moved in cycles and investments in equity securities in general are subject to market risks that may cause their prices to fluctuate over time. The value of securities convertible into equity securities, such as warrants or
convertible debt, is also affected by prevailing interest rates, the credit quality of the issuer and any call provision. Fluctuations in the value of equity securities in which a mutual fund invests will cause a Fund’s net asset value to
fluctuate. An investment in a portfolio of equity securities may be more suitable for long-term investors who can bear the risk of these share price fluctuations.
Exchange-Traded Fund Risk
All Funds
ETFs are investment companies that are bought and sold on a
securities exchange. ETFs may track a securities index, a particular market sector, or a particular segment of a securities index or market sector. ETFs, like mutual funds, have expenses associated with their operation, including advisory fees. When
a Fund or Underlying Fund invests in an ETF, in addition to directly bearing expenses associated with its own operations, it
will bear a pro rata portion of the ETF’s expense. The
risks of owning shares of an ETF generally reflect the risks of owning the underlying securities the ETF is designed to track, although lack of liquidity in an ETF could result in the ETF being more volatile than the underlying portfolio of
securities. In addition, because of ETF expenses, compared to owning the underlying securities directly, it may be more costly to own shares of an ETF.
Floating Rate Loan Risk
All Funds
Investments in floating rate loans are subject to interest rate
risk although the risk is less than fixed rate loans because the interest rate of the loan adjusts periodically. Investments in floating rate loans are also subject to credit risk.
Many floating rate loans are rated below investment grade or
are unrated. Therefore, an Underlying Fund relies heavily on the analytical ability of the Underlying Fund’s Subadviser. Many floating rate loans share the same risks as high yield securities, although these risks are reduced when the floating
rate loans are senior and secured as opposed to many high yield securities that are junior and unsecured. Floating rate loans are often subject to restrictions on resale which can result in reduced liquidity.
Borrowers may repay principal faster than the scheduled due
date which may result in an Underlying Fund replacing that loan with a lower-yielding security. Investment in loan participation interests may result in increased exposure to financial services sector risk. A loan may not be collateralized fully
which may cause the loan to decline significantly in value.
Seix Investment Advisors LLC (“Seix”) currently
serves as collateral manager to six collateralized loan obligation (“CLO”) funds that invest in bank loans. In addition to the CLO funds, the Seix serves as subadviser to an unaffiliated registered fund and as investment manager to two
unregistered funds that invest in bank loans. As a result of multiple investment-oriented and associated relationships, there exists a potential risk that the portfolio managers may favor other adviser and non-adviser contracted businesses over an
Underlying Fund.
Seix, the Subadviser to the Seix
Floating Rate High Income Fund, an Underlying Fund in which the Funds may invest, has created and implemented additional policies and procedures designed to protect shareholders against such conflicts; however, there can be no absolute guarantee
that an Underlying Fund will always participate in the same or similar investments or receive equal or better individual investment allocations at any given time.
Foreign Securities Risk
All Funds
Foreign securities, including depositary receipts such as ADRs,
involve special risks such as currency fluctuations (with the exception of ADRs), economic or financial instability, lack of timely or reliable financial information and unfavorable political or legal developments. Investments in securities of
foreign
companies or governments can be more volatile than investments in U.S.
companies or governments. Diplomatic, political, or economic developments, including nationalization or appropriation, unique to a country or region will affect those markets and their issuers. Foreign securities markets generally have less trading
volume and less liquidity than U.S. markets. These risks are increased for investments in emerging markets.
Specific Risks of Foreign Securities:
• |
Political and Economic Risks. Foreign investments may be subject to heightened political and economic risks, particularly in countries with emerging economies and securities markets, which may have relatively unstable governments and economies based
on only a few industries. In some countries, there is the risk that the government could seize or nationalize companies, impose additional withholding taxes on dividends or interest income payable on securities, impose exchange controls or adopt
other restrictions that could affect the Fund’s investments. |
• |
Regulatory Risk. Foreign companies not publicly traded in the U.S. are not subject to accounting and financial reporting standards and requirements comparable to those that U.S. companies must meet. In addition, there may be less
information publicly available about such companies. |
• |
Foreign Tax Risk. An Underlying Fund’s income from foreign issuers may be subject to non-U.S. withholding taxes. An Underlying Fund may also be subject to taxes on trading profits or on transfers of securities in some countries. To
the extent foreign income taxes are paid by an Underlying Fund, shareholders may be entitled to a credit or deduction for U.S. tax purposes. |
• |
Transaction Costs. The costs of buying and selling foreign securities including brokerage, tax and custody costs are generally higher than those for domestic transactions. |
• |
Custody/Sub-Custody Risk. Custody risk refers to the risks inherent in the process of clearing and settling trades and to the holding of securities by local banks, agents and depositories. An Underlying Fund may invest in markets where custodial
and/or settlement systems are not fully developed. There may be very limited regulatory oversight of certain foreign banks or securities depositories that hold foreign securities and foreign currencies. The laws of certain countries may limit the
ability to recover such assets if the foreign bank or depository, or an agent of the bank or depository, goes bankrupt and the assets of an Underlying Fund may be exposed to risk in circumstances where the custodian/sub-custodian or Adviser will
have no liability. In addition, the inability of an Underlying Fund to make its intended securities purchases due to settlement issues with the custodian/sub-custodian could cause an Underlying Fund to miss attractive investment
opportunities. |
•
|
Currency
Risk. Non-U.S. securities in which an Underlying Fund may invest, with the exception of ADRs, generally trade in currencies other than the U.S. dollar. Changes in currency exchange rates may affect an Underlying
Fund’s net asset value, the value of dividends and interest earned, and gains and losses realized on the sale of securities. An increase in |
|
the strength of the U.S.
dollar relative to these other currencies may cause the value of an Underlying Fund to decline. Certain currencies may be particularly volatile, and non-U.S. governments may intervene in the currency markets, causing a decline in value or liquidity
in an Underlying Fund’s non-U.S. holdings whose value is tied to that particular currency. |
• |
Emerging Markets Risk. Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or
economic conditions than more developed countries. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased
risk of price volatility associated with investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. Governments of some emerging market countries have defaulted on their bonds and may do so
in the future. |
Growth Stock
Risk
All Funds
Different investment styles tend to shift in and out of favor,
depending on market conditions and investor sentiment. A Fund’s growth approach to investing could cause it to underperform other stock funds that employ a different investment style. Growth stocks tend to be more volatile than certain other
types of stocks and their prices usually fluctuate more dramatically than the overall stock market. A stock with growth characteristics can have sharp price declines due to decreases in current or expected earnings and may lack dividends that can
help cushion its share price in a declining market.
Large-Capitalization Companies Risk
All Funds
Large-capitalization stocks can perform differently from other
segments of the equity market or the equity market as a whole. Companies with large market capitalization tend to go in and out of favor based on market and economic conditions and, while they can be less volatile than companies with smaller market
capitalizations, they may also be less flexible in evolving markets or unable to implement change as quickly as their smaller counterparts.
Accordingly, the value of large-capitalization stocks may not
rise to the same extent as the value of small or mid-capitalization companies under certain market conditions or during certain periods.
Mortgage-Backed and Asset-Backed Securities Risk
All Funds
Mortgage- and asset-backed securities are fixed income
securities representing an interest in a pool of underlying mortgage- or asset-backed secured and unsecured cash-flow producing assets such as automobile loans and leases, credit card receivables and other financial assets.
The risks associated with these types of securities include:
(1) prepayment risk that could result in earlier or later return of principal than expected and can lead to significant fluctuations in the value and yield of the securities; (2) liquidity/market risk which can result in higher than expected changes
in security valuation and transactions costs especially in times of general market stress; and (3) credit risk that is associated with the underlying borrowers being unable or unwilling to make timely principal and/or interest payments or to
otherwise honor its payment obligations and can also be driven by general economic conditions which can result in the loss of invested principal.
The value of some mortgage- or asset-backed securities may be
particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-backed securities may expose an Underlying Fund to a lower rate of return upon reinvestment of principal. When interest rates rise, the
value of these securities generally will decline; however, when interest rates are declining, the value of these securities with prepayment features may not increase as much as other fixed income securities. The rate of prepayments on underlying
mortgages will affect the price and volatility of a mortgage-backed security, and may shorten or extend the effective maturity of the security beyond what was anticipated at the time of purchase.
If unanticipated rates of prepayment on underlying mortgages
increase the effective maturity of a mortgage-related security, the volatility of the security can be expected to increase. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the
issuers. Additionally, although mortgage-backed securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.
In recent years, the market for mortgage-backed securities
experienced substantially lower valuations and greatly reduced liquidity. Ongoing economic and market uncertainty suggests that mortgage-backed securities may continue to be more difficult to value and to dispose of than previously.
Prepayment and Call Risk
All Funds
A bond issuer may decide to pay back the principal at an
unexpected time and such an event may result in greater price and yield volatility and a possible decline in income, increased capital gains and unexpected capital loss for the bond holder. For instance, the prices and yields of mortgage-backed
securities typically assume that the securities will be
redeemed at a given time before maturity.
When interest
rates fall substantially, they usually are redeemed early because the underlying mortgages often are prepaid. The Fund or an Underlying Fund would then have to reinvest the proceeds it receives because of those redemptions at a lower rate. The price
or yield of mortgage-backed securities also may fall if they are redeemed after that date.
Real Estate Investment Risk
All Funds
Investments in real estate related securities are subject to
risks similar to those associated with direct ownership of real estate, and an investment in an Underlying Fund will be closely linked to the performance of the real estate markets. These risks include, among others, declines in the value of real
estate; risks related to general and local economic conditions; possible lack of availability of mortgage funds; overbuilding; extended vacancies of properties; defaults by borrowers or tenants, particularly during an economic downturn; increasing
competition; increases in property taxes and operating expenses; changes in zoning laws; losses due to costs resulting from the clean-up of environmental problems; liability to third parties for damages resulting from environmental problems;
casualty or condemnation losses; limitations on rents; changes in market and sub-market values and the appeal of properties to tenants; and changes in interest rates.
In addition to the risks associated with
investing in securities of real estate companies and real estate related companies, real estate investment trusts (“REITs”) are subject to certain additional risks. Equity REITs may be affected by changes in the value of the underlying
properties owned by the trusts, and mortgage REITs may be affected by the quality of any credit extended. Further, REITs are dependent upon specialized management skills and may have their investments in relatively few properties, or in a small
geographic area or a single property type. REITs are also subject to heavy cash flow dependency, defaults by borrowers and self-liquidation. In addition, REITs could possibly fail to qualify for the favorable U.S. federal income tax treatment
available to REITs under the Internal Revenue Code of 1986, as amended, (the “Internal Revenue Code”) or to maintain their exemptions from registration under the 1940 Act. The failure of a company to qualify as a REIT under federal tax
law may have adverse consequences to an Underlying Fund. The above factors may also adversely affect a borrower’s or a lessee’s ability to meet its obligations to the REIT. In the event of a default by a borrower or lessee, the REIT may
experience delays in enforcing its rights as a mortgagee or lessor and may incur substantial costs associated with protecting its investments. In addition, REITs have their own expense and the Underlying Fund will bear a proportionate share of those
expenses.
Real estate companies tend to be small
to medium-sized companies. Real estate company shares, like other smaller company shares, can be more volatile than, and perform differently from, larger company shares. There may be less trading in a smaller company’s shares, which means that
buy
and sell transactions in those shares could have a larger impact on the
share’s price than is the case with larger company shares.
Restricted Securities Risk
All Funds
Non-publicly traded securities may involve a high degree of
business and financial risk and may result in substantial losses. These securities may be less liquid than publicly traded securities and the Fund may take longer to liquidate these positions than would be the case for publicly traded securities.
Companies whose securities are not publicly traded may not be subject to the disclosure and other investor protection requirements applicable to companies whose securities are publicly traded. The Fund’s investments in restricted securities
are subject to the risk that should the Fund desire to sell any of these securities when a ready buyer is not available at a price that is deemed to be representative of their value, the value of the Fund’s net assets could be adversely
affected.
Small- and Mid-Capitalization Companies
Risk
Aggressive Growth Allocation Strategy
Growth
Allocation Strategy
Moderate Allocation Strategy
Small- and mid-capitalization companies may be either
established or newer companies. Small-capitalization companies may offer greater opportunities for gain. They also involve a greater risk of loss because they may be more vulnerable to adverse business or economic events, particularly those
companies that have been in operation for less than three years. Small-capitalization company securities may trade in lower volumes or there may be less information about the company which may cause the investments to be more volatile or to have
less liquidity than larger company investments. They may have unseasoned management or may rely on the efforts of particular members of their management team to a great degree causing turnover in management to pose a greater risk. Smaller sized
companies may have more limited access to resources, product lines, and financial resources. Small- and mid-sized companies typically reinvest a large proportion of their earnings in their business and may not pay dividends or make interest payments
for some time, particularly if they are newer companies.
U.S. Government-Related Risks
All Funds
With respect to each Fund 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
More Information About Indices, More Information
About Fund Investments and
Information About Portfolio
Holdings
segments of the fixed income market or the fixed income market
as a whole.
Value Investing Risk
All Funds
Different investment styles tend to shift in and out of favor,
depending on market conditions and investor sentiment. A Fund’s value approach to investing could cause it to underperform other stock funds that employ a different investment style. The intrinsic value of a stock with value characteristics
may not be fully recognized by the market for a long time or a stock judged to be undervalued may actually be appropriately priced at a low level.
Risk Information Common to RidgeWorth Funds
Each Fund is an open-end management investment company
registered with the SEC, and commonly known as a mutual fund. A mutual fund pools shareholders’ money and, using professional investment managers, invests it in securities.
Each Fund has its own investment objective and strategies for
reaching that objective. The Adviser invests Fund assets in a way that it believes will help a Fund achieve its objective. Still, investing in each Fund involves risk and there is no guarantee that a Fund will achieve its objective. The
Adviser’s judgments about the markets, the economy or companies may not anticipate actual market movements, economic conditions or company performance, and these judgments may affect the return on your investment. In fact, no matter how good a
job the Adviser does, you could lose money on your investment in a Fund, just as you could with other investments. The value of your investment in a Fund is based on the market prices of the securities the Fund holds. These prices change daily due
to economic and other events that affect particular companies and other issuers. These price movements, sometimes called volatility, may be greater or lesser depending on the types of securities a Fund owns and the markets in which they trade. The
effect on a Fund of a change in the value of a single security will depend on how widely the Fund diversifies its holdings.
Each Fund’s investment objective may be changed without
shareholder approval. Shareholders will be given notice of any change in investment objective. Before investing, make sure that the Fund’s objective matches your own.
The Funds are not managed to achieve tax efficiency.
More Information About Indices
Each Fund compares its performance with a
broad-based securities market index in order to provide some indication of the risks of an investment in the Fund.
An index measures the market prices of a specific group of
securities in a particular market or market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance
would be lower.
The Barclays U.S. Aggregate Bond Index measures the U.S.
dollar-denominated, investment grade and fixed-rate taxable bond market of SEC-registered securities. The index includes bonds from the U.S. Treasury, government-related, corporate, mortgage-backed securities (agency fixed-rate and hybrid
adjustable-rate mortgage pass-throughs), asset-backed securities and commercial mortgage-backed securities sectors.
The S&P 500 Index is widely regarded as a gauge of the U.S.
equities market. The index includes 500 leading companies in leading industries of the U.S. economy. Although the S&P 500 Index focuses on the large-capitalization segment of the market, with approximately 75% coverage of U.S. equities, it is
also an ideal proxy for the total market.
More
Information About Fund Investments
This prospectus
describes the Funds’ primary strategies, and the Funds will normally invest in the types of securities described in this prospectus. However, in addition to the investments and strategies described in this prospectus, each Fund also may invest
in other securities, use other strategies and engage in other investment practices. These investments and strategies, as well as those described in this prospectus, are described in detail in the Funds’ Statement of Additional Information
(“SAI”).
The investments and strategies
described in this prospectus are those that the Funds use under normal conditions. During unusual economic or market conditions, or for temporary defensive or liquidity purposes, each Fund and each Underlying Fund may invest up to 100% of its assets
in cash, money market instruments, repurchase agreements and short-term obligations that would not ordinarily be consistent with a Fund’s objectives. Temporary defensive investments may limit a Fund’s ability to meet its investment
objective. A Fund or Underlying Fund will do so only if the Adviser or its Subadviser believes that the risk of loss outweighs the opportunity for capital gains or higher income. Of course, a Fund cannot guarantee that it will achieve its investment
objective.
Each Fund may invest in other mutual funds for
cash management purposes. When a Fund invests in another mutual fund, in addition to directly bearing expenses associated with its own operations, it will bear a pro rata portion of the other mutual fund’s expenses.
Information About Portfolio Holdings
A description of the Funds’ policies and procedures with
respect to the circumstances under which the Funds disclose their respective portfolio securities is available in the SAI. The Funds publicly disclose their portfolio holdings on its website at www.ridgeworth.com.
Management
and Purchasing, Selling and Exchanging Fund Shares
Management
The Board of Trustees (the “Board”) is responsible
for the overall supervision and management of the business and affairs of the Funds. The Board supervises the Adviser and establishes policies that the Adviser must follow in their fund-related management activities. The day-to-day operations of the
Funds are the responsibilities of the officers and various service organizations retained by the Funds.
Investment Adviser
RidgeWorth Investments, located at 3333 Piedmont Road, Suite 1500, Atlanta, GA 30305 (“RidgeWorth” or the “Adviser”), serves as the investment adviser to the Funds. In addition to being an investment adviser registered
with the Securities and Exchange Commission (the “SEC”), RidgeWorth is a money-management holding company with multiple style-focused investment boutiques. As of June 30, 2016, the Adviser had approximately $37.0 billion in assets under
management. The Adviser is responsible for making investment decisions for the Funds and continuously reviews, supervises and administers each Fund’s respective investment program.
In addition, for all the Funds except the Conservative
Allocation Fund, under a manager of managers arrangement, the Adviser may enter into or materially modify a subadvisory agreement with an unaffiliated subadviser, subject to approval by the Board and certain other conditions, without approval from
the applicable Fund’s shareholders. Any significant change in a Fund’s subadvisory arrangement will be communicated to shareholders.
The Adviser may use its affiliates as brokers for Fund
transactions.
An investment adviser has a fiduciary
obligation to its clients when the adviser has authority to vote their proxies. Under the current contractual agreement, the Adviser is authorized to vote proxies on behalf of each Fund. Information regarding the Adviser’s, and thus each
Fund’s, Proxy Voting Policies and Procedures is provided in the SAI. A copy of the Adviser’s Proxy Voting Policies and Procedures may be obtained by contacting the Funds at 1-888-784-3863 or by visiting www.ridgeworth.com.
For the fiscal year ended March 31, 2016, the
following Funds paid the Adviser advisory fees (after waivers) based on the respective Fund’s average daily net assets of:
Aggressive
Growth Allocation Strategy |
—
|
Conservative
Allocation Strategy |
0.08%
|
Growth
Allocation Strategy |
0.10%
|
Moderate
Allocation Strategy |
0.10%
|
The Adviser has contractually agreed to waive fees and reimburse expenses
until at least August 1, 2017, in order to keep total annual operating expenses of each Fund from exceeding the applicable expense cap shown. If at any point before August 1, 2019, total annual operating expenses are less than the expense cap, the
Adviser may retain the difference to recapture any of the prior waivers or reimbursements. Such recapture is limited by the expense cap and, if lower, the expense cap that was applicable at the time of the waiver of fees and/or reimbursement of
expenses.
|
Expense
Limitation |
Funds
|
A
|
|
C
|
|
I
|
Aggressive
Growth Allocation Strategy |
0.70%
|
|
1.30%
|
|
0.50%
|
Conservative
Allocation Strategy |
0.60%
|
|
1.30%
|
|
0.30%
|
Growth
Allocation Strategy |
0.70%
|
|
1.30%
|
|
0.50%
|
Moderate
Allocation Strategy |
0.70%
|
|
1.30%
|
|
0.50%
|
The following breakpoints are used
in computing the advisory fee:
Average
Daily Net Assets |
|
Discount
From Full Fee |
First
$500 million |
|
None
— Full Fee |
Next
$500 million |
|
5%
|
Next
$4 billion |
|
10%
|
Over
$5 billion |
|
15%
|
A discussion regarding the basis for the
Board’s approval of the continuation of the investment advisory agreement with the Adviser appears in the Funds’ annual report to shareholders for the period ended March 31, 2016.
Mr. Alan Gayle is primarily responsible for the day-to-day
management of the Funds. Mr. Gayle has served as Managing Director of the Adviser since July 2000 and Director of Asset Allocation since March 2006. He has served as lead manager of the Funds since each Fund’s respective inception. He has
worked in investment management since 1976.
The
SAI provides additional information regarding the portfolio manager’s compensation, other accounts managed by the portfolio manager, potential conflicts of interest and the portfolio manager’s ownership of securities in the Funds.
Purchasing, Selling and Exchanging Fund Shares
This section tells you how to purchase, sell (sometimes called
“redeem”) and exchange A Shares, C Shares and I Shares of the Funds. Participants in retirement plans must contact their Employee Benefits Office or their Plan’s Administrator for information regarding the purchase, redemption or
exchange of shares, or for questions about their specific accounts. Plans may require separate documentation and the plan’s policies and procedures may be different than those described in this prospectus. Investors purchasing or selling
shares through a retirement plan should also refer to their Plan documents. Please review the information you have about your retirement plan.
Purchasing, Selling and
Exchanging Fund Shares
Investors purchasing or selling shares through a financial
intermediary may be charged transaction-based or other fees by the financial intermediary for its services. Please consult your financial intermediary for more information regarding such fees and for purchase instructions.
Purchasing Fund Shares
Where can I buy Fund shares?
You may purchase shares of the Funds through financial
institutions or intermediaries that are authorized to place transactions for their customers. Please contact your financial institution or intermediary directly and follow its procedures for purchase transactions. Your financial institution or
intermediary may charge a fee for its services, in addition to the fees charged by a Fund. You will also, generally, have to address your correspondence or questions regarding a Fund to your financial institution or intermediary. Your investment
professional can assist you in opening a brokerage account that will be used for purchasing shares of RidgeWorth Funds.
Eligible shareholders may purchase directly
from the Funds. Please see the section entitled “How Do I Open an Account?” for additional information.
Who can buy shares?
A Shares and C Shares may be purchased by all eligible investors that meet the requirements of the “Where can I buy Fund shares?” section, above.
I Shares are offered to
financial institutions and intermediaries for their own accounts or for the accounts of customers for whom they act as fiduciary, agent, investment adviser, or custodian. Financial intermediaries include brokers, dealers, banks (including bank trust
departments), trust companies, registered investment advisers, financial planners, retirement plan administrators, insurance companies, and any other institution having a service, administration, or any similar arrangement with the Funds or their
service providers. These accounts primarily consist of:
• |
assets of a bona fide trust,
|
• |
assets of a business entity
possessing a tax identification number, |
• |
assets of an employee benefit
plan, |
• |
assets held within select
fee-based programs, or |
•
|
assets
held within certain non-discretionary intermediary no-load platforms. |
Employee benefit plans generally include profit sharing, 401(k)
and 403(b) plans. Employee benefit plans generally do not include IRAs; SIMPLE, SEP, SARSEP plans; plans covering self-employed individuals and their employees; or health savings accounts unless you, as a customer of a financial institution or
intermediary, meet the Funds’ established criteria as described above.
As a result, you, as a customer of a financial institution or intermediary,
may, under certain circumstances that meet the Funds’ established criteria, be able to purchase I Shares through accounts made with select financial institutions or intermediaries. I Shares will be held of record by (in the name of) your
financial institution or intermediary. Depending upon the terms of your account, you may have, or be given, the right to vote your I Shares. Financial institutions or intermediaries may impose eligibility requirements for each of their clients or
customers investing in the Funds, including investment minimum requirements, which may differ from those imposed by the Funds. Please contact your financial institution or intermediary for complete details for purchasing I Shares.
I Shares may also be purchased directly from the Funds by
officers, directors or trustees, and employees and their immediate families (strictly limited to current spouses/domestic partners and dependent children) of RidgeWorth Funds, the Adviser and Subadvisers to the RidgeWorth Funds.
Validation of current employment/service will be required upon
establishment of the account. The Funds, in their sole discretion, may determine if an applicant qualifies for this program.
Foreign Investors
To purchase A Shares and C Shares of the Funds, you
must be a U.S. citizen, a U.S. resident alien, or a U.S. entity, with a U.S. tax identification number, and reside in the U.S. or its territories (which includes U.S. military APO or FPO addresses). If you owned shares
on July 31, 2006, you may keep your account open even if you do not reside in the U.S. or its territories, but you may not make additional purchases or exchanges.
The Funds do not generally accept investments in I Shares by
non-U.S. citizens or entities. Investors in I Shares generally must reside in the U.S. or its territories (which includes U.S. military APO or FPO addresses) and have a U.S. tax identification number.
When can I purchase shares?
The Funds are open for business on days when the New York Stock
Exchange (the “NYSE”) is open for regular trading (a “Business Day”). The RidgeWorth Funds reserve the right to open one or more Funds on days that the principal bond markets (as recommended by the Securities Industry and
Financial Markets Association) are open, even if the NYSE is closed. Each Fund calculates its net asset value per share (“NAV”) once each Business Day at the close of regular trading on the NYSE (normally 4:00 p.m. Eastern Time).
If a Fund or its authorized agent receives your purchase or
redemption request in proper form before 4:00 p.m. Eastern Time, your transaction will be priced at that Business Day’s NAV. If your request is received after 4:00 p.m. Eastern Time, it will be priced at the next Business Day’s
NAV.
The time at which transactions and shares are priced
and the time until which trades are accepted may be changed if the NYSE closes early or if the principal bond markets close early on days when the NYSE is closed. For those Funds that open on
Purchasing, Selling
and Exchanging Fund Shares
days when the NYSE is closed, these times will be the time the
principal bond markets close.
The Funds will not accept
trades that request a particular day or price for the transaction or any other special conditions.
You may be required to transmit your purchase, sale and exchange
orders to your financial institutions or intermediaries at an earlier time for your transaction to become effective that day. This allows your financial institution or intermediary time to process your order and transmit it to the transfer agent in
time to meet the above stated Fund cut-off times. For more information about how to purchase, sell or exchange Fund shares, including your financial institution’s or intermediary’s internal order entry cut-off times, please contact your
financial institution or intermediary directly.
A Fund
may reject any purchase order.
How do the Funds calculate
NAV?
The offering price of A Shares is the NAV
next calculated after the Funds receive your request, in proper form, plus any front-end sales charge. The offering price of C Shares and I Shares is simply the next calculated NAV.
The NAV is calculated by adding the total value of a
Fund’s investments and other assets, subtracting its liabilities, and then dividing that figure by the number of outstanding shares of the Fund.
In calculating the NAV, each Fund generally values its
investment portfolio at market price. If market prices are not readily available, or a Fund reasonably believes that market prices or amortized cost valuation methods are unreliable, such as in the case of a security value that has been materially
affected by events occurring after the relevant market closes, a Fund is required to price those securities at fair value as determined in good faith using methods approved by the Board. A Fund’s determination of a security’s fair value
price often involves the consideration of a number of subjective factors, and is, therefore, subject to the unavoidable risk that the value that a Fund assigns to a security may be higher or lower than the security’s value would be if a
reliable market quotation for the security was readily available.
With respect to non-U.S. securities held by a Fund, the Fund
may take factors influencing specific markets or issues into consideration in determining its fair value. International securities markets may be open on days when the U.S. markets are closed. In such cases, the value of any international securities
owned by a Fund may be significantly affected on days when investors cannot buy or sell shares. In addition, due to the difference in times between the close of the international markets and the time a Fund prices its shares, the value the Fund
assigns to securities generally will not be the same as the primary markets or exchanges. In determining fair value prices, a Fund may consider the performance of securities on their primary exchanges, foreign currency appreciation/depreciation,
securities market movements in the U.S., or other relevant information as related to the securities.
When valuing fixed income securities with remaining maturities of more than 60
days, the Funds use the value of the security provided by pricing services. The values provided by a pricing service may be based upon market quotations for the same security, securities expected to trade in a similar manner, or a pricing matrix.
When valuing fixed income securities with remaining maturities of 60 days or less, the Funds use the security’s amortized cost. Amortized cost and the use of a pricing matrix in valuing fixed income securities are forms of fair value pricing.
Fair value prices may be determined in good faith using methods approved by the Board.
How do I open an account?
Read this prospectus carefully, select the Fund or Funds and
share class most appropriate for you, and decide how much you want to invest.
The Funds do not accept cash, credit card checks, third-party
checks, travelers’ checks, money orders, bank starter checks, or checks drawn in a foreign currency, as payment for Fund shares.
If your payment does not clear or is not received in a timely
manner, your purchase may be canceled. You will be responsible for any losses or expenses incurred by the Funds or its transfer agent, and the Funds can redeem shares you own in any of the Funds or in another identically registered RidgeWorth Funds
account as reimbursement.
Eligible shareholders who
purchase shares directly from the Funds may purchase additional Fund shares by:
• |
Mail
|
• |
Telephone (1-888-784-3863)
|
• |
Wire
|
• |
Fax (1-800-451-8377)
|
•
|
Automated
Clearing House (“ACH”) |
In-Kind Purchases
Payment for shares of a Fund may, at the discretion of the
Adviser, be made in the form of securities that are permissible investments for such Fund. In connection with an in-kind securities payment, a Fund will require, among other things, that the securities: (a) meet the investment objectives and
policies of the Fund; (b) are acquired for investment and not for resale; (c) are liquid securities that are not restricted as to transfer either by law or liquidity of markets; (d) have a value that is readily ascertainable (e.g., by a listing on a
nationally recognized securities exchange); and (e) are valued on the day of purchase in accordance with the pricing methods used by the Fund. For further information about this form of payment, please call 1-888-784-3863.
Systematic Investment Plan
The Systematic Investment Plan is only available to
shareholders who own A Shares or C Shares. If you have a checking or savings account with a bank, you may purchase A Shares and C Shares automatically through regular
Purchasing, Selling and
Exchanging Fund Shares
deductions from your bank account. With a $500 minimum initial
investment, you may begin regularly-scheduled investments of $50 or more, once or twice a month. Shareholders should contact their financial intermediaries for more information on how to take advantage of this feature.
What is the minimum amount to purchase shares of Fund?
To purchase shares for the first time, you must invest in any
Fund at least:
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
No
minimum |
For A and C Shares purchases, your subsequent
investments must be made in amounts of at least $1,000. The Funds reserve the right to waive and/or reduce the minimum or subsequent investment amounts. Purchases of C Shares of any other Fund requested in an amount of $1,000,000 or more will
be converted to A Shares of that Fund. No fees will be incurred as a result of these conversions.
For investors who qualify to purchase I Shares, there are no
minimum investment amounts for initial or subsequent purchases.
Officers, directors or trustees, and employees and their
immediate families (strictly limited to current spouses/domestic partners and dependent children) of the Funds, Adviser and the Subadvisers may also purchase I Shares. There is no minimum investment.
Sales Charges
A Shares
The offering price of A Shares is the NAV next calculated after
a Fund receives your request in proper form, plus the front-end sales charge.
The amount of any front-end sales charge included in your
offering price varies, depending on the amount of your investment. For all Funds exept the Conservative Allocation Strategy:
If
Your Investment is: |
Your
Sales Charge as a Percentage of Offering Price* |
Your
Sales Charge as a Percentage of Your Net Investment |
Less
than $50,000 |
5.75%
|
6.10%
|
$50,000
but less than $100,000 |
4.75%
|
4.99%
|
$100,000
but less than $250,000 |
3.75%
|
3.90%
|
$250,000
but less than $500,000 |
2.50%
|
2.56%
|
$500,000
but less than $1,000,000 |
2.00%
|
2.04%
|
$1,000,000
and over |
None
|
None
|
*
|
RidgeWorth Distributors LLC
(the “Distributor”) may pay a percentage of the offering price as a commission to broker-dealers. While |
|
investments over $1,000,000
are not subject to a front-end sales charge, the Distributor may pay dealer commissions ranging from 0.25% to 0.75%. |
Conservative Allocation Strategy:
If
Your Investment is: |
Your
Sales Charge as a Percentage of Offering Price* |
Your
Sales Charge as a Percentage of Your Net Investment |
Less
than $50,000 |
4.75%
|
4.99%
|
$50,000
but less than $100,000 |
4.50%
|
4.71%
|
$100,000
but less than $250,000 |
3.50%
|
3.63%
|
$250,000
but less than $500,000 |
2.50%
|
2.56%
|
$500,000
but less than $1,000,000 |
2.00%
|
2.04%
|
$1,000,000
and over |
None
|
None
|
*
|
The Distributor may pay a
percentage of the offering price as a commission to broker-dealers. While investments over $1,000,000 are not subject to a front-end sales charge, the Distributor may pay dealer commissions ranging from 0.25% to 0.50% |
Waiver of Front-End Sales Charge
The front-end sales charge may be waived on A Shares
purchased:
• |
through reinvestment of
dividends and distributions; |
• |
by persons repurchasing shares
they redeemed within the last 180 days (see “Repurchase of A Shares”); |
• |
by employees, and members of
their immediate family (spouse/domestic partner, mother, father, mother-in-law, father-in-law, and children, including step-children, under the age of 21 years), of the Adviser and its affiliates; |
• |
through financial
intermediaries or institutions; retirement plans, plan administrators or record-keepers; asset allocation, or wrap programs or self-directed investment brokerage accounts; that, under the terms of their respective agreements with the Distributor or
otherwise, agree to either (i) not charge the front-end sales charge, or (ii) do not receive compensation derived from the front-end sales charge, but may or may not charge a transaction fee to their customers; or |
•
|
by
Trustees and Officers of the RidgeWorth Funds. |
Repurchase of Shares
You may repurchase any amount of A
Shares of any Fund at the NAV (without the normal front-end sales charge), up to the limit of the value of any amount of A Shares (other than those which were purchased with reinvested dividends and distributions) that you redeemed within the past
180 days. In effect, this allows you to reacquire shares that you may have had to redeem, without re-paying the front-end sales charge. Such repurchases may be subject to special tax rules. See the “Taxes” section of the SAI for more
information. To exercise this privilege, the Funds must receive your purchase order within 180 days of your redemption. In addition, you must notify the Funds when you send in your purchase order
that you are repurchasing shares.
Purchasing, Selling
and Exchanging Fund Shares
Reduced Sales Charges
Rights of Accumulation. You may
take into account your accumulated holdings in all share classes of RidgeWorth Funds to determine the initial sales charge you pay on each purchase of A Shares. In calculating the appropriate sales charge rate, this right allows you to add the
market value (at the close of business on the day of the current purchase) of your existing holdings in any class of shares to the amount of A Shares you are currently purchasing. The Funds may amend or terminate this right at any time. Please see
the Funds’ SAI for details.
Letter of Intent. A Letter of Intent allows you to purchase A Shares over a 13-month period and receive the same sales charge as if you had purchased all the shares at the same time. The Funds will hold a certain portion of your
investment in escrow until you fulfill your commitment. Please see the SAI for details.
Combined Purchase/Quantity Discount Privilege. When calculating the appropriate sales charge rate, the Funds will combine same day purchases of shares of any class made by you, your spouse/domestic partner and your minor children (under age 21). This combination
also applies to A Shares you purchase with a Letter of Intent.
Contingent Deferred Sales Charges (“CDSC”)
You do not pay a sales charge when you purchase C Shares. The offering price of C Shares is simply the next calculated NAV. But, if you sell your shares within the first year after your purchase, you will pay a CDSC equal to 1% of either (i) the NAV of the shares
at the time of purchase, or (ii) the NAV of the shares next calculated after the Funds receive your sale request, whichever is less. The Funds will use the first-in, first-out (FIFO) method to determine the holding period. You never pay a CDSC on
any increase in your investment above the initial offering price. The CDSC does not apply to shares you purchase through reinvestment of dividends or distributions or to exchanges of C Shares of one Fund for C Shares of another Fund.
Investments of $1,000,000 or more. You do not pay an initial sales charge when you buy $1,000,000 or more of A Shares in either a single investment or through our rights of accumulation, letter of intent, or
combined purchase/quantity discount programs. However, for all Funds, except the Conservative Allocation Strategy, you will pay a CDSC of 0.75% if you redeem any of these A Shares within two years of purchase. For the Conservative Allocation
Strategy, you will pay a CDSC of 0.50% if you redeem any of these A Shares within two years of purchase. The CDSC may be waived from time to time for certain broker-dealers that waive payment of compensation to them. The CDSC is calculated based on
the lesser of (i) the NAV of the shares at the time of purchase or (ii) the NAV of the shares next calculated after the Fund receives your redemption request. The CDSC does not apply to shares you purchase through reinvestment of dividends or
capital gains distributions.
Waiver of CDSC
The CDSC for A Shares or
C Shares will be waived if you sell your shares for the following reasons:
• |
Death or Post-purchase
Disablement (as defined in Section 72(m)(7) of the Internal Revenue Code) |
–
|
You are shareholder/joint
shareholder or participant/beneficiary of certain retirement plans; |
–
|
You die or become disabled
after the account is opened; |
–
|
Redemption must be made
within 1 year of such death/disability; |
–
|
The Funds must be notified in
writing of such death/disability at time of redemption request; and |
–
|
The Funds
must be provided with satisfactory evidence of death (death certificate) or disability (doctor’s certificate specifically referencing disability as defined in 72(m)(7) of the Internal Revenue Code). |
• |
Shares purchased through
dividend and capital gains reinvestment. |
•
|
Participation
in the Systematic Withdrawal Plan described below: |
–
|
Withdrawal not to exceed 10%
of the current balance of a Fund in a 12 month period. The 10% amount will be calculated as of the date of the initial Systematic Withdrawal Plan and recalculated annually on the 12 month anniversary date. Shares purchased through dividend or
capital gains reinvestment, although not subject to the CDSC, will be included in calculating the account value and 10% limitation amount. |
–
|
If the
total of all Fund account withdrawals (Systematic Withdrawal Plan or otherwise) exceeds the 10% limit within the 12 month period following the initial calculation date, the entire Systematic Withdrawal Plan for the period will be subject to the
applicable sales charge. In the initial year of a Systematic Withdrawal Plan, the withdrawal limitation period shall begin 12 months before the initial Systematic Withdrawal Plan payment. |
–
|
To qualify for the CDSC waiver
under the Systematic Withdrawal Plan, a Fund account must have a minimum of $10,000 at Systematic Withdrawal Plan inception and must also reinvest dividends and capital gains distributions. |
• |
Required mandatory minimum
withdrawals made after 70½ under any retirement plan qualified under Sections 401, 408 or 403(b) of the Internal Revenue Code or resulting from the tax free return of an excess distribution to an IRA. Satisfactory qualified plan documentation
to support any waiver includes employer letter (separation from services) and plan administrator certificate (certain distributions under plan requirements). |
•
|
Permitted
exchanges of shares, except if shares acquired by exchange are then redeemed within the period during which a CDSC would apply to the initial shares purchased. |
Purchasing, Selling and
Exchanging Fund Shares
• |
Exchanges in connection with
plans of Fund reorganizations such as mergers and acquisitions. |
To take advantage of any of these waivers, you must qualify in
advance. To see if you qualify, please call your investment professional or other investment representative. These waivers are subject to change or elimination at any time at the discretion of the Funds.
The CDSC will be waived for certain retirement plan providers
that have entered into administrative agreements with the Funds. Please see the SAI for more information on this program.
The CDSC may also be waived from time to time for certain
broker-dealers that waive payment of compensation to them.
You can also obtain information about sales charges, rights of
accumulation and letters of intent on the Funds’ website at www.ridgeworth.com.
Customer Identification and Verification
To help the government fight the funding of terrorism and money
laundering activities, U.S. federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
When you open an account, you will be asked to provide your
name, residential street address, date of birth, and Social Security Number or tax identification number. You may also be asked for other information that will allow us to identify you. Entities are also required to provide additional documentation.
This information will be verified to ensure the identity of all persons opening a mutual fund account.
In certain instances, the Funds are required to collect
documents to fulfill their legal obligation. Documents provided in connection with your application will be used solely to establish and verify a customer’s identity.
The Funds are required by law to reject your new account
application if the required identifying information is not provided. Attempts to collect the missing information required on the application will be performed by either contacting you or, if applicable, your broker. If this information is unable to
be obtained within a timeframe established at the sole discretion of the Funds, your application will be rejected.
Upon receipt of your application in proper form (or upon
receipt of all identifying information required on the application), your investment will be accepted and your order will be processed at the NAV next determined.
However, the Funds reserve the right to close your account at
the then-current day’s price if the Funds are unable to verify your identity. Attempts to verify your identity will be performed within a timeframe established at the sole discretion of the Funds. If the Funds are unable to verify your
identity, the Funds reserve the right to liquidate your account at the then-current day’s price and remit proceeds to you via check. The Funds reserve the further right to hold your proceeds until your original check clears the bank. In such
an instance, you may be
subject to a gain or loss on Fund shares and will be subject to corresponding
tax implications.
Anti-Money Laundering Program
Customer identification and verification is part of the
Funds’ overall obligation to deter money laundering under U.S. federal law. The Funds have adopted an anti-money laundering compliance program designed to prevent the Funds from being used for money laundering or the financing of terrorist
activities. In this regard, the Funds reserve the right to (i) refuse, cancel or rescind any purchase or exchange order, (ii) freeze any account and/or suspend account services, or (iii) involuntarily redeem your account in cases of threatening
conduct or suspected fraudulent or illegal activity. These actions will be taken when, at the sole discretion of Fund management, they are deemed to be in the best interest of the Funds or in cases when the Funds are requested or compelled to do so
by governmental or law enforcement authority.
Selling
Fund Shares
Shares may be sold on any Business Day by
contacting your financial institution or intermediary. Your financial institution or intermediary will give you information about how to sell your shares including any specific cut-off times required. Shares may be sold by following the procedures
established at the time your account was opened with the Funds or financial institution or intermediary. The sale price of each share will be the next NAV determined after the Funds receive your request in proper form. Your broker, financial
institution or intermediary may charge a fee for its services, in addition to the fees charged by the Funds.
Shareholders who purchased shares directly from the Funds may
sell their Fund shares by:
• |
Telephone (1-888-784-3863)
|
To sell shares by telephone:
• |
redemption checks must be
made payable to the registered shareholder; and |
• |
redemption checks must be
mailed to an address of record that has been associated with the shareholder account for at least 30 days. |
Signature Authentication
This section describes the Funds’ Medallion Signature
Guarantee and Signature Validation Program (SVP) policies. If you purchased your shares through a financial institution or intermediary, the below policies may not apply. Please contact your financial institution or intermediary for additional
information on their signature authentication policy.
Purchasing, Selling
and Exchanging Fund Shares
For certain financial and non-financial transactions, the
Funds require proof that your signature is authentic and you have the authority to provide the instruction(s) contained in the request. This verification can be provided by either a Medallion Signature Guarantee Stamp for financial transactions or
an SVP Stamp for non-financial transactions.
Both types
of stamps can be obtained from a financial institution such as a domestic bank, trust company, broker/dealer, clearing agency, savings association, or other financial institution that participates in the Medallion Signature Guarantee Program or SVP.
Please visit www.ridgeworth.com for a Letter of Instruction Form that you can provide to your financial institution to obtain the appropriate stamp. Please note a notarized signature is not an acceptable substitute for a Medallion Signature
Guarantee or an SVP Stamp. The Funds reserve the right, at their sole discretion, to waive such requirements for a specific request.
Financial Transactions
An original document containing a Medallion Signature Guarantee
is required for certain types of financial transactions. Examples include:
• |
Redemption proceeds payable
or sent to any person, address, or bank account other than the one currently on record. |
• |
Redemption requests sent to
an address of record that has been changed within the last 30 days. |
•
|
Registration
or ownership changes to your account. Ownership changes may include but are not limited to, certain types of transfers, gifting shares, beneficial inheritance, and loan collateral agreements. |
Non-Financial Transactions
For certain non-financial transactions, the Funds will accept
an original document containing an SVP Stamp. In the event an SVP Stamp is not used by the financial institution, you should request that it use its Medallion Signature Guarantee in lieu of the SVP Stamp. Examples include:
• |
Changing your name.
|
• |
Requests to add or change
banking information that the Funds have on file. |
•
|
Updates to
authorized signers on your account. |
Sale Price of Fund Shares
The sale price of each share will be the next NAV determined
after the Funds receive your request, in proper form, less any applicable CDSC.
Systematic Withdrawal Plan
The Systematic Withdrawal Plan is only available to
shareholders who own A Shares or C Shares. If you have at least $10,000 of A Shares and C Shares in your account, you may use the Systematic Withdrawal Plan. Under the
plan you may arrange monthly, quarterly, semi-annual or annual
automatic withdrawals of at least $50 from any Fund. The proceeds of each
withdrawal will be mailed to you by check or, if you have a checking or savings account with a bank, may be electronically transferred to your account. Please check with your bank. Withdrawals under the Systematic Withdrawal Plan may be subject to a
CDSC unless they meet the requirements described above under “Waiver of the CDSC.” Shareholders should contact their financial intermediaries for more information on how to take advantage of this feature.
Redemptions In-Kind
The Funds generally pay redemption proceeds in cash. However,
under unusual conditions that make the payment of cash unwise (and for the protection of the Funds’ remaining shareholders), the Funds might pay all or part of your redemption proceeds in liquid securities with a market value equal to the
redemption price (redemption in kind). It is highly unlikely that your shares would ever be redeemed in kind, but if they were you would probably have to pay transaction costs to sell the securities distributed to you, as well as taxes on any
capital gains recognized in the redemption or in the sale of the securities distributed to you.
Involuntary Sales of Your Shares
If your account balance drops below the required minimum as a
result of redemptions you may be required to sell your shares. The account balance minimums are:
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
No
minimums |
The Funds will always give
you at least 60 days written notice to give you time to add to your account and avoid the sale of your shares.
Shareholders should contact their financial intermediary
regarding minimum investment requirements.
Receiving Your
Money
Normally, the Funds will send your sale proceeds
within five Business Days after the Funds receive your request, but a Fund may take up to seven days to pay the sale proceeds if making immediate payments would adversely affect the Fund (for example, to allow the Fund to raise capital in the case
of a large redemption). Your sale proceeds can be wired to your bank account (subject to a fee) or sent to you by check. If you recently purchased your shares by check or through ACH, redemption proceeds may not be
available until your funds have cleared (which may take up to 10 calendar days from your date of purchase).
Each Fund tries to manage large redemptions of positions in the
Fund. However, a large redemption by a shareholder holding a significant investment in a Fund may have an adverse impact on the remaining shareholders in the Fund. For example, such a redemption may cause the Fund to (i) utilize outside sources of
liquidity, which may be more costly, or (ii) liquidate securities
Market Timing Policies and
Procedures
that otherwise would not have been sold, potentially impacting
the Fund’s performance and generating capital gains distributions.
Suspension of Your Right to Sell Your Shares
A Fund may suspend your right to sell your shares if the NYSE
restricts trading, the SEC declares an emergency or for other reasons approved by the SEC. More information about this is in the Funds’ SAI.
Exchanging and Converting Your Shares
You must meet investor eligibility requirements applicable to
the share class into which you are exchanging. The Funds may accept investments of smaller amounts at its discretion. The Funds will treat any cross class conversion between classes of shares of the same Fund as a tax-free event. An exchange between
the same classes of shares of different Funds generally is treated as a taxable event.
For the purpose of computing the CDSC applicable to C Shares,
the length of time you have owned your shares will be measured from the original date of purchase and will not be affected by any exchange.
The exchange privilege is not intended as a vehicle for
short-term trading. Excessive exchange activity may interfere with Fund management and may have an adverse effect on all shareholders. In order to limit excessive exchange activity and in other circumstances where it is in the best interests of a
Fund, all Funds reserve the right to revise or terminate the exchange privilege, limit the amount or number of exchanges or reject any exchange or restrict or refuse purchases if (i) a Fund or its manager(s) believes the Fund would be harmed or
unable to invest effectively, or (ii) a Fund receives or anticipates orders that may dramatically affect the Fund as outlined under “Market Timing Policies and Procedures” below.
If you recently purchased shares by check or through ACH, you
may not be able to exchange your shares until your funds have cleared (which may take up to 10 calendar days from your date of purchase).
Exchanging Your Shares
You may exchange your Fund shares for the same class of shares
of any other RidgeWorth Fund. Your sales price and purchase price will be based on the NAV next calculated after the Funds receive your exchange request in proper form.
Exchanges into the RidgeWorth Ultra-Short
Funds — I Shares
At any time, you may exchange your
A, C or I Shares of any RidgeWorth Fund for shares of the RidgeWorth Seix U.S. Government Securities Ultra-Short Bond Fund I Shares and the RidgeWorth Seix Ultra-Short Bond Fund I Shares (the “RidgeWorth Ultra-Short Funds”). You should
read the RidgeWorth Ultra-Short Funds’ prospectus prior to investing in those Funds. You can obtain a prospectus by calling
1-888-784-3863 or by visiting www.ridgeworth.com. Qualifying exchanges between
the Funds’ A and C Shares and the RidgeWorth Ultra-Short Funds’ I Shares are eligible for exchange into the Funds’ A and/or C Shares without the imposition of the applicable front-end sales charge and/or CDSC. If applicable, the
CDSC of the Fund from which you exchanged will be carried over to the RidgeWorth Ultra-Short Funds and may be assessed if you sell your shares. Please see the Sales Charges section of the prospectus for more information.
If you purchased shares though a financial institution or
intermediary please contact your financial institution or intermediary regarding the availability of this exchange privilege.
Cross Class Conversions
You may convert your shares for shares of a different class of
the same Fund based on the NAV of each class next calculated after the Fund receives your exchange request in proper form. If you have held your current shares for less than one year, your financial intermediary may assess any applicable CDSC on
your shares when you make the conversion.
Instructions
for Exchanging and Converting Shares
You may exchange or
convert your shares on any Business Day by contacting the Funds at 1-888-784-3863 or the financial institution or intermediary through which your shares are held.
Systematic Exchange Plan
The Systematic Exchange Plan is only available to shareholders
who own A Shares or C Shares. For investors who qualify, a systematic exchange feature may be added to your account. Shareholders should contact their financial
intermediary for more information about how to take advantage of this feature and the minimum investment requirements.
Telephone Transactions
Purchasing, selling and exchanging Fund shares over the
telephone is extremely convenient, but not without risk. Although the Funds have certain safeguards and procedures to confirm the identity of callers and the authenticity of instructions, the Funds are not responsible for any losses or costs
incurred by following telephone instructions the Funds reasonably believe to be genuine. If you or your financial institution or intermediary transact with the Funds over the telephone, you will generally bear the risk of any loss. The Funds reserve
the right to modify, suspend or terminate telephone transaction privileges at any time.
Market Timing Policies and Procedures
The Funds are intended for long-term investment purposes only
and discourage shareholders from engaging in “market timing” or other types of excessive short-term trading.
Distribution
of Fund Shares
This frequent trading into and out of the Funds may present
risks to the Funds’ long-term shareholders, all of which could adversely affect shareholder returns. The risks posed by frequent trading include interfering with the efficient implementation of the Funds’ investment strategies,
triggering the recognition of taxable gains and losses on the sale of Fund investments, requiring the Funds to maintain higher cash balances to meet redemption requests, and experiencing increased transaction costs.
A Fund that invests a significant amount of its assets in
overseas markets is particularly susceptible to the risk of certain investors using a strategy known as time-zone arbitrage. Investors using this strategy attempt to take advantage of the differences in value of foreign securities that might result
from events that occur between the close of the foreign securities market on which a foreign security is traded and the time at which the Fund calculates its NAV.
The Funds and/or their service providers will take steps
reasonably designed to detect and deter frequent trading by shareholders pursuant to the Funds’ policies and procedures described in this prospectus and approved by the Funds’ Board. The Funds seek to discourage short-term trading by
using fair value pricing procedures to fair value certain investments under some circumstances. For purposes of applying these policies, the Funds’ service providers may consider the trading history of accounts under common ownership or
control. The Funds’ policies and procedures include:
• |
Restrictions on shareholders
from making more than one (1) “round trip” into and out of a Fund within 14 days or more than two (2) “round trips” within any continuous 90 day period. If a shareholder exceeds either “round trip” restriction, he
or she may be deemed a “Market Timer,” and the Funds and/or their service providers may, at their discretion, reject any additional purchase orders. The Funds define a round trip as a purchase into a Fund by a shareholder, followed by a
subsequent redemption out of the Fund. Anyone considered to be a Market Timer by the Funds, the Adviser, a Subadviser to the RidgeWorth Funds or a shareholder servicing agent may be notified in writing of their designation as a Market Timer; and
|
•
|
Reserving
the right to reject any purchase request by any investor or group of investors for any reason without prior notice, including, in particular, if the Funds or the Adviser reasonably believes that the trading activity would be harmful or disruptive to
the Funds. |
The Funds and/or their
service providers seek to apply these policies to the best of their abilities uniformly and in a manner they believe is consistent with the interests of the Funds’ long-term shareholders.
Although these policies are designed to deter frequent trading,
none of these measures alone, nor all of them taken together, eliminate the possibility that frequent trading in the Funds will occur, particularly with respect to trades placed by shareholders that invest in the Funds through omnibus arrangements
maintained by brokers, retirement plan accounts and other financial intermediaries.
Purchase and redemption transactions submitted to the Funds by these
intermediaries reflect the transactions of multiple beneficial owners whose individual transactions are not automatically disclosed to the Funds. Therefore, the Funds rely in large part on the intermediaries who maintain omnibus arrangements (which
may represent a majority of Fund shares) to aid in the Funds’ efforts to detect and deter short-term trading. The Funds monitor trading activity at the omnibus account level and look for activity that indicates potential short-term trading. If
they detect suspicious trading activity, the Funds contact the intermediaries to determine whether the short-term trading policy has been violated and may request and receive personal identifying information and transaction histories for some or all
beneficial owners to make this determination.
If a Fund
believes that a shareholder has violated the short-term trading policy, it will take further steps to prevent any future short-term trading by such shareholder in accordance with the policy. The Funds cannot guarantee the accuracy of the information
provided by the intermediaries and may not always be able to track short-term trading affected through these intermediaries. A Fund has the right to terminate an intermediary’s ability to invest in a Fund if excessive trading activity persists
and a Fund or its Adviser or Subadviser reasonably believes that such termination would be in the best interests of long-term shareholders.
In addition to the Funds’ market timing policies and
procedures described above, you may be subject to the market timing policies and procedures of the intermediary through which you invest. Please consult with your intermediary for additional information regarding its frequent trading
restrictions.
Distribution of Fund Shares
Distribution of Fund Shares Generally
The Adviser or its affiliates may make payments from their own
funds based on gross sales and current assets to selected brokerage firms or institutions. The amount of these payments may be substantial. The minimum aggregate sales required for eligibility for such payments, and the factors in selecting the
brokerage firms and institutions to which they will be made, are determined from time to time by the Adviser. Furthermore, the Adviser or their affiliates may pay fees from their own capital resources to financial intermediaries (such as brokers,
banks, financial advisers and retirement plan service providers) to compensate them for providing distribution-related or shareholder services, for marketing expenses they incur, for travel and lodging in connection with educational events or to pay
for the opportunity to have them distribute the Funds.
The amount of these payments is determined by the Adviser and
may differ among financial intermediaries. Such payments may provide incentives for financial intermediaries to make shares of the Funds available to their customers, and may allow the Funds greater access to such financial intermediaries and their
customers than would be the case if no payments were made. You may wish to consider whether such arrangements exist when evaluating any recommendation to purchase shares of the Funds.
Shareholder Servicing Plans, Dividends and
Distributions, Household Mailings and
Taxes
Please refer to the SAI for more information regarding these
arrangements.
Distribution Plan – A Shares and C
Shares
The A Shares and C Shares of each Fund have
adopted a distribution plan that allows the Fund to pay distribution and service fees for the sale and distribution of its shares, and for services provided to shareholders. Because these fees are paid out of a Fund’s assets continuously, over
time these fees will increase the cost of your investment and may cost you more than paying other types of sales charges.
Broker-dealers who initiate and are responsible for selling C
Shares may receive an initial payment at the time of sale of 1.00% and annual 12b-1 payout effective in the 13th month of 1.00%. Through the distribution plan, the Funds’ Distributor is reimbursed for these payments, as well as other
distribution related services provided by the Distributor.
For A Shares, each Fund’s distribution plan authorizes
payment of up to the amount shown under “Maximum Fee” in the table that follows. Currently, however, the Board has only approved payment of up to the amount shown under “Current Approved Fee” in the table that follows. Fees
are shown as a percentage of average daily net assets of the Fund’s A Shares.
|
Maximum
Fee |
|
Current
Approved Fee |
Aggressive
Growth Allocation Strategy |
0.35%
|
|
0.30%
|
Conservative
Allocation Strategy |
0.35%
|
|
0.30%
|
Growth
Allocation Strategy |
0.35%
|
|
0.30%
|
Moderate
Allocation Strategy |
0.35%
|
|
0.30%
|
For C Shares, the maximum
distribution fee is 1.00% of the average daily net assets of a Fund’s C Shares.
The Funds may provide financial assistance in connection with
pre-approved seminars, conferences and advertising to the extent permitted by applicable state or self-regulatory agencies, such as the Financial Industry Regulatory Authority.
Shareholder Servicing Plans
With respect to the A Shares and I Shares of certain
of the Funds, the A Shares and I Shares Shareholder Servicing Plan permits the A Shares and I Shares of that Fund to pay financial intermediaries for shareholder support services they provide, at a rate of up to 0.40% of the
average daily net assets of each of the A Shares and I Shares of the Allocation Strategies (except for the Conservative Allocation Strategy), and at a rate of up to 0.20% of the average daily net assets of the A Shares and I Shares of the
Conservative Allocation Strategy Financial intermediaries include brokers, dealers, banks (including bank trust departments), trust companies, registered investment advisers, financial planners, retirement plan administrators, insurance companies,
and any other institution having a service, administration, or any similar arrangement with the Funds or their service providers. The shareholder support services may include, among others, providing general shareholder liaison services (including
responding to
shareholder inquiries), providing information on shareholder investments, and
establishing and maintaining shareholder accounts and records.
Dividends and Distributions
Each Fund distributes its net investment income at least
annually. Each Fund makes distributions of its net realized capital gains, if any, at least annually. If you own Fund shares on a Fund’s record date, you will be entitled to receive the distribution.
You will receive dividends and distributions in the form of
additional Fund shares unless you elect to receive payment in cash. To elect cash payment, you must notify the Funds in writing prior to the date of the distribution. Your election will be effective for dividends and distributions paid after the
Funds receive your written notice. To cancel your election, simply send the Funds written notice.
401(k) plan participants will receive dividends and
distributions in the form of additional Fund shares if the participant owns shares of a Fund on the date the dividend or distribution is allocated by the 401(k) plan. Therefore, a participant will not receive a dividend or distribution if the
participant does not own shares of the applicable Fund on the date the dividend or distribution is allocated.
Household Mailings
To reduce expenses, we may mail only one copy of the Fund's
prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please call us at 1-888-784-3863 (or contact your financial institution). We will begin
sending you individual copies thirty days after receiving your request.
Taxes
Please consult your tax advisor regarding your specific questions
about U.S. federal, state, local, and foreign tax considerations relating to any investment in any Fund.
Summarized below are some important tax issues that affect the
Funds and their shareholders. This summary is based on current tax laws, which may change. More information on taxes is in the Funds’ SAI.
Each Fund will distribute substantially all of its net
investment income and its net realized capital gains, if any, at least annually. The dividends and distributions you receive may be subject to federal, state and local taxation, depending upon your tax situation. Distributions you receive from a
Fund may be taxable whether or not you reinvest them in additional shares.
Income distributions are generally taxable as
either ordinary income or, in general, if paid from a Fund’s “qualified dividend income” and if certain conditions including holding period requirements, are met by Underlying Funds, the Fund and the shareholder, as qualified
dividend income. Dividends that are qualified dividend income are generally taxable to noncorporate
shareholders at U.S. federal income tax rates of up to 20%.
Capital gains distributions (i.e., distributions of the excess of net long-term capital gain over net short-term loss, if any) are generally taxable at the rates applicable to long-term capital gains. Long-term capital gains are generally taxable to
noncorporate shareholders at rates of up to 20%. Distributions from a Fund’s or an Underlying Fund's net short-term capital gains are generally taxable as ordinary income. A high portfolio turnover rate and the use of certain derivatives
may cause a Fund or an Underlying Fund to recognize higher amounts of short-term capital gains. A portion of dividends received from a Fund (but none of the Fund’s capital gain distributions) may qualify for the dividends-received deduction
for corporations.
“Qualified dividend income”
generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that a
Fund or an Underlying Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. In general, a Fund may report its distributions as
qualified dividend income to the extent that the Fund receives distributions reported by Underlying Funds as qualified dividend income.
Dividends received by a Fund or, in general,
an Underlying Fund from REITs generally are not expected to qualify for treatment as qualified dividend income or for the dividends-received deduction.
If a Fund declares a dividend in October, November or December,
payable to shareholders of record in such a month, and pays it in January of the following year, you will be taxed on the dividend as if you received it in the year in which it was declared.
If you invest in a Fund shortly before a
dividend or other taxable distribution, generally you will pay a higher price per share and, unless you are exempt from tax, you will pay taxes on the amount of the distribution.
Distributions from a Fund and capital gains on a disposition of
Fund shares are generally taken into account for purposes of the 3.8% U.S. federal Medicare contribution tax on all or a portion of the “net investment income” of individuals with income exceeding certain thresholds. This 3.8% tax also
applies to all or a portion of the undistributed net investment income of certain shareholders that are estates and trusts. “Net investment income” for this purpose does not include exempt-interest dividends (described
below).
Each Fund in which you invest will
inform you shortly after the close of each calendar year of the amounts of your distributions that may qualify as ordinary income dividends, qualified dividend income, exempt-interest dividends, and capital gain distributions.
You must provide your social security number or other taxpayer
identification number to a Fund along with any certifications required by the Internal Revenue Service. If you do not, or if it is otherwise legally required to do so, a Fund will apply “backup withholding” tax on your dividends
(including exempt-interest
dividends) and other distributions, sale proceeds and any other payments to
you that are subject to backup withholding. The backup withholding rate is 28%.
Dividends and distributions will accumulate on a tax-deferred
basis if you are investing through a 401(k) plan or any other employer-sponsored retirement or savings plan that qualifies for tax-advantaged treatment under federal income tax laws. Generally, you will not owe taxes on these distributions until you
begin withdrawals from the plan. Withdrawals from the plan are subject to numerous complex and special tax rules and may be subject to a penalty tax in the case of premature withdrawals. You should consult your tax advisor or plan administrator
regarding the tax rules governing your retirement or savings plan.
Certain Underlying Funds may distribute exempt-interest
dividends. Exempt-interest dividends are distributions attributable to a Fund’s or an Underlying Fund’s tax-exempt interest income and are exempt from regular federal income tax. In general, a Fund may report distributions as
exempt-interest dividends to the extent the Fund receives distributions reported by Underlying Funds as exempt-interest dividends. A portion of exempt-interest dividends may be a tax preference item for purposes of the federal alternative minimum
tax applicable to individuals. Exempt-interest dividends distributed to corporate shareholders may result in increased liability under the federal alternative minimum tax as applied to corporations.
A Fund may make distributions that represent interest earned by
Underlying Funds on U.S. government obligations. Subject to certain limitations, dividends attributable to interest earned on direct obligations of the U.S. Government (but generally not distributions attributable to gain from the sale of such
obligations) may be, in some states, exempt from certain state and local taxes.
A Fund may be able to pass along a tax credit for foreign
income taxes paid by the Fund or an Underlying Fund. In such event, each Fund will provide you with the information necessary to reflect such foreign taxes on your federal income tax return.
The financial highlights table is intended to
help you understand a Fund’s financial performance for the past 5 years. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on
an investment in the Fund (assuming reinvestment of all dividends and distributions). This financial information has been audited by PricewaterhouseCoopers LLP. The Report of Independent Registered Public Accounting Firm for each period shown, along
with the Funds’ financial statements and related notes, are included in the Funds’ Annual Reports to Shareholders for such periods. The 2016 Annual Report is available upon request and without charge by calling 1-888-784-3863 or on the
Funds’ website at www.ridgeworth.com.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Aggressive
Growth Allocation Strategy(g) |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$
7.97 |
|
$
0.06 |
|
$(0.41)
|
|
$(0.35)
|
|
$(0.07)
|
|
$—
|
|
$(1.55)
|
|
$(1.62)
|
|
$
6.00 |
|
$
2,582 |
|
(4.67)%
|
|
0.50%
|
|
1.55%
|
|
0.77%
|
|
43%
|
|
Year Ended March 31,
2015
|
8.98
|
|
0.04
|
|
0.62
|
|
0.66
|
|
(0.18)
|
|
—
|
|
(1.49)
|
|
(1.67)
|
|
7.97
|
|
4,920
|
|
7.79
|
|
0.50
|
|
1.12
|
|
0.46
|
|
36
|
|
Year Ended March 31,
2014
|
8.95
|
|
0.09
|
|
1.50
|
|
1.59
|
|
(0.29)
|
|
—
|
|
(1.27)
|
|
(1.56)
|
|
8.98
|
|
14,143
|
|
18.41
|
|
0.50
|
|
0.94
|
|
0.99
|
|
12
|
|
Year Ended March 31,
2013
|
8.50
|
|
0.06
|
|
0.48
|
|
0.54
|
|
(0.09)
|
|
—
|
|
—
|
|
(0.09)
|
|
8.95
|
|
18,577
|
|
6.45
|
|
0.40
|
|
0.81
|
|
0.77
|
|
35
|
|
Year Ended March 31,
2012
|
8.57
|
|
0.08
|
|
(0.02)
|
|
0.06
|
|
(0.13)
|
|
—
|
|
—
|
|
(0.13)
|
|
8.50
|
|
18,993
|
|
0.89
|
|
0.20
|
|
0.45
|
|
0.98
|
|
55
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
7.87
|
|
0.04
|
|
(0.40)
|
|
(0.36)
|
|
(0.05)
|
|
—
|
|
(1.55)
|
|
(1.60)
|
|
5.91
|
|
3,807
|
|
(4.88)
|
|
0.70
|
|
1.57
|
|
0.52
|
|
43
|
|
Year Ended March 31,
2015
|
8.89
|
|
0.04
|
|
0.60
|
|
0.64
|
|
(0.17)
|
|
—
|
|
(1.49)
|
|
(1.66)
|
|
7.87
|
|
4,815
|
|
7.56
|
|
0.70
|
|
1.12
|
|
0.46
|
|
36
|
|
Year Ended March 31,
2014
|
8.88
|
|
0.09
|
|
1.46
|
|
1.55
|
|
(0.27)
|
|
—
|
|
(1.27)
|
|
(1.54)
|
|
8.89
|
|
4,752
|
|
18.11
|
|
0.70
|
|
0.95
|
|
0.95
|
|
12
|
|
Year Ended March 31,
2013
|
8.43
|
|
0.04
|
|
0.49
|
|
0.53
|
|
(0.08)
|
|
—
|
|
—
|
|
(0.08)
|
|
8.88
|
|
4,110
|
|
6.30
|
|
0.63
|
|
0.90
|
|
0.51
|
|
35
|
|
Year Ended March 31,
2012
|
8.52
|
|
0.05
|
|
(0.03)
|
|
0.02
|
|
(0.11)
|
|
—
|
|
—
|
|
(0.11)
|
|
8.43
|
|
4,982
|
|
0.42
|
|
0.50
|
|
0.75
|
|
0.61
|
|
55
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
7.61
|
|
—(e)
|
|
(0.38)
|
|
(0.38)
|
|
(0.01)
|
|
—
|
|
(1.55)
|
|
(1.56)
|
|
5.67
|
|
695
|
|
(5.31)
|
|
1.30
|
|
2.23
|
|
(0.01)
|
|
43
|
|
Year Ended March 31,
2015
|
8.66
|
|
(0.01)
|
|
0.58
|
|
0.57
|
|
(0.13)
|
|
—
|
|
(1.49)
|
|
(1.62)
|
|
7.61
|
|
694
|
|
6.89
|
|
1.30
|
|
1.73
|
|
(0.16)
|
|
36
|
|
Year Ended March 31,
2014
|
8.69
|
|
0.03
|
|
1.44
|
|
1.47
|
|
(0.23)
|
|
—
|
|
(1.27)
|
|
(1.50)
|
|
8.66
|
|
675
|
|
17.50
|
|
1.30
|
|
1.56
|
|
0.31
|
|
12
|
|
Year Ended March 31,
2013
|
8.28
|
|
(0.01)
|
|
0.46
|
|
0.45
|
|
(0.04)
|
|
—
|
|
—
|
|
(0.04)
|
|
8.69
|
|
704
|
|
5.47
|
|
1.27
|
|
1.56
|
|
(0.10)
|
|
35
|
|
Year Ended March 31,
2012
|
8.39
|
|
(0.01)
|
|
(0.02)
|
|
(0.03)
|
|
(0.08)
|
|
—
|
|
—
|
|
(0.08)
|
|
8.28
|
|
811
|
|
(0.21)
|
|
1.20
|
|
1.45
|
|
(0.12)
|
|
55
|
|
Conservative
Allocation Strategy(g) |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
12.76
|
|
0.20
|
|
(0.42)
|
|
(0.22)
|
|
(0.22)
|
|
—
|
|
(0.31)
|
|
(0.53)
|
|
12.01
|
|
31,067
|
|
(1.73)
|
|
0.30
|
|
0.44
|
|
1.65
|
|
40
|
|
Year Ended March 31,
2015
|
12.60
|
|
0.23
|
|
0.53
|
|
0.76
|
|
(0.32)
|
|
—
|
|
(0.28)
|
|
(0.60)
|
|
12.76
|
|
32,606
|
|
6.17(f)
|
|
0.30
|
|
0.45
|
|
1.77
|
|
17
|
|
Year Ended March 31,
2014
|
12.54
|
|
0.24
|
|
0.68
|
|
0.92
|
|
(0.34)
|
|
—
|
|
(0.52)
|
|
(0.86)
|
|
12.60
|
|
28,894
|
|
7.48(f)
|
|
0.30
|
|
0.38
|
|
1.88
|
|
24
|
|
Year Ended March 31,
2013
|
12.27
|
|
0.21
|
|
0.46
|
|
0.67
|
|
(0.27)
|
|
—
|
|
(0.13)
|
|
(0.40)
|
|
12.54
|
|
27,387
|
|
5.55
|
|
0.27
|
|
0.39
|
|
1.72
|
|
40
|
|
Year Ended March 31,
2012
|
12.07
|
|
0.27
|
|
0.38
|
|
0.65
|
|
(0.34)
|
|
—
|
|
(0.11)
|
|
(0.45)
|
|
12.27
|
|
21,585
|
|
5.61
|
|
0.20
|
|
0.40
|
|
2.24
|
|
28
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
12.75
|
|
0.16
|
|
(0.41)
|
|
(0.25)
|
|
(0.18)
|
|
—
|
|
(0.31)
|
|
(0.49)
|
|
12.01
|
|
14,462
|
|
(1.98)
|
|
0.60
|
|
0.67
|
|
1.33
|
|
40
|
|
Year Ended March 31,
2015
|
12.59
|
|
0.19
|
|
0.53
|
|
0.72
|
|
(0.28)
|
|
—
|
|
(0.28)
|
|
(0.56)
|
|
12.75
|
|
15,991
|
|
5.86
|
|
0.60
|
|
0.67
|
|
1.47
|
|
17
|
|
Year Ended March 31,
2014
|
12.53
|
|
0.20
|
|
0.67
|
|
0.87
|
|
(0.29)
|
|
—
|
|
(0.52)
|
|
(0.81)
|
|
12.59
|
|
15,271
|
|
7.14
|
|
0.60
|
|
0.66
|
|
1.57
|
|
24
|
|
Year Ended March 31,
2013
|
12.26
|
|
0.17
|
|
0.47
|
|
0.64
|
|
(0.24)
|
|
—
|
|
(0.13)
|
|
(0.37)
|
|
12.53
|
|
16,940
|
|
5.29
|
|
0.56
|
|
0.68
|
|
1.37
|
|
40
|
|
Year Ended March 31,
2012
|
12.06
|
|
0.22
|
|
0.39
|
|
0.61
|
|
(0.30)
|
|
—
|
|
(0.11)
|
|
(0.41)
|
|
12.26
|
|
24,322
|
|
5.32
|
|
0.50
|
|
0.70
|
|
1.83
|
|
28
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
12.61
|
|
0.08
|
|
(0.42)
|
|
(0.34)
|
|
(0.10)
|
|
—
|
|
(0.31)
|
|
(0.41)
|
|
11.86
|
|
19,136
|
|
(2.71)
|
|
1.30
|
|
1.32
|
|
0.65
|
|
40
|
|
Year Ended March 31,
2015
|
12.46
|
|
0.10
|
|
0.53
|
|
0.63
|
|
(0.20)
|
|
—
|
|
(0.28)
|
|
(0.48)
|
|
12.61
|
|
18,201
|
|
5.11(f)
|
|
1.30
|
|
1.33
|
|
0.76
|
|
17
|
|
Year Ended March 31,
2014
|
12.42
|
|
0.11
|
|
0.67
|
|
0.78
|
|
(0.22)
|
|
—
|
|
(0.52)
|
|
(0.74)
|
|
12.46
|
|
17,110
|
|
6.38(f)
|
|
1.30
|
|
1.32
|
|
0.89
|
|
24
|
|
Year Ended March 31,
2013
|
12.18
|
|
0.09
|
|
0.47
|
|
0.56
|
|
(0.19)
|
|
—
|
|
(0.13)
|
|
(0.32)
|
|
12.42
|
|
15,410
|
|
4.58
|
|
1.27
|
|
1.35
|
|
0.73
|
|
40
|
|
Year Ended March 31,
2012
|
11.99
|
|
0.15
|
|
0.38
|
|
0.53
|
|
(0.23)
|
|
—
|
|
(0.11)
|
|
(0.34)
|
|
12.18
|
|
12,447
|
|
4.56
|
|
1.20
|
|
1.40
|
|
1.27
|
|
28
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Growth
Allocation Strategy(g) |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$11.46
|
|
$0.10
|
|
$(0.52)
|
|
$(0.42)
|
|
$(0.12)
|
|
$—
|
|
$(0.79)
|
|
$(0.91)
|
|
$10.13
|
|
$
38,194 |
|
(3.74)%
|
|
0.50%
|
|
0.70%
|
|
0.91%
|
|
29%
|
|
Year Ended March 31,
2015
|
11.38
|
|
0.09
|
|
0.75
|
|
0.84
|
|
(0.24)
|
|
—
|
|
(0.52)
|
|
(0.76)
|
|
11.46
|
|
53,293
|
|
7.54
|
|
0.50
|
|
0.69
|
|
0.78
|
|
23
|
|
Year Ended March 31,
2014
|
11.28
|
|
0.14
|
|
1.61
|
|
1.75
|
|
(0.35)
|
|
—
|
|
(1.30)
|
|
(1.65)
|
|
11.38
|
|
53,043
|
|
15.96
|
|
0.50
|
|
0.67
|
|
1.16
|
|
14
|
|
Year Ended March 31,
2013
|
10.64
|
|
0.11
|
|
0.68
|
|
0.79
|
|
(0.15)
|
|
—
|
|
—
|
|
(0.15)
|
|
11.28
|
|
55,222
|
|
7.52
|
|
0.40
|
|
0.55
|
|
1.04
|
|
20
|
|
Year Ended March 31,
2012
|
10.56
|
|
0.15
|
|
0.15
|
|
0.30
|
|
(0.22)
|
|
—
|
|
—
|
|
(0.22)
|
|
10.64
|
|
57,078
|
|
3.06
|
|
0.20
|
|
0.26
|
|
1.53
|
|
49
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
11.41
|
|
0.08
|
|
(0.53)
|
|
(0.45)
|
|
(0.10)
|
|
—
|
|
(0.79)
|
|
(0.89)
|
|
10.07
|
|
7,255
|
|
(4.02)
|
|
0.67
|
|
0.67
|
|
0.74
|
|
29
|
|
Year Ended March 31,
2015
|
11.33
|
|
0.07
|
|
0.75
|
|
0.82
|
|
(0.22)
|
|
—
|
|
(0.52)
|
|
(0.74)
|
|
11.41
|
|
8,801
|
|
7.38
|
|
0.68
|
|
0.68
|
|
0.63
|
|
23
|
|
Year Ended March 31,
2014
|
11.23
|
|
0.12
|
|
1.61
|
|
1.73
|
|
(0.33)
|
|
—
|
|
(1.30)
|
|
(1.63)
|
|
11.33
|
|
9,609
|
|
15.84
|
|
0.67
|
|
0.67
|
|
1.06
|
|
14
|
|
Year Ended March 31,
2013
|
10.61
|
|
0.09
|
|
0.66
|
|
0.75
|
|
(0.13)
|
|
—
|
|
—
|
|
(0.13)
|
|
11.23
|
|
8,975
|
|
7.16
|
|
0.61
|
|
0.64
|
|
0.84
|
|
20
|
|
Year Ended March 31,
2012
|
10.53
|
|
0.12
|
|
0.15
|
|
0.27
|
|
(0.19)
|
|
—
|
|
—
|
|
(0.19)
|
|
10.61
|
|
11,092
|
|
2.76
|
|
0.50
|
|
0.56
|
|
1.22
|
|
49
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
11.18
|
|
0.01
|
|
(0.52)
|
|
(0.51)
|
|
(0.04)
|
|
—
|
|
(0.79)
|
|
(0.83)
|
|
9.84
|
|
2,613
|
|
(4.60)
|
|
1.30
|
|
1.31
|
|
0.08
|
|
29
|
|
Year Ended March 31,
2015
|
11.13
|
|
—(e)
|
|
0.73
|
|
0.73
|
|
(0.16)
|
|
—
|
|
(0.52)
|
|
(0.68)
|
|
11.18
|
|
3,192
|
|
6.70
|
|
1.30
|
|
1.30
|
|
—(e)
|
|
23
|
|
Year Ended March 31,
2014
|
11.08
|
|
0.06
|
|
1.56
|
|
1.62
|
|
(0.27)
|
|
—
|
|
(1.30)
|
|
(1.57)
|
|
11.13
|
|
2,989
|
|
15.05
|
|
1.28
|
|
1.28
|
|
0.49
|
|
14
|
|
Year Ended March 31,
2013
|
10.48
|
|
0.02
|
|
0.66
|
|
0.68
|
|
(0.08)
|
|
—
|
|
—
|
|
(0.08)
|
|
11.08
|
|
2,602
|
|
6.55
|
|
1.25
|
|
1.28
|
|
0.22
|
|
20
|
|
Year Ended March 31,
2012
|
10.41
|
|
0.05
|
|
0.15
|
|
0.20
|
|
(0.13)
|
|
—
|
|
—
|
|
(0.13)
|
|
10.48
|
|
2,793
|
|
2.03
|
|
1.20
|
|
1.26
|
|
0.50
|
|
49
|
|
Moderate
Allocation Strategy(g) |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
11.07
|
|
0.11
|
|
(0.43)
|
|
(0.32)
|
|
(0.18)
|
|
—
|
|
(1.52)
|
|
(1.70)
|
|
9.05
|
|
45,980
|
|
(2.96)
|
|
0.50
|
|
0.57
|
|
1.08
|
|
26
|
|
Year Ended March 31,
2015
|
11.18
|
|
0.13
|
|
0.61
|
|
0.74
|
|
(0.26)
|
|
—
|
|
(0.59)
|
|
(0.85)
|
|
11.07
|
|
94,978
|
|
6.77
|
|
0.50
|
|
0.52
|
|
1.18
|
|
18
|
|
Year Ended March 31,
2014
|
11.11
|
|
0.16
|
|
1.09
|
|
1.25
|
|
(0.31)
|
|
—
|
|
(0.87)
|
|
(1.18)
|
|
11.18
|
|
109,457
|
|
11.56
|
|
0.50
|
|
0.54
|
|
1.44
|
|
18
|
|
Year Ended March 31,
2013
|
10.77
|
|
0.15
|
|
0.54
|
|
0.69
|
|
(0.18)
|
|
—
|
|
(0.17)
|
|
(0.35)
|
|
11.11
|
|
139,912
|
|
6.60
|
|
0.40
|
|
0.43
|
|
1.37
|
|
29
|
|
Year Ended March 31,
2012
|
10.60
|
|
0.20
|
|
0.27
|
|
0.47
|
|
(0.28)
|
|
—
|
|
(0.02)
|
|
(0.30)
|
|
10.77
|
|
133,382
|
|
4.63
|
|
0.20
|
|
0.22
|
|
1.96
|
|
38
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
11.04
|
|
0.11
|
|
(0.45)
|
|
(0.34)
|
|
(0.17)
|
|
—
|
|
(1.52)
|
|
(1.69)
|
|
9.01
|
|
11,972
|
|
(3.13)
|
|
0.68
|
|
0.68
|
|
1.05
|
|
26
|
|
Year Ended March 31,
2015
|
11.15
|
|
0.11
|
|
0.62
|
|
0.73
|
|
(0.25)
|
|
—
|
|
(0.59)
|
|
(0.84)
|
|
11.04
|
|
17,295
|
|
6.65
|
|
0.67
|
|
0.67
|
|
1.00
|
|
18
|
|
Year Ended March 31,
2014
|
11.08
|
|
0.15
|
|
1.09
|
|
1.24
|
|
(0.30)
|
|
—
|
|
(0.87)
|
|
(1.17)
|
|
11.15
|
|
20,171
|
|
11.48
|
|
0.62
|
|
0.62
|
|
1.32
|
|
18
|
|
Year Ended March 31,
2013
|
10.75
|
|
0.13
|
|
0.54
|
|
0.67
|
|
(0.17)
|
|
—
|
|
(0.17)
|
|
(0.34)
|
|
11.08
|
|
19,622
|
|
6.36
|
|
0.58
|
|
0.59
|
|
1.19
|
|
29
|
|
Year Ended March 31,
2012
|
10.58
|
|
0.18
|
|
0.26
|
|
0.44
|
|
(0.25)
|
|
—
|
|
(0.02)
|
|
(0.27)
|
|
10.75
|
|
20,366
|
|
4.33
|
|
0.50
|
|
0.52
|
|
1.70
|
|
38
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.95
|
|
0.05
|
|
(0.44)
|
|
(0.39)
|
|
(0.11)
|
|
—
|
|
(1.52)
|
|
(1.63)
|
|
8.93
|
|
11,279
|
|
(3.65)
|
|
1.26
|
|
1.26
|
|
0.45
|
|
26
|
|
Year Ended March 31,
2015
|
11.06
|
|
0.05
|
|
0.61
|
|
0.66
|
|
(0.18)
|
|
—
|
|
(0.59)
|
|
(0.77)
|
|
10.95
|
|
13,553
|
|
6.07
|
|
1.23
|
|
1.23
|
|
0.47
|
|
18
|
|
Year Ended March 31,
2014
|
11.00
|
|
0.08
|
|
1.08
|
|
1.16
|
|
(0.23)
|
|
—
|
|
(0.87)
|
|
(1.10)
|
|
11.06
|
|
14,591
|
|
10.81
|
|
1.21
|
|
1.21
|
|
0.73
|
|
18
|
|
Year Ended March 31,
2013
|
10.69
|
|
0.06
|
|
0.54
|
|
0.60
|
|
(0.12)
|
|
—
|
|
(0.17)
|
|
(0.29)
|
|
11.00
|
|
14,106
|
|
5.69
|
|
1.20
|
|
1.21
|
|
0.56
|
|
29
|
|
Year Ended March 31,
2012
|
10.52
|
|
0.10
|
|
0.27
|
|
0.37
|
|
(0.18)
|
|
—
|
|
(0.02)
|
|
(0.20)
|
|
10.69
|
|
15,028
|
|
3.60
|
|
1.20
|
|
1.22
|
|
0.95
|
|
38
|
|
See Notes to Financial Highlights.
NOTES TO FINANCIAL
HIGHLIGHTS
(a)
|
Per share data calculated
using average shares outstanding method. |
(b)
|
Total return excludes sales
charge. Not annualized for periods less than one year. |
(c)
|
Annualized for periods less
than one year. |
(d)
|
Not annualized for periods
less than one year. |
(e)
|
Rounds to
less than $0.005 per share |
(f) |
Generally accepted accounting
principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from
the net asset values and returns reported in the management’s discussion of Fund performance. |
(g)
|
The Fund
and its shareholders indirectly bear a pro rata share of the acquired fund fees and expenses incurred by the underlying investment companies in which the Fund is invested. The expense ratios do not include such acquired fund fees and expenses.
|
Investment Adviser:
RidgeWorth Investments
3333 Piedmont Road, Suite 1500
Atlanta, GA
30305
www.ridgeworth.com
More information about the
RidgeWorth Funds is available without charge through the following:
Statement of Additional Information (SAI):
The SAI includes detailed information about the RidgeWorth Funds. The SAI is
on file with the SEC and is incorporated by reference into this prospectus. This means that the SAI, for legal purposes, is a part of this prospectus.
Annual and Semi-Annual Reports:
These reports list each Fund’s holdings and contain information from
the Funds’ managers about strategies and recent market conditions and trends and their impact on Fund performance. The reports also contain detailed financial information about the Funds.
To Obtain an SAI, Annual or Semi-Annual Report, or More
Information:
Telephone: Shareholder Services
1-888-784-3863
Mail:
RidgeWorth Funds
P.O. Box 8053
Boston, MA 02266-8053
Website: www.ridgeworth.com
SEC:
You can also obtain the SAI or the Annual and Semi-Annual reports, as well as
other information about the RidgeWorth Funds, from the EDGAR Database on the SEC’s website at http://www.sec.gov. You may review and copy documents at the SEC Public Reference Room in Washington, DC (for information on the operation of the
Public Reference Room, call 202-551-8090). You may request documents by mail from the SEC, upon payment of a duplicating fee, by writing to: Securities and Exchange Commission, Public Reference Section, Washington, DC 20549-1520. You may also obtain
this information, upon payment of a duplicating fee, by e-mailing the SEC at publicinfo@sec.gov.
The RidgeWorth Funds’ Investment
Company Act registration number is 811-06557.
RidgeWorth Investments is the trade name of RidgeWorth Capital Management
LLC
RFPRO-LV-0816
EQUITY FUNDS
A, C, I & IS SHARES PROSPECTUS
August 1, 2016
Investment Adviser: RidgeWorth Investments
|
A
Shares |
|
C
Shares |
|
I
Shares |
|
IS
Shares |
Value
Funds |
|
|
|
|
|
|
|
Subadviser:
Ceredex Value Advisors LLC |
|
|
|
|
|
|
|
•
Ceredex Large Cap Value Equity Fund |
SVIIX
|
|
SVIFX
|
|
STVTX
|
|
STVZX
|
•
Ceredex Mid-Cap Value Equity Fund |
SAMVX
|
|
SMVFX
|
|
SMVTX
|
|
SMVZX
|
•
Ceredex Small Cap Value Equity Fund |
SASVX
|
|
STCEX
|
|
SCETX
|
|
|
Growth
Funds |
|
|
|
|
|
|
|
Subadviser:
Silvant Capital Management LLC |
|
|
|
|
|
|
|
•
Silvant Large Cap Growth Stock Fund |
STCIX
|
|
STCFX
|
|
STCAX
|
|
STCZX
|
•
Silvant Small Cap Growth Stock Fund |
SCGIX
|
|
SSCFX
|
|
SSCTX
|
|
SCGZX
|
Subadviser:
Zevenbergen Capital Investments LLC |
|
|
|
|
|
|
|
•
Innovative Growth Stock Fund (formerly, Aggressive Growth Stock Fund) |
SAGAX
|
|
|
|
SCATX
|
|
|
International
Fund |
|
|
|
|
|
|
|
Subadviser:
WCM Investment Management |
|
|
|
|
|
|
|
•
International Equity Fund |
SCIIX
|
|
|
|
STITX
|
|
SCIZX
|
Natural
Resources Fund |
|
|
|
|
|
|
|
Subadviser:
Capital Innovations, LLC |
|
|
|
|
|
|
|
•
Capital Innovations Global Resources and Infrastructure Fund |
INNAX
|
|
INNCX
|
|
INNNX
|
|
|
The Securities and Exchange Commission has not
approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
August 1, 2016
RidgeWorth Investments is the trade name of
RidgeWorth Capital Management LLC
Ceredex
Large Cap Value Equity Fund
Summary Section
A Shares, C Shares, I Shares and IS Shares
Investment Objective
The Ceredex Large Cap Value Equity Fund (the
“Fund”) seeks to provide a high level of capital appreciation. As a secondary goal, the Fund also seeks to provide current income.
Fees and Expenses of the Fund
This table describes the fees and expenses
that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in RidgeWorth Funds. More information about these and other
discounts is available from your financial professional and in Sales Charges on page 38 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
IS
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
5.75%
|
None
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
|
IS
Shares |
Management
Fees |
0.65%
|
|
0.65%
|
|
0.65%
|
|
0.65%
|
Distribution
(12b-1) Fees |
0.30%
|
|
1.00%
|
|
None
|
|
None
|
Other
Expenses |
0.42%
|
|
0.06%
|
|
0.44%
|
|
0.07%
|
Total
Annual Fund Operating Expenses |
1.37%
|
|
1.71%
|
|
1.09%
|
|
0.72%
|
Fee
Waivers and/or Expense Reimbursements(1) |
(0.13)%
|
|
—
|
|
(0.12)%
|
|
—
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
1.24%
|
|
1.71%
|
|
0.97%
|
|
0.72%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on securities
sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 1.24%, 1.90%, 0.97% and 0.85% for the A, C, I and IS Shares, respectively. This agreement may be terminated upon written notice to the Adviser
by RidgeWorth Funds. |
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 and then redeem all of your shares at the end of those periods. The example
also assumes that your investment has a 5% return each year, that the Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$694
|
$972
|
$1,270
|
$2,116
|
C
Shares |
$274
|
$539
|
$
928 |
$2,019
|
I
Shares |
$
99 |
$335
|
$
589 |
$1,318
|
IS
Shares |
$
74 |
$230
|
$
401 |
$
894 |
You would pay the following expenses if you did not redeem
your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$694
|
$972
|
$1,270
|
$2,116
|
C
Shares |
$174
|
$539
|
$
928 |
$2,019
|
I
Shares |
$
99 |
$335
|
$
589 |
$1,318
|
IS
Shares |
$
74 |
$230
|
$
401 |
$
894 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 66% 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 U.S.-traded equity securities of large-capitalization companies. U.S.-traded equity securities may include American Depositary Receipts (“ADRs”). Ceredex
Value Advisors LLC (“Ceredex” or the “Subadviser”) considers large-capitalization companies to be companies with market capitalizations similar to those of companies in the Russell 1000® Value Index. As of July 1, 2016, the market capitalization range of companies in the Russell 1000® Value Index was approximately $1.40 billion and above. As a result of its investment strategy, the Fund’s portfolio turnover rate may be 100% or
more.
Ceredex
Large Cap Value Equity Fund
In selecting investments for purchase and
sale, the Subadviser chooses companies that it believes are undervalued in the market relative to the industry sector and the company’s own valuation history. The Subadviser evaluates potential catalysts that may cause an upward re-rating of
the stock’s valuation. The common stocks purchased for the Fund generally pay dividends at the time of purchase or are expected to pay dividends soon after their purchase.
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.
ADR Risk: Investments in ADRs
involve risks similar to those accompanying direct investments in foreign securities. These include the risk that political and economic events unique to a country or region will affect those markets and their issuers.
Equity Securities Risk: The
price of equity securities fluctuates from time to time based on changes in a company’s financial condition or overall market and economic conditions. As a result, the value of the Fund’s equity securities may fluctuate drastically from
day to day.
Frequent Trading Risk: Frequent buying and selling of investments may involve higher trading costs and other expenses and may affect the Fund's 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.
Large-Capitalization Companies
Risk: Large-cap stocks can perform differently from other segments of the equity market or the equity market as a whole. Large-capitalization companies may be less flexible in evolving markets or unable to implement
change as quickly as small-capitalization companies.
Value Investing Risk:
“Value” investing attempts to identify strong companies whose stocks are selling at a discount from their perceived true worth. It is subject to the risk that the stocks’ intrinsic values may never be fully recognized or realized
by the market, their prices may go down, or that stocks judged to be undervalued by the Fund may actually be appropriately priced.
Performance
The bar chart and the performance table that
follow illustrate the risks and volatility of an investment in the Fund. The Fund’s 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
15.26%
|
-18.95%
|
(6/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 4.99%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(10.45)%
|
8.64%
|
6.58%
|
C
Shares Return Before Taxes |
(6.21)%
|
9.34%
|
6.54%
|
IS
Shares Return Before Taxes* |
(4.40)%
|
10.34%
|
7.57%
|
I
Shares Return Before Taxes |
(4.62)%
|
10.26%
|
7.53%
|
I
Shares Return After Taxes on Distributions |
(7.04)%
|
8.18%
|
6.01%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
(1.09)%
|
7.77%
|
5.82%
|
Russell
1000 Value Index (reflects no deduction for fees, expenses or taxes) |
(3.83)%
|
11.27%
|
6.16%
|
*IS Shares were offered beginning on
August 1, 2014. The performance shown prior to such date is based on performance of the Fund’s I Shares, and has not been adjusted to reflect the expenses of the IS Shares. If it had been adjusted, performance would have been higher.
Frank Russell Company is the source and owner of the
trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
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
Ceredex
Large Cap Value Equity Fund
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Ceredex Value Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Mills Riddick, CFA, Chief Investment Officer of Ceredex,
has managed the Fund since 1995.
Purchasing and Selling
Your Shares
You may purchase or redeem Fund shares on any
business day. You may purchase and redeem A, C, I and IS 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
None
|
IS
Shares |
$2,500,000
(No minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
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 or IS Shares.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income, qualified dividend income, or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Ceredex
Mid-Cap Value Equity Fund
Summary Section
A Shares, C Shares, I Shares and IS Shares
Investment Objective
The Ceredex Mid-Cap Value Equity Fund (the “Fund”)
seeks to provide capital appreciation. As a secondary goal, the Fund also seeks to provide current income.
Fees and Expenses of the Fund
This table describes the fees and expenses
that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in RidgeWorth Funds. More information about these and other
discounts is available from your financial professional and in Sales Charges on page 38 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
IS
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
5.75%
|
None
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
|
IS
Shares |
Management
Fees |
0.69%
|
|
0.69%
|
|
0.69%
|
|
0.69%
|
Distribution
(12b-1) Fees |
0.30%
|
|
1.00%
|
|
None
|
|
None
|
Other
Expenses |
0.46%
|
|
0.09%
|
|
0.43%
|
|
0.11%
|
Total
Annual Fund Operating Expenses |
1.45%
|
|
1.78%
|
|
1.12%
|
|
0.80%
|
Fee
Waivers and/or Expense Reimbursements(1) |
(0.07)%
|
|
—
|
|
—
|
|
—
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
1.38%
|
|
1.78%
|
|
1.12%
|
|
0.80%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on securities
sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 1.38%, 1.95%, 1.15% and 0.95% for the A, C, I and IS Shares, respectively. This agreement may be terminated upon written notice to the Adviser
by RidgeWorth Funds. |
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 and then redeem all of your shares at the end of those periods. The example
also assumes that your investment has a 5% return each year, that the Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$707
|
$1,001
|
$1,315
|
$2,205
|
C
Shares |
$281
|
$
560 |
$
964 |
$2,095
|
I
Shares |
$114
|
$
356 |
$
617 |
$1,363
|
IS
Shares |
$
82 |
$
255 |
$
444 |
$
990 |
You would pay the following expenses if you did not redeem
your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$707
|
$1,001
|
$1,315
|
$2,205
|
C
Shares |
$181
|
$
560 |
$
964 |
$2,095
|
I
Shares |
$114
|
$
356 |
$
617 |
$1,363
|
IS
Shares |
$
82 |
$
255 |
$
444 |
$
990 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 98% 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 U.S.-traded equity securities of mid-capitalization companies. U.S.-traded equity securities may include American Depositary Receipts (“ADRs”). Ceredex Value
Advisors LLC (“Ceredex” or the “Subadviser”) considers mid-capitalization companies to be companies with market capitalizations similar to those of companies in the Russell Midcap® Index. As of July 1, 2016, the market capitalization range of companies in the Russell Midcap® Index was between approximately $1.40 billion and $28.6 billion. As a result of its investment strategy, the Fund’s portfolio turnover rate may
be 100% or more.
Ceredex
Mid-Cap Value Equity Fund
In selecting investments for purchase and
sale, the Subadviser chooses companies that it believes are undervalued in the market relative to the industry sector and the company’s own valuation history. The Subadviser evaluates potential catalysts that may cause an upward re-rating of
the stock’s valuation. The common stocks purchased for the Fund generally pay dividends at the time of purchase or are expected to pay dividends soon after their purchase.
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.
ADR Risk: Investments in ADRs
involve risks similar to those accompanying direct investments in foreign securities. These include the risk that political and economic events unique to a country or region will affect those markets and their issuers.
Equity Securities Risk: The
price of equity securities fluctuates from time to time based on changes in a company’s financial condition or overall market and economic conditions. As a result, the value of the Fund’s equity securities may fluctuate drastically from
day to day.
Frequent Trading Risk: Frequent buying and selling of investments may involve higher trading costs and other expenses and may affect the Fund's 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.
Mid-Capitalization Companies
Risk: Mid-capitalization stocks tend to perform differently from other segments of the equity market or the equity market as a whole, and can be more volatile than stocks of large-capitalization companies.
Mid-capitalization companies may be newer or less established, and may have limited resources, products and markets, and may be less liquid.
Value Investing Risk:
“Value” investing attempts to identify strong companies whose stocks are selling at a discount from their perceived true worth. It is subject to the risk that the stocks’ intrinsic values may never be fully recognized or realized
by the market, their prices may go down, or that stocks judged to be undervalued by the Fund may actually be appropriately priced.
Performance
The bar chart and the performance table that
follow illustrate the risks and volatility of an investment in the Fund. The Fund’s 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
24.79%
|
-24.11%
|
(9/30/2009)
|
(9/30/2011)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 4.83%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(11.68)%
|
7.51%
|
8.33%
|
C
Shares Return Before Taxes |
(7.47)%
|
8.25%
|
8.33%
|
IS
Shares Return Before Taxes* |
(5.63)%
|
9.19%
|
9.34%
|
I
Shares Return Before Taxes |
(6.00)%
|
9.09%
|
9.29%
|
I
Shares Return After Taxes on Distributions |
(7.70)%
|
6.28%
|
6.50%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
(2.41)%
|
6.23%
|
6.48%
|
Russell
Midcap Value Index (reflects no deduction for fees, expenses or taxes) |
(4.78)%
|
11.25%
|
7.61%
|
*IS Shares were offered beginning on
August 1, 2014. The performance shown prior to such date is based on performance of the Fund’s I Shares, and has not been adjusted to reflect the expenses of the IS Shares. If it had been adjusted, performance would have been higher.
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
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
Ceredex
Mid-Cap Value Equity Fund
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Ceredex Value Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Don Wordell, CFA, Managing Director of Ceredex, has managed
the Fund since its inception.
Purchasing and Selling Your
Shares
You may purchase or redeem Fund shares on any
business day. You may purchase and redeem A, C, I and IS 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
None
|
IS
Shares |
$2,500,000
(No minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
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 or IS Shares.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income, qualified dividend income, or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Ceredex
Small Cap Value Equity Fund
Summary Section
A Shares, C Shares and I Shares
Investment Objective
The Ceredex Small Cap Value Equity Fund (the
“Fund”) seeks to provide capital appreciation. As a secondary goal, the Fund also seeks to provide current income.
Fees and Expenses of the Fund
This table describes the fees and expenses
that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in RidgeWorth Funds. More information about these and other
discounts is available from your financial professional and in Sales Charges on page 38 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
5.75%
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
Management
Fees |
0.82%
|
|
0.82%
|
|
0.82%
|
Distribution
(12b-1) Fees |
0.30%
|
|
1.00%
|
|
None
|
Other
Expenses |
0.43%
|
|
0.08%
|
|
0.39%
|
Total
Annual Fund Operating Expenses |
1.55%
|
|
1.90%
|
|
1.21%
|
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 and then redeem all of your shares at the end of those periods. The example
also assumes that your investment has a 5% return each year, that the Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these
assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$724
|
$1,036
|
$1,371
|
$2,314
|
C
Shares |
$293
|
$
597 |
$1,026
|
$2,222
|
I
Shares |
$123
|
$
384 |
$
665 |
$1,466
|
You would pay the following expenses if you did not redeem your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$724
|
$1,036
|
$1,371
|
$2,314
|
C
Shares |
$193
|
$
597 |
$1,026
|
$2,222
|
I
Shares |
$123
|
$
384 |
$
665 |
$1,466
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 36% 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 U.S.-traded equity securities of small-capitalization companies. U.S.-traded equity securities may include American Depositary Receipts (“ADRs”). Ceredex
Value Advisors LLC (“Ceredex” or the “Subadviser”) considers small-capitalization companies to be companies with market capitalizations between $50 million and $3 billion or with market capitalizations similar to those of
companies in the Russell 2000® Value Index. As of July 1, 2016, the market capitalization range of companies in the Russell 2000® Value Index was between approximately $23.08 million and $41.1 billion.
In selecting investments for purchase and sale, the Subadviser
chooses companies that it believes are undervalued in the market relative to the industry sector and the company’s own valuation history. The Subadviser evaluates potential catalysts that may cause an upward re-rating of the stock’s
valuation. The common stocks purchased for the Fund generally pay dividends at the time of purchase or are expected to pay dividends soon after their purchase.
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.
ADR Risk: Investments in ADRs
involve risks similar to those accompanying direct investments in foreign securities. These include the risk that political and economic events unique to a country or region will affect those markets and their issuers.
Ceredex
Small Cap Value Equity Fund
Equity Securities Risk: The
price of equity securities fluctuates from time to time based on changes in a company’s financial condition or overall market and economic conditions. As a result, the value of the Fund’s equity securities may fluctuate drastically from
day to day.
Small-Capitalization Companies Risk: Small-capitalization stocks tend to perform differently from other segments of the equity market or the equity market as a whole, and can be more volatile than stocks of mid- or large-capitalization companies.
Small-capitalization companies may be newer or less established, and may have limited resources, products and markets, and may be less liquid.
Value Investing Risk:
“Value” investing attempts to identify strong companies whose stocks are selling at a discount from their perceived true worth. It is subject to the risk that the stocks’ intrinsic values may never be fully recognized or realized
by the market, their prices may go down, or that stocks judged to be undervalued by the Fund may actually be appropriately priced.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. A Shares were offered beginning on October 9, 2003. Performance prior
to October 9, 2003, with respect to A Shares, is that of I Shares of the Fund, and has not been adjusted to reflect A 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
19.65%
|
-26.62%
|
(9/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 14.72%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(11.59)%
|
6.28%
|
6.56%
|
C
Shares Return Before Taxes |
(7.25)%
|
7.02%
|
6.75%
|
I
Shares Return Before Taxes |
(5.86)%
|
7.86%
|
7.51%
|
I
Shares Return After Taxes on Distributions |
(11.92)%
|
4.96%
|
4.92%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
1.78%
|
6.23%
|
5.92%
|
Russell
2000 Value Index (reflects no deduction for fees, expenses or taxes) |
(7.47)%
|
7.67%
|
5.57%
|
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
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-advantaged 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.
Ceredex
Small Cap Value Equity Fund
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Ceredex Value Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Brett Barner, CFA, Managing Director of Ceredex, has
managed the Fund since its inception.
Purchasing and
Selling Your Shares
Effective as of the close of business
on April 20, 2012, shares of the Fund will no longer be available for purchase by new investors, or for exchange from another RidgeWorth Fund by existing investors, until further notice.
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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
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 Fund’s distributions are generally taxable as
ordinary income, qualified dividend income, or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Silvant
Large Cap Growth Stock Fund
Summary Section
A Shares, C Shares, I Shares and IS Shares
Investment Objective
The Silvant Large Cap Growth Stock Fund (the
“Fund”) seeks to provide capital appreciation.
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 38 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
IS
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
5.75%
|
None
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
|
IS
Shares |
Management
Fees |
0.70%
|
|
0.70%
|
|
0.70%
|
|
0.70%
|
Distribution
(12b-1) Fees |
0.30%
|
|
1.00%
|
|
None
|
|
None
|
Other
Expenses |
0.21%
|
|
0.19%
|
|
0.54%
|
|
0.19%
|
Total
Annual Fund Operating Expenses |
1.21%
|
|
1.89%
|
|
1.24%
|
|
0.89%
|
Fee
Waivers and/or Expense Reimbursements(1) |
—
|
|
—
|
|
(0.27)%
|
|
—
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
1.21%
|
|
1.89%
|
|
0.97%
|
|
0.89%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on securities
sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 1.23%, 1.95%, 0.97% and 0.95% for the A, C, I and IS Shares, respectively. This agreement may be terminated upon written notice to the Adviser
by RidgeWorth Funds. |
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 and then redeem all of your shares at the end of those periods. The example
also assumes that your investment has a 5% return each year, that the Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$691
|
$937
|
$1,202
|
$1,957
|
C
Shares |
$292
|
$594
|
$1,021
|
$2,212
|
I
Shares |
$
99 |
$367
|
$
655 |
$1,476
|
IS
Shares |
$
91 |
$284
|
$
493 |
$1,096
|
You would pay the
following expenses if you did not redeem your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$691
|
$937
|
$1,202
|
$1,957
|
C
Shares |
$192
|
$594
|
$1,021
|
$2,212
|
I
Shares |
$
99 |
$367
|
$
655 |
$1,476
|
IS
Shares |
$
91 |
$284
|
$
493 |
$1,096
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 10% 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 common stocks and other U.S.-traded equity securities of large-capitalization companies. U.S.-traded equity securities may include American Depositary Receipts
(“ADRs”). Silvant Capital Management LLC (“Silvant” or the “Subadviser”) considers large-capitalization companies to be companies with market capitalizations similar to those of companies in the Russell 1000® Growth Index. As of July 1, 2016, the market capitalization range of companies in the Russell 1000® Growth Index was between approximately $2 billion and $525.3 billion.
Silvant
Large Cap Growth Stock Fund
The Subadviser will seek out securities it believes have
strong business fundamentals, such as revenue growth, improving cash flows, increasing margins and positive earning trends.
In selecting investments for purchase and sale, the Subadviser
chooses companies that it believes have above-average growth potential to beat expectations. The Subadviser uses a “bottom-up” process based on company fundamentals. Risk controls are in place to assist in maintaining a portfolio that is
diversified by sector and minimizes unintended risks relative to the primary benchmark. It then performs in-depth fundamental analysis to determine the quality and sustainability of expectations to determine whether or not the company is poised to
beat expectations. The Subadviser also applies proprietary quantitative models to rank stocks based on improving fundamentals, valuation, capital deployment and efficiency and sentiment or behavior factors.
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.
ADR Risk: Investments in ADRs
involve risks similar to those accompanying direct investments in foreign securities. These include the risk that political and economic events unique to a country or region will affect those markets and their issuers.
Equity Securities Risk: The
price of equity securities fluctuates from time to time based on changes in a company’s financial condition or overall market and economic conditions. As a result, the value of the Fund’s equity securities may fluctuate drastically from
day to day.
Growth Stock Risk: “Growth” stocks can react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. “Growth” stocks typically are sensitive to
market movements because their market prices tend to reflect future expectations. When it appears those expectations will not be met, the prices of growth stocks typically fall.
Large-Capitalization Companies Risk: Large-cap stocks can perform differently from other segments of the equity market or the equity market as a whole. Large-capitalization companies may be less flexible in evolving markets or unable to implement change as
quickly as small-capitalization companies.
Sector
Weightings Risk: Market conditions, interest rates, and economic, regulatory, or financial developments may affect all the securities in a single sector. If the Fund invests in a few sectors it may have increased
exposure to the price movements of those sectors.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
18.70%
|
-21.73%
|
(3/31/2012)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was -6.17%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
1.51%
|
11.45%
|
7.56%
|
C
Shares Return Before Taxes |
6.26%
|
12.05%
|
7.47%
|
IS
Shares Return Before Taxes* |
8.15%
|
13.11%
|
8.52%
|
I
Shares Return Before Taxes |
8.05%
|
13.07%
|
8.50%
|
I
Shares Return After Taxes on Distributions |
6.13%
|
9.99%
|
6.51%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
6.18%
|
10.21%
|
6.79%
|
Russell
1000 Growth Index (reflects no deduction for fees, expenses or taxes) |
5.67%
|
13.53%
|
8.53%
|
*IS Shares were offered beginning on
August 1, 2014. The performance shown prior to such date is based on performance of the Fund’s I Shares, and has not been adjusted to reflect the expenses of the IS Shares. If it had been adjusted, performance would have been higher.
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
Silvant
Large Cap Growth Stock Fund
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Silvant Capital Management LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Michael A. Sansoterra, Chief Investment Officer of Silvant,
has co-managed the Fund since 2007. Mr. Sandeep Bhatia, PhD, CFA, Managing Director of Silvant, 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, I and IS 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
None
|
IS
Shares |
$2,500,000
(No minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
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 or IS Shares.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income, qualified dividend income, or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Silvant
Small Cap Growth Stock Fund
Summary Section
A Shares, C Shares, I Shares and IS Shares
Investment Objective
The Silvant Small Cap Growth Stock Fund (the
“Fund”) seeks to provide long-term capital appreciation.
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 38 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
IS
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
5.75%
|
None
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
|
IS
Shares |
Management
Fees |
0.85%
|
|
0.85%
|
|
0.85%
|
|
0.85%
|
Distribution
(12b-1) Fees |
0.30%
|
|
1.00%
|
|
None
|
|
None
|
Other
Expenses |
0.22%
|
|
0.17%
|
|
0.54%
|
|
0.17%
|
Total
Annual Fund Operating Expenses |
1.37%
|
|
2.02%
|
|
1.39%
|
|
1.02%
|
Fee
Waivers and/or Expense Reimbursements(1) |
—
|
|
—
|
|
(0.09)%
|
|
—
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
1.37%
|
|
2.02%
|
|
1.30%
|
|
1.02%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on securities
sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 1.50%, 2.15%, 1.30% and 1.10% for the A, C, I and IS Shares, respectively. This agreement may be terminated upon written notice to the Adviser
by RidgeWorth Funds. |
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 and then redeem all of your shares at the end of those periods. The example
also assumes that your investment has a 5% return each year, that the Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$706
|
$984
|
$1,282
|
$2,127
|
C
Shares |
$305
|
$634
|
$1,088
|
$2,348
|
I
Shares |
$132
|
$431
|
$
752 |
$1,661
|
IS
Shares |
$104
|
$325
|
$
563 |
$1,248
|
You would pay the
following expenses if you did not redeem your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$706
|
$984
|
$1,282
|
$2,127
|
C
Shares |
$205
|
$634
|
$1,088
|
$2,348
|
I
Shares |
$132
|
$431
|
$
752 |
$1,661
|
IS
Shares |
$104
|
$325
|
$
563 |
$1,248
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 73% 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 U.S.-traded equity securities of small-capitalization companies. U.S.-traded equity securities may include American Depositary Receipts (“ADRs”). Silvant
Capital Management LLC (“Silvant” or the “Subadviser”) considers small-capitalization companies to be companies with market capitalizations similar to those of companies in the Russell 2000® Growth Index. As of July 1, 2016, the market capitalization range of companies in the Russell 2000® Growth Index was between approximately $16 million and $40.62 billion.
Silvant
Small Cap Growth Stock Fund
In selecting investments for purchase and sale, the Subadviser
chooses companies that it believes have above-average growth potential to beat expectations as a result of strong business fundamentals, such as revenue growth, improving cash flows, increasing margins and positive earning trends. The Subadviser
uses a “bottom-up” process based on company fundamentals. Risk controls are in place to assist in maintaining a portfolio that is diversified by sector and minimizes unintended risks relative to the primary benchmark. It then performs
in-depth fundamental analysis to determine the quality and sustainability of expectations to determine whether or not the company is poised to beat expectations. The Subadviser also applies proprietary quantitative models to rank stocks based on
improving fundamentals, valuation, capital deployment and efficiency, and sentiment or behavior factors.
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.
ADR Risk: Investments in ADRs
involve risks similar to those accompanying direct investments in foreign securities. These include the risk that political and economic events unique to a country or region will affect those markets and their issuers.
Equity Securities Risk: The
price of equity securities fluctuates from time to time based on changes in a company’s financial condition or overall market and economic conditions. As a result, the value of the Fund’s equity securities may fluctuate drastically from
day to day.
Growth Stock Risk: “Growth” stocks can react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. “Growth” stocks typically are sensitive to
market movements because their market prices tend to reflect future expectations. When it appears those expectations will not be met, the prices of growth stocks typically fall.
Small-Capitalization Companies Risk: Small-capitalization stocks tend to perform differently from other segments of the equity market or the equity market as a whole, and can be more volatile than stocks of mid- or large-capitalization companies.
Small-capitalization companies may be newer or less established, and may have limited resources, products and markets, and may be less liquid.
Performance
The bar chart and the performance table that
follow illustrate the risks and volatility of an investment in the Fund. The Fund’s 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
18.78%
|
-28.61%
|
(6/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was -0.11%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(8.83)%
|
7.57%
|
4.55%
|
C
Shares Return Before Taxes |
(4.43)%
|
8.12%
|
4.45%
|
IS
Shares Return Before Taxes* |
(2.89)%
|
9.09%
|
5.44%
|
I
Shares Return Before Taxes |
(3.18)%
|
9.01%
|
5.40%
|
I
Shares Return After Taxes on Distributions |
(10.94)%
|
4.63%
|
2.53%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
4.80%
|
7.05%
|
4.20%
|
Russell
2000 Growth Index (reflects no deduction for fees, expenses or taxes) |
(1.38)%
|
10.67%
|
7.95%
|
*IS Shares were offered beginning on
August 1, 2014. The performance shown prior to such date is based on performance of the Fund’s I Shares, and has not been adjusted to reflect the expenses of the IS Shares. If it had been adjusted, performance would have been higher.
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
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
Silvant
Small Cap Growth Stock Fund
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Silvant Capital Management LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Sandeep Bhatia, PhD, CFA,
Managing Director of Silvant, has co-managed the Fund since 2011. Mr. Michael A. Sansoterra, Chief Investment Officer of Silvant, has co-managed the Fund since 2007.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A, C, I and IS 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
None
|
IS
Shares |
$2,500,000
(No minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
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 or IS Shares.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income, qualified dividend income, or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Innovative
Growth Stock Fund (formerly, Aggressive Growth Stock Fund)
Summary Section
A Shares and I Shares
Investment Objective
The Innovative Growth Stock Fund (formerly, Aggressive Growth
Stock Fund) (the “Fund”) seeks to provide long-term capital appreciation.
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 38 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
5.75%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
I
Shares |
Management
Fees |
0.85%
|
|
0.85%
|
Distribution
(12b-1) Fees |
0.30%
|
|
None
|
Other
Expenses |
0.34%
|
|
0.54%
|
Total
Annual Fund Operating Expenses |
1.49%
|
|
1.39%
|
Fee
Waivers and/or Expense Reimbursements(1) |
—
|
|
(0.09)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
1.49%
|
|
1.30%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on securities
sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 1.50% and 1.30% for the A and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser by RidgeWorth Funds.
|
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
Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$718
|
$1,019
|
$1,341
|
$2,252
|
I
Shares |
$132
|
$
431 |
$
752 |
$1,661
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 59% 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 common stocks and other U.S.-traded equity securities. U.S.-traded equity securities may include American Depositary Receipts (“ADRs”). The Fund may invest in companies of
any size and may invest a portion of its assets in non-U.S. issued securities of foreign companies.
The Fund invests primarily in common stocks of companies that
exhibit strong growth characteristics. In selecting investments for purchase and sale, Zevenbergen Capital Investments LLC (“Zevenbergen” or the “Subadviser”) uses a fundamental research approach to identify companies with
favorable prospects for future revenue, earnings, and/or cash flow growth. Growth “drivers” are identified for each company and become critical to the ongoing evaluation process. Industry growth dynamics, company competitive positioning,
pricing flexibility, and diversified product offerings are evaluated, providing the foundation for further fundamental research to determine the weighting of the Fund’s investments. Generally the Fund will hold a limited number of
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.
ADR Risk: Investments in ADRs
involve risks similar to those accompanying direct investments in foreign securities. These include the risk that political and economic events unique to a country or region will affect those markets and their issuers.
Innovative
Growth Stock Fund (formerly, Aggressive Growth Stock Fund)
Equity Securities Risk: The
price of equity securities fluctuates from time to time based on changes in a company’s financial condition or overall market and economic conditions. As a result, the value of the Fund’s equity securities may fluctuate drastically from
day to day.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
Growth Stock Risk:
“Growth” stocks can react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. “Growth” stocks typically are sensitive to market movements because their
market prices tend to reflect future expectations. When it appears those expectations will not be met, the prices of growth stocks typically fall.
Holdings Risk: Because the Fund
targets holdings of a more limited number of stocks, performance may be more volatile than a similar fund with a greater number of holdings or the Fund’s benchmark.
Large-Capitalization Companies Risk: Large-cap stocks can perform differently from other segments of the equity market or the equity market as a whole. Large-capitalization companies may be less flexible in evolving markets or unable to implement change as
quickly as small-capitalization companies.
Sector
Weightings Risk: Market conditions, interest rates, and economic, regulatory, or financial developments may affect all the securities in a single sector. If the Fund invests in a few sectors it may have increased
exposure to the price movements of those sectors.
Small- and Mid-Capitalization Companies Risk: Small- and mid-capitalization stocks tend to perform differently from other segments of the equity market or the equity market as a whole, and can be more volatile than stocks of large-capitalization companies. Small-
and mid-capitalization companies may be newer or less established, and may have limited resources, products and markets, and may be less liquid.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
23.29%
|
-27.98%
|
(6/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was -9.94%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
0.75%
|
9.49%
|
8.02%
|
I
Shares Return Before Taxes |
7.02%
|
11.04%
|
8.92%
|
I
Shares Return After Taxes on Distributions |
5.33%
|
10.03%
|
8.34%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
5.43%
|
8.71%
|
7.27%
|
Russell
3000 Growth Index (reflects no deduction for fees, expenses or taxes) |
5.09%
|
13.30%
|
8.49%
|
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized
Innovative
Growth Stock Fund (formerly, Aggressive Growth Stock Fund)
losses that would have been sustained upon the sale of fund
shares immediately after the relevant periods. The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been
able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Zevenbergen Capital Investments LLC is the Fund’s Subadviser.
Portfolio Management
Ms. Nancy Zevenbergen, CFA, CIC, President and Chief Investment
Officer of Zevenbergen, and Ms. Brooke de Boutray, CFA, CIC, and Ms. Leslie Tubbs, CFA, CIC, each a Managing Director, Portfolio Manager and Analyst of Zevenbergen, have co-managed the Fund since its inception. Mr. Joseph Dennison, CFA, and Mr.
Anthony Zackery, CFA, each an Assistant Portfolio Manager of Zevenbergen, have co-managed the Fund since August 2015.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
I
Shares |
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 I Shares.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income, qualified dividend income, or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
International Equity
Fund
Summary Section
A Shares, I Shares and IS Shares
Investment Objective
The International Equity Fund (the “Fund”) seeks to
provide long-term capital appreciation.
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 38 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
I
Shares |
IS
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
5.75%
|
None
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
I
Shares |
|
IS
Shares |
Management
Fees |
0.85%
|
|
0.85%
|
|
0.85%
|
Distribution
(12b-1) Fees |
0.30%
|
|
None
|
|
None
|
Other
Expenses |
0.62%
|
|
0.82%
|
|
0.69%
|
Acquired
Fund Fees and Expenses(1) |
0.01%
|
|
0.01%
|
|
0.01%
|
Total
Annual Fund Operating Expenses |
1.78%
|
|
1.68%
|
|
1.55%
|
Fee
Waivers and/or Expense Reimbursements(2) |
(0.29)%
|
|
(0.42)%
|
|
(0.44)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
1.49%
|
|
1.26%
|
|
1.11%
|
(1)
|
“Acquired Fund Fees and
Expenses” reflect the Fund’s 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 Fund’s net asset value per share (“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 Fund’s
prospectus. |
(2)
|
The
Adviser and Subadviser have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend
expenses on securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 1.48%, 1.25% and 1.10% for the A, I and IS Shares, respectively. This agreement may be terminated upon written notice to
the Adviser by RidgeWorth Funds. |
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
Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$718
|
$1,076
|
$1,459
|
$2,527
|
I
Shares |
$128
|
$
489 |
$
873 |
$1,952
|
IS
Shares |
$113
|
$
446 |
$
803 |
$1,808
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 114% 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 common stocks and other equity securities of foreign companies. These foreign companies may be located in emerging markets. The Fund’s investments in equity
securities may include common stocks, preferred stocks, warrants and depository receipts.
The Fund’s investments in depository receipts may include
American, European, Canadian and Global Depository Receipts (“ADRs”, “EDRs”, “CDRs” and “GDRs”, respectively). ADRs are receipts that represent interests in foreign securities held on deposit by U.S.
banks. EDRs and GDRs have the same qualities as ADRs, except that they may be traded in several international trading markets.
In selecting investments for purchase and sale, WCM Investment
Management (“WCM” or the “Subadviser”) uses a bottom-up approach that seeks to identify companies with attractive fundamentals, such as long-term growth in revenue and earnings, and that show a strong probability for superior
future growth. The Subadviser’s investment process focuses on seeking companies that are industry leaders with sustainable competitive advantages; corporate cultures emphasizing
International
Equity Fund
strong, quality and experienced management;
low or no debt; and attractive relative valuations. The Subadviser also considers other factors including political risk, monetary policy risk, and regulatory risk in selecting securities.
Although the Fund may invest in any size companies, it will
generally invest in large capitalization established multinational companies. The Subadviser considers large capitalization companies to be those with market capitalization of $3.5 billion or greater at the time of investment. The Fund generally
will invest in securities of companies located in different regions and in at least three different countries. However, from time to time, the Fund may have a significant portion of its assets invested in the securities of companies in one or a few
countries or regions.
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.
Emerging Markets Risk: Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or
economic conditions than more developed countries. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased
risk of price volatility associated with investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. Governments of some emerging market countries have defaulted on their bonds and may do so
in the future.
Equity Securities Risk: The price of equity securities fluctuates from time to time based on changes in a company’s financial condition or overall market and economic conditions. As a result, the value of the Fund’s equity
securities may fluctuate drastically from day to day.
Foreign Companies and Securities Risk: Foreign
securities and 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. Foreign securities
also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
Growth Stock Risk: “Growth” stocks can react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. “Growth” stocks typically are sensitive to
market movements because their market prices tend to reflect future expectations. When it appears those expectations will not be met, the prices of growth stocks typically fall.
Large-Capitalization Companies Risk: Large-cap
stocks can perform differently from other segments of the equity market or the equity market as a whole. Large-capitalization companies may be less flexible in evolving markets or unable to implement change as quickly as small-capitalization
companies.
Sector Weightings Risk: Market conditions, interest rates, and economic, regulatory, or financial developments may affect all the securities in a single sector.
If the Fund invests in a few sectors it may have increased exposure to the price movements of those sectors.
Performance
The bar chart and the performance
table that follow illustrate the risks and volatility of an investment in the Fund. The Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. IS Shares commenced operations on September 1,
2015. Performance information for IS shares will be included after the share class has been in operation for one complete calendar year. 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
30.56%
|
-25.93%
|
(6/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 2.80%.
The following table compares the Fund’s average annual
total returns for the periods indicated with those of a broad measure of market performance.
International Equity
Fund
AVERAGE ANNUAL TOTAL RETURNS
(for periods ended December 31, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(3.10)%
|
2.66%
|
2.13%
|
I
Shares Return Before Taxes |
3.03%
|
4.07%
|
2.97%
|
I
Shares Return After Taxes on Distributions |
0.54%
|
2.14%
|
1.56%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
3.53%
|
2.98%
|
2.36%
|
Morgan
Stanley MSCI ACWI Ex-U.S. Index (reflects no deduction for fees, expenses or taxes) |
(5.66)%
|
1.06%
|
2.92%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s
investment adviser (the “Adviser”). WCM Investment Management is the Fund’s Subadviser.
Portfolio Management
Mr. Paul R. Black, President and
co-CEO of WCM, Mr. Peter J. Hunkel, Portfolio Manager and Business Analyst of WCM, Mr. Michael B. Trigg, Portfolio Manager and Business Analyst of WCM, and Mr. Kurt R. Winrich, Chairman and co-CEO of WCM, have co-managed the Fund since September
2015.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any
business day. You may purchase and redeem A, I and IS 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
I
Shares |
None
|
IS
Shares |
$2,500,000
(No minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
Subsequent investments in A 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 or IS Shares.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income, qualified dividend income, or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Capital
Innovations Global Resources and Infrastructure Fund
Summary Section
A Shares, C Shares and I Shares
Investment Objective
The Capital Innovations Global Resources and Infrastructure
Fund (the “Fund”) seeks to provide long-term growth of capital.
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 38 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
5.75%
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
Management
Fees |
1.00%
|
|
1.00%
|
|
1.00%
|
Distribution
(12b-1) Fees |
0.25%
|
|
1.00%
|
|
None
|
Other
Expenses(1) |
0.86%
|
|
0.84%
|
|
0.87%
|
Total
Annual Fund Operating Expenses |
2.11%
|
|
2.84%
|
|
1.87%
|
Fee
Waivers and/or Expense Reimbursements(2) |
(0.71)%
|
|
(0.69)%
|
|
(0.72)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
1.40%
|
|
2.15%
|
|
1.15%
|
(1)
|
Restated to reflect current
fees. |
(2)
|
The
Adviser and Subadviser have contractually agreed to waive fees and reimburse expenses for a period of at least two years from the date of the Reorganization (as such term is defined under Performance) in order to keep Total Annual Fund Operating
Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 1.40%, 2.15% and 1.15% for the A, C
and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser by RidgeWorth Funds; provided, however, that any termination of the agreement will not be effective until the end of the one year period after the
Reorganization. |
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 and then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year, that the Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$709
|
$3,308
|
$5,428
|
$9,168
|
C
Shares |
$318
|
$3,068
|
$5,355
|
$9,286
|
I
Shares |
$117
|
$2,800
|
$5,012
|
$8,991
|
You would pay the following
expenses if you did not redeem your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$709
|
$3,308
|
$5,428
|
$9,168
|
C
Shares |
$218
|
$3,068
|
$5,355
|
$9,286
|
I
Shares |
$117
|
$2,800
|
$5,012
|
$8,991
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 23% 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 the securities of issuers that are primarily engaged in the ownership, development, exploration, production, distribution or processing of natural resources, as well as in securities of
companies that are suppliers to firms producing natural resources, and in instruments with economic characteristics similar to natural resources securities. Natural resources may include, for example, energy sources, precious and other metals,
forest products, real estate, food and agriculture, and other basic commodities.
In selecting investments for purchase and sale, Capital
Innovations, LLC (“Capital Innovations” or the “Subadviser”) employs an in-depth analysis which consists of researching historical performance, characteristics, and long-term
Capital
Innovations Global Resources and Infrastructure Fund
fundamental outlook of infrastructure, timber, and
agribusiness companies to construct a diversified portfolio representing exposure to these asset classes. To achieve the Fund’s investment objective, the Subadviser generally allocates the Fund’s assets among the following three of its
existing investment strategies: the Capital Innovations Global Listed Infrastructure strategy, the Capital Innovations Global Listed Timber strategy and the Capital Innovations Global Listed Agribusiness strategy. The Subadviser has appointed a
committee consisting of senior management (the “Allocation Committee”) to determine the percentage of the Fund’s assets to be allocated to each such asset class. On a periodic basis the Allocation Committee reviews and may adjust
the specific allocation ranges based upon its judgment of economic, market and regulatory conditions. Actual allocations may vary at any time due to market movements, cash flows into or out of the Fund and other factors.
The Subadviser seeks to capitalize on market inefficiencies by
adhering to a systematic and disciplined investment approach. The Subadviser first screens the infrastructure, timber, and agribusiness industry universes based on specific guidelines, and then applies fundamental analysis to each potential
investment. After an Allocation Committee review of the best ideas, the Subadviser invests in companies it believes have sustainable competitive advantages, based on the Subadviser’s assessment of the durability of cash flows, relative market
valuation and growth potential.
The Fund may invest in
securities of issuers located anywhere in the world. Under normal market conditions, the Fund will invest in issuers listed in at least three countries outside the United States, and will invest at least 40% of its assets in foreign issuers.
However, when market conditions warrant, the Fund may invest a higher percentage in U.S. issuers. In such cases, the Fund will invest at least 30% in foreign issuers. Investments are deemed to be “foreign” if: (a) an issuer’s
domicile or location of headquarters is in a foreign country; (b) an issuer derives a significant proportion (at least 50%) of its revenues or profits from goods produced or sold, investments made, or services performed in a foreign country or has
at least 50% of its assets situated in a foreign country; (c) the principal trading market for a security is located in a foreign country; or (d) it is a foreign currency.
The Fund may invest in companies of any market capitalization
but the majority of the Fund’s investments are generally in large and mid-cap securities. Potential investments include all types of equities, and American depositary receipts (“ADRs”) and global depositary receipts
(“GDRs”) of global infrastructure, timber, and agribusiness companies, trading on U.S. and global exchanges and market places. In addition, the Fund may invest in domestic master limited partnership (“MLPs”) and real estate
investment trusts (“REITs”). MLPs are publicly traded companies organized as limited partnerships or limited liability companies and treated as partnerships for federal income tax purposes. REITs are companies that own interests in real
estate or in real estate related loans or other interests and that qualify for favorable federal income tax treatment.
The Fund may purchase the securities of an exchange-traded fund
(“ETF”) to temporarily gain exposure to a portion of the market while awaiting purchase of securities or as an efficient means of gaining exposure to a particular asset class. The Fund might also purchase shares of an ETF to gain
exposure to the securities in the ETF’s portfolio at times when the Fund may not be able to buy those securities directly. Any investment in an ETF would be consistent with the Fund’s objective and investment program.
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.
Agribusiness Industry Risk:
Economic forces, including forces affecting the agricultural commodity, energy and financial markets, as well as government policies and regulations affecting the agricultural industry and related industries, could
adversely affect agribusiness companies. Agricultural production and trade flows are significantly affected by government policies and regulations. In addition, agribusiness companies must comply with a broad range of environmental laws and
regulation. Additional or more stringent environmental laws and regulations may be enacted in the future and such changes could have a material adverse effect on agribusiness companies and may affect the Fund’s performance.
Equity Securities Risk: The
price of equity securities fluctuates from time to time based on changes in a company’s financial condition or overall market and economic conditions. As a result, the value of the Fund’s equity securities may fluctuate drastically from
day to day.
Exchange-Traded Fund Risk: ETFs, like mutual funds, have expenses associated with their operation, including advisory fees. When the Fund invests in an ETF, in addition to directly bearing expenses associated with its own operations, the Fund
bears its pro rata portion of the ETF’s expenses. The impact of these additional expenses, if any, would be shown as part of “Acquired Fund Fees and Expenses” in the Annual Fund Operating Expenses table.
Foreign Companies and Securities Risk: Foreign securities, including depositary receipts such as ADRs, involve special risks such as currency fluctuations (with the exception of ADRs), economic or financial instability, lack of timely or reliable financial
information and unfavorable political or legal developments. Investments in securities of foreign companies or governments can be more volatile than investments in U.S. companies or governments. Diplomatic, political, or economic developments,
including nationalization or appropriation unique to a country or region will affect those markets and their issuers. Foreign securities markets generally have less trading volume and less liquidity than U.S. markets. These risks are increased for
investments in emerging markets.
Capital
Innovations Global Resources and Infrastructure Fund
Industry Concentration Risk:
The Fund’s investments will be concentrated in each of the natural resources and infrastructure groups of industries. The focus of the Fund’s portfolio on these specific groups of industries may present
more risks than if the portfolio were broadly diversified over numerous groups of industries.
Infrastructure Industry Risk: Companies within the infrastructure industry are susceptible to adverse economic or regulatory occurrences. Infrastructure companies may be subject to a variety
of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic
slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Infrastructure companies may
also be affected by or subject to regulation by various government authorities; government regulation of rates charged to customers; service interruption due to environmental, operational or other mishaps; the imposition of special tariffs and
changes in tax laws, regulatory policies and accounting standards; and general changes in market sentiment towards infrastructure and utilities assets. Any market price movements, regulatory or technological changes, or economic conditions affecting
infrastructure-related companies may have a significant impact on the Fund’s performance.
Large-Capitalization Companies Risk: Large-capitalization stocks can perform differently from other segments of the equity market or the equity market as a whole. Large-capitalization companies may be less flexible in evolving markets or unable to
implement change as quickly as small-capitalization companies.
Master Limited Partnership Risk: An investment in MLP units involves risks in addition to the risks associated with a similar investment in equity securities, such as common stock, of a corporation. As compared to common shareholders of a corporation,
holders of MLP units have more limited control and limited rights to vote on matters affecting the partnership. Additional risks inherent to investments in MLP units include cash flow risk, tax risk, risk associated with a potential conflict of
interest between unit holders and the MLP’s general partner, and capital markets risk. Moreover, the value of the Fund’s investment in MLPs depends largely on the MLPs being treated as partnerships for U.S. federal income tax purposes.
If an MLP does not meet current legal requirements to maintain eligibility for partnership tax treatment, or if it is unable to do so because of tax law changes, it could be taxed as a corporation and there could be a material decrease in the value
of its securities.
Certain MLP securities may
trade in lower volumes due to their smaller capitalizations. Accordingly, those MLPs may be subject to more abrupt or erratic price movements and may lack sufficient market liquidity to enable the Fund to effect sales at an advantageous time or
without a substantial drop in
price. MLPs are generally considered interest-rate sensitive investments.
During periods of interest rate volatility, these investments may not provide attractive returns.
Preferred Stock Risk: Preferred
stock represents an equity interest in a company that generally entitles the holder to receive, in preference to the holders of other stocks such as common stocks, dividends and a fixed share of the proceeds resulting from a liquidation of the
company. The market value of preferred stock is subject to company-specific and market risks applicable generally to equity securities and is also sensitive to changes in the company’s creditworthiness, the ability of the company to make
payments on the preferred stock, and changes in interest rates, typically declining in value if interest rates rise.
Real Estate Investment Trust Risk: In addition to the risks associated with securities linked to the real estate industry, such as declines in the value of real estate, risks related to general and local economic conditions, decreases in property
revenues, and increases in prevailing interest rates, property taxes and operating expenses, REITs are subject to certain other risks related to their structure and focus. REITs are dependent upon management skills and generally may not be
diversified. REITs are also subject to heavy cash flow dependency, defaults by borrowers and self-liquidation. A REIT could possibly fail to qualify for favorable U.S. federal income tax treatment, or to maintain its exemption from registration
under the 1940 Act. The above factors may also adversely affect a borrower’s or a lessee’s ability to meet its obligations to the REIT. In addition, the REIT may experience delays in enforcing its rights as a lessor and may incur
substantial costs associated with protecting its investments.
Small- and Mid-Capitalization Companies Risk: Small- and mid-capitalization stocks tend to perform differently from other segments of the equity market or the equity market as a whole, and can be more volatile than stocks of large-capitalization companies. Small-
and mid-capitalization companies may be newer or less established, and may have limited resources, products and markets, and may be less liquid.
Timber Industry Risk: Timber
companies may be affected by numerous factors, including events occurring in nature and international politics. For example, the volume and value of timber that can be harvested from timberlands may be limited by natural disasters and other events
such as fire, volcanic eruptions, insect infestation, disease, ice storms, wind storms, flooding, other weather conditions and other causes. In periods of poor logging conditions, timber companies may harvest less timber than expected. Timber
companies are subject to many federal, state and local environmental, health and safety laws and regulations. In addition, rising interest rates and general economic conditions may affect the demand for timber products. Any factors affecting timber
companies could have a significant effect on the Fund’s performance.
Capital
Innovations Global Resources and Infrastructure Fund
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. The Fund began operating on February 22, 2016 following a reorganization
(the "Reorganization") with a predecessor fund (the "Predecessor Fund"). Performance prior to February 22, 2016 is that of the I Shares of the Predecessor Fund. 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
Fund’s I Shares from year to year.*
Predecessor
Fund
Institutional Class Shares1
Calendar Year Returns as of December 31
1 The annual returns shown in the bar chart are for the Predecessor Fund’s
Institutional Class Shares. The other classes of shares, net of any applicable sales charges, would have substantially similar annual returns to those of Institutional Class Shares because all of the classes of shares are invested in the same
portfolio of securities, and the returns would differ only to the extent that the classes have different sales charges, distribution fees and/or service fees and expenses.
Best
Quarter |
Worst
Quarter |
5.17%
|
-0.51%
|
(12/31/2013)
|
(12/31/2015)
|
* The performance information shown
above is based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 9.31%.
The following table compares the Predecessor Fund’s
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, 2015)
|
1
Year |
Since
Inception* |
A
Shares Return Before Taxes |
(25.15)%
|
(3.55)%
|
C
Shares Return Before Taxes |
(21.93)%
|
(2.52)%
|
I
Shares Return Before Taxes |
(20.42)%
|
(1.56)%
|
I
Shares Return After Taxes on Distributions |
(21.08)%
|
(1.92)%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
(10.98)%
|
(1.17)%
|
S&P
Global Natural Resources Index (reflects no deduction for fees, expenses or taxes) |
(24.50)%
|
(10.64)%
|
*
|
Since inception of the
Predecessor Fund on September 28, 2012. Returns of the A Shares, C Shares, and I Shares are those of the Class A Shares, Class C Shares, and Institutional Shares of the Predecessor Fund, respectively. |
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-advantaged 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.
In some cases, average annual return after taxes on
distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The
calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to
reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Capital Innovations, LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Michael D. Underhill, Chief Investment Officer and
co-founder of CI, and Ms. Susan L. Dambekaln, co-founder of CI, are the portfolio managers for the Fund. The Subadviser utilizes a team-based approach in managing the Fund. Mr. Underhill and Ms. Dambekaln are the leaders of this team and comprise
the Allocation Committee, which is responsible for the allocations of the Fund’s investments among the various asset classes. Mr. Underhill and Ms. Dambekaln have co-managed the Predecessor Fund since its commencement on September 28,
2012.
Capital
Innovations Global Resources and Infrastructure Fund
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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
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 Fund’s distributions are generally taxable as
ordinary income, qualified dividend income, or capital gains unless you are investing through a tax-advantaged arrangement, such as a 401(k) plan or an IRA, which may be taxed upon withdrawal. Certain distributions may be treated as a return of
capital for tax purposes.
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 intermediary’s website for more information.
More Information
More Information About Principal Investment Strategies
Please see the section entitled “Principal Investment
Strategies” in the “Summary Section” for each Fund for a complete discussion of each Fund’s principal investment strategies.
More Information About Principal Risks
ADR Risk
Ceredex Large Cap Value Equity Fund
Ceredex Mid-Cap Value Equity Fund
Ceredex Small Cap Value Equity Fund
Innovative Growth Stock Fund
Silvant Large Cap Growth Stock Fund
Silvant Small Cap Growth Stock Fund
ADRs are depositary receipts issued in registered form by a
U.S. bank or trust company evidencing ownership of underlying securities issued by a foreign company. Investments in ADRs involve risks similar to those accompanying direct investments in foreign securities. These include the risk that political and
economic events unique to a country or region will affect those markets and their issuers.
Agribusiness Industry Risk
Capital Innovations Global Resources and Infrastructure
Fund
Companies involved in the agribusiness industry and
farming-related activities may be affected by certain legislative or regulatory developments related to food safety, the environment, taxes and other governmental policies. Economic forces, including forces affecting the agricultural, commodity,
energy and financial markets, as well as government policies and regulations affecting the agricultural sector and related industries, could adversely affect the Fund’s agribusiness companies and, thus, the Fund’s performance.
Agricultural production and trade flows are significantly affected by government policies and regulations. Companies involved in the agriculture industry may be subject to the risk of liability for environmental damage, depletion of resources, and
mandated expenditures for safety and pollution control devices. An increased competitive landscape, caused by increased availability of food and other agricultural commodities, economic recession or labor difficulties, may lead to a decrease in
demand for the products and services provided by companies involved in agriculture. Furthermore, companies involved in the agriculture industry are particularly sensitive to changing weather conditions and other natural disasters. In addition, these
companies are also subject to risks associated with the cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, consolidation, and excess capacity. In addition, agribusiness
companies must comply with a broad range of environmental and food safety laws and regulations. Additional or more stringent environmental and food safety laws and regulations may be enacted in the future and such
changes could have a material adverse effect on the business of the
Fund’s agribusiness companies and on the Fund
Equity Securities Risk
All Funds
Equity securities include public and
privately issued equity securities, common and preferred stocks, warrants, rights to subscribe to common stock and convertible securities. Individual companies may report poor results or be negatively affected by industry and/or economic trends and
developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in funds that primarily hold equity securities. Historically,
the equity market has moved in cycles and investments in equity securities in general are subject to market risks that may cause their prices to fluctuate over time. The value of securities convertible into equity securities, such as warrants or
convertible debt, is also affected by prevailing interest rates, the credit quality of the issuer and any call provision. Fluctuations in the value of equity securities in which a mutual fund invests will cause a Fund’s net asset value to
fluctuate. An investment in a portfolio of equity securities may be more suitable for long-term investors who can bear the risk of these share price fluctuations.
Exchange-Traded Fund Risk
Capital Innovations Global Resources and
Infrastructure Fund
ETFs are investment
companies that are bought and sold on a securities exchange. ETFs may track a securities index, a particular market sector, or a particular segment of a securities index or market sector. ETFs, like mutual funds, have expenses associated with their
operation, including advisory fees. When a Fund invests in an ETF, in addition to directly bearing expenses associated with its own operations, it will bear a pro rata portion of the ETF’s expense. The risks of owning shares of an ETF
generally reflect the risks of owning the underlying securities the ETF is designed to track, although lack of liquidity in an ETF could result in the ETF being more volatile than the underlying portfolio of securities. In addition, because of ETF
expenses, compared to owning the underlying securities directly, it may be more costly to own shares of an ETF.
Foreign Securities Risk
Capital Innovations Global Resources and
Infrastructure Fund
International Equity Fund
Foreign securities, including depositary receipts such as ADRs,
involve special risks such as currency fluctuations (with the exception of ADRs), economic or financial instability, lack of timely or reliable financial information and unfavorable political or legal developments. Investments in securities of
foreign companies or governments can be more volatile than investments in U.S. companies or governments. Diplomatic, political, or economic developments, including nationalization or appropriation, unique to a country or region will affect those
markets and their issuers. Foreign securities markets generally
have less trading volume and less liquidity than U.S. markets.
These risks are increased for investments in emerging markets.
Specific Risks of Foreign Securities:
• |
Political and Economic Risks. Foreign investments may be subject to heightened political and economic risks, particularly in countries with emerging economies and securities markets, which may have relatively unstable governments and economies based
on only a few industries. In some countries, there is the risk that the government could seize or nationalize companies, impose additional withholding taxes on dividends or interest income payable on securities, impose exchange controls or adopt
other restrictions that could affect the Fund’s investments. |
• |
Regulatory Risk. Foreign companies not publicly traded in the U.S. are not subject to accounting and financial reporting standards and requirements comparable to those that U.S. companies must meet. In addition, there may be less
information publicly available about such companies. |
• |
Foreign Tax Risk. A Fund’s income from foreign issuers may be subject to non-U.S. withholding taxes. A Fund may also be subject to taxes on trading profits or on transfers of securities in some countries. To the extent foreign
income taxes are paid by a Fund, shareholders may be entitled to a credit or deduction for U.S. tax purposes. |
• |
Transaction Costs. The costs of buying and selling foreign securities including brokerage, tax and custody costs are generally higher than those for domestic transactions. |
• |
Custody/Sub-Custody Risk. Custody risk refers to the risks inherent in the process of clearing and settling trades and to the holding of securities by local banks, agents and depositories. A Fund may invest in markets where custodial and/or
settlement systems are not fully developed. There may be very limited regulatory oversight of certain foreign banks or securities depositories that hold foreign securities and foreign currencies. The laws of certain countries may limit the ability
to recover such assets if the foreign bank or depository, or an agent of the bank or depository, goes bankrupt and the assets of a Fund may be exposed to risk in circumstances where the custodian/sub-custodian or Adviser will have no liability. In
addition, the inability of a Fund to make its intended securities purchases due to settlement issues with the custodian/sub-custodian could cause a Fund to miss attractive investment opportunities. |
•
|
Currency
Risk. Non-U.S. securities in which a Fund may invest, with the exception of ADRs, generally trade in currencies other than the U.S. dollar. Changes in currency exchange rates may affect a Fund’s net asset
value, the value of dividends and interest earned, and gains and losses realized on the sale of securities. An increase in the strength of the U.S. dollar relative to these other currencies may cause the value of a Fund to decline. Certain
currencies may be particularly volatile, and non-U.S. governments may intervene in the currency markets, causing a decline in value or liquidity in a Fund’s non-U.S. holdings whose value is tied to that particular currency.
|
• |
Emerging Markets Risk. Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or
economic conditions than more developed countries. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased
risk of price volatility associated with investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. Governments of some emerging market countries have defaulted on their bonds and may do so
in the future. |
Growth Stock
Risk
Innovative Growth Stock Fund
International Equity Fund
Silvant Large Cap Growth Stock Fund
Silvant Small Cap Growth Stock Fund
Different investment styles tend to shift in and out of favor,
depending on market conditions and investor sentiment. A Fund’s growth approach to investing could cause it to underperform other stock funds that employ a different investment style. Growth stocks tend to be more volatile than certain other
types of stocks and their prices usually fluctuate more dramatically than the overall stock market. A stock with growth characteristics can have sharp price declines due to decreases in current or expected earnings and may lack dividends that can
help cushion its share price in a declining market.
Holdings Risk
Innovative Growth Stock Fund
When a Fund targets holdings of a more limited number of
stocks, performance may be more volatile than a similar fund with a greater number of holdings or a Fund’s respective benchmark.
Industry Concentration Risk
Capital Innovations Global Resources and Infrastructure
Fund
The Fund’s investments will be concentrated in
the natural resources and infrastructure groups of industries. The focus of the Fund’s portfolio on a specific industry or industries may present more risks than if the portfolio were broadly diversified over numerous industries. For example,
a downturn in the natural resources and infrastructure groups of industries would have a larger impact on the Fund than on an investment company that does not concentrate its investments. At times, the performance of the Fund’s investments may
lag the performance of other industries or the broader market as a whole. Such underperformance may continue for extended periods of time.
Infrastructure Industry Risk
Capital Innovations Global Resources and Infrastructure
Fund
The infrastructure industry may be subject to a
variety of factors that may adversely affect a company’s business or operations, including high interest costs, high leverage, costs associated with environmental and other regulations, increased competition, the effects of energy conservation
policies and other factors. Any market price movements, regulatory or technological changes, or economic conditions affecting infrastructure-related companies may have a significant impact on the Fund’s performance. Some of the specific risks
that infrastructure companies may be particularly affected by, or subject to, include the following:
–
|
costs of complying with
changes to environmental and other regulations, including regulation of rates charged to customers; |
–
|
high interest costs in
connection with capital construction and improvement programs; |
–
|
difficulty in raising capital
in adequate amounts and on reasonable terms during periods of unsettled capital markets or government budgetary constraints that impact publicly funded projects; |
–
|
the effects of economic
slowdown or recession, and surplus capacity; |
–
|
increased competition from
other providers of services; |
–
|
uncertainties concerning the
availability of fuel at reasonable prices; - service interruption or legal challenges due to environmental, operational, or other mishaps; |
–
|
the imposition of special
tariffs and changes in tax laws, regulatory policies, or accounting standards; |
–
|
technological innovations
that may render existing plants, equipment, or products obsolete; and |
–
|
unforeseen
delays, natural disasters, accidents, and cost overruns in infrastructure projects. |
Other factors that may affect the operation of companies within
the infrastructure industry include inexperience with and potential losses resulting from a developing deregulatory environment, increased susceptibility to terrorist acts or political actions, and general changes in market sentiment towards
infrastructure assets.
Large-Capitalization
Companies Risk
Capital Innovations Global Resources and
Infrastructure Fund
Ceredex Large Cap Value Equity Fund
Innovative Growth Stock Fund
International Equity Fund
Silvant Large Cap Growth Stock Fund
Large-capitalization stocks can perform differently from other
segments of the equity market or the equity market as a whole. Companies with large market capitalization tend to go in and out of favor based on market and economic conditions and, while they can be less volatile than companies with smaller market
capitalizations, they may also be less flexible in evolving
markets or unable to implement change as quickly as their smaller
counterparts.
Accordingly, the value of
large-capitalization stocks may not rise to the same extent as the value of small or mid-capitalization companies under certain market conditions or during certain periods.
Master Limited Partnership Risk
Capital Innovations Global Resources and Infrastructure
Fund
Investment in securities of an MLP involves risks
that differ from investments in common stock, including risks related to limited control and limited rights to vote on matters affecting the MLP, risks related to potential conflicts of interest between the MLP and the MLP’s general partner,
cash flow risks, dilution risks and risks related to the general partner’s right to require unit-holders to sell their common units at an undesirable time or price. Holders of units issued by an MLP are exposed to remote possibility of
liability for all of the obligations of that MLP in the event that a court determines that the rights of the holders of MLP units to vote to remove or replace the general partner of that MLP, to approve amendments to that MLP’s partnership
agreement, or to take other action under the partnership agreement of that MLP would constitute “control” of the business of that MLP, or a court or governmental agency determines that the MLP is conducting business in a state without
complying with the partnership statute of that state. Holders of MLP interests also are exposed to the risk that they may be required to repay amounts to the MLP that are wrongfully distributed to them. Additional risks include risk associated with
a potential conflict of interest between unit holders and the MLP’s general partner, and capital markets risk.
Certain MLP securities may trade in lower volumes due to their
smaller capitalizations. Accordingly, those MLPs may be subject to more abrupt or erratic price movements and may lack sufficient market liquidity to enable the Fund to effect sales at an advantageous time or without a substantial drop in price.
MLPs are generally considered interest-rate sensitive investments. During periods of interest rate volatility, these investments may not provide attractive returns.
MLPs may incur environmental costs and liabilities due to the
nature of their businesses and the substances they handle. Changes in existing laws, regulations or enforcement policies governing the energy sector could significantly increase the compliance costs of MLPs. Certain MLPs could, from time to time, be
held responsible for implementing remediation measures, the cost of which may not be recoverable from insurance. The Fund will select its investments in MLPs from the current small pool of issuers. Demand for investment opportunities in MLPs that
operate energy related businesses may exceed supply, which could make it difficult to operate the Fund.
MLP Tax Risk
Capital Innovations Global Resources and Infrastructure
Fund
The Fund’s ability to invest in MLPs is
limited by the Fund’s intent to qualify as a regulated investment company. In order to qualify as a regulated investment company, the Fund generally may not invest more than 25% of the value of its total assets in securities of one or more
qualified publicly traded partnerships (“QPTPs”), which generally include MLPs. The Fund intends to satisfy the requirements for qualification as a regulated investment company and to limit its investments in MLPs accordingly. To qualify
as a regulated investment company, the Fund must also derive at least 90% of its gross income for each taxable year from sources generating “qualifying income.” Although income from QPTPs is generally qualifying income, if an entity
intending to qualify as a QPTP fails to qualify as a QPTP, the income generated by that entity may not be qualifying income. There can be no guarantee that an entity intending to qualify as a QPTP will be successful in so qualifying. In addition,
there is little regulatory guidance concerning the application of the rules governing qualification as a QPTP. Certain IRS determinations could potentially jeopardize the Fund’s ability to satisfy such requirements, potentially resulting in
the imposition of corporate taxes on the Fund.
Preferred
Stock Risk
Capital Innovations Global Resources and
Infrastructure Fund
Preferred stock represents an equity
interest in a company that generally entitles the holder to receive, in preference to the holders of other stocks such as common stocks, dividends and a fixed share of the proceeds resulting from a liquidation of the company. Preferred stocks may
pay fixed or adjustable rates of return. The market value of preferred stock is subject to issuer-specific and market risks applicable generally to equity securities and is sensitive to changes in the issuer’s creditworthiness and to changes
in interest rates, the ability of the issuer to make payments on the preferred stock and changes in interest rates, typically declining in value if interest rates rise. In addition, a company’s preferred stock generally pays dividends only
after the company makes required payments to holders of its bonds and other debt. Therefore, the value of preferred stock will usually react more strongly than bonds and other debt to actual or perceived changes in the company’s financial
condition or prospects.
Real Estate Investment Risk
Capital Innovations Global Resources and Infrastructure
Fund
Investments in real estate related securities are
subject to risks similar to those associated with direct ownership of real estate, and an investment in a Fund will be closely linked to the performance of the real estate markets. These risks include, among others, declines in the value of real
estate; risks related to general and local economic conditions; possible lack of availability of mortgage funds; overbuilding; extended vacancies of properties; defaults by borrowers or tenants, particularly during an economic downturn; increasing
competition; increases in property taxes and operating
expenses; changes in zoning laws; losses due to costs resulting from the
clean-up of environmental problems; liability to third parties for damages resulting from environmental problems; casualty or condemnation losses; limitations on rents; changes in market and sub-market values and the appeal of properties to tenants;
and changes in interest rates.
In addition to the risks
associated with investing in securities of real estate companies and real estate related companies, real estate investment trusts (“REITs”) are subject to certain additional risks. Equity REITs may be affected by changes in the value of
the underlying properties owned by the trusts, and mortgage REITs may be affected by the quality of any credit extended. Further, REITs are dependent upon specialized management skills and may have their investments in relatively few properties, or
in a small geographic area or a single property type. REITs are also subject to heavy cash flow dependency, defaults by borrowers and self-liquidation. In addition, REITs could possibly fail to qualify for the favorable income tax treatment
available to REITs under the Internal Revenue Code of 1986, as amended, (the “Internal Revenue Code”) or to maintain their exemptions from registration under the 1940 Act. The failure of a company to qualify as a REIT under federal tax
law may have adverse consequences to the Fund. The above factors may also adversely affect a borrower’s or a lessee’s ability to meet its obligations to the REIT. In the event of a default by a borrower or lessee, the REIT may experience
delays in enforcing its rights as a mortgagee or lessor and may incur substantial costs associated with protecting its investments. In addition, REITs have their own expense and the Fund will bear a proportionate share of those expenses.
Real estate companies tend to be small to medium-sized
companies. Real estate company shares, like other smaller company shares, can be more volatile than, and perform differently from, larger company shares. There may be less trading in a smaller company’s shares, which means that buy and sell
transactions in those shares could have a larger impact on the share’s price than is the case with larger company shares.
Small- and Mid-Capitalization Companies Risk
Capital Innovations Global Resources and
Infrastructure Fund
Ceredex Mid-Cap Value Equity Fund
Ceredex Small Cap Value Equity Fund
Innovative Growth Stock Fund
Silvant Small Cap Growth Stock Fund
Small- and mid-capitalization companies may be either
established or newer companies. Small-capitalization companies may offer greater opportunities for gain. They also involve a greater risk of loss because they may be more vulnerable to adverse business or economic events, particularly those
companies that have been in operation for less than three years. Small-capitalization company securities may trade in lower volumes or there may be less information about the company which may cause the investments to be more volatile or to have
less liquidity than larger company investments. They may have unseasoned management or may rely on the efforts of particular members of their management team to a great
More Information About
Indices
degree causing turnover in management to pose a greater risk.
Smaller sized companies may have more limited access to resources, product lines, and financial resources. Small- and mid-sized companies typically reinvest a large proportion of their earnings in their business and may not pay dividends or make
interest payments for some time, particularly if they are newer companies.
Timber Industry Risk
Capital Innovations Global Resources and Infrastructure
Fund
The timber industry is highly cyclical and the
market value of companies engaged in the ownership, management or upstream supply chain of forests and timberlands is strongly affected by changes in international economic conditions, interest rates, weather cycles, changing demographics,
environmental conditions and government regulations, among other factors. For example, the volume and value of timber that can be harvested from timberlands is limited by natural disasters, fire, volcanic eruptions, insect infestation, disease, ice
storms, wind storms, and flooding, as well as other events and weather conditions and changes in climate conditions that could intensify the effects of any of these factors. Many companies in the timber and forestry industry do not insure against
damages to their timberlands. Global timber companies involved in the forest, paper and packaging products industries are highly competitive globally, including significant competition from nonwood and engineered wood products, and no single company
is dominant. These industries have suffered, and continue to suffer, from excess capacity. Timber companies are subject to many federal, state and local environmental, health and safety laws and regulations, particularly with respect to the
restoration and reforestation of timberlands, harvesting timber near waterways, discharges of pollutants and emissions, and the management, disposal and remediation of hazardous substances or other contaminants. Political risks and the other risks
to which foreign securities are subject may also affect domestic companies in which the Fund may invest if they have significant operations or investments in foreign countries. In particular, tariffs, quotas or trade agreements can also affect the
markets for products of global timber companies, particularly wood products. In addition, rising interest rates and general economic conditions may affect the demand for timber products. Companies in this industry are also subject to stringent
federal, state and local environmental, health and safety laws and regulations.
Value Investing Risk
Ceredex Large Cap Value Equity
Fund
Ceredex Mid-Cap Value Equity Fund
Ceredex Small Cap Value Equity Fund
Different investment styles tend to shift in and out of favor,
depending on market conditions and investor sentiment. A Fund’s value approach to investing could cause it to underperform other stock funds that employ a different investment style. The intrinsic value of a stock with value characteristics
may not be fully recognized by the market for a
long time or a stock judged to be undervalued may actually be appropriately
priced at a low level.
Risk Information Common to
RidgeWorth Funds
Each Fund is an open-end management
investment company registered with the SEC, and commonly known as a mutual fund. A mutual fund pools shareholders’ money and, using professional investment managers, invests it in securities.
Each Fund has its own investment objective and strategies for
reaching that objective. The Adviser or Subadviser invests Fund assets in a way that it believes will help a Fund achieve its objective. Still, investing in each Fund involves risk and there is no guarantee that a Fund will achieve its
objective. The Adviser’s or Subadviser's judgments about the markets, the economy or companies may not anticipate actual market movements, economic conditions or company performance, and these judgments may affect the return on your
investment. In fact, no matter how good a job the Adviser or Subadviser does, you could lose money on your investment in a Fund, just as you could with other investments. The value of your investment in a Fund is based on the market prices of
the securities the Fund holds. These prices change daily due to economic and other events that affect particular companies and other issuers. These price movements, sometimes called volatility, may be greater or lesser depending on the types of
securities a Fund owns and the markets in which they trade. The effect on a Fund of a change in the value of a single security will depend on how widely the Fund diversifies its holdings.
Each Fund’s investment objective may be changed without
shareholder approval. Shareholders will be given notice of any change in investment objective. Before investing, make sure that the Fund’s objective matches your own.
The Funds are not managed to achieve tax efficiency.
More Information About Indices
Each Fund compares its performance with a
broad-based securities market index in order to provide some indication of the risks of an investment in the Fund.
An index measures the market prices of a specific group of
securities in a particular market or market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance
would be lower.
The Morgan Stanley Capital International All
Country World (“MSCI ACWI”) ex USA Index Captures large and mid cap representation across 22 of 23 Developed Markets countries (excluding the U.S.) and 23 Emerging Markets countries. With 1,843 constituents, the index covers
approximately 85% of the global equity opportunity set outside the U.S.
The Russell 3000® Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. It is comprised
of several subset indices based on market capitalization and investment style (growth or value).
More
Information About Fund Investments, Information About Portfolio Holdings and Management
The Russell 3000® Growth Index measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000 companies with higher
price-to-book ratios and higher forecasted growth values.
The Russell 2000® Index measures the performance of the small-capitalization segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000
Index.
The Russell 2000® Value Index measures the performance of small-capitalization value segment of the U.S. equity universe. It includes those Russell 2000 companies with
lower price-to-book ratios and lower forecasted growth values.
The Russell 2000® Growth Index measures the performance of the small-capitalization growth segment of the U.S. equity universe. It includes those Russell 2000 companies
with higher price-to-book ratios and higher forecasted growth values.
The Russell 1000® Index is a subset of the Russell 3000® Index and
includes approximately 1000 of the largest securities based on a combination of their market capitalization and current index membership.
The Russell 1000® Value Index measures the performance of the large-capitalization value segment of the U.S. equity universe. It includes those Russell 1000 companies
with lower price-to-book ratios and lower expected growth values.
The Russell 1000® Growth Index measures the performance of the large-capitalization growth segment of the U.S. equity universe. It includes those Russell 1000 companies
with higher price-to-book ratios and higher forecasted growth values.
The Russell Midcap® Value Index measures the performance of the mid-capitalization value segment of the U.S. equity universe. It includes those Russell Midcap Index
companies with lower price-to-book ratios and lower forecasted growth values. The Russell Midcap Index is a subset of the Russell 1000® Index. It
includes approximately 800 of the smallest securities based on a combination of their market capitalization and current index membership. The Russell Midcap Index represents approximately 31% of the total market capitalization of the Russell 1000
companies, their market capitalization and current index membership.
Frank Russell Company is the source and owner
of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
The S&P Global Natural Resources Index includes 90 of the
largest publicly traded companies in natural resources and commodities businesses that meet specific investability requirements, offering investors diversified and investable equity exposure across three primary commodity-related sectors:
agribusiness, energy and metals & mining.
The S&P 500 Index is widely regarded as a gauge of the U.S.
equities market. The index includes 500 leading companies in leading industries of the U.S. economy. Although the S&P 500 focuses on the large capitalization segment of the market, with approximately 75% coverage of U.S. equities, it is also an
ideal proxy for the total market.
More Information About Fund Investments
This prospectus describes the Funds’ primary strategies,
and the Funds will normally invest in the types of securities described in this prospectus. However, in addition to the investments and strategies described in this prospectus, each Fund also may invest in other securities, use other strategies and
engage in other investment practices. These investments and strategies, as well as those described in this prospectus, are described in detail in the Funds’ Statement of Additional Information (“SAI”).
The investments and strategies described in
this prospectus are those that the Funds use under normal conditions. During unusual economic or market conditions, or for temporary defensive or liquidity purposes, each Fund may invest up to 100% of its assets in cash, money market instruments,
repurchase agreements and short-term obligations that would not ordinarily be consistent with a Fund’s objectives. Temporary defensive investments may limit a Fund’s ability to meet its investment objective. The Ceredex Small Cap
Value Equity Fund also may invest in investment grade fixed income securities and mid- to large-capitalization common stocks that would not ordinarily be consistent with the Fund’s objective. A Fund will do so only if the Adviser or its
Subadviser believes that the risk of loss outweighs the opportunity for capital gains or higher income. Of course, a Fund cannot guarantee that it will achieve its investment objective.
Each Fund may invest in other mutual funds for cash management
purposes. When a Fund invests in another mutual fund, in addition to directly bearing expenses associated with its own operations, it will bear a pro rata portion of the other mutual fund’s expenses.
Information About Portfolio Holdings
A description of the Funds’ policies and procedures with
respect to the circumstances under which the Funds disclose their respective portfolio securities is available in the SAI. The Funds publicly disclose their portfolio holdings on its website at www.ridgeworth.com.
Management
The Board of Trustees (the “Board”) is responsible
for the overall supervision and management of the business and affairs of the Funds. The Board supervises the Adviser and Subadvisers and establishes policies that the Adviser and Subadvisers must follow in their fund-related management
activities. The day-to-day operations of the Funds are the responsibilities of the officers and various service organizations retained by the Funds.
Investment Adviser
RidgeWorth Investments, located at 3333 Piedmont Road, Suite 1500, Atlanta, GA 30305 (“RidgeWorth” or the “Adviser”), serves as the investment adviser to the Funds. In addition to being an investment adviser registered
with the Securities and Exchange Commission (the “SEC”), RidgeWorth is a money-management holding company with multiple style-focused investment boutiques. As of June 30, 2016, the Adviser had approximately $37.0 billion in assets under
management. The Adviser is responsible for overseeing the Subadvisers to ensure compliance with each Fund’s investment policies and guidelines, and monitors each Subadviser’s adherence to its investment style. The Adviser also executes
transactions with respect to specific securities selected by the Subadvisers (excluding Zevenbergen Capital Investments LLC) for purchase and sale by the Funds. The Adviser pays the Subadvisers out of the fees it receives from the
Funds.
In addition, for all the Funds except the
Innovative Growth Stock Fund, under a manager of managers arrangement, the Adviser may enter into or materially modify a subadvisory agreement with an unaffiliated subadviser, subject to approval by the Board and certain other conditions, without
approval from the applicable Fund’s shareholders. Any significant change in a Fund’s subadvisory arrangement will be communicated to shareholders.
The Adviser may use its affiliates as brokers for Fund
transactions.
An investment adviser has a fiduciary
obligation to its clients when the adviser has authority to vote their proxies. Under the current contractual agreement, the Adviser is authorized to vote proxies on behalf of each Fund. Information regarding the Adviser’s, and thus each
Fund’s, Proxy Voting Policies and Procedures is provided in the SAI. A copy of the Adviser’s Proxy Voting Policies and Procedures may be obtained by contacting the Funds at 1-888-784-3863 or by visiting www.ridgeworth.com.
For the fiscal year ended March 31, 2016, the
following Funds paid the Adviser advisory fees (after waivers) based on the respective Fund’s average daily net assets of:
Capital
Innovations Global Resources and Infrastructure Fund* |
--
|
Ceredex
Large Cap Value Equity Fund |
0.65%
|
Ceredex
Mid-Cap Value Equity Fund |
0.69%
|
Ceredex
Small Cap Value Equity Fund |
0.82%
|
Innovative
Growth Stock Fund |
0.85%
|
International
Equity Fund** |
0.58%
|
Silvant
Large Cap Growth Stock Fund |
0.69%
|
Silvant
Small Cap Growth Stock Fund |
0.85%
|
* The Predecessor Fund paid a
monthly investment advisory fee to Liberty Street at the annual rate of 1.10% of the Fund’s average daily net assets.
** Effective September 1, 2015, the International Equity Fund’s
investment advisory fee was reduced from 0.90% to 0.85%. The Maximum and Discounted Annual Advisory Fee reflects the reduced annual advisory fee for the period September 1, 2015 through March 31, 2016. For the period ended August 1, 2015, the
Maximum and Discounted Annual Advisory Fee would have been 0.90%, respectively.
The Adviser and each Subadviser have contractually agreed to
waive fees and reimburse expenses until at least August 1, 2017, in order to keep total annual operating expenses of each Fund from exceeding the applicable expense cap shown. If at any point before August 1, 2019, total annual operating expenses
are less than the expense cap, the Adviser may retain the difference to recapture any of the prior waivers or reimbursements. Such recapture is limited by the expense cap and, if lower, the expense cap that was applicable at the time of the waiver
of fees and/or reimbursement of expenses.
|
Expense
Limitation |
Funds
|
A
|
|
C
|
|
I
|
|
IS
|
Capital
Innovations Global Resources and Infrastructure Fund |
1.40%
|
|
2.15%
|
|
1.15%
|
|
N/A
|
Ceredex
Large Cap Value Equity Fund |
1.24%
|
|
1.90%
|
|
0.97%
|
|
0.85%
|
Ceredex
Mid-Cap Value Equity Fund |
1.38%
|
|
1.95%
|
|
1.15%
|
|
0.95%
|
Ceredex
Small Cap Value Equity Fund |
1.55%
|
|
2.15%
|
|
1.30%
|
|
N/A
|
Innovative
Growth Stock Fund |
1.50%
|
|
N/A
|
|
1.30%
|
|
N/A
|
International
Equity Fund |
1.48%
|
|
N/A
|
|
1.25%
|
|
1.10%
|
Silvant
Large Cap Growth Stock Fund |
1.23%
|
|
1.95%
|
|
0.97%
|
|
0.95%
|
Silvant
Small Cap Growth Stock Fund |
1.50%
|
|
2.15%
|
|
1.30%
|
|
1.10%
|
The following breakpoints
are used in computing the advisory fee:
Average
Daily Net Assets |
|
Discount
From Full Fee |
First
$500 million |
|
None
— Full Fee |
Next
$500 million |
|
5%
|
Next
$4 billion |
|
10%
|
Over
$5 billion |
|
15%
|
Based on average daily net assets as of March
31, 2016, the asset levels of the following Funds had reached a breakpoint in the advisory fee.* Had the Funds’ asset levels been lower, the Adviser may have been entitled to receive maximum advisory fees as follows:
Ceredex
Large Cap Value Equity Fund |
0.70%
|
Ceredex
Mid-Cap Value Equity Fund |
0.75%
|
Ceredex
Small Cap Value Equity Fund |
0.85%
|
*
|
Fund expenses in the
“Annual Fund Operating Expenses” tables shown earlier in this prospectus reflect the advisory breakpoints. |
A discussion regarding the basis for the
Board’s approval of the continuation of the investment advisory agreement with the Adviser appears in the Funds’ annual report to shareholders for the period ended March 31, 2016.
Investment Subadvisers
The Subadvisers are responsible for managing the portfolios of
their respective Funds on a day-to-day basis and selecting the specific securities to buy, sell and hold for the Funds under the supervision of the Adviser and the Board. A discussion regarding the basis for the Board’s approval of the
investment
subadvisory agreements appears in the
Funds’ annual report to shareholders for the year ended March 31, 2016.
Information about the Subadvisers and the individual portfolio
managers of the Funds is provided below. The SAI provides additional information regarding the portfolio managers’ compensation, other accounts managed by the portfolio managers, potential conflicts of interest and the portfolio
managers’ ownership of securities in the Funds.
Capital Innovations, LLC (“CI”)
325 Forest Grove
Drive, Suite 100
Pewaukee, Wisconsin 53072
www.capinnovations.com
CI is an investment adviser registered with the SEC. The firm
was established in 2007. As of June 30, 2016, CI had approximately $132 million in assets under management.
The following individuals are primarily responsible for the
day-to-day management of the Fund:
Mr. Michael D.
Underhill is Founder and Chief Investment Officer at CI. He has managed the Predecessor Fund since it commenced operations in September 2012. He has worked in investment management since 1989.
Ms. Susan L. Dambekaln is Founder, Portfolio Manager and Chief
Operating Officer at CI. She has managed the Predecessor Fund since it commenced operations in September 2012. She has worked in investment management since 1992.
Ceredex Value Advisors LLC (“Ceredex”)
301 East
Pine Street, Suite 500
Orlando, Florida 32801
www.ceredexvalue.com
Ceredex, a wholly-owned subsidiary of
RidgeWorth, is an investment adviser registered with the SEC. The firm was established in 2008 after 19 years functioning as RidgeWorth’s value style investment management team. As of June 30, 2016, Ceredex had approximately $10.2 billion in
assets under management.
Ceredex is a value
equity asset management firm that seeks to identify catalysts that may lead to appreciation in undervalued, dividend-paying stocks.
The following individuals are primarily responsible for the
day-to-day management of the following Funds:
Mr. Mills Riddick, CFA, currently serves as
Chief Investment Officer of Ceredex and as a Vice President of the Adviser. He has managed the Ceredex Large Cap Value Equity Fund since 1995. He has worked in investment management since 1982.
Mr. Brett Barner, CFA, currently serves as Managing Director of Ceredex. He
has managed the Ceredex Small Cap Value Equity Fund since its inception. He has worked in investment management since 1985.
Mr. Don Wordell, CFA, currently serves as Managing Director of
Ceredex. He has managed the Ceredex Mid-Cap Value Equity Fund since its inception. He has worked in investment management since 1996.
Silvant Capital Management LLC (“Silvant”)
3333
Piedmont Road, Suite 1500
Atlanta, Georgia 30305
www.silvantcapital.com
Silvant, a wholly-owned subsidiary of
RidgeWorth, is an investment adviser registered with the SEC. The firm was established in 2008 after 24 years functioning as RidgeWorth’s growth style investment management team. As of June 30, 2016, Silvant had approximately $1.3 billion in
assets under management.
Silvant focuses on
managing growth equity products for a diverse range of institutional clients. Its philosophy is that consistent outperformance can be delivered by an investment process which is grounded in fundamental analysis and includes sophisticated risk
management and stock selection techniques. Silvant’s investment team seeks to generate performance (alpha) through bottom-up stock selection, minimizing the potential impact of unintended style bias, sector bets, or macroeconomic risks
relative to the primary benchmark.
The following
individuals are primarily responsible for the day-to-day management of the following Funds:
Mr. Michael A. Sansoterra currently serves as
a Chief Investment Officer of Silvant and as a Vice President of the Adviser. Prior to joining the Adviser, Mr. Sansoterra served as Large Cap Diversified Growth Portfolio Manager and Senior Equity Analyst of Principal Global Investors from 2003 to
2007. He has co-managed the Silvant Large Cap Growth Stock Fund and Silvant Small Cap Growth Stock Fund since 2007. He has worked in investment management since
1996.
Mr. Sandeep Bhatia currently serves as Managing
Director of Silvant. He has been associated with Silvant or an affiliate since 2007. Prior to joining the Adviser, Mr. Bhatia served as a Senior Research Analyst for Eagle Asset Management, focusing on the healthcare sector from 2005 to 2007. He has
co-managed the Silvant Large Cap Growth Stock Fund and
Purchasing, Selling and
Exchanging Fund Shares
Silvant Small Cap Growth Stock Fund since 2011. He has worked in investment management since 2000.
WCM Investment Management (“WCM”)
280 Brooks
Street
Laguna Beach, California 92651
www.wcminvest.com
WCM is an investment adviser registered with the SEC. The firm
was established in 1976. As of June 30, 2016, WCM had approximately $14.1 billion in assets under management.
The following individuals are primarily responsible for the
day-to-day management of the Fund:
Mr. Paul R. Black ,
currently serves as President and co-CEO of WCM. He has managed the International Equity Fund since August 2015. He has worked in investment management since 1983.
Mr. Peter J. Hunkel currently serves as Portfolio Manager and
Business Analyst of WCM. He has managed the International Equity Fund since August 2015. He has worked in investment management since 1998.
Mr. Michael B. Trigg currently serves as Portfolio Manager and
Business Analyst of WCM. He has managed the International Equity Fund since August 2015. He has worked in investment management since 2000.
Mr. Kurt R. Winrich, CFA currently serves as Chairman and
co-CEO of WCM. He has managed the International Equity Fund since August 2015. He has worked in investment management since 1984.
Zevenbergen Capital Investments LLC (“ZCI”)
601
Union Street, Suite 4600
Seattle, Washington 98101
www.zci.com
ZCI, a minority-owned subsidiary of
RidgeWorth, is an investment adviser registered with the SEC. The firm was established in 1987 and serves as Subadviser to the Innovative Growth Stock Fund. As of June 30, 2016, ZCI had approximately $2.2 billion in assets under management.
ZCI specializes in aggressive growth-equity investment
advisory services for separately managed portfolios and mutual funds. ZCI’s investment philosophy and stock selection process, unchanged since its inception, operates under the principle that revenue, cash flow and earnings growth are the key
determinants of long-term stock price appreciation.
The following individuals are primarily
responsible for the day-to-day management of the Innovative Growth Stock Fund:
Ms. Nancy Zevenbergen, CFA, CIC, has served as President and
Chief Investment Officer of ZCI since 1987 and has co-managed the Fund since its inception. She has worked in investment management since 1981.
Ms. Brooke de Boutray, CFA, CIC, has co-managed the Fund since
its inception. Ms. de Boutray joined ZCI in 1992 and has served as Managing Director, Portfolio Manager and Analyst since the Fund’s inception. She has worked in investment management since 1981.
Ms. Leslie Tubbs, CFA, CIC, has co-managed the Fund since its
inception. Ms. Tubbs joined ZCI in 1994 and has served as Managing Director, Portfolio Manager and Analyst since the Fund’s inception. She has worked in investment management since 1994.
Mr. Joseph Dennison, CFA, has co-managed the Fund since August
2015. Mr. Dennison joined ZCI in 2011 and serves as Associate Portfolio Manager of the Fund. He has worked in investment management since 2011.
Mr. Anthony Zackery, CFA, has co-managed the Fund since August
2015. Mr. Zackery joined ZCI in 2011 and serves as Associate Portfolio Manager of the Fund. He has worked in investment management since 2011.
Purchasing, Selling and Exchanging Fund Shares
This section tells you how to purchase, sell (sometimes called
“redeem”) and exchange A Shares, C Shares, I Shares and IS Shares of the Funds. Participants in retirement plans must contact their Employee Benefits Office or their Plan’s Administrator for information regarding the purchase,
redemption or exchange of shares, or for questions about their specific accounts. Plans may require separate documentation and the plan’s policies and procedures may be different than those described in this prospectus. Investors purchasing or
selling shares through a retirement plan should also refer to their Plan documents. Please review the information you have about your retirement plan.
Investors purchasing or selling shares through a financial
intermediary may be charged transaction-based or other fees by the financial intermediary for its services. Please consult your financial intermediary for more information regarding such fees and for purchase instructions.
Purchasing Fund Shares
Where can I buy Fund shares?
You may purchase shares of the Funds through financial
institutions or intermediaries that are authorized to place transactions for their customers. Please contact your financial institution or intermediary directly and follow its procedures for purchase transactions. Your financial institution or
intermediary may charge a fee for its services, in addition to the
Purchasing, Selling
and Exchanging Fund Shares
fees charged by a Fund. You will also, generally, have to
address your correspondence or questions regarding a Fund to your financial institution or intermediary. Your investment professional can assist you in opening a brokerage account that will be used for purchasing shares of RidgeWorth Funds.
Eligible shareholders may purchase directly
from the Funds. Please see the section entitled “How Do I Open an Account?” for additional information.
Who can buy shares?
A Shares and C Shares may be purchased by all eligible investors that meet the requirements of the “Where can I buy Fund shares?” section, above.
I Shares are offered to
financial institutions and intermediaries for their own accounts or for the accounts of customers for whom they act as fiduciary, agent, investment adviser, or custodian. Financial intermediaries include brokers, dealers, banks (including bank trust
departments), trust companies, registered investment advisers, financial planners, retirement plan administrators, insurance companies, and any other institution having a service, administration, or any similar arrangement with the Funds or their
service providers. These accounts primarily consist of:
• |
assets of a bona fide trust,
|
• |
assets of a business entity
possessing a tax identification number, |
• |
assets of an employee benefit
plan, |
• |
assets held within select
fee-based programs, or |
•
|
assets
held within certain non-discretionary intermediary no-load platforms. |
Employee benefit plans generally include profit sharing, 401(k)
and 403(b) plans. Employee benefit plans generally do not include IRAs; SIMPLE, SEP, SARSEP plans; plans covering self-employed individuals and their employees; or health savings accounts unless you, as a customer of a financial institution or
intermediary, meet the Funds’ established criteria as described above.
As a result, you, as a customer of a financial institution or
intermediary, may, under certain circumstances that meet the Funds’ established criteria, be able to purchase I Shares through accounts made with select financial institutions or intermediaries. I Shares will be held of record by (in the name
of) your financial institution or intermediary. Depending upon the terms of your account, you may have, or be given, the right to vote your I Shares. Financial institutions or intermediaries may impose eligibility requirements for each of their
clients or customers investing in the Funds, including investment minimum requirements, which may differ from those imposed by the Funds. Please contact your financial institution or intermediary for complete details for purchasing I Shares.
I Shares may also be purchased directly from the Funds by
officers, directors or trustees, and employees and their immediate families (strictly limited to current spouses/
domestic partners and dependent children) of RidgeWorth Funds, the Adviser and
Subadvisers to the RidgeWorth Funds.
Validation of
current employment/service will be required upon establishment of the account. The Funds, in their sole discretion, may determine if an applicant qualifies for this program.
IS Shares do not pay, nor will they pay, any type of servicing, administrative, or revenue sharing payments, nor will the Adviser or any of its affiliates make any such payments. IS Shares are offered to the following investors
(provided that they do not require nor receive any such payments with respect to IS Shares) without a minimum initial investment:
• |
qualified retirement plans,
including, but not limited to, 401(k) plans, 457 plans, employer sponsored 403(b) plans, defined benefit plans and other accounts or plans whereby IS Shares are held on the books of the Fund through plan level or omnibus accounts |
• |
bank and trust companies;
|
• |
insurance companies;
|
• |
registered investment
companies; and |
•
|
non-qualified
deferred compensation plans. |
Other
institutional investors not included in the list above may be permitted to purchase IS Shares subject to management’s determination of eligibility and may be subject to a $2,500,000 minimum initial investment requirement. The minimum initial
investment amount may be waived subject to management’s discretion, and/or purchased by or through:
• |
certain registered open-end
investment companies whose shares are distributed by the Distributor; |
• |
accounts held by, or for the
benefit of, an affiliate of the Fund; or |
•
|
investments made
in connection with certain reorganizations as approved by the Adviser. |
If your account is subject to the minimum investment
requirement, and the value of your account falls below the minimum initial investment requirements for IS Shares as a result of share redemptions or you no longer meet one of the waiver criteria set forth above, your account may be subject to
involuntary conversion or involuntary redemption, as applicable. You will be notified prior to any such conversions or redemptions.
Foreign Investors
To purchase A Shares, C Shares and IS Shares of the
Funds, you must be a U.S. citizen, a U.S. resident alien, or a U.S. entity, with a U.S. tax identification number, and reside in the U.S. or its territories (which includes U.S. military APO or FPO addresses). If you
owned shares on July 31, 2006, you may keep your account open even if you do not reside in the U.S. or its territories, but you may not make additional purchases or exchanges.
The Funds do not generally accept investments in I Shares by
non-U.S. citizens or entities. Investors in I Shares generally must reside in the U.S. or its territories (which includes
Purchasing, Selling and
Exchanging Fund Shares
U.S. military APO or FPO addresses) and have a U.S. tax
identification number.
When can I purchase shares?
The Funds are open for business on days when the New York Stock
Exchange (the “NYSE”) is open for regular trading (a “Business Day”). The RidgeWorth Funds reserve the right to open one or more Funds on days that the principal bond markets (as recommended by the Securities Industry and
Financial Markets Association) are open, even if the NYSE is closed. Each Fund calculates its net asset value per share (“NAV”) once each Business Day at the close of regular trading on the NYSE (normally 4:00 p.m. Eastern Time).
If a Fund or its authorized agent receives your purchase or
redemption request in proper form before 4:00 p.m. Eastern Time, your transaction will be priced at that Business Day’s NAV. If your request is received after 4:00 p.m. Eastern Time, it will be priced at the next Business Day’s
NAV.
The time at which transactions and shares are priced
and the time until which trades are accepted may be changed if the NYSE closes early or if the principal bond markets close early on days when the NYSE is closed. For those Funds that open on days when the NYSE is closed, these times will be the
time the principal bond markets close.
The Funds will not
accept trades that request a particular day or price for the transaction or any other special conditions.
You may be required to transmit your purchase, sale and exchange
orders to your financial institutions or intermediaries at an earlier time for your transaction to become effective that day. This allows your financial institution or intermediary time to process your order and transmit it to the transfer agent in
time to meet the above stated Fund cut-off times. For more information about how to purchase, sell or exchange Fund shares, including your financial institution’s or intermediary’s internal order entry cut-off times, please contact your
financial institution or intermediary directly.
A Fund
may reject any purchase order.
How do the Funds calculate
NAV?
The offering price of A Shares is the NAV
next calculated after the Funds receive your request, in proper form, plus any front-end sales charge. The offering price of C Shares, R Shares, I Shares and IS Shares is simply the next calculated NAV.
The NAV is calculated by adding the total value of a
Fund’s investments and other assets, subtracting its liabilities, and then dividing that figure by the number of outstanding shares of the Fund.
In calculating the NAV, each Fund generally values its
investment portfolio at market price. If market prices are not readily available, or a Fund reasonably believes that market prices or amortized cost valuation methods are unreliable, such as in the case of a security value that has been materially
affected by events occurring after the relevant market closes, a Fund is required to price those securities at fair value as
determined in good faith using methods approved by the Board. A Fund’s
determination of a security’s fair value price often involves the consideration of a number of subjective factors, and is, therefore, subject to the unavoidable risk that the value that a Fund assigns to a security may be higher or lower than
the security’s value would be if a reliable market quotation for the security was readily available.
With respect to non-U.S. securities held by a Fund, the Fund
may take factors influencing specific markets or issues into consideration in determining its fair value. International securities markets may be open on days when the U.S. markets are closed. In such cases, the value of any international securities
owned by a Fund may be significantly affected on days when investors cannot buy or sell shares. In addition, due to the difference in times between the close of the international markets and the time a Fund prices its shares, the value the Fund
assigns to securities generally will not be the same as the primary markets or exchanges. In determining fair value prices, a Fund may consider the performance of securities on their primary exchanges, foreign currency appreciation/depreciation,
securities market movements in the U.S., or other relevant information as related to the securities.
When valuing fixed income securities with remaining maturities
of more than 60 days, the Funds use the value of the security provided by pricing services. The values provided by a pricing service may be based upon market quotations for the same security, securities expected to trade in a similar manner, or a
pricing matrix. When valuing fixed income securities with remaining maturities of 60 days or less, the Funds use the security’s amortized cost. Amortized cost and the use of a pricing matrix in valuing fixed income securities are forms of fair
value pricing. Fair value prices may be determined in good faith using methods approved by the Board.
How do I open an account?
Read this prospectus carefully, select the Fund or Funds and
share class most appropriate for you, and decide how much you want to invest.
The Funds do not accept cash, credit card checks, third-party
checks, travelers’ checks, money orders, bank starter checks, or checks drawn in a foreign currency, as payment for Fund shares.
If your payment does not clear or is not received in a timely
manner, your purchase may be canceled. You will be responsible for any losses or expenses incurred by the Funds or its transfer agent, and the Funds can redeem shares you own in any of the Funds or in another identically registered RidgeWorth Funds
account as reimbursement.
Eligible shareholders who
purchase shares directly from the Funds may purchase additional Fund shares by:
• |
Mail
|
• |
Telephone (1-888-784-3863)
|
• |
Wire
|
•
|
Fax
(1-800-451-8377) |
Purchasing, Selling
and Exchanging Fund Shares
• |
Automated Clearing House
(“ACH”) |
In-Kind
Purchases
Payment for shares of a Fund may, at the
discretion of the Adviser, be made in the form of securities that are permissible investments for such Fund. In connection with an in-kind securities payment, a Fund will require, among other things, that the securities: (a) meet the investment
objectives and policies of the Fund; (b) are acquired for investment and not for resale; (c) are liquid securities that are not restricted as to transfer either by law or liquidity of markets; (d) have a value that is readily ascertainable (e.g., by
a listing on a nationally recognized securities exchange); and (e) are valued on the day of purchase in accordance with the pricing methods used by the Fund. For further information about this form of payment, please call 1-888-784-3863.
Systematic Investment Plan
The Systematic Investment Plan is only available to
shareholders who own A Shares or C Shares. If you have a checking or savings account with a bank, you may purchase A Shares and C Shares automatically through regular
deductions from your bank account. With a $500 minimum initial investment, you may begin regularly-scheduled investments of $50 or more, once or twice a month. Shareholders should contact their financial intermediaries for more information on how to
take advantage of this feature.
What is the minimum
amount to purchase shares of Fund?
To purchase shares for
the first time, you must invest in any Fund at least:
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
No
minimum |
IS
Shares |
$2,500,000
(no minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
For A and C Shares purchases, your subsequent
investments must be made in amounts of at least $1,000. The Funds reserve the right to waive and/or reduce the minimum or subsequent investment amounts. Purchases of C Shares of any other Fund requested in an amount of $1,000,000 or more will
be converted to A Shares of that Fund. No fees will be incurred as a result of these conversions.
For investors who qualify to purchase I Shares, there are no
minimum investment amounts for initial or subsequent purchases.
Officers, directors or trustees, and employees and their
immediate families (strictly limited to current spouses/domestic partners and dependent children) of the Funds, Adviser and the Subadvisers may also purchase I Shares. There is no minimum investment.
Sales Charges
A Shares
The offering price of A Shares is the NAV next calculated after
a Fund receives your request in proper form, plus the front-end sales charge.
The amount of any front-end sales charge included in your
offering price varies, depending on the amount of your investment.
If
Your Investment is: |
Your
Sales Charge as a Percentage of Offering Price* |
Your
Sales Charge as a Percentage of Your Net Investment |
Less
than $50,000 |
5.75%
|
6.10%
|
$50,000
but less than $100,000 |
4.75%
|
4.99%
|
$100,000
but less than $250,000 |
3.75%
|
3.90%
|
$250,000
but less than $500,000 |
2.50%
|
2.56%
|
$500,000
but less than $1,000,000 |
2.00%
|
2.04%
|
$1,000,000
and over |
None
|
None
|
*
|
RidgeWorth Distributors LLC
(the “Distributor”) may pay a percentage of the offering price as a commission to broker-dealers. While investments over $1,000,000 are not subject to a front-end sales charge, the Distributor may pay dealer commissions ranging from
0.25% to 0.75%. |
Waiver of Front-End Sales Charge
The front-end sales charge may be waived on A Shares
purchased:
• |
through reinvestment of
dividends and distributions; |
• |
by persons repurchasing shares
they redeemed within the last 180 days (see “Repurchase of A Shares”); |
• |
by employees, and members of
their immediate family (spouse/domestic partner, mother, father, mother-in-law, father-in-law, and children, including step-children, under the age of 21 years), of the Adviser and its affiliates; |
• |
through financial
intermediaries or institutions; retirement plans, plan administrators or record-keepers; asset allocation, or wrap programs or self-directed investment brokerage accounts; that, under the terms of their respective agreements with the Distributor or
otherwise, agree to either (i) not charge the front-end sales charge, or (ii) do not receive compensation derived from the front-end sales charge, but may or may not charge a transaction fee to their customers; or |
• |
by Trustees and Officers of
the RidgeWorth Funds. |
Repurchase of
Shares
You may repurchase any amount of A Shares of any
Fund at the NAV (without the normal front-end sales charge), up to the limit of the value of any amount of A Shares (other than those which were purchased with reinvested dividends and distributions) that you redeemed within the past 180 days. In
effect, this allows you to reacquire shares that you may have had to redeem, without re-paying the front-end sales charge. Such
Purchasing, Selling and
Exchanging Fund Shares
repurchases may be subject to special tax
rules. See the “Taxes” section of the SAI for more information. To exercise this privilege, the Funds must receive your purchase order within 180 days of your redemption. In addition, you
must notify the Funds when you send in your purchase order that you are repurchasing shares.
Reduced Sales Charges
Rights of Accumulation. You may
take into account your accumulated holdings in all share classes of RidgeWorth Funds to determine the initial sales charge you pay on each purchase of A Shares. In calculating the appropriate sales charge rate, this right allows you to add the
market value (at the close of business on the day of the current purchase) of your existing holdings in any class of shares to the amount of A Shares you are currently purchasing. The Funds may amend or terminate this right at any time. Please see
the Funds’ SAI for details.
Letter of Intent. A Letter of Intent allows you to purchase A Shares over a 13-month period and receive the same sales charge as if you had purchased all the shares at the same time. The Funds will hold a certain portion of your
investment in escrow until you fulfill your commitment. Please see the SAI for details.
Combined Purchase/Quantity Discount Privilege. When calculating the appropriate sales charge rate, the Funds will combine same day purchases of shares of any class made by you, your spouse/domestic partner and your minor children (under age 21). This combination
also applies to A Shares you purchase with a Letter of Intent.
Contingent Deferred Sales Charges (“CDSC”)
You do not pay a sales charge when you purchase C Shares. The offering price of C Shares is simply the next calculated NAV. But, if you sell your shares within the first year after your purchase, you will pay a CDSC equal to 1% of either (i) the NAV of the shares
at the time of purchase, or (ii) the NAV of the shares next calculated after the Funds receive your sale request, whichever is less. The Funds will use the first-in, first-out (FIFO) method to determine the holding period. You never pay a CDSC on
any increase in your investment above the initial offering price. The CDSC does not apply to shares you purchase through reinvestment of dividends or distributions or to exchanges of C Shares of one Fund for C Shares of another Fund.
Investments of $1,000,000 or more. You do not pay an initial sales charge when you buy $1,000,000 or more of A Shares in either a single investment or through our rights of accumulation, letter of intent, or
combined purchase/quantity discount programs. However, you will pay a CDSC of 0.75% if you redeem any of these A Shares within two years of purchase. The CDSC may be waived from time to time for certain broker-dealers that waive payment of
compensation to them. The CDSC is calculated based on the lesser of (i) the NAV of the shares at the time of purchase or (ii) the NAV of the shares next calculated after the Fund receives your redemption request. The CDSC does not apply to shares
you purchase through reinvestment of dividends or capital gains distributions.
Waiver of CDSC
The CDSC for A Shares or
C Shares will be waived if you sell your shares for the following reasons:
• |
Death or Post-purchase
Disablement (as defined in Section 72(m)(7) of the Internal Revenue Code) |
–
|
You are shareholder/joint
shareholder or participant/beneficiary of certain retirement plans; |
–
|
You die or become disabled
after the account is opened; |
–
|
Redemption must be made
within 1 year of such death/disability; |
–
|
The Funds must be notified in
writing of such death/disability at time of redemption request; and |
–
|
The Funds
must be provided with satisfactory evidence of death (death certificate) or disability (doctor’s certificate specifically referencing disability as defined in 72(m)(7) of the Internal Revenue Code). |
• |
Shares purchased through
dividend and capital gains reinvestment. |
•
|
Participation
in the Systematic Withdrawal Plan described below: |
–
|
Withdrawal not to exceed 10%
of the current balance of a Fund in a 12 month period. The 10% amount will be calculated as of the date of the initial Systematic Withdrawal Plan and recalculated annually on the 12 month anniversary date. Shares purchased through dividend or
capital gains reinvestment, although not subject to the CDSC, will be included in calculating the account value and 10% limitation amount. |
–
|
If the
total of all Fund account withdrawals (Systematic Withdrawal Plan or otherwise) exceeds the 10% limit within the 12 month period following the initial calculation date, the entire Systematic Withdrawal Plan for the period will be subject to the
applicable sales charge. In the initial year of a Systematic Withdrawal Plan, the withdrawal limitation period shall begin 12 months before the initial Systematic Withdrawal Plan payment. |
–
|
To qualify for the CDSC waiver
under the Systematic Withdrawal Plan, a Fund account must have a minimum of $10,000 at Systematic Withdrawal Plan inception and must also reinvest dividends and capital gains distributions. |
• |
Required mandatory minimum
withdrawals made after 70½ under any retirement plan qualified under Sections 401, 408 or 403(b) of the Internal Revenue Code or resulting from the tax free return of an excess distribution to an IRA. Satisfactory qualified plan documentation
to support any waiver includes employer letter (separation from services) and plan administrator certificate (certain distributions under plan requirements). |
•
|
Permitted
exchanges of shares, except if shares acquired by exchange are then redeemed within the period during which a CDSC would apply to the initial shares purchased. |
Purchasing, Selling
and Exchanging Fund Shares
• |
Exchanges in connection with
plans of Fund reorganizations such as mergers and acquisitions. |
To take advantage of any of these waivers, you must qualify in
advance. To see if you qualify, please call your investment professional or other investment representative. These waivers are subject to change or elimination at any time at the discretion of the Funds.
The CDSC will be waived for certain retirement plan providers
that have entered into administrative agreements with the Funds. Please see the SAI for more information on this program.
The CDSC may also be waived from time to time for certain
broker-dealers that waive payment of compensation to them.
You can also obtain information about sales charges, rights of
accumulation and letters of intent on the Funds’ website at www.ridgeworth.com.
Customer Identification and Verification
To help the government fight the funding of terrorism and money
laundering activities, U.S. federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
When you open an account, you will be asked to provide your
name, residential street address, date of birth, and Social Security Number or tax identification number. You may also be asked for other information that will allow us to identify you. Entities are also required to provide additional documentation.
This information will be verified to ensure the identity of all persons opening a mutual fund account.
In certain instances, the Funds are required to collect
documents to fulfill their legal obligation. Documents provided in connection with your application will be used solely to establish and verify a customer’s identity.
The Funds are required by law to reject your new account
application if the required identifying information is not provided. Attempts to collect the missing information required on the application will be performed by either contacting you or, if applicable, your broker. If this information is unable to
be obtained within a timeframe established at the sole discretion of the Funds, your application will be rejected.
Upon receipt of your application in proper form (or upon
receipt of all identifying information required on the application), your investment will be accepted and your order will be processed at the NAV next determined.
However, the Funds reserve the right to close your account at
the then-current day’s price if the Funds are unable to verify your identity. Attempts to verify your identity will be performed within a timeframe established at the sole discretion of the Funds. If the Funds are unable to verify your
identity, the Funds reserve the right to liquidate your account at the then-current day’s price and remit proceeds to you via check. The Funds reserve the further right to hold your proceeds until your original check clears the bank. In such
an instance, you may be
subject to a gain or loss on Fund shares and will be subject to corresponding
tax implications.
Anti-Money Laundering Program
Customer identification and verification is part of the
Funds’ overall obligation to deter money laundering under U.S. federal law. The Funds have adopted an anti-money laundering compliance program designed to prevent the Funds from being used for money laundering or the financing of terrorist
activities. In this regard, the Funds reserve the right to (i) refuse, cancel or rescind any purchase or exchange order, (ii) freeze any account and/or suspend account services, or (iii) involuntarily redeem your account in cases of threatening
conduct or suspected fraudulent or illegal activity. These actions will be taken when, at the sole discretion of Fund management, they are deemed to be in the best interest of the Funds or in cases when the Funds are requested or compelled to do so
by governmental or law enforcement authority.
Selling
Fund Shares
Shares may be sold on any Business Day by
contacting your financial institution or intermediary. Your financial institution or intermediary will give you information about how to sell your shares including any specific cut-off times required. Shares may be sold by following the procedures
established at the time your account was opened with the Funds or financial institution or intermediary. The sale price of each share will be the next NAV determined after the Funds receive your request in proper form. Your broker, financial
institution or intermediary may charge a fee for its services, in addition to the fees charged by the Funds.
Shareholders who purchased shares directly from the Funds may
sell their Fund shares by:
• |
Telephone (1-888-784-3863)
|
To sell shares by telephone:
• |
redemption checks must be
made payable to the registered shareholder; and |
• |
redemption checks must be
mailed to an address of record that has been associated with the shareholder account for at least 30 days. |
Signature Authentication
This section describes the Funds’ Medallion Signature
Guarantee and Signature Validation Program (SVP) policies. If you purchased your shares through a financial institution or intermediary, the below policies may not apply. Please contact your financial institution or intermediary for additional
information on their signature authentication policy.
Purchasing, Selling and
Exchanging Fund Shares
For certain financial and non-financial transactions, the
Funds require proof that your signature is authentic and you have the authority to provide the instruction(s) contained in the request. This verification can be provided by either a Medallion Signature Guarantee Stamp for financial transactions or
an SVP Stamp for non-financial transactions.
Both types
of stamps can be obtained from a financial institution such as a domestic bank, trust company, broker/dealer, clearing agency, savings association, or other financial institution that participates in the Medallion Signature Guarantee Program or SVP.
Please visit www.ridgeworth.com for a Letter of Instruction Form that you can provide to your financial institution to obtain the appropriate stamp. Please note a notarized signature is not an acceptable substitute for a Medallion Signature
Guarantee or an SVP Stamp. The Funds reserve the right, at their sole discretion, to waive such requirements for a specific request.
Financial Transactions
An original document containing a Medallion Signature Guarantee
is required for certain types of financial transactions. Examples include:
• |
Redemption proceeds payable
or sent to any person, address, or bank account other than the one currently on record. |
• |
Redemption requests sent to
an address of record that has been changed within the last 30 days. |
•
|
Registration
or ownership changes to your account. Ownership changes may include but are not limited to, certain types of transfers, gifting shares, beneficial inheritance, and loan collateral agreements. |
Non-Financial Transactions
For certain non-financial transactions, the Funds will accept
an original document containing an SVP Stamp. In the event an SVP Stamp is not used by the financial institution, you should request that it use its Medallion Signature Guarantee in lieu of the SVP Stamp. Examples include:
• |
Changing your name.
|
• |
Requests to add or change
banking information that the Funds have on file. |
•
|
Updates to
authorized signers on your account. |
Sale Price of Fund Shares
The sale price of each share will be the next NAV determined
after the Funds receive your request, in proper form, less any applicable CDSC.
Systematic Withdrawal Plan
The Systematic Withdrawal Plan is only available to
shareholders who own A Shares or C Shares. If you have at least $10,000 of A Shares and C Shares in your account, you may use the Systematic Withdrawal Plan. Under the
plan you may arrange monthly, quarterly, semi-annual or annual
automatic withdrawals of at least $50 from any Fund. The proceeds of each
withdrawal will be mailed to you by check or, if you have a checking or savings account with a bank, may be electronically transferred to your account. Please check with your bank. Withdrawals under the Systematic Withdrawal Plan may be subject to a
CDSC unless they meet the requirements described above under “Waiver of the CDSC.” Shareholders should contact their financial intermediaries for more information on how to take advantage of this feature.
Redemptions In-Kind
The Funds generally pay redemption proceeds in cash. However,
under unusual conditions that make the payment of cash unwise (and for the protection of the Funds’ remaining shareholders), the Funds might pay all or part of your redemption proceeds in liquid securities with a market value equal to the
redemption price (redemption in kind). It is highly unlikely that your shares would ever be redeemed in kind, but if they were you would probably have to pay transaction costs to sell the securities distributed to you, as well as taxes on any
capital gains recognized in the redemption or in the sale of the securities distributed to you.
Involuntary Sales of Your Shares
If your account balance drops below the required minimum as a
result of redemptions you may be required to sell your shares. The account balance minimums are:
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
No
minimums |
IS
Shares |
$2,500,000
(no minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
The Funds will always give you at least 60 days written notice
to give you time to add to your account and avoid the sale of your shares.
Shareholders should contact their financial intermediary
regarding minimum investment requirements.
If the value
of your account falls below the minimum initial investment requirements for IS Shares as a result of share redemptions or you no longer meet one of the waiver criteria set forth above, your account may be subject to involuntary conversion or
involuntary redemption, as applicable. You will be notified prior to any such conversions or redemptions.
Receiving Your Money
Normally, the Funds will send your sale proceeds within five
Business Days after the Funds receive your request, but a Fund may take up to seven days to pay the sale proceeds if making immediate payments would adversely affect the Fund (for example, to allow the Fund to raise capital in the case of a large
redemption). Your sale proceeds can be wired to your bank account (subject to a fee) or sent to you by check. If you recently purchased your shares by check or through ACH,
Purchasing, Selling
and Exchanging Fund Shares
redemption proceeds may not be available until your funds have
cleared (which may take up to 10 calendar days from your date of purchase).
Each Fund tries to manage large redemptions of positions in the
Fund. However, a large redemption by a shareholder holding a significant investment in a Fund may have an adverse impact on the remaining shareholders in the Fund. For example, such a redemption may cause the Fund to (i) utilize outside sources of
liquidity, which may be more costly, or (ii) liquidate securities that otherwise would not have been sold, potentially impacting the Fund’s performance and generating capital gains distributions.
Suspension of Your Right to Sell Your Shares
A Fund may suspend your right to sell your shares if the NYSE
restricts trading, the SEC declares an emergency or for other reasons approved by the SEC. More information about this is in the Funds’ SAI.
Exchanging and Converting Your Shares
You must meet investor eligibility requirements applicable to
the share class into which you are exchanging. The Funds may accept investments of smaller amounts at its discretion. The Funds will treat any cross class conversion between classes of shares of the same Fund as a tax-free event. An exchange between
the same classes of shares of different Funds generally is treated as a taxable event.
For the purpose of computing the CDSC applicable to C Shares,
the length of time you have owned your shares will be measured from the original date of purchase and will not be affected by any exchange.
The exchange privilege is not intended as a vehicle for
short-term trading. Excessive exchange activity may interfere with Fund management and may have an adverse effect on all shareholders. In order to limit excessive exchange activity and in other circumstances where it is in the best interests of a
Fund, all Funds reserve the right to revise or terminate the exchange privilege, limit the amount or number of exchanges or reject any exchange or restrict or refuse purchases if (i) a Fund or its manager(s) believes the Fund would be harmed or
unable to invest effectively, or (ii) a Fund receives or anticipates orders that may dramatically affect the Fund as outlined under “Market Timing Policies and Procedures” below.
If you recently purchased shares by check or through ACH, you
may not be able to exchange your shares until your funds have cleared (which may take up to 10 calendar days from your date of purchase).
Exchanging Your Shares
You may exchange your Fund shares for the same class of shares
of any other RidgeWorth Fund. Your sales price and purchase price will be based on the NAV next calculated after the Funds receive your exchange request in proper form.
Exchanges into the RidgeWorth Ultra-Short
Funds — I Shares
At any time, you may exchange your
A, C or I Shares of any RidgeWorth Fund for shares of the RidgeWorth Seix U.S. Government Securities Ultra-Short Bond Fund I Shares and the RidgeWorth Seix Ultra-Short Bond Fund I Shares (the “RidgeWorth Ultra-Short Funds”). You should
read the RidgeWorth Ultra-Short Funds’ prospectus prior to investing in those Funds. You can obtain a prospectus by calling 1-888-784-3863 or by visiting www.ridgeworth.com. Qualifying exchanges between the Funds’ A and C Shares and the
RidgeWorth Ultra-Short Funds’ I Shares are eligible for exchange into the Funds’ A and/or C Shares without the imposition of the applicable front-end sales charge and/or CDSC. If applicable, the CDSC of the Fund from which you exchanged
will be carried over to the RidgeWorth Ultra-Short Funds and may be assessed if you sell your shares. Please see the Sales Charges section of the prospectus for more information.
If you purchased shares though a financial institution or
intermediary please contact your financial institution or intermediary regarding the availability of this exchange privilege.
Cross Class Conversions
You may convert your shares for shares of a different class of
the same Fund based on the NAV of each class next calculated after the Fund receives your exchange request in proper form. If you have held your current shares for less than one year, your financial intermediary may assess any applicable CDSC on
your shares when you make the conversion.
Instructions
for Exchanging and Converting Shares
You may exchange or
convert your shares on any Business Day by contacting the Funds at 1-888-784-3863 or the financial institution or intermediary through which your shares are held.
Systematic Exchange Plan
The Systematic Exchange Plan is only available to shareholders
who own A Shares or C Shares. For investors who qualify, a systematic exchange feature may be added to your account. Shareholders should contact their financial
intermediary for more information about how to take advantage of this feature and the minimum investment requirements.
Telephone Transactions
Purchasing, selling and exchanging Fund shares over the
telephone is extremely convenient, but not without risk. Although the Funds have certain safeguards and procedures to confirm the identity of callers and the authenticity of instructions, the Funds are not responsible for any losses or costs
incurred by following telephone instructions the Funds reasonably believe to be genuine. If you or your financial institution or intermediary transact with the Funds over the telephone, you will generally bear the risk of any loss. The
Market Timing Policies and
Procedures and Distribution of Fund Shares
Funds reserve the right to modify, suspend or terminate
telephone transaction privileges at any time.
Market
Timing Policies and Procedures
The Funds are intended for
long-term investment purposes only and discourage shareholders from engaging in “market timing” or other types of excessive short-term trading.
This frequent trading into and out of the Funds may present
risks to the Funds’ long-term shareholders, all of which could adversely affect shareholder returns. The risks posed by frequent trading include interfering with the efficient implementation of the Funds’ investment strategies,
triggering the recognition of taxable gains and losses on the sale of Fund investments, requiring the Funds to maintain higher cash balances to meet redemption requests, and experiencing increased transaction costs.
A Fund that invests a significant amount of its assets in
overseas markets is particularly susceptible to the risk of certain investors using a strategy known as time-zone arbitrage. Investors using this strategy attempt to take advantage of the differences in value of foreign securities that might result
from events that occur between the close of the foreign securities market on which a foreign security is traded and the time at which the Fund calculates its NAV.
The Funds and/or their service providers will take steps
reasonably designed to detect and deter frequent trading by shareholders pursuant to the Funds’ policies and procedures described in this prospectus and approved by the Funds’ Board. The Funds seek to discourage short-term trading by
using fair value pricing procedures to fair value certain investments under some circumstances. For purposes of applying these policies, the Funds’ service providers may consider the trading history of accounts under common ownership or
control. The Funds’ policies and procedures include:
• |
Restrictions on shareholders
from making more than one (1) “round trip” into and out of a Fund within 14 days or more than two (2) “round trips” within any continuous 90 day period. If a shareholder exceeds either “round trip” restriction, he
or she may be deemed a “Market Timer,” and the Funds and/or their service providers may, at their discretion, reject any additional purchase orders. The Funds define a round trip as a purchase into a Fund by a shareholder, followed by a
subsequent redemption out of the Fund. Anyone considered to be a Market Timer by the Funds, the Adviser, the Subadvisers or a shareholder servicing agent may be notified in writing of their designation as a Market Timer; and |
•
|
Reserving
the right to reject any purchase request by any investor or group of investors for any reason without prior notice, including, in particular, if the Funds or the Adviser reasonably believes that the trading activity would be harmful or disruptive to
the Funds. |
The Funds and/or their
service providers seek to apply these policies to the best of their abilities uniformly and in a manner they believe is consistent with the interests of the Funds’ long-term shareholders.
Although these policies are designed to deter frequent trading, none of these
measures alone, nor all of them taken together, eliminate the possibility that frequent trading in the Funds will occur, particularly with respect to trades placed by shareholders that invest in the Funds through omnibus arrangements maintained by
brokers, retirement plan accounts and other financial intermediaries.
Purchase and redemption transactions submitted to the Funds by
these intermediaries reflect the transactions of multiple beneficial owners whose individual transactions are not automatically disclosed to the Funds. Therefore, the Funds rely in large part on the intermediaries who maintain omnibus arrangements
(which may represent a majority of Fund shares) to aid in the Funds’ efforts to detect and deter short-term trading. The Funds monitor trading activity at the omnibus account level and look for activity that indicates potential short-term
trading. If they detect suspicious trading activity, the Funds contact the intermediaries to determine whether the short-term trading policy has been violated and may request and receive personal identifying information and transaction histories for
some or all beneficial owners to make this determination.
If a Fund believes that a shareholder has violated the
short-term trading policy, it will take further steps to prevent any future short-term trading by such shareholder in accordance with the policy. The Funds cannot guarantee the accuracy of the information provided by the intermediaries and may not
always be able to track short-term trading affected through these intermediaries. A Fund has the right to terminate an intermediary’s ability to invest in a Fund if excessive trading activity persists and a Fund or its Adviser or Subadviser
reasonably believes that such termination would be in the best interests of long-term shareholders.
In addition to the Funds’ market timing policies and
procedures described above, you may be subject to the market timing policies and procedures of the intermediary through which you invest. Please consult with your intermediary for additional information regarding its frequent trading
restrictions.
Distribution of Fund Shares
Distribution of Fund Shares Generally
The Adviser, the Subadviser or their affiliates may make
payments from their own funds based on gross sales and current assets to selected brokerage firms or institutions. The amount of these payments may be substantial. The minimum aggregate sales required for eligibility for such payments, and the
factors in selecting the brokerage firms and institutions to which they will be made, are determined from time to time by the Adviser or Subadviser. Furthermore, the Adviser, the Subadviser or their affiliates may pay fees from their own
capital resources to financial intermediaries (such as brokers, banks, financial advisers and retirement plan service providers) to compensate them for providing distribution-related or shareholder services, for marketing expenses they incur, for
travel and lodging in connection with educational events or to pay for the opportunity to have them distribute the Funds.
Shareholder Servicing Plans,
Dividends and Distributions, Household Mailings and
Taxes
The amount of these payments is determined by the
Adviser or Subadviser and may differ among financial intermediaries. Such payments may provide incentives for financial intermediaries to make shares of the Funds available to their customers, and may allow the Funds greater access to such
financial intermediaries and their customers than would be the case if no payments were made. You may wish to consider whether such arrangements exist when evaluating any recommendation to purchase shares of the Funds.
Please refer to the SAI for more information regarding these
arrangements.
Distribution Plan – A Shares and C
Shares
The A Shares and C Shares of each Fund have
adopted a distribution plan that allows the Fund to pay distribution and service fees for the sale and distribution of its shares, and for services provided to shareholders. Because these fees are paid out of a Fund’s assets continuously, over
time these fees will increase the cost of your investment and may cost you more than paying other types of sales charges.
Broker-dealers who initiate and are responsible for selling C
Shares may receive an initial payment at the time of sale of 1.00% and annual 12b-1 payout effective in the 13th month of 1.00%. Through the distribution plan, the Funds’ Distributor is reimbursed for these payments, as well as other
distribution related services provided by the Distributor.
For A Shares, each Fund’s distribution plan authorizes
payment of up to the amount shown under “Maximum Fee” in the table that follows. Currently, however, the Board has only approved payment of up to the amount shown under “Current Approved Fee” in the table that follows. Fees
are shown as a percentage of average daily net assets of the Fund’s A Shares.
|
Maximum
Fee |
|
Current
Approved Fee |
Value
Funds |
|
|
|
Ceredex
Large Cap Value Equity Fund |
0.33%
|
|
0.30%
|
Ceredex
Mid-Cap Value Equity Fund |
0.35%
|
|
0.30%
|
Ceredex
Small Cap Value Equity Fund |
0.33%
|
|
0.30%
|
Growth
Funds |
|
|
|
Silvant
Large Cap Growth Stock Fund |
0.35%
|
|
0.30%
|
Silvant
Small Cap Growth Stock Fund |
0.35%
|
|
0.30%
|
Innovative
Growth Stock Fund |
0.35%
|
|
0.30%
|
International
Fund |
|
|
|
International
Equity Fund |
0.33%
|
|
0.30%
|
Natural
Resources Fund |
|
|
|
Capital
Innovations Global Resources and Infrastructure Fund |
0.25%
|
|
0.25%
|
For C Shares, the maximum
distribution fee is 1.00% of the average daily net assets of a Fund’s C Shares.
The Funds may provide financial assistance in connection with
pre-approved seminars, conferences and advertising to the extent permitted by applicable state or self-regulatory agencies, such as the Financial Industry Regulatory Authority.
Shareholder Servicing Plans
With respect to the A Shares and I Shares of certain
of the Funds, the A Shares and I Shares Shareholder Servicing Plan permits the A Shares and I Shares of that Fund to pay financial intermediaries for shareholder support services they provide, at a rate of up to 0.40% of the
average daily net assets of each of the A Shares and I Shares of that Fund. Financial intermediaries include brokers, dealers, banks (including bank trust departments), trust companies, registered investment advisers, financial planners,
retirement plan administrators, insurance companies, and any other institution having a service, administration, or any similar arrangement with the Funds or their service providers. The shareholder support services may include, among others,
providing general shareholder liaison services (including responding to shareholder inquiries), providing information on shareholder investments, and establishing and maintaining shareholder accounts and records.
Dividends and Distributions
Each Fund distributes its net investment income at least
annually. Each Fund makes distributions of its net realized capital gains, if any, at least annually. If you own Fund shares on a Fund’s record date, you will be entitled to receive the distribution.
You will receive dividends and distributions in the form of
additional Fund shares unless you elect to receive payment in cash. To elect cash payment, you must notify the Funds in writing prior to the date of the distribution. Your election will be effective for dividends and distributions paid after the
Funds receive your written notice. To cancel your election, simply send the Funds written notice.
401(k) plan participants will receive dividends and
distributions in the form of additional Fund shares if the participant owns shares of a Fund on the date the dividend or distribution is allocated by the 401(k) plan. Therefore, a participant will not receive a dividend or distribution if the
participant does not own shares of the applicable Fund on the date the dividend or distribution is allocated.
Household Mailings
To reduce expenses, we may mail only one copy of the Fund's
prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please call us at 1-888-784-3863 (or contact your financial institution). We will begin
sending you individual copies thirty days after receiving your request.
Taxes
Please consult your tax advisor regarding your specific questions
about U.S. federal, state, local, and foreign tax considerations relating to any investment in any Fund.
Summarized below are some important tax issues that affect the
Funds and their shareholders. This summary is based on current tax laws, which may change. More information on taxes is in the Funds’ SAI.
Each Fund will distribute substantially all of its net
investment income and its net realized capital gains, if any, at least annually. The dividends and distributions you receive may be subject to federal, state and local taxation, depending upon your tax situation. Distributions you receive from a
Fund may be taxable whether or not you reinvest them in additional shares.
Income distributions are generally taxable as either ordinary
income or, in general, if paid from a Fund’s “qualified dividend income” and if certain conditions, including holding period requirements, are met by the Fund and the shareholder, as qualified dividend income. Dividends that are
qualified dividend income are taxable to noncorporate shareholders at U.S. federal income tax rates of up to 20%. Capital gains distributions (i.e., distributions of the excess of net long-term capital gain over net short-term capital loss, if any)
are generally taxable at the rates applicable to long-term capital gains. Long-term capital gains are generally taxable to noncorporate shareholders at rates of up to 20%. Distributions from a Fund’s net short-term capital gains are generally
taxable as ordinary income. A high portfolio turnover rate and the use of certain derivatives may cause a Fund to recognize higher amounts of short-term capital gains. A portion of dividends received from a Fund (but none of the Fund’s capital
gain distributions) may qualify for the dividends-received deduction for corporations.
“Qualified dividend income” generally is income
derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that a Fund receives in
respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market.
Dividends received by a Fund from REITs
generally are not expected to qualify for treatment as qualified dividend income or for the dividends-received deduction.
Distributions by a Fund in excess of its current and
accumulated earnings and profits will, as to each shareholder, be treated as a tax-deferred return of capital to the extent of the shareholder’s basis in his or her Fund shares. A distribution treated as a return of capital will reduce the
shareholder’s basis in his or her shares. After the shareholder’s basis has been reduced to zero, distributions in excess of the Fund’s current and accumulated earnings and profits will be treated as capital gain, assuming the
shareholder holds his or her shares of the Fund as capital assets. A Fund’s distributions in some circumstances may exceed its current and accumulated earnings and profits.
If a Fund declares a dividend in October, November or December,
payable to shareholders of record in such a month, and pays it in January of the following year, you will be taxed on the dividend as if you received it in the year in which it was declared.
If you invest in a Fund shortly before a
dividend or other taxable distribution, generally you will pay a higher price per share and, unless you are exempt from tax, you will pay taxes on the amount of the distribution.
Distributions from a Fund and capital gains on a disposition of
Fund shares are generally taken into account for purposes of the 3.8% U.S. federal Medicare contribution tax on all or a portion of the “net investment income” of individuals with income exceeding certain thresholds. This 3.8% tax also
applies to all or a portion of the undistributed net investment income of certain shareholders that are estates and trusts.
Each Fund in which you invest will inform you shortly after the
close of each calendar year of the amounts of your distributions that may qualify as ordinary income dividends, qualified dividend income and capital gain distributions.
You must provide your social security number or other taxpayer
identification number to a Fund along with any certifications required by the Internal Revenue Service. If you do not, or if it is otherwise legally required to do so, a Fund will apply “backup withholding” tax on your dividends and
other distributions, sale proceeds and any other payments to you that are subject to backup withholding. The backup withholding rate is 28%.
Dividends and distributions will accumulate on a tax-deferred
basis if you are investing through a 401(k) plan or any other employer-sponsored retirement or savings plan that qualifies for tax-advantaged treatment under federal income tax laws. Generally, you will not owe taxes on these distributions until you
begin withdrawals from the plan. Withdrawals from the plan are subject to numerous complex and special tax rules and may be subject to a penalty tax in the case of premature withdrawals. You should consult your tax advisor or plan administrator
regarding the tax rules governing your retirement or savings plan.
The Capital Innovations Global Resources and
Infrastructure Fund and the International Equity Fund may be able to pass along a tax credit for foreign income taxes they pay. In such event, the applicable Fund will provide you with the information necessary to reflect such foreign taxes on your
federal income tax return.
The financial highlights table is intended to
help you understand a Fund’s financial performance for the past 5 years. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on
an investment in the Fund (assuming reinvestment of all dividends and distributions). This financial information has been audited by PricewaterhouseCoopers LLP, except for the Capital Innovations Global Resources and Infrastructure Fund for the
periods noted below. The Report of Independent Registered Public Accounting Firm for each period shown, along with the Funds’ financial statements and related notes, are included in the Funds’ Annual Reports to Shareholders for such
periods. The 2016 Annual Report is available upon request and without charge by calling 1-888-784-3863 or on the Funds’ website at www.ridgeworth.com. The Capital Innovations Global Resources and Infrastructure Fund assumed the performance and
accounting history of the Predecessor Fund prior to a reorganization that took place on February 19, 2016. The financial information for the Predecessor Fund for the Predecessor Fund's fiscal years ended November 30, 2015, November 30, 2014,
November 30, 2013 and the period September 28, 2012 through November 30, 2012 has been audited by the Predecessor Fund's independent registered public accounting firm.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Innovative
Growth Stock Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$21.49
|
|
$(0.26)
|
|
$(0.59)
|
|
$(0.85)
|
|
$
— |
|
$
— |
|
$(1.53)
|
|
$(1.53)
|
|
$19.11
|
|
$18,203
|
|
(4.74)%
|
|
1.31%
|
|
1.39%
|
|
(1.20)%
|
|
59%
|
|
Year Ended March 31,
2015
|
21.20
|
|
(0.26)
|
|
1.21
|
|
0.95
|
|
—
|
|
—
|
|
(0.66)
|
|
(0.66)
|
|
21.49
|
|
24,321
|
|
4.61
|
|
1.31
|
|
1.34
|
|
(1.20)
|
|
42
|
|
Year Ended March 31,
2014
|
15.60
|
|
(0.22)
|
|
7.01
|
|
6.79
|
|
—
|
|
—
|
|
(1.19)
|
|
(1.19)
|
|
21.20
|
|
39,495
|
|
43.70
|
|
1.29
|
|
1.37
|
|
(1.08)
|
|
49
|
|
Year Ended March 31,
2013
|
15.94
|
|
(0.14)
|
|
0.42
|
|
0.28
|
|
—
|
|
—
|
|
(0.62)
|
|
(0.62)
|
|
15.60
|
|
15,840
|
|
1.84
|
|
1.20
|
|
1.21
|
|
(0.98)
|
|
24
|
|
Year Ended March 31,
2012
|
16.45
|
|
(0.15)
|
|
(0.36)
|
|
(0.51)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
15.94
|
|
88,132
|
|
(3.16)
|
|
1.22
|
|
1.22
|
|
(0.98)
|
|
30
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
20.76
|
|
(0.29)
|
|
(0.57)
|
|
(0.86)
|
|
—
|
|
—
|
|
(1.53)
|
|
(1.53)
|
|
18.37
|
|
8,127
|
|
(4.96)
|
|
1.49
|
|
1.49
|
|
(1.38)
|
|
59
|
|
Year Ended March 31,
2015
|
20.53
|
|
(0.28)
|
|
1.17
|
|
0.89
|
|
—
|
|
—
|
|
(0.66)
|
|
(0.66)
|
|
20.76
|
|
10,535
|
|
4.47
|
|
1.45
|
|
1.45
|
|
(1.34)
|
|
42
|
|
Year Ended March 31,
2014
|
15.16
|
|
(0.24)
|
|
6.80
|
|
6.56
|
|
—
|
|
—
|
|
(1.19)
|
|
(1.19)
|
|
20.53
|
|
19,950
|
|
43.45
|
|
1.40
|
|
1.40
|
|
(1.18)
|
|
49
|
|
Year Ended March 31,
2013
|
15.54
|
|
(0.18)
|
|
0.42
|
|
0.24
|
|
—
|
|
—
|
|
(0.62)
|
|
(0.62)
|
|
15.16
|
|
3,580
|
|
1.63
|
|
1.49
|
|
1.53
|
|
(1.24)
|
|
24
|
|
Year Ended March 31,
2012
|
16.10
|
|
(0.18)
|
|
(0.38)
|
|
(0.56)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
15.54
|
|
3,803
|
|
(3.48)
|
|
1.53
|
|
1.53
|
|
(1.28)
|
|
30
|
|
Capital
Innovations Global Resources and Infrastructure Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended March 31,
2016(e)
|
9.91
|
|
0.07
|
|
(0.76)
|
|
(0.69)
|
|
(0.18)
|
|
—
|
|
—
|
|
(0.18)
|
|
9.04
|
|
1,955
|
|
(6.93)
|
|
1.28
|
|
14.19
|
|
2.52
|
|
23
|
|
Year Ended November 30,
2015
|
11.84
|
|
0.14
|
|
(1.90)
|
|
(1.76)
|
|
(0.17)
|
|
—
|
|
—
|
|
(0.17)
|
|
9.91
|
|
3,336
|
|
(14.92)
|
|
1.35
|
|
3.42
|
|
1.23
|
|
19
|
|
Year Ended November 30,
2014
|
11.50
|
|
0.13
|
|
0.34
|
|
0.47
|
|
(0.04)
|
|
(0.04)
|
|
(0.05)
|
|
(0.13)
|
|
11.84
|
|
12,532
|
|
4.12
|
|
1.35
|
|
3.29
|
|
1.13
|
|
24
|
|
Year Ended November 30,
2013
|
10.03
|
|
0.09
|
|
1.43
|
|
1.52
|
|
(0.05)
|
|
—
|
|
—
|
|
(0.05)
|
|
11.50
|
|
5,436
|
|
15.15
|
|
1.35
|
|
6.57
|
|
0.85
|
|
7
|
|
Period Ended November 30,
2012(f)
|
10.00
|
|
0.01
|
|
0.02
|
|
0.03
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10.03
|
|
256
|
|
0.30
|
|
1.35
|
|
122.10
|
|
0.55
|
|
3
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended March 31,
2016(e)
|
9.90
|
|
0.07
|
|
(0.76)
|
|
(0.69)
|
|
(0.18)
|
|
—
|
|
—
|
|
(0.18)
|
|
9.03
|
|
1,250
|
|
(7.01)
|
|
1.53
|
|
14.70
|
|
2.34
|
|
23
|
|
Year Ended November 30,
2015
|
11.83
|
|
0.11
|
|
(1.90)
|
|
(1.79)
|
|
(0.14)
|
|
—
|
|
—
|
|
(0.14)
|
|
9.90
|
|
1,756
|
|
(15.14)
|
|
1.60
|
|
3.67
|
|
0.98
|
|
19
|
|
Year Ended November 30,
2014
|
11.49
|
|
0.10
|
|
0.34
|
|
0.44
|
|
(0.02)
|
|
(0.03)
|
|
(0.05)
|
|
(0.10)
|
|
11.83
|
|
3,033
|
|
3.84
|
|
1.60
|
|
3.54
|
|
0.88
|
|
24
|
|
Year Ended November 30,
2013
|
10.02
|
|
0.07
|
|
1.43
|
|
1.50
|
|
(0.03)
|
|
—
|
|
—
|
|
(0.03)
|
|
11.49
|
|
5,569
|
|
14.98
|
|
1.60
|
|
6.82
|
|
0.60
|
|
7
|
|
Period Ended November 30,
2012(f)
|
10.00
|
|
0.01
|
|
0.01
|
|
0.02
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10.02
|
|
14
|
|
0.20
|
|
1.60
|
|
122.35
|
|
0.30
|
|
3
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended March 31,
2016(e)
|
9.76
|
|
0.04
|
|
(0.75)
|
|
(0.71)
|
|
(0.15)
|
|
—
|
|
—
|
|
(0.15)
|
|
8.90
|
|
204
|
|
(7.24)
|
|
2.28
|
|
15.42
|
|
1.50
|
|
23
|
|
Year Ended November 30,
2015
|
11.69
|
|
0.03
|
|
(1.87)
|
|
(1.84)
|
|
(0.09)
|
|
—
|
|
—
|
|
(0.09)
|
|
9.76
|
|
308
|
|
(15.76)
|
|
2.35
|
|
4.42
|
|
0.23
|
|
19
|
|
Year Ended November 30,
2014
|
11.41
|
|
0.02
|
|
0.33
|
|
0.35
|
|
(0.01)
|
|
(0.01)
|
|
(0.05)
|
|
(0.07)
|
|
11.69
|
|
737
|
|
3.04
|
|
2.35
|
|
4.29
|
|
0.13
|
|
24
|
|
Year Ended November 30,
2013
|
10.01
|
|
(0.02)
|
|
1.42
|
|
1.40
|
|
—(g)
|
|
—
|
|
—
|
|
—
|
|
11.41
|
|
819
|
|
14.03
|
|
2.35
|
|
7.57
|
|
(0.15)
|
|
7
|
|
Period Ended November 30,
2012(f)
|
10.00
|
|
(0.01)
|
|
0.02
|
|
0.01
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10.01
|
|
7
|
|
0.10
|
|
2.35
|
|
123.10
|
|
(0.45)
|
|
3
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
International
Equity Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$10.45
|
|
$
0.13 |
|
$(0.29)
|
|
$(0.16)
|
|
$(0.07)
|
|
$—
|
|
$(0.92)
|
|
$(0.99)
|
|
$
9.30 |
|
$
28,756 |
|
(1.59)%
|
|
1.30%
|
|
1.67%
|
|
1.28%
|
|
114%
|
|
Year Ended March 31,
2015
|
12.45
|
|
0.25
|
|
(0.90)
|
|
(0.65)
|
|
(0.23)
|
|
—
|
|
(1.12)
|
|
(1.35)
|
|
10.45
|
|
19,023
|
|
(4.59)
|
|
1.37
|
|
1.48
|
|
2.15
|
|
41
|
|
Year Ended March 31,
2014
|
11.64
|
|
0.55
|
|
1.65
|
|
2.20
|
|
(1.17)
|
|
—
|
|
(0.22)
|
|
(1.39)
|
|
12.45
|
|
26,932
|
|
19.52
|
|
1.20
|
|
1.20
|
|
4.55(h)
|
|
43
|
|
Year Ended March 31,
2013
|
10.74
|
|
0.22
|
|
0.89
|
|
1.11
|
|
(0.21)
|
|
—
|
|
—
|
|
(0.21)
|
|
11.64
|
|
272,552
|
|
10.38
|
|
1.12
|
|
1.12
|
|
2.02
|
|
52
|
|
Year Ended March 31,
2012
|
11.62
|
|
0.25
|
|
(0.90)
|
|
(0.65)
|
|
(0.23)
|
|
—
|
|
—
|
|
(0.23)
|
|
10.74
|
|
261,561
|
|
(5.24)
|
|
1.29
|
|
1.29
|
|
2.33
|
|
78
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.34
|
|
0.09
|
|
(0.27)
|
|
(0.18)
|
|
(0.06)
|
|
—
|
|
(0.92)
|
|
(0.98)
|
|
9.18
|
|
3,756
|
|
(1.77)
|
|
1.51
|
|
1.77
|
|
0.89
|
|
114.00
|
|
Year Ended March 31,
2015
|
12.35
|
|
0.20
|
|
(0.87)
|
|
(0.67)
|
|
(0.22)
|
|
—
|
|
(1.12)
|
|
(1.34)
|
|
10.34
|
|
4,123
|
|
(4.87)
|
|
1.57
|
|
1.66
|
|
1.79
|
|
41
|
|
Year Ended March 31,
2014
|
11.51
|
|
0.20
|
|
2.00
|
|
2.20
|
|
(1.14)
|
|
—
|
|
(0.22)
|
|
(1.36)
|
|
12.35
|
|
4,802
|
|
19.72
|
|
1.47
|
|
1.47
|
|
1.66
|
|
43
|
|
Year Ended March 31,
2013
|
10.63
|
|
0.18
|
|
0.87
|
|
1.05
|
|
(0.17)
|
|
—
|
|
—
|
|
(0.17)
|
|
11.51
|
|
4,565
|
|
9.95
|
|
1.45
|
|
1.45
|
|
1.73
|
|
52
|
|
Year Ended March 31,
2012
|
11.49
|
|
0.21
|
|
(0.87)
|
|
(0.66)
|
|
(0.20)
|
|
—
|
|
—
|
|
(0.20)
|
|
10.63
|
|
5,500
|
|
(5.48)
|
|
1.59
|
|
1.59
|
|
2.02
|
|
78
|
|
IS
Shares(i) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended March 31,
2016
|
9.85
|
|
—(g)
|
|
0.38
|
|
0.38
|
|
—
|
|
—
|
|
(0.92)
|
|
(0.92)
|
|
9.31
|
|
5,832
|
|
3.81
|
|
1.14
|
|
1.54
|
|
0.09
|
|
114
|
|
Silvant
Large Cap Growth Stock Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.32
|
|
(0.02)
|
|
(0.12)
|
|
(0.14)
|
|
—
|
|
—
|
|
(0.80)
|
|
(0.80)
|
|
9.38
|
|
110,562
|
|
(1.79)
|
|
0.97
|
|
1.24
|
|
(0.15)
|
|
10
|
|
Year Ended March 31,
2015
|
9.70
|
|
—
|
|
1.40
|
|
1.40
|
|
—
|
|
—
|
|
(0.78)
|
|
(0.78)
|
|
10.32
|
|
127,236
|
|
15.03
|
|
0.94
|
|
1.17
|
|
(0.04)
|
|
13
|
|
Year Ended March 31,
2014
|
8.31
|
|
0.01
|
|
2.24
|
|
2.25
|
|
—
|
|
—
|
|
(0.86)
|
|
(0.86)
|
|
9.70
|
|
188,294
|
|
27.35
|
|
0.92
|
|
1.09
|
|
0.07
|
|
21
|
|
Year Ended March 31,
2013
|
12.95
|
|
0.03
|
|
0.24
|
|
0.27
|
|
(0.01)
|
|
—
|
|
(4.90)
|
|
(4.91)
|
|
8.31
|
|
167,887
|
|
3.64
|
|
0.94
|
|
0.94
|
|
0.23
|
|
40
|
|
Year Ended March 31,
2012
|
11.55
|
|
(0.02)
|
|
1.42
|
|
1.40
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12.95
|
|
261,090
|
|
12.12
|
|
1.07
|
|
1.07
|
|
(0.17)
|
|
19
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
8.75
|
|
(0.03)
|
|
(0.11)
|
|
(0.14)
|
|
—
|
|
—
|
|
(0.80)
|
|
(0.80)
|
|
7.81
|
|
62,115
|
|
(2.13)
|
|
1.20
|
|
1.21
|
|
(0.39)
|
|
10
|
|
Year Ended March 31,
2015
|
8.35
|
|
(0.02)
|
|
1.20
|
|
1.18
|
|
—
|
|
—
|
|
(0.78)
|
|
(0.78)
|
|
8.75
|
|
65,953
|
|
14.83
|
|
1.18
|
|
1.19
|
|
(0.26)
|
|
13
|
|
Year Ended March 31,
2014
|
7.27
|
|
(0.02)
|
|
1.96
|
|
1.94
|
|
—
|
|
—
|
|
(0.86)
|
|
(0.86)
|
|
8.35
|
|
64,288
|
|
26.99
|
|
1.19
|
|
1.20
|
|
(0.20)
|
|
21
|
|
Year Ended March 31,
2013
|
11.96
|
|
—(g)
|
|
0.21
|
|
0.21
|
|
—
|
|
—
|
|
(4.90)
|
|
(4.90)
|
|
7.27
|
|
56,511
|
|
3.43
|
|
1.20
|
|
1.20
|
|
(0.01)
|
|
40
|
|
Year Ended March 31,
2012
|
10.70
|
|
(0.05)
|
|
1.31
|
|
1.26
|
|
—
|
|
—
|
|
—
|
|
—
|
|
11.96
|
|
45,854
|
|
11.78
|
|
1.37
|
|
1.37
|
|
(0.45)
|
|
19
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
6.38
|
|
(0.06)
|
|
(0.07)
|
|
(0.13)
|
|
—
|
|
—
|
|
(0.80)
|
|
(0.80)
|
|
5.45
|
|
40,086
|
|
(2.77)
|
|
1.88
|
|
1.89
|
|
(1.06)
|
|
10
|
|
Year Ended March 31,
2015
|
6.32
|
|
(0.06)
|
|
0.90
|
|
0.84
|
|
—
|
|
—
|
|
(0.78)
|
|
(0.78)
|
|
6.38
|
|
46,678
|
|
14.20
|
|
1.86
|
|
1.87
|
|
(0.90)
|
|
13
|
|
Year Ended March 31,
2014
|
5.71
|
|
(0.06)
|
|
1.53
|
|
1.47
|
|
—
|
|
—
|
|
(0.86)
|
|
(0.86)
|
|
6.32
|
|
34,249
|
|
26.09
|
|
1.88
|
|
1.88
|
|
(0.90)
|
|
21
|
|
Year Ended March 31,
2013
|
10.52
|
|
(0.06)
|
|
0.15
|
|
0.09
|
|
—
|
|
—
|
|
(4.90)
|
|
(4.90)
|
|
5.71
|
|
31,625
|
|
2.69
|
|
1.89
|
|
1.89
|
|
(0.70)
|
|
40
|
|
Year Ended March 31,
2012
|
9.48
|
|
(0.11)
|
|
1.15
|
|
1.04
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10.52
|
|
17,363
|
|
10.97
|
|
2.07
|
|
2.07
|
|
(1.15)
|
|
19
|
|
IS
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.33
|
|
(0.01)
|
|
(0.13)
|
|
(0.14)
|
|
—
|
|
—
|
|
(0.80)
|
|
(0.80)
|
|
9.39
|
|
37,087
|
|
(1.80)
|
|
0.88
|
|
0.89
|
|
(0.06)
|
|
10
|
|
Period Ended March 31,
2015(j)
|
9.97
|
|
0.01
|
|
1.13
|
|
1.14
|
|
—
|
|
—
|
|
(0.78)
|
|
(0.78)
|
|
10.33
|
|
52,967
|
|
12.02
|
|
0.85
|
|
0.87
|
|
0.16
|
|
13
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Ceredex
Large Cap Value Equity Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$16.60
|
|
$0.22
|
|
$(0.57)
|
|
$(0.35)
|
|
$(0.24)
|
|
$—
|
|
$(1.30)
|
|
$(1.54)
|
|
$14.71
|
|
$1,440,587
|
|
(2.19)%
|
|
0.97%
|
|
1.09%
|
|
1.40%
|
|
66%
|
|
Year Ended March 31,
2015
|
17.02
|
|
0.23
|
|
0.99
|
|
1.22
|
|
(0.23)
|
|
—
|
|
(1.41)
|
|
(1.64)
|
|
16.60
|
|
1,927,039
|
|
7.25
|
|
0.95
|
|
1.07
|
|
1.33
|
|
73
|
|
Year Ended March 31,
2014
|
15.76
|
|
0.24
|
|
3.29
|
|
3.53
|
|
(0.23)
|
|
—
|
|
(2.04)
|
|
(2.27)
|
|
17.02
|
|
1,799,158
|
|
22.94
|
|
0.91
|
|
1.06
|
|
1.42
|
|
81
|
|
Year Ended March 31,
2013
|
13.77
|
|
0.24
|
|
1.97
|
|
2.21
|
|
(0.22)
|
|
—
|
|
—
|
|
(0.22)
|
|
15.76
|
|
1,442,154
|
|
16.24
|
|
0.89
|
|
0.89
|
|
1.74
|
|
78
|
|
Year Ended March 31,
2012
|
13.47
|
|
0.22
|
|
0.28
|
|
0.50
|
|
(0.20)
|
|
—
|
|
—
|
|
(0.20)
|
|
13.77
|
|
1,985,434
|
|
3.92
|
|
0.82
|
|
0.82
|
|
1.74
|
|
110
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
16.48
|
|
0.17
|
|
(0.56)
|
|
(0.39)
|
|
(0.19)
|
|
—
|
|
(1.30)
|
|
(1.49)
|
|
14.60
|
|
362,805
|
|
(2.46)
|
|
1.27
|
|
1.37
|
|
1.09
|
|
66
|
|
Year Ended March 31,
2015
|
16.90
|
|
0.18
|
|
0.99
|
|
1.17
|
|
(0.18)
|
|
—
|
|
(1.41)
|
|
(1.59)
|
|
16.48
|
|
461,642
|
|
6.98
|
|
1.25
|
|
1.36
|
|
1.03
|
|
73
|
|
Year Ended March 31,
2014
|
15.67
|
|
0.19
|
|
3.27
|
|
3.46
|
|
(0.19)
|
|
—
|
|
(2.04)
|
|
(2.23)
|
|
16.90
|
|
379,768
|
|
22.60
|
|
1.19
|
|
1.37
|
|
1.13
|
|
81
|
|
Year Ended March 31,
2013
|
13.70
|
|
0.21
|
|
1.95
|
|
2.16
|
|
(0.19)
|
|
—
|
|
—
|
|
(0.19)
|
|
15.67
|
|
287,957
|
|
15.93
|
|
1.16
|
|
1.26
|
|
1.48
|
|
78
|
|
Year Ended March 31,
2012
|
13.41
|
|
0.19
|
|
0.27
|
|
0.46
|
|
(0.17)
|
|
—
|
|
—
|
|
(0.17)
|
|
13.70
|
|
233,782
|
|
3.58
|
|
1.12
|
|
1.12
|
|
1.50
|
|
110
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
16.15
|
|
0.10
|
|
(0.55)
|
|
(0.45)
|
|
(0.12)
|
|
—
|
|
(1.30)
|
|
(1.42)
|
|
14.28
|
|
19,053
|
|
(2.88)
|
|
1.71
|
|
1.71
|
|
0.65
|
|
66
|
|
Year Ended March 31,
2015
|
16.59
|
|
0.10
|
|
0.97
|
|
1.07
|
|
(0.10)
|
|
—
|
|
(1.41)
|
|
(1.51)
|
|
16.15
|
|
21,207
|
|
6.50
|
|
1.71
|
|
1.71
|
|
0.57
|
|
73
|
|
Year Ended March 31,
2014
|
15.42
|
|
0.10
|
|
3.22
|
|
3.32
|
|
(0.11)
|
|
—
|
|
(2.04)
|
|
(2.15)
|
|
16.59
|
|
20,239
|
|
21.98
|
|
1.71
|
|
1.71
|
|
0.62
|
|
81
|
|
Year Ended March 31,
2013
|
13.50
|
|
0.12
|
|
1.92
|
|
2.04
|
|
(0.12)
|
|
—
|
|
—
|
|
(0.12)
|
|
15.42
|
|
16,394
|
|
15.25
|
|
1.75
|
|
1.75
|
|
0.89
|
|
78
|
|
Year Ended March 31,
2012
|
13.21
|
|
0.08
|
|
0.29
|
|
0.37
|
|
(0.08)
|
|
—
|
|
—
|
|
(0.08)
|
|
13.50
|
|
17,027
|
|
2.86
|
|
1.82
|
|
1.82
|
|
0.68
|
|
110
|
|
IS
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
16.66
|
|
0.23
|
|
(0.53)
|
|
(0.30)
|
|
(0.29)
|
|
—
|
|
(1.30)
|
|
(1.59)
|
|
14.77
|
|
272,861
|
|
(1.90)
|
|
0.72
|
|
0.72
|
|
1.48
|
|
66
|
|
Period Ended March 31,
2015(j)
|
17.54
|
|
0.19
|
|
0.54
|
|
0.73
|
|
(0.20)
|
|
—
|
|
(1.41)
|
|
(1.61)
|
|
16.66
|
|
37,570
|
|
4.26
|
|
0.71
|
|
0.71
|
|
1.65
|
|
73
|
|
Ceredex
Mid-Cap Value Equity Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
13.74
|
|
0.15
|
|
(0.71)
|
|
(0.56)
|
|
(0.15)
|
|
—
|
|
(0.69)
|
|
(0.84)
|
|
12.34
|
|
2,717,761
|
|
(3.85)
|
|
1.12
|
|
1.12
|
|
1.16
|
|
98
|
|
Year Ended March 31,
2015
|
14.09
|
|
0.13
|
|
0.93
|
|
1.06
|
|
(0.12)
|
|
—
|
|
(1.29)
|
|
(1.41)
|
|
13.74
|
|
3,552,288
|
|
7.76
|
|
1.10
|
|
1.10
|
|
0.92
|
|
94
|
|
Year Ended March 31,
2014
|
13.06
|
|
0.14
|
|
2.64
|
|
2.78
|
|
(0.12)
|
|
—
|
|
(1.63)
|
|
(1.75)
|
|
14.09
|
|
3,159,585
|
|
22.03
|
|
1.09
|
|
1.10
|
|
1.02
|
|
108
|
|
Year Ended March 31,
2013
|
11.07
|
|
0.16
|
|
2.00
|
|
2.16
|
|
(0.14)
|
|
—
|
|
(0.03)
|
|
(0.17)
|
|
13.06
|
|
2,168,210
|
|
19.73
|
|
1.08
|
|
1.08
|
|
1.44
|
|
123
|
|
Year Ended March 31,
2012
|
12.70
|
|
0.17
|
|
(0.66)
|
|
(0.49)
|
|
(0.17)
|
|
—
|
|
(0.97)
|
|
(1.14)
|
|
11.07
|
|
1,679,244
|
|
(2.33)
|
|
1.04
|
|
1.04
|
|
1.56
|
|
182
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
13.60
|
|
0.11
|
|
(0.70)
|
|
(0.59)
|
|
(0.10)
|
|
—
|
|
(0.69)
|
|
(0.79)
|
|
12.22
|
|
397,599
|
|
(4.11)
|
|
1.40
|
|
1.45
|
|
0.86
|
|
98
|
|
Year Ended March 31,
2015
|
13.96
|
|
0.09
|
|
0.92
|
|
1.01
|
|
(0.08)
|
|
—
|
|
(1.29)
|
|
(1.37)
|
|
13.60
|
|
590,327
|
|
7.45
|
|
1.38
|
|
1.41
|
|
0.64
|
|
94
|
|
Year Ended March 31,
2014
|
12.96
|
|
0.10
|
|
2.62
|
|
2.72
|
|
(0.09)
|
|
—
|
|
(1.63)
|
|
(1.72)
|
|
13.96
|
|
611,880
|
|
21.68
|
|
1.35
|
|
1.40
|
|
0.76
|
|
108
|
|
Year Ended March 31,
2013
|
10.99
|
|
0.13
|
|
1.98
|
|
2.11
|
|
(0.11)
|
|
—
|
|
(0.03)
|
|
(0.14)
|
|
12.96
|
|
490,381
|
|
19.43
|
|
1.34
|
|
1.38
|
|
1.17
|
|
123
|
|
Year Ended March 31,
2012
|
12.62
|
|
0.15
|
|
(0.67)
|
|
(0.52)
|
|
(0.14)
|
|
—
|
|
(0.97)
|
|
(1.11)
|
|
10.99
|
|
433,674
|
|
(2.63)
|
|
1.34
|
|
1.34
|
|
1.40
|
|
182
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
13.34
|
|
0.06
|
|
(0.68)
|
|
(0.62)
|
|
(0.07)
|
|
—
|
|
(0.69)
|
|
(0.76)
|
|
11.96
|
|
64,160
|
|
(4.49)
|
|
1.78
|
|
1.78
|
|
0.50
|
|
98
|
|
Year Ended March 31,
2015
|
13.72
|
|
0.04
|
|
0.90
|
|
0.94
|
|
(0.03)
|
|
—
|
|
(1.29)
|
|
(1.32)
|
|
13.34
|
|
87,115
|
|
7.06
|
|
1.75
|
|
1.75
|
|
0.28
|
|
94
|
|
Year Ended March 31,
2014
|
12.77
|
|
0.05
|
|
2.58
|
|
2.63
|
|
(0.05)
|
|
—
|
|
(1.63)
|
|
(1.68)
|
|
13.72
|
|
81,961
|
|
21.26
|
|
1.76
|
|
1.76
|
|
0.36
|
|
108
|
|
Year Ended March 31,
2013
|
10.85
|
|
0.07
|
|
1.95
|
|
2.02
|
|
(0.07)
|
|
—
|
|
(0.03)
|
|
(0.10)
|
|
12.77
|
|
53,893
|
|
18.75
|
|
1.86
|
|
1.86
|
|
0.65
|
|
123
|
|
Year Ended March 31,
2012
|
12.48
|
|
0.07
|
|
(0.66)
|
|
(0.59)
|
|
(0.07)
|
|
—
|
|
(0.97)
|
|
(1.04)
|
|
10.85
|
|
42,272
|
|
(3.32)
|
|
2.04
|
|
2.04
|
|
0.65
|
|
182
|
|
IS
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
13.76
|
|
0.21
|
|
(0.72)
|
|
(0.51)
|
|
(0.20)
|
|
—
|
|
(0.69)
|
|
(0.89)
|
|
12.36
|
|
192,640
|
|
(3.45)
|
|
0.80
|
|
0.80
|
|
1.68
|
|
98
|
|
Period Ended March 31,
2015(j)
|
14.28
|
|
0.13
|
|
0.77
|
|
0.90
|
|
(0.13)
|
|
—
|
|
(1.29)
|
|
(1.42)
|
|
13.76
|
|
23,398
|
|
6.54
|
|
0.75
|
|
0.75
|
|
1.39
|
|
94
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Silvant
Small Cap Growth Stock Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$14.83
|
|
$(0.10)
|
|
$(1.54)
|
|
$(1.64)
|
|
$
— |
|
$—
|
|
$(4.67)
|
|
$(4.67)
|
|
$
8.52 |
|
$
36,436 |
|
(13.36)(k)
|
|
1.30%
|
|
1.39%
|
|
(0.74)%
|
|
73%
|
|
Year Ended March 31,
2015
|
16.82
|
|
(0.14)
|
|
0.65
|
|
0.51
|
|
—
|
|
—
|
|
(2.50)
|
|
(2.50)
|
|
14.83
|
|
126,223
|
|
4.31(k)
|
|
1.28
|
|
1.34
|
|
(0.92)
|
|
31
|
|
Year Ended March 31,
2014
|
15.66
|
|
(0.16)
|
|
4.23
|
|
4.07
|
|
—
|
|
—
|
|
(2.91)
|
|
(2.91)
|
|
16.82
|
|
170,409
|
|
25.98
|
|
1.26
|
|
1.31
|
|
(0.91)
|
|
90
|
|
Year Ended March 31,
2013
|
17.21
|
|
(0.08)
|
|
2.19
|
|
2.11
|
|
—
|
|
—
|
|
(3.66)
|
|
(3.66)
|
|
15.66
|
|
152,674
|
|
14.20
|
|
1.21
|
|
1.21
|
|
(0.50)
|
|
50
|
|
Year Ended March 31,
2012
|
17.17
|
|
(0.10)
|
|
0.14(l)
|
|
0.04
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17.21
|
|
267,694
|
|
0.23
|
|
1.23
|
|
1.23
|
|
(0.62)
|
|
71
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
13.23
|
|
(0.08)
|
|
(1.35)
|
|
(1.43)
|
|
—
|
|
—
|
|
(4.67)
|
|
(4.67)
|
|
7.13
|
|
6,856
|
|
(13.38)
|
|
1.37
|
|
1.37
|
|
(0.76)
|
|
73
|
|
Year Ended March 31,
2015
|
15.30
|
|
(0.13)
|
|
0.56
|
|
0.43
|
|
—
|
|
—
|
|
(2.50)
|
|
(2.50)
|
|
13.23
|
|
9,889
|
|
4.21
|
|
1.32
|
|
1.32
|
|
(0.96)
|
|
31
|
|
Year Ended March 31,
2014
|
14.46
|
|
(0.15)
|
|
3.90
|
|
3.75
|
|
—
|
|
—
|
|
(2.91)
|
|
(2.91)
|
|
15.30
|
|
10,880
|
|
25.92
|
|
1.29
|
|
1.29
|
|
(0.94)
|
|
90
|
|
Year Ended March 31,
2013
|
16.18
|
|
(0.11)
|
|
2.05
|
|
1.94
|
|
—
|
|
—
|
|
(3.66)
|
|
(3.66)
|
|
14.46
|
|
10,226
|
|
14.07
|
|
1.37
|
|
1.37
|
|
(0.69)
|
|
50
|
|
Year Ended March 31,
2012
|
16.19
|
|
(0.14)
|
|
0.13(l)
|
|
(0.01)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16.18
|
|
10,032
|
|
(0.06)
|
|
1.54
|
|
1.54
|
|
(0.91)
|
|
71
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
9.53
|
|
(0.10)
|
|
(0.88)
|
|
(0.98)
|
|
—
|
|
—
|
|
(4.67)
|
|
(4.67)
|
|
3.88
|
|
4,686
|
|
(13.91)
|
|
2.02
|
|
2.02
|
|
(1.40)
|
|
73
|
|
Year Ended March 31,
2015
|
11.82
|
|
(0.17)
|
|
0.38
|
|
0.21
|
|
—
|
|
—
|
|
(2.50)
|
|
(2.50)
|
|
9.53
|
|
6,397
|
|
3.55
|
|
1.96
|
|
1.96
|
|
(1.60)
|
|
31
|
|
Year Ended March 31,
2014
|
11.77
|
|
(0.20)
|
|
3.16
|
|
2.96
|
|
—
|
|
—
|
|
(2.91)
|
|
(2.91)
|
|
11.82
|
|
7,255
|
|
25.10
|
|
1.94
|
|
1.94
|
|
(1.59)
|
|
90
|
|
Year Ended March 31,
2013
|
13.91
|
|
(0.18)
|
|
1.70
|
|
1.52
|
|
—
|
|
—
|
|
(3.66)
|
|
(3.66)
|
|
11.77
|
|
6,757
|
|
13.30
|
|
2.05
|
|
2.05
|
|
(1.39)
|
|
50
|
|
Year Ended March 31,
2012
|
14.01
|
|
(0.21)
|
|
0.11(l)
|
|
(0.10)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13.91
|
|
8,129
|
|
(0.71)
|
|
2.24
|
|
2.24
|
|
(1.61)
|
|
71
|
|
IS
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
14.85
|
|
(0.05)
|
|
(1.56)
|
|
(1.61)
|
|
—
|
|
—
|
|
(4.67)
|
|
(4.67)
|
|
8.57
|
|
3,289
|
|
(13.13)
|
|
1.02
|
|
1.02
|
|
(0.42)
|
|
73
|
|
Period Ended March 31,
2015(j)
|
15.61
|
|
(0.06)
|
|
1.80
|
|
1.74
|
|
—
|
|
—
|
|
(2.50)
|
|
(2.50)
|
|
14.85
|
|
6,235
|
|
12.53
|
|
0.96
|
|
0.96
|
|
(0.56)
|
|
31
|
|
Ceredex
Small Cap Value Equity Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
15.59
|
|
0.13
|
|
(0.50)
|
|
(0.37)
|
|
(0.20)
|
|
—
|
|
(3.72)
|
|
(3.92)
|
|
11.30
|
|
820,124
|
|
(0.64)
|
|
1.21
|
|
1.21
|
|
0.93
|
|
36
|
|
Year Ended March 31,
2015
|
17.95
|
|
0.20
|
|
0.38
|
|
0.58
|
|
(0.15)
|
|
—
|
|
(2.79)
|
|
(2.94)
|
|
15.59
|
|
1,118,190
|
|
4.07
|
|
1.21
|
|
1.21
|
|
1.16
|
|
10
|
|
Year Ended March 31,
2014
|
15.45
|
|
0.17
|
|
3.11
|
|
3.28
|
|
(0.14)
|
|
—
|
|
(0.64)
|
|
(0.78)
|
|
17.95
|
|
1,528,174
|
|
21.34
|
|
1.22
|
|
1.22
|
|
1.01
|
|
37
|
|
Year Ended March 31,
2013
|
13.80
|
|
0.20
|
|
2.08
|
|
2.28
|
|
(0.23)
|
|
—
|
|
(0.40)
|
|
(0.63)
|
|
15.45
|
|
1,408,597
|
|
17.07
|
|
1.20
|
|
1.20
|
|
1.44
|
|
27
|
|
Year Ended March 31,
2012
|
14.54
|
|
0.12
|
|
(0.07)(l)
|
|
0.05
|
|
(0.12)
|
|
—
|
|
(0.67)
|
|
(0.79)
|
|
13.80
|
|
1,169,093
|
|
1.15
|
|
1.20
|
|
1.20
|
|
0.92
|
|
46
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
15.25
|
|
0.08
|
|
(0.50)
|
|
(0.42)
|
|
(0.15)
|
|
—
|
|
(3.72)
|
|
(3.87)
|
|
10.96
|
|
121,367
|
|
(1.07)(k)
|
|
1.55
|
|
1.55
|
|
0.62
|
|
36
|
|
Year Ended March 31,
2015
|
17.61
|
|
0.15
|
|
0.38
|
|
0.53
|
|
(0.10)
|
|
—
|
|
(2.79)
|
|
(2.89)
|
|
15.25
|
|
162,732
|
|
3.79
|
|
1.52
|
|
1.52
|
|
0.89
|
|
10
|
|
Year Ended March 31,
2014
|
15.19
|
|
0.12
|
|
3.05
|
|
3.17
|
|
(0.11)
|
|
—
|
|
(0.64)
|
|
(0.75)
|
|
17.61
|
|
195,098
|
|
20.96
|
|
1.50
|
|
1.50
|
|
0.73
|
|
37
|
|
Year Ended March 31,
2013
|
13.58
|
|
0.15
|
|
2.05
|
|
2.20
|
|
(0.19)
|
|
—
|
|
(0.40)
|
|
(0.59)
|
|
15.19
|
|
181,308
|
|
16.77
|
|
1.50
|
|
1.50
|
|
1.14
|
|
27
|
|
Year Ended March 31,
2012
|
14.33
|
|
0.08
|
|
(0.08)(l)
|
|
—
|
|
(0.08)
|
|
—
|
|
(0.67)
|
|
(0.75)
|
|
13.58
|
|
169,100
|
|
0.81
|
|
1.50
|
|
1.50
|
|
0.63
|
|
46
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
14.31
|
|
0.03
|
|
(0.47)
|
|
(0.44)
|
|
(0.11)
|
|
—
|
|
(3.72)
|
|
(3.83)
|
|
10.04
|
|
27,410
|
|
(1.34)
|
|
1.90
|
|
1.90
|
|
0.28
|
|
36
|
|
Year Ended March 31,
2015
|
16.71
|
|
0.08
|
|
0.36
|
|
0.44
|
|
(0.05)
|
|
—
|
|
(2.79)
|
|
(2.84)
|
|
14.31
|
|
33,793
|
|
3.42
|
|
1.88
|
|
1.88
|
|
0.54
|
|
10
|
|
Year Ended March 31,
2014
|
14.47
|
|
0.06
|
|
2.90
|
|
2.96
|
|
(0.08)
|
|
—
|
|
(0.64)
|
|
(0.72)
|
|
16.71
|
|
38,408
|
|
20.53
|
|
1.87
|
|
1.87
|
|
0.36
|
|
37
|
|
Year Ended March 31,
2013
|
12.98
|
|
0.08
|
|
1.95
|
|
2.03
|
|
(0.14)
|
|
—
|
|
(0.40)
|
|
(0.54)
|
|
14.47
|
|
36,015
|
|
16.17
|
|
1.99
|
|
1.99
|
|
0.65
|
|
27
|
|
Year Ended March 31,
2012
|
13.76
|
|
(0.01)
|
|
(0.08)(l)
|
|
(0.09)
|
|
(0.02)
|
|
—
|
|
(0.67)
|
|
(0.69)
|
|
12.98
|
|
38,107
|
|
0.12
|
|
2.20
|
|
2.20
|
|
(0.08)
|
|
46
|
|
See Notes to Financial Highlights.
NOTES TO
FINANCIAL HIGHLIGHTS
(a)
|
Per share data calculated
using average shares outstanding method. |
(b) |
Total return excludes sales
charge. Not annualized for periods less than one year. |
(c) |
Annualized for periods less
than one year. |
(d) |
Not annualized for periods
less than one year. |
(e) |
The Fund had a fiscal year
end change from November 30 to March 31 and adopted the historical performance of its corresponding Predecessor Fund. The returns may differ from the management’s discussion of Fund performance due to the historical performance of the
Predecessor Fund. |
(f)
|
The Fund commenced operations
on September 28, 2012. |
(g)
|
Rounds to
less than $0.005 per share |
(h) |
The amount shown for the net
investment income ratio does not represent the actual prorata amount allocated to the share class due to large redemptions during the year. |
(i) |
IS Shares commenced operations
on September 1, 2015. |
(j)
|
IS Shares commenced operations
on August 1, 2014. |
(k) |
Generally accepted accounting
principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from
the net asset values and returns reported in the management’s discussion of Fund performance. |
(l)
|
Realized
and unrealized gain (loss) per share does not correlate to the aggregate of the net realized and unrealized gain (loss) in the Statements of Operations for the year ended March 31, 2012, primarily due to the timing of the sales and repurchases of
the Fund’s shares in relation to fluctuating market values for the Fund’s portfolio. |
Investment Adviser:
RidgeWorth Investments
3333 Piedmont Road, Suite 1500
Atlanta, GA
30305
www.ridgeworth.com
Investment
Subadvisers:
Capital Innovations, LLC
325 Forest
Grove Drive, Suite 100
Pewaukee, WI 53072
Ceredex
Value Advisors LLC
301 East Pine Street, Suite 500
Orlando, FL 32801
Zevenbergen Capital Investments LLC
601
Union Street, Suite 4600
Seattle, WA 98101
www.zci.com
Silvant Capital Management LLC
3333 Piedmont Road, Suite 1500
Atlanta, GA 30305
WCM Investment Management
280 Brooks
Street
Laguna Beach, CA 92651
More information about the RidgeWorth Funds is
available without charge through the following:
Statement of Additional Information (SAI):
The SAI includes detailed information about the RidgeWorth Funds.
The SAI is on file with the SEC and is incorporated by reference into this prospectus. This means that the SAI, for legal purposes, is a part of this prospectus.
Annual and Semi-Annual Reports:
These reports list each Fund’s holdings and contain
information from the Funds’ managers about strategies and recent market conditions and trends and their impact on Fund performance. The reports also contain detailed financial information about the Funds.
To Obtain an SAI, Annual or Semi-Annual Report, or
More Information:
Telephone:
Shareholder Services
1-888-784-3863
Mail:
RidgeWorth Funds
P.O. Box
8053, Boston, MA 02266-8053
Website: www.ridgeworth.com
SEC:
You can also obtain the SAI or the Annual and Semi-Annual reports,
as well as other information about the RidgeWorth Funds, from the EDGAR Database on the SEC’s website at http://www.sec.gov. You may review and copy documents at the SEC Public Reference Room in Washington, DC (for information on the operation
of the Public Reference Room, call 202-551-8090). You may request documents by mail from the SEC, upon payment of a duplicating fee, by writing to: Securities and Exchange Commission, Public Reference Section, Washington, DC 20549-1520. You may also
obtain this information, upon payment of a duplicating fee, by e-mailing the SEC at publicinfo@sec.gov.
The RidgeWorth Funds’
Investment Company Act registration number is 811-06557.
RidgeWorth Investments is the trade name of RidgeWorth Capital Management
LLC
RFPRO-EQ-0816
FIXED INCOME FUNDS
A, C, R, I & IS SHARES PROSPECTUS
August 1, 2016
Investment Adviser: RidgeWorth Investments
Subadviser: Seix Investment Advisors LLC
|
A
Shares |
|
C
Shares |
|
R
Shares |
|
I
Shares |
|
IS
Shares |
Investment
Grade Funds |
|
|
|
|
|
|
|
|
|
•
Seix Core Bond Fund |
STGIX
|
|
|
|
SCIGX
|
|
STIGX
|
|
STGZX
|
•
Seix Corporate Bond Fund |
SAINX
|
|
STIFX
|
|
|
|
STICX
|
|
|
•
Seix Total Return Bond Fund |
CBPSX
|
|
|
|
SCBLX
|
|
SAMFX
|
|
SAMZX
|
•
Seix U.S. Mortgage Fund |
SLTMX
|
|
SCLFX
|
|
|
|
SLMTX
|
|
|
Short
Duration Funds |
|
|
|
|
|
|
|
|
|
•
Seix Limited Duration Fund |
|
|
|
|
|
|
SAMLX
|
|
|
•
Seix Short-Term Bond Fund |
STSBX
|
|
SCBSX
|
|
|
|
SSBTX
|
|
|
•
Seix U.S. Government Securities Ultra-Short Bond Fund |
|
|
|
|
|
|
SIGVX
|
|
SIGZX
|
•
Seix Ultra-Short Bond Fund |
|
|
|
|
|
|
SISSX
|
|
|
High
Yield Funds |
|
|
|
|
|
|
|
|
|
•
Seix Floating Rate High Income Fund |
SFRAX
|
|
SFRCX
|
|
|
|
SAMBX
|
|
SFRZX
|
•
Seix High Income Fund |
SAHIX
|
|
|
|
STHIX
|
|
STHTX
|
|
STHZX
|
•
Seix High Yield Fund |
HYPSX
|
|
|
|
HYLSX
|
|
SAMHX
|
|
HYIZX
|
Municipal
Bond Funds |
|
|
|
|
|
|
|
|
|
•
Seix Georgia Tax-Exempt Bond Fund |
SGTEX
|
|
|
|
|
|
SGATX
|
|
|
•
Seix High Grade Municipal Bond Fund |
SFLTX
|
|
|
|
|
|
SCFTX
|
|
|
•
Seix Investment Grade Tax-Exempt Bond Fund |
SISIX
|
|
|
|
|
|
STTBX
|
|
|
•
Seix North Carolina Tax-Exempt Bond Fund |
SNCIX
|
|
|
|
|
|
CNCFX
|
|
|
•
Seix Short-Term Municipal Bond Fund |
SMMAX
|
|
|
|
|
|
CMDTX
|
|
|
•
Seix Virginia Intermediate Municipal Bond Fund |
CVIAX
|
|
|
|
|
|
CRVTX
|
|
|
The Securities and Exchange Commission has not
approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
August 1, 2016
RidgeWorth Investments is the trade name of
RidgeWorth Capital Management LLC
Summary Section
A Shares, R Shares, I Shares and IS Shares
Investment Objective
The Seix Core Bond Fund (the “Fund”) seeks to
maximize long term total return through a combination of current income and capital appreciation, consistent with capital preservation.
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 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
R
Shares |
I
Shares |
IS
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
4.75%
|
None
|
None
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
R
Shares |
|
I
Shares |
|
IS
Shares |
Management
Fees |
0.25%
|
|
0.25%
|
|
0.25%
|
|
0.25%
|
Distribution
(12b-1) Fees |
0.25%
|
|
0.50%
|
|
None
|
|
None
|
Other
Expenses |
0.15%
|
|
0.13%
|
|
0.23%
|
|
0.09%
|
Total
Annual Fund Operating Expenses |
0.65%
|
|
0.88%
|
|
0.48%
|
|
0.34%
|
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$538
|
$673
|
$820
|
$1,247
|
R
Shares |
$
90 |
$281
|
$488
|
$1,084
|
I
Shares |
$
49 |
$154
|
$269
|
$
604 |
IS
Shares |
$
35 |
$109
|
$191
|
$
431 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 232% 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 obligations of U.S. and non-U.S. issuers, including investment grade rated emerging market debt.
The Fund’s 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 Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), believes are of comparable quality.
A security’s rating will be governed by
the Barclays methodology as follows: when Standard & Poor’s Financial Services LLC, Moody’s Investors Service, Inc. and Fitch, Inc. provide a rating, Seix will use the middle rating of the three; if only two of those three rating
agencies rate the security, Seix will use 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 Fund’s 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 Fund’s comparative benchmark, and a lower relative weighting in U.S. Treasury and government agency issues.
The Subadviser anticipates that the
Fund’s modified-adjusted duration will mirror that of the Barclays U.S. Aggregate Bond Index, plus or minus 20%. For example, if the duration of the Barclays U.S. Aggregate Bond Index is 5 years, the Fund’s duration may be 4–6
years. As of July 1, 2016, the duration of the Barclays U.S. Aggregate Bond Index was 5.47 years.
Duration measures a bond or Fund’s 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.
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 also utilize Treasury Inflation Protection Securities (“TIPS”) opportunistically. The Fund may
count the value of certain derivatives with investment grade fixed income characteristics 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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of 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 Fund's 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 Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s 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.
A liquid secondary market may not always exist for the
Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk that the other party to the derivative transaction
will not meet its obligations.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s 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 Fund’s 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.
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 Fund’s 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 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 Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. IS Shares commenced operations on August 3, 2015.
Performance information for IS shares will be included after the share class has been in operation for one complete calendar year. 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
8.51%
|
-2.53%
|
(12/31/2008)
|
(6/30/2013)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 5.45%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(4.88)%
|
2.08%
|
4.08%
|
R
Shares Return Before Taxes |
(0.38)%
|
2.86%
|
4.20%
|
I
Shares Return Before Taxes |
0.11%
|
3.35%
|
4.90%
|
I
Shares Return After Taxes on Distributions |
(0.99)%
|
1.95%
|
3.31%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.18%
|
2.15%
|
3.30%
|
Barclays
U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) |
0.55%
|
3.25%
|
4.51%
|
(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. |
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2008. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2004. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2007. Mr. Jonathan Yozzo, Managing
Director, has been a member of the
Fund’s management team since 2015. Mr. Carlos Catoya, Managing Director, has been a member of the Fund’s management team since 2015.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A, R, I and IS 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
R
Shares |
None
|
I
Shares |
None
|
IS
Shares |
$2,500,000
(No minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
Subsequent investments in A 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 R, I or IS Shares.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Summary Section
A Shares, C Shares and I Shares
Investment Objective
The Seix Corporate Bond Fund (the “Fund”) seeks to
maximize long term total return through a combination of current income and capital appreciation, consistent with capital preservation.
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 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
4.75%
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
Management
Fees |
0.40%
|
|
0.40%
|
|
0.40%
|
Distribution
(12b-1) Fees |
0.30%
|
|
1.00%
|
|
None
|
Other
Expenses |
0.41%
|
|
0.40%
|
|
0.43%
|
Total
Annual Fund Operating Expenses |
1.11%
|
|
1.80%
|
|
0.83%
|
Fee
Waivers and/or Expense Reimbursements(1) |
(0.16)%
|
|
(0.15)%
|
|
(0.13)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.95%
|
|
1.65%
|
|
0.70%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.95%, 1.65% and 0.70% for the A, C and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser
by RidgeWorth Funds. |
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 and then
redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, that the Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$567
|
$796
|
$1,043
|
$1,749
|
C
Shares |
$268
|
$552
|
$
961 |
$2,104
|
I
Shares |
$
72 |
$252
|
$
448 |
$1,013
|
You would pay the
following expenses if you did not redeem your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$567
|
$796
|
$1,043
|
$1,749
|
C
Shares |
$168
|
$552
|
$
961 |
$2,104
|
I
Shares |
$
72 |
$252
|
$
448 |
$1,013
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 84% of the average value of its portfolio.
Principal Investment Strategies
The Fund primarily invests in a diversified portfolio of U.S.
dollar denominated corporate obligations and other fixed income securities that are rated BBB-/Baa3 or better or unrated securities that the Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”),
believes are of comparable quality.
Under normal
circumstances, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in corporate bonds. The Fund may also invest in U.S. Treasury and agency obligations, floating rate loans, and below investment grade, high
yield debt obligations (sometimes referred to as “junk bonds”), including emerging market securities. The Fund may invest in U.S. dollar denominated obligations of U.S. and non-U.S. issuers. The Fund may invest a portion of its assets in
securities that are restricted as to resale.
A security’s rating will be governed by the Barclays
methodology as follows: when Standard & Poor’s Financial Services LLC, Moody’s Investors Service, Inc. and Fitch, Inc. provide a rating, Seix will use the middle rating of the three; if only two of those
three rating agencies rate the security, Seix
will use 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 will maintain an overall credit quality of investment grade or better.
Buy and sell decisions are based on a wide number of factors
that determine the risk-reward profile of each security within the context of the broader portfolio. The Subadviser attempts to identify investment grade corporate bonds offering above-average total return. In selecting corporate debt investments
for purchase and sale, the Subadviser seeks out companies with good fundamentals and above-average return prospects that are currently priced at attractive levels. The primary basis for security selection is the potential income offered by the
security relative to the Subadviser’s assessment of the issuer’s ability to generate the cash flow required to meet its obligations. The Subadviser employs a “bottom-up” approach, identifying investment opportunities based on
the underlying financial and economic fundamentals of the specific issuer.
The Subadviser anticipates that the
Fund’s modified-adjusted-duration will mirror that of the Barclays U.S. Corporate Investment Grade Index, plus or minus 20%. For example, if the duration of the Barclays U.S. Corporate Investment Grade Index is 5 years, the Fund’s
duration may be 4–6 years. As of July 1, 2016, the Barclays U.S. Corporate Investment Grade Index duration was 7.49 years. Duration measures a bond or Fund’s 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.
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 corporate bond characteristics towards its policy to
invest, under normal circumstances, at least 80% of its net assets in corporate bonds.
While the Fund generally does not invest in
equity securities, equity securities may be obtained through a restructuring of a debt security held in the Fund and may be retained in the Fund if the Subadviser deems it to be in the Fund’s best interests.
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 & Poor’s Financial Services LLC and Fitch, Inc. or
“Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These
instruments have a higher degree of default risk and may be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity,
negative perceptions of high yield investments generally, and less secondary market liquidity. This potential lack of liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s 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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to
sell or realize the full value of its loans in the event of a need to liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow
management and liquidity. Floating rate loans may not be
considered securities and, therefore, the Fund may not have the protections of the federal securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
Futures Contract Risk: The
risks associated with futures include: the Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s 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.
A liquid secondary market may not always
exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk that the other party to the derivative
transaction will not meet its obligations.
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.
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 Fund’s 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 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 Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. The Fund began
operating April 1, 2009. Performance prior to April 1, 2009 is that
of the Strategic Income Fund, the Fund’s predecessor, which began operations on November 30, 2001. 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
7.54%
|
-4.04%
|
(6/30/2009)
|
(6/30/2013)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 8.81%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(6.34)%
|
2.64%
|
4.27%
|
C
Shares Return Before Taxes |
(3.19)%
|
2.96%
|
4.08%
|
I
Shares Return Before Taxes |
(1.43)%
|
3.96%
|
5.11%
|
I
Shares Return After Taxes on Distributions |
(3.35)%
|
1.72%
|
2.89%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
(0.50)%
|
2.48%
|
3.28%
|
Barclays
U.S. Corporate Investment Grade Index (reflects no deduction for fees, expenses or taxes) |
(0.68)%
|
4.53%
|
5.29%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2008. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2004. Mr. Jonathan Yozzo, Managing Director, has been a member of the Fund’s management team since 2015. Mr. Carlos Catoya, Managing Director, has been a member of the Fund’s management team since 2015.
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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
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 Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Seix Total Return Bond
Fund
Summary Section
A Shares, R Shares, I Shares and IS Shares
Investment Objective
The Seix Total Return Bond Fund (the “Fund”) seeks
to maximize long term total return through a combination of current income and capital appreciation, consistent with capital preservation.
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 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
R
Shares |
I
Shares |
IS
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
4.75%
|
None
|
None
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
R
Shares |
|
I
Shares |
|
IS
Shares |
Management
Fees |
0.24%
|
|
0.24%
|
|
0.24%
|
|
0.24%
|
Distribution
(12b-1) Fees |
0.25%
|
|
0.50%
|
|
None
|
|
None
|
Other
Expenses |
0.22%
|
|
0.32%
|
|
0.21%
|
|
0.07%
|
Total
Annual Fund Operating Expenses |
0.71%
|
|
1.06%
|
|
0.45%
|
|
0.31%
|
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$544
|
$691
|
$851
|
$1,316
|
R
Shares |
$108
|
$337
|
$585
|
$1,294
|
I
Shares |
$
46 |
$144
|
$252
|
$
567 |
IS
Shares |
$
32 |
$100
|
$174
|
$
393 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 181% 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 obligations of U.S. and non-U.S. issuers, including emerging market debt. The
Fund’s 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 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 Fund’s
Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), believes are of comparable quality.
A security’s rating will be governed by
the Barclays methodology as follows: when Standard & Poor’s Financial Services LLC, Moody’s Investors Service, Inc. and Fitch, Inc. provide a rating, Seix will use the middle rating of the three; if only two of those three rating
agencies rate the security, Seix will use 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 may invest up to 20% of its net assets in below
investment grade, high yield debt obligations (sometimes referred to as “junk bonds”). 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
Fund’s portfolio turnover rate may be 100% or more.
The Subadviser anticipates that the
Fund’s modified-adjusted duration will mirror that of the Barclays U.S. Aggregate Bond Index, plus or minus 20%. For example, if the duration of the Barclays U.S. Aggregate Bond Index is 5 years, the Fund’s duration may be 4–6
years. As of July 1, 2016, the duration of the Barclays U.S. Aggregate Bond Index was 5.47 years. Duration measures a bond or Fund’s 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
Seix Total
Return Bond Fund
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.
In selecting investments for purchase and sale, the Subadviser
generally selects a greater weighting in corporate obligations and mortgage-backed securities relative to the Fund’s 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 fixed income characteristics towards
its policy to invest, under normal circumstances, at least 80% of its net assets in fixed income securities.
While the Fund generally does not invest in
equity securities, equity securities may be obtained through a restructuring of a debt security held in the Fund and may be retained in the Fund if the Subadviser deems it to be in the Fund’s best interests.
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 & Poor’s Financial Services LLC and
Fitch, Inc. or “Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These instruments have a higher degree of default risk and may
be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of high yield investments generally, and
less secondary market liquidity. This potential lack of liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s 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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to
sell or realize the full value of its loans in the event of a need to liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be considered securities
and, therefore, the Fund may not have the protections of the federal securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
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.
Frequent Trading Risk: Frequent buying and selling of investments may involve higher trading costs and other expenses and may affect the Fund's 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.
Seix Total Return Bond
Fund
Futures Contract Risk: The
risks associated with futures include: the Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s 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.
A liquid secondary market may not always
exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk that the other party to the derivative
transaction will not meet its obligations.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s 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 Fund’s 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.
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 Fund’s 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 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 Fund’s 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.
The performance for I and A Shares prior to October 11, 2004 is that of the I and P Shares, respectively, of the Seix Core Bond Fund, the Fund’s predecessor. The performance of the predecessor fund has not been adjusted to reflect
the Fund’s A Share or R Share expenses. If it had been, performance would have been lower. C Shares became R Shares as of February 13, 2009. The performance shown below prior to the conversion of C Shares to R Shares at the
close of business on February 12, 2009, is that of C Shares. 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
6.61%
|
-2.50%
|
(12/31/2008)
|
(6/30/2013)
|
Seix Total
Return Bond Fund
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 5.46%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(4.85)%
|
2.27%
|
4.08%
|
R
Shares Return Before Taxes |
(0.41)%
|
2.98%
|
4.20%
|
IS
Shares Return Before Taxes* |
0.34%
|
3.61%
|
4.96%
|
I
Shares Return Before Taxes |
0.19%
|
3.55%
|
4.92%
|
I
Shares Return After Taxes on Distributions |
(0.69)%
|
2.30%
|
3.35%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.13%
|
2.31%
|
3.27%
|
Barclays
U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) |
0.55%
|
3.25%
|
4.51%
|
*IS Shares were offered beginning on
August 1, 2014. The performance shown prior to such date is based on performance of the Fund’s I Shares, and has not been adjusted to reflect the expenses of the IS Shares. If it had been adjusted, performance would have been higher.
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2008. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2002. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2007. Mr. Seth Antiles, Ph.D., Managing Director and Senior Portfolio Manager of Seix, has been
a member of the management team for the Fund since 2007. Mr. Jonathan Yozzo, Managing Director, has been a member of the Fund’s management team since 2015. Mr. Carlos Catoya, Managing Director, has been a member of the Fund’s management
team since 2015.
Purchasing and Selling Your
Shares
You may purchase or redeem Fund shares on any
business day. You may purchase and redeem A, R, I and IS 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
R
Shares |
None
|
I
Shares |
None
|
IS
Shares |
$2,500,000
(No minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
Subsequent investments in A 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 R, I or IS Shares.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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.
Seix Total Return Bond
Fund
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 intermediary’s website for more information.
Summary Section
A Shares, C Shares and I Shares
Investment Objective
The Seix U.S. Mortgage Fund (the “Fund”) seeks to
maximize long term total return through a combination of current income and capital appreciation, consistent with capital preservation.
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 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
2.50%
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
Management
Fees |
0.40%
|
|
0.40%
|
|
0.40%
|
Distribution
(12b-1) Fees |
0.20%
|
|
1.00%
|
|
None
|
Other
Expenses |
0.50%
|
|
0.39%
|
|
0.46%
|
Total
Annual Fund Operating Expenses |
1.10%
|
|
1.79%
|
|
0.86%
|
Fee
Waivers and/or Expense Reimbursements(1) |
(0.20)%
|
|
(0.14)%
|
|
(0.16)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.90%
|
|
1.65%
|
|
0.70%
|
(1) |
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.90%, 1.65% and 0.70% for the A, C and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser
by RidgeWorth Funds. |
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 and then
redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, that the Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$340
|
$572
|
$822
|
$1,539
|
C
Shares |
$268
|
$550
|
$957
|
$2,094
|
I
Shares |
$
72 |
$258
|
$461
|
$1,046
|
You would pay the
following expenses if you did not redeem your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$340
|
$572
|
$822
|
$1,539
|
C
Shares |
$168
|
$550
|
$957
|
$2,094
|
I
Shares |
$
72 |
$258
|
$461
|
$1,046
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 223% 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 U.S. government agency mortgage-backed securities, such as the Federal National Mortgage Association (“FNMA”), Government National Mortgage Association (“GNMA”)
and collateralized mortgage obligations. The Fund may invest a portion of its assets in securities that are restricted as to resale. As a result of its investment strategy, the Fund’s portfolio turnover rate may be 100% or more.
Buy and sell decisions are based on a wide number of factors
that determine the risk-reward profile of each security within the context of the broader portfolio. In selecting investments for purchase and sale the Subadviser attempts to identify mortgage securities that it expects to perform well in rising and
falling markets, such as those which have stable pre-payments, call protection, below par prices, and refinancing barriers. The Subadviser also attempts to reduce the risk that the underlying mortgages are prepaid by focusing on securities that it
believes are less prone to this risk. For example, FNMA or
GNMA securities that were issued years ago may be less prone
to prepayment risk because there have been many opportunities for refinancing.
The Fund’s Subadviser, Seix Investment
Advisors LLC (“Seix” or the “Subadviser”) anticipates that the Fund’s modified-adjusted duration will mirror that of the Barclays U.S. Mortgage-Backed Securities Index, plus or minus 20%. For example, if the duration of
the Barclays U.S. Mortgage-Backed Securities Index is 5 years, the Fund’s duration may be 4–6 years. As of July 1, 2016, the duration of the Barclays U.S. Mortgage-Backed Securities Index was 2.45 years. Duration measures a bond or
Fund’s 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 invest a portion of its assets in securities that are restricted as to resale.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such as credit linked notes, futures, options, inverse floaters, swaps 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 risk and credit risk. Further, the Fund may utilize exchange traded futures to manage interest rate exposure.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s initial investment. Derivatives may be difficult to value, may become illiquid and may not correlate perfectly with the overall securities
market.
Frequent Trading Risk: Frequent buying and
selling of investments may involve higher trading costs and other expenses and may affect the Fund's 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 Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s 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.
A liquid secondary market may not always
exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk that the other party to the derivative
transaction will not meet its obligations.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s 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 Fund’s 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.
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 Fund’s 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 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 Fund’s 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
4.10%
|
-2.46%
|
(12/31/2008)
|
(6/30/2013)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 2.99%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(1.33)%
|
2.31%
|
3.82%
|
C
Shares Return Before Taxes |
(0.52)%
|
2.02%
|
3.26%
|
I
Shares Return Before Taxes |
1.43%
|
3.02%
|
4.29%
|
I
Shares Return After Taxes on Distributions |
0.65%
|
2.22%
|
3.13%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.81%
|
1.99%
|
2.88%
|
Barclays
U.S. Mortgage Backed Securities Index (reflects no deduction for fees, expenses or taxes) |
1.51%
|
2.96%
|
4.64%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations
assume that an investor holds the shares in a taxable account,
is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax
results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2008. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2007. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2007. Mr. Seth Antiles, Ph.D., Managing Director and Senior Portfolio Manager of Seix, has been
a member of the Fund’s management team since 2009. Mr. Jonathan Yozzo, Managing Director, has been a member of the Fund’s management team since 2015. Mr. Carlos Catoya, Managing Director, has been a member of the Fund’s management
team since 2015.
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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
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 Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Seix
Limited Duration Fund
Investment Objective
The Seix Limited Duration Fund (the “Fund”) seeks
current income, while preserving liquidity and principal.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.10%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.37%
|
Total
Annual Fund Operating Expenses |
0.47%
|
Fee
Waivers and/or Expense Reimbursements(1) |
(0.12)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.35%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on securities
sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.35% for the I Shares. This agreement may be terminated upon written notice to the Adviser by RidgeWorth Funds. |
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$36
|
$139
|
$251
|
$580
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 50% of the average value of its portfolio.
Principal Investment Strategies
The Fund invests in U.S. dollar-denominated, investment grade
fixed income securities, including corporate and bank obligations, government securities, and mortgage-and asset-backed securities of U.S. and non-U.S. issuers, rated A or better, or unrated securities that the Fund’s Subadviser, Seix
Investment Advisors LLC (“Seix” or the “Subadviser”), believes are of comparable quality.
A security’s rating will be governed by the Barclays
methodology as follows: when Standard & Poor’s Financial Services LLC, Moody’s Investors Service, Inc. and Fitch, Inc. provide a rating, Seix will use the middle rating of the three; if only two of those three rating agencies rate
the security, Seix will use 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’s investment in non-U.S. issuers may at times be significant.
The Fund will maintain an average credit quality of AA and all
securities held in the Fund will have interest rate durations of 180 days or less. For floating rate notes, the interest rate duration will be based on the next interest rate reset date. Duration measures a bond or Fund’s 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 invest a portion of its assets in securities that are restricted as to resale.
The Subadviser attempts to identify U.S. dollar-denominated,
investment grade fixed income securities that offer high current income while preserving liquidity and principal. In selecting investments for purchase and sale, the Subadviser emphasizes securities that are within the targeted segment of the U.S.
dollar-denominated, fixed income securities markets and will generally focus on investments that have good business prospects, credit strength, stable cash flows and effective management. The Subadviser may retain securities if the rating of the
security falls below credit quality of A and the Subadviser deems retention of the security to be in the best interests of the Fund.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such as credit linked notes, futures, options, inverse floaters, swaps and warrants) to use as a substitute for a purchase or sale of a position in the underlying asset and/or as part of a
strategy designed to reduce exposure to other risks, such as interest rate risk and credit risk.
While the Fund generally does not invest in
equity securities, equity securities may be obtained through a restructuring of a debt security held in the Fund and may be retained in the Fund if the Subadviser deems it to be in the Fund’s best interests.
Seix Limited Duration
Fund
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s 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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to
sell or realize the full value of its loans in the event of a need to liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be considered securities
and, therefore, the Fund may not have the protections of the federal securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s 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 Fund’s 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.
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 Fund’s 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 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.
Seix
Limited Duration Fund
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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 Limited Duration Fund, the Fund’s predecessor. 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
2.18%
|
-3.37%
|
(3/31/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 0.45%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
0.08%
|
0.45%
|
1.46%
|
I
Shares Return After Taxes on Distributions |
0.00%
|
0.33%
|
0.88%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.05%
|
0.30%
|
0.92%
|
Bank
of America Merrill Lynch 3 Month U.S. Treasury Bill Index (reflects no deduction for fees, expenses or taxes) |
0.05%
|
0.07%
|
1.24%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2008. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since the Fund’s inception. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2007. Mr. Seth Antiles, Ph.D., Managing Director and Senior Portfolio
Manager of Seix, has been a member of the management team for the Fund since 2009. Mr. Jonathan Yozzo, Managing Director, has been a member of the Fund’s management team since 2015. Mr. Carlos Catoya, Managing Director, has been a member of
the Fund’s management team since 2015.
Purchasing and Selling Your Shares
Effective June 30, 2011, the Fund is open solely to (i) clients
of Seix Investment Advisors LLC, the Fund’s Subadviser, and its affiliates, and (ii) such other investors as RidgeWorth Investments shall approve at its discretion. All shareholders of the Fund as of June 30, 2011, however, can
continue to hold and purchase additional shares.
You may
purchase or redeem Fund shares on any business day. You may purchase and redeem 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.
Seix Limited Duration
Fund
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Seix
Short-Term Bond Fund
Summary Section
A Shares, C Shares and I Shares
Investment Objective
The Seix Short-Term Bond Fund (the “Fund”) seeks to
maximize long term total return through a combination of current income and capital appreciation, consistent with capital preservation.
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 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
2.50%
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
Management
Fees |
0.40%
|
|
0.40%
|
|
0.40%
|
Distribution
(12b-1) Fees |
0.20%
|
|
1.00%
|
|
None
|
Other
Expenses |
0.21%
|
|
0.18%
|
|
0.28%
|
Total
Annual Fund Operating Expenses |
0.81%
|
|
1.58%
|
|
0.68%
|
Fee
Waivers and/or Expense Reimbursements(1) |
(0.01)%
|
|
—
|
|
(0.08)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.80%
|
|
1.58%
|
|
0.60%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.80%, 1.58% and 0.60% for the A, C and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser
by RidgeWorth Funds. |
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 and then
redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, that the Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$330
|
$501
|
$687
|
$1,226
|
C
Shares |
$261
|
$499
|
$860
|
$1,878
|
I
Shares |
$
61 |
$210
|
$371
|
$
839 |
You would pay the following expenses if you did not redeem
your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$330
|
$501
|
$687
|
$1,226
|
C
Shares |
$161
|
$499
|
$860
|
$1,878
|
I
Shares |
$
61 |
$210
|
$371
|
$
839 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 87% 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 diversified portfolio of short- to medium-term investment grade U.S. Treasury, corporate debt, mortgage-backed and asset-backed securities. These securities may be rated investment
grade by at least one national securities rating agency or may be unrated securities that the Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), believes are of comparable quality. The Fund
expects that it will normally maintain an effective maturity of 3 years or less. The Fund’s investment in non-U.S. issuers may at times be significant.
A security’s rating will be governed by
the Barclays methodology as follows: when Standard & Poor’s Financial Services LLC, Moody’s Investors Service, Inc. and Fitch, Inc. provide a rating, Seix will use the middle rating of the three; if only two of those three rating
agencies rate the security, Seix will use the lowest rating; if only one rating agency assigns a rating, Seix will use
Seix Short-Term Bond
Fund
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 Subadviser may retain securities if the rating of the
security falls below investment grade and the Subadviser deems retention of the security to be in the best interests of the Fund.
The Fund may invest a portion of its assets in securities that
are restricted as to resale. As a result of its investment strategy, the Fund’s portfolio turnover rate may be 100% or more.
In selecting securities for purchase and sale, the Subadviser
attempts to identify securities that are expected to offer a comparably better investment return for a given level of risk. For example, short-term bonds generally have better returns than money market instruments with a fairly modest increase in
risk and/or volatility. The Subadviser manages the Fund from a total return perspective. That is, the Subadviser makes day-to-day investment decisions for the Fund with a view towards maximizing returns. The Subadviser analyzes, among other things,
yields, market sectors and credit risk in an effort to identify attractive investments with attractive risk/reward trade-offs.
The Subadviser anticipates that the
Fund’s modified-adjusted duration will mirror that of the Barclays 1-3 Year Government/Credit Index, plus or minus 20%. For example, if the duration of the Barclays 1-3 Government/Credit Index is 1.5 years, the Fund’s duration may be 1.2
- 1.8 years. As of July 1, 2016, the duration of the Barclays 1-3 Year Government/Credit Index was 1.90 years.
Duration measures a bond or Fund’s 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 invest a portion of its assets in securities that are restricted as to resale.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including credit default swaps, futures and options) 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 risk.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the
Fund’s investment in that issuer. The degree of credit risk depends on
the issuer’s 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 Fund’s initial investment. Derivatives may be difficult to value, may become illiquid and may not correlate perfectly with the overall securities
market.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of 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 Fund's 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 Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s 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.
A liquid secondary market may not always
exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk that the other party to the derivative
transaction will not meet its obligations.
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.
Seix
Short-Term Bond Fund
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s 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 Fund’s 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.
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 Fund’s 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 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 Fund’s 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
3.85%
|
-2.34%
|
(6/30/2009)
|
(9/30/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 1.51%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(2.43)%
|
0.45%
|
2.32%
|
C
Shares Return Before Taxes |
(1.30)%
|
0.34%
|
1.85%
|
I
Shares Return Before Taxes |
0.31%
|
1.21%
|
2.81%
|
I
Shares Return After Taxes on Distributions |
0.04%
|
0.71%
|
1.88%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.18%
|
0.73%
|
1.83%
|
Barclays
1-3 Year Government/Credit Index (reflects no deduction for fees, expenses or taxes) |
0.65%
|
0.98%
|
2.74%
|
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-advantaged 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.
Seix Short-Term Bond
Fund
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2014. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2014. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2014. Mr. Jonathan Yozzo, Managing Director, has been a member of the Fund’s management
team since 2015. Mr. Carlos Catoya, Managing Director, has been a member of the Fund’s management team since 2015.
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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
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 Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Seix
U.S. Government Securities Ultra-Short Bond Fund
Summary Section
I Shares and IS Shares
Investment Objective
The Seix U.S. Government Securities Ultra-Short Bond Fund
(the “Fund”) seeks to maximize current income consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
|
IS
Shares |
Management
Fees |
0.19%
|
|
0.19%
|
Distribution
(12b-1) Fees |
None
|
|
None
|
Other
Expenses |
0.22%
|
|
0.07%
|
Total
Annual Fund Operating Expenses |
0.41%
|
|
0.26%
|
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$42
|
$132
|
$230
|
$518
|
IS
Shares |
$27
|
$
84 |
$146
|
$331
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 52% 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 short duration U.S. government securities. These securities may
include, but are not limited to, U.S. Treasury securities, U.S. agency
securities, U.S. agency mortgage-backed securities, repurchase agreements and other U.S. government securities.
The Fund expects to maintain an average effective duration
between 3 months and 1 year. Individual purchases will generally be limited to securities with an effective duration of less than 5 years. Duration measures a bond or Fund’s 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 five years, its value will change by 5% if rates change by 1%. Shorter duration bonds result in lower expected
volatility.
In selecting securities for purchase and
sale, the Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), attempts to maximize income by identifying securities that offer an acceptable yield for a given maturity.
The Fund may use U.S. Treasury securities futures as a vehicle
to adjust duration and manage its interest rate exposure.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s 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 Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s
position, mispricing or
Seix U.S. Government
Securities Ultra-Short Bond Fund
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.
A liquid secondary market may not always exist for the
Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk that the other party to the derivative transaction
will not meet its obligations.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s 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 Fund’s 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 Fund’s 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 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 Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. IS Shares commenced operations on August 1, 2016.
Performance information for IS shares will be included after the share class has been in operation for one complete calendar year. 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
2.14%
|
-0.23%
|
(3/31/2009)
|
(6/30/2013)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 0.27%.
The following table compares the Fund’s average annual
total returns for the periods indicated with those of a broad measure of market performance.
Seix
U.S. Government Securities Ultra-Short Bond Fund
AVERAGE ANNUAL TOTAL RETURNS
(for periods ended December 31, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
(0.03)%
|
0.78%
|
2.47%
|
I
Shares Return After Taxes on Distributions |
(0.36)%
|
0.45%
|
1.65%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
(0.01)%
|
0.47%
|
1.61%
|
Barclays
3-6 Month U.S. Treasury Bill Index (reflects no deduction for fees, expenses or taxes) |
0.12%
|
0.13%
|
1.41%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2014. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2014. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2014.
Purchasing and Selling Your Shares
You may purchase or redeem Fund
shares on any business day. You may purchase and redeem I and IS 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
I
Shares |
None
|
IS
Shares |
$2,500,000
(No minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
There are no minimums for subsequent investments in I or IS
Shares.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Seix Ultra-Short Bond
Fund
Investment Objective
The Seix Ultra-Short Bond Fund (the “Fund”) seeks
to maximize current income consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.22%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.16%
|
Total
Annual Fund Operating Expenses |
0.38%
|
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$39
|
$122
|
$213
|
$480
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 59% 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 short duration fixed income securities. These securities may include, but are not limited to, U.S. Treasury and agency securities, obligations of supranational entities and foreign
governments, domestic and foreign-corporate debt obligations, taxable-municipal debt securities, mortgage-backed and
asset-backed securities, and repurchase agreements. The Fund’s
investment in foreign issuers may at times be significant.
A security’s rating will be governed by
the Barclays methodology as follows: when Standard & Poor’s Financial Services LLC, Moody’s Investors Service, Inc. and Fitch, Inc. provide a rating, Seix will use the middle rating of the three; if only two of those three rating
agencies rate the security, Seix will use 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 normally expects to maintain an average effective
duration between 3 months and 1 year. Individual purchases will generally be limited to securities with an effective duration of less than 5 years. Duration measures a bond or Fund’s 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 five years, its value will change by 5% if rates change by 1%. Shorter duration bonds result in lower expected
volatility. The Fund may invest a portion of its assets in securities that are restricted as to resale.
In selecting investments for purchase and sale, the
Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), attempts to maximize income by identifying securities that offer an acceptable yield for a given level of credit risk and maturity. The
Subadviser attempts to identify short duration securities that offer a comparably better return potential and yield than money market funds. The Subadviser may retain securities if the rating of the security falls below investment grade and the
Subadviser deems retention of the security to be in the best interests of the Fund.
In addition, to implement its investment strategy, the Fund may
buy or sell, derivative instruments (such as swaps, including credit default swaps, futures and options) 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 credit and interest rate risk.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the
Seix
Ultra-Short Bond Fund
Fund’s investment in that issuer. The degree of credit
risk depends on the issuer’s 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 Fund’s initial investment. Derivatives may be difficult to value, may become illiquid and may not correlate perfectly with the overall securities
market.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
Futures Contract Risk: The
risks associated with futures include: the Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s 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.
A liquid secondary market may not always
exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk that the other party to the derivative
transaction will not meet its obligations.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform and affect the Fund’s 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 Fund’s 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.
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 Fund’s 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 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 Fund’s 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.
Seix Ultra-Short Bond
Fund
This bar chart shows the changes in performance of the
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
3.10%
|
-1.75%
|
(6/30/2009)
|
(9/30/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 0.81%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
0.45%
|
0.89%
|
2.25%
|
I
Shares Return After Taxes on Distributions |
0.13%
|
0.53%
|
1.42%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.26%
|
0.54%
|
1.43%
|
Barclays
3-6 Month U.S. Treasury Bill Index (reflects no deduction for fees, expenses or taxes) |
0.12%
|
0.13%
|
1.41%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to
immediately utilize the full realized loss to reduce his or her federal tax
liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2014. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2014. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2014. Mr. Jonathan Yozzo, Managing Director, has been a member of the Fund’s management
team since 2015. Mr. Carlos Catoya, Managing Director, has been a member of the Fund’s management team since 2015.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Seix
Floating Rate High Income Fund
Summary Section
A Shares, C Shares, I Shares and IS Shares
Investment Objective
The Seix Floating Rate High Income Fund (the
“Fund”) attempts to provide a high level of current income.
Fees and Expenses of the Fund
This table describes the fees and expenses
that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in RidgeWorth Funds. More information about these and other
discounts is available from your financial professional and in Sales Charges on page 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
C
Shares |
I
Shares |
IS
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
2.50%
|
None
|
None
|
None
|
Maximum
Deferred Sales Charge (load) (as a % of the net asset value) |
None
|
1.00%
|
None
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
C
Shares |
|
I
Shares |
|
IS
Shares |
Management
Fees |
0.41%
|
|
0.41%
|
|
0.41%
|
|
0.41%
|
Distribution
(12b-1) Fees |
0.30%
|
|
1.00%
|
|
None
|
|
None
|
Other
Expenses |
0.21%
|
|
0.10%
|
|
0.21%
|
|
0.10%
|
Total
Annual Fund Operating Expenses |
0.92%
|
|
1.51%
|
|
0.62%
|
|
0.51%
|
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 and then redeem all of your shares at the end of those periods. The example
also assumes that your investment has a 5% return each year, that the Fund’s operating expenses remain the same and that you reinvest all
dividends and distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$342
|
$536
|
$747
|
$1,353
|
C
Shares |
$254
|
$477
|
$824
|
$1,802
|
I
Shares |
$
63 |
$199
|
$346
|
$
774 |
IS
Shares |
$
52 |
$164
|
$285
|
$
640 |
You would pay the following expenses if you did not redeem
your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$342
|
$536
|
$747
|
$1,353
|
C
Shares |
$154
|
$477
|
$824
|
$1,802
|
I
Shares |
$
63 |
$199
|
$346
|
$
774 |
IS
Shares |
$
52 |
$164
|
$285
|
$
640 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 33% 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 generally floating, not fixed, and are tied to a benchmark lending rate, the most popular of which is the London Interbank Offered
Rate (“LIBOR”) or are set at a specified floor, whichever is higher. 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 loans and
debt securities. The interest rates of these floating rate loans and debt securities vary periodically based upon a benchmark indicator of prevailing interest rates.
The Fund invests all or substantially all of its assets in
floating rate loans and debt securities that are rated below investment grade by the Merrill Composite Rating 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
Seix Floating Rate High
Income Fund
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. The Fund may invest a portion of its assets in securities that are restricted as to resale.
In selecting investments for purchase and
sale, the Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), will emphasize loans and securities which are within the segment of the high yield market it has targeted, which are loans and
securities rated below investment grade or unrated loans and 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 portfolio’s loans are non-U.S. dollar denominated. The Fund may also engage in certain hedging transactions.
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 borrower’s 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
Fund’s 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 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.
While the Fund generally does not invest in
equity securities, equity securities may be obtained through a restructuring of a debt security held in the Fund and may be retained in the Fund if the Subadviser deems it to be in the Fund’s best interests.
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 & Poor’s Financial Services LLC and Fitch, Inc. or
“Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These
instruments have a higher degree of default risk and may be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity,
negative perceptions of high yield investments generally, and less secondary market liquidity. This potential lack of liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s 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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to
sell or realize the full value of its loans in the event of a need to liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be
Seix
Floating Rate High Income Fund
considered securities and, therefore, the Fund may not have
the protections of the federal securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
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.
Futures Contract Risk: The risks associated with futures include: the Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s
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.
A
liquid secondary market may not always exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk
that the other party to the derivative transaction will not meet its obligations.
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 Fund’s
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.
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.
Difficulty in selling a senior loan can result in a loss. In
addition, senior loans generally are subject to extended settlement periods, which may impair the a Fund’s ability to sell or realize the full value of its loans in the event of a need to liquidate such loans.
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
Fund’s 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 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 Fund’s 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 that of the I Shares of the Fund. The performance of I Shares has not been adjusted
to reflect the Fund’s A Share or C Share expenses. If it had been, the performance would have been lower. IS Shares commenced operations on February 2, 2015. Performance information for IS shares will be included after the share
class has been in operation for one complete calendar year. 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.
Seix Floating Rate High
Income Fund
This bar chart shows the changes in performance of the
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
12.47%
|
-18.40%
|
(6/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 5.48%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
Since
Inception* |
A
Shares Return Before Taxes |
(3.87)%
|
2.33%
|
3.17%
|
C
Shares Return Before Taxes |
(2.98)%
|
2.20%
|
2.91%
|
I
Shares Return Before Taxes |
(1.17)%
|
3.13%
|
3.74%
|
I
Shares Return After Taxes on Distributions |
(3.11)%
|
1.23%
|
1.61%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
(0.63)%
|
1.63%
|
2.03%
|
Credit
Suisse Leveraged Loan Index (reflects no deduction for fees, expenses or taxes)** |
2.60%
|
4.33%
|
3.18%
|
Credit
Suisse Institutional Leveraged Loan Index (reflects no deduction for fees, expenses or taxes)*** |
(0.38)%
|
3.76%
|
4.01%
|
*
|
Since Inception of Benchmark
from 2/28/2006 is 3.39%.(Benchmark returns available only on a month end basis). |
**
|
Effective December 31, 2015
the benchmark index for the Fund changed from the Credit Suisse Leveraged Loan Index to the Credit Suisse Institutional Leveraged Loan Index because it more closely aligns to the Fund’s investments. |
***
|
Index
returns reflect the returns of the Credit Suisse Leveraged Loan Index, the Fund’s 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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. George Goudelias, Managing Director and Head of Leveraged
Finance of Seix, has managed the Fund since its inception. Mr. 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, I and IS 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
I
Shares |
None
|
IS
Shares |
$2,500,000
(No minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
Seix
Floating Rate High Income Fund
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 or IS Shares.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Summary Section
A Shares, R Shares, I Shares and IS Shares
Investment Objective
The Seix High Income Fund (the “Fund”) seeks high
current income and, secondarily, total return (comprised of capital appreciation and income).
Fees and Expenses of the Fund
This table describes the fees and expenses
that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in RidgeWorth Funds. More information about these and other
discounts is available from your financial professional and in Sales Charges on page 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
R
Shares |
I
Shares |
IS
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
4.75%
|
None
|
None
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
R
Shares |
|
I
Shares |
|
IS
Shares |
Management
Fees |
0.54%
|
|
0.54%
|
|
0.54%
|
|
0.54%
|
Distribution
(12b-1) Fees |
0.30%
|
|
0.50%
|
|
None
|
|
None
|
Other
Expenses |
0.19%
|
|
0.19%
|
|
0.25%
|
|
0.09%
|
Total
Annual Fund Operating Expenses |
1.03%
|
|
1.23%
|
|
0.79%
|
|
0.63%
|
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$575
|
$787
|
$1,017
|
$1,675
|
R
Shares |
$125
|
$390
|
$
676 |
$1,489
|
I
Shares |
$
81 |
$252
|
$
439 |
$
978 |
IS
Shares |
$
64 |
$202
|
$
351 |
$
786 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 77% of the average value of its portfolio.
Principal Investment Strategies
The Fund invests primarily in a diversified portfolio of higher
yielding, lower-rated income-producing debt instruments, including corporate obligations, floating rate loans and other debt obligations. The Fund may invest in debt obligations of U.S. and non-U.S. issuers, including emerging market corporate debt.
The Fund’s investment in non-U.S. issuers may at times be significant. The Fund will invest at least 65%, and may invest up to 100%, of its assets in securities rated below investment grade by the Merrill Composite Rating or in unrated
securities that the Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), believes are of comparable quality. Such securities are commonly known as “junk bonds” and present greater
risks than investment grade debt securities. The Fund may also invest a portion of its assets in securities that are restricted as to resale. As a result of its investment strategy, the Fund’s portfolio turnover rate may be 100% or more.
In selecting investments for purchase and sale, the Subadviser
employs a research driven process designed to identify value areas within the high yield market. The Subadviser seeks to identify securities that generally meet the following criteria: (i) industries that have sound fundamentals; (ii) companies that
have good business prospects and increasing credit strength; and (iii) issuers with stable or growing cash flows and effective management.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as 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 below investment grade fixed income characteristics
towards its policy to invest, under normal circumstances, at least 65% of its net assets in non-investment grade fixed income securities.
Principal Investment Risks
You may lose money if you invest in the Fund. A Fund share is not a bank deposit and it is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
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 & Poor’s Financial Services LLC and
Fitch, Inc. or “Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These instruments have a higher degree of default risk and may
be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of high yield investments generally, and
less secondary market liquidity. This potential lack of liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s 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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to sell or realize the full value of its loans in the
event of a need to liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be considered securities and, therefore, the Fund may not have the protections
of the federal securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
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.
Frequent Trading Risk: Frequent buying and selling of investments may involve higher trading costs and other expenses and may affect the Fund's 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 Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s
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.
A
liquid secondary market may not always exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk
that the other party to the derivative transaction will not meet its obligations.
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 Fund’s
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.
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 Fund’s 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 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 Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. The Fund began operating on March 28, 2000. At the
close of business on July 31, 2009, all outstanding C Shares converted to R Shares. The performance shown below prior to July 31, 2009 is that of C Shares and has not been adjusted to reflect R Shares expenses, which
are lower. If it had been, performance would have been higher. Updated performance information is available by contacting the RidgeWorth Funds at 1-888-784-3863 or by visiting www.ridgeworth.com.
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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
18.23%
|
-21.86%
|
(6/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 9.62%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(10.73)%
|
2.62%
|
5.98%
|
R
Shares Return Before Taxes |
(6.46)%
|
3.35%
|
6.08%
|
IS
Shares Return Before Taxes* |
(6.06)%
|
3.91%
|
6.82%
|
I
Shares Return Before Taxes |
(6.19)%
|
3.87%
|
6.80%
|
I
Shares Return After Taxes on Distributions |
(8.58)%
|
0.86%
|
3.60%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
(3.40)%
|
1.84%
|
4.02%
|
Barclays
U.S. Corporate High Yield Bond Index (reflects no deduction for fees, expenses or taxes) |
(4.47)%
|
5.04%
|
6.96%
|
*IS Shares were offered beginning on
August 1, 2014. The performance shown prior to such date is based on performance of the Fund’s I Shares, and has not been adjusted to reflect the expenses of the IS Shares. If it had been adjusted, performance would have been higher.
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The
calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to
reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Michael Kirkpatrick, Managing Director and Senior Portfolio
Manager of Seix, has co-managed the Fund since August 2011. Mr. James FitzPatrick, CFA, Managing Director, Portfolio Manager and Head of Leveraged Finance Trading of Seix, has co-managed the Fund since June 2013.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A, R, I and IS 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
R
Shares |
None
|
I
Shares |
None
|
IS
Shares |
$2,500,000
(No minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
Subsequent investments in A 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 R, I or IS Shares.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Summary Section
A Shares, R Shares,
I Shares and IS Shares
Investment Objective
The Seix High Yield Fund (the “Fund”) seeks high
income and, secondarily, capital appreciation.
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 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
R
Shares |
I
Shares |
IS
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
4.75%
|
None
|
None
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
R
Shares |
|
I
Shares |
|
IS
Shares |
Management
Fees |
0.44%
|
|
0.44%
|
|
0.44%
|
|
0.44%
|
Distribution
(12b-1) Fees |
0.25%
|
|
0.50%
|
|
None
|
|
None
|
Other
Expenses |
0.15%
|
|
0.10%
|
|
0.17%
|
|
0.10%
|
Total
Annual Fund Operating Expenses |
0.84%
|
|
1.04%
|
|
0.61%
|
|
0.54%
|
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$557
|
$730
|
$919
|
$1,463
|
R
Shares |
$106
|
$331
|
$574
|
$1,271
|
I
Shares |
$
62 |
$195
|
$340
|
$
762 |
IS
Shares |
$
55 |
$173
|
$302
|
$
677 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 76% of the average value of its portfolio.
Principal Investment Strategies
Under normal circumstances, the Fund invests in various types
of lower-rated, higher yielding debt instruments, including corporate obligations, floating rate loans and other debt obligations. The Fund may invest in debt obligations of U.S. and non-U.S. issuers, including emerging market debt. The Fund’s
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 high yield securities.
These securities will be chosen from the broad universe of
available U.S. dollar denominated, high yield securities rated below investment grade by either the Merrill Composite Rating or unrated securities that the Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the
“Subadviser”), believes are of comparable quality. Such securities are commonly known as “junk bonds” and present greater risks than investment grade bonds. Although the Fund seeks to achieve its investment objective
primarily through investment in high yield securities, the Fund may invest up to 20% of its net assets in investment grade securities.
The Fund will be managed with a duration that is close to the
Fund’s comparative benchmark, the Merrill Lynch U.S. High Yield BB/B Rated Constrained Index, which is generally between 3 and 6 years. Duration measures a bond or Fund’s 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 five years, its value will change by 5% if rates change by 1%. Shorter duration bonds result in lower expected
volatility. The Fund may also invest a portion of its assets in securities that are restricted as to resale.
In selecting investments for purchase and sale, the Subadviser
employs a research driven process designed to identify value areas within the high yield market and attempts to identify lower-rated, higher yielding bonds offering above-average total return. Additionally, the Subadviser will emphasize securities
which are within the segment of the high yield market it has targeted for emphasis, which are “BB” and “B” rated issuers. The Subadviser seeks to identify securities that generally meet the
following criteria: (1) industries that have sound
fundamentals; (2) companies that have good business prospects and increasing credit strength; and (3) issuers with stable or growing cash flows and effective management.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including credit default swaps, futures and warrants) to use as a substitute for a purchase or sale of a position in the underlying assets and/or as part of a strategy designed to reduce exposure to
other risks, such as interest rate or credit risks. The Fund may count the value of certain derivatives with below investment grade fixed income characteristics towards its policy to invest, under normal circumstances, at least 80% of its net assets
in high yield securities.
While the Fund generally does not invest in
equity securities, equity securities may be obtained through a restructuring of a debt security held in the Fund and may be retained in the Fund if the Subadviser deems it to be in the Fund’s best interests.
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 & Poor’s Financial Services LLC and
Fitch, Inc. or “Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These instruments have a higher degree of default risk and may
be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of high yield investments generally, and
less secondary market liquidity. This potential lack of liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s 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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to
sell or realize the full value of its loans in the event of a need to liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be considered securities
and, therefore, the Fund may not have the protections of the federal securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
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.
Futures Contract Risk: The risks associated with futures include: the Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s
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.
A
liquid secondary market may not always exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk
that the other party to the derivative transaction will not meet its obligations.
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 Fund’s
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.
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 Fund’s 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 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 Fund’s 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 between December 29, 2000 to October 11, 2004 is that of the I Shares of the Seix High Yield Fund, the Fund’s predecessor. At the close of business on July 31, 2009, all outstanding C Shares converted to
R Shares. R Shares performance shown below prior to that date is that of C Shares and has not been adjusted to reflect R Shares expenses. The performance of the predecessor fund’s I Shares has not been adjusted to
reflect the Fund’s A Share or R Share expenses. If it had been, the performance would have been lower. IS Shares commenced operations on August 1, 2016. Performance information for IS shares will be included after the share class has
been in operation for one complete calendar year. 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
11.39%
|
-14.52%
|
(6/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 7.07%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(9.55)%
|
2.89%
|
4.58%
|
R
Shares Return Before Taxes |
(5.21)%
|
3.61%
|
4.53%
|
I
Shares Return Before Taxes |
(4.91)%
|
4.12%
|
5.26%
|
I
Shares Return After Taxes on Distributions |
(7.18)%
|
0.88%
|
2.17%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
(2.70)%
|
2.06%
|
2.91%
|
Bank
of America Merrill Lynch BB-B U.S. High Yield Constrained Index (reflects no deduction for fees, expenses or taxes) |
(2.79)%
|
5.25%
|
6.43%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Michael Kirkpatrick, Managing Director and Senior Portfolio
Manager of Seix, has co-managed the Fund since 2007. Mr. James FitzPatrick, CFA, Managing Director, Portfolio Manager and Head of Leveraged Finance Trading of Seix, has co-managed the Fund since 2013.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any
business day. You may purchase and redeem A, R, I and IS 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
R
Shares |
None
|
I
Shares |
None
|
IS
Shares |
$2,500,000
(No minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
Subsequent investments in A 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 R, I or IS Shares.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Seix Georgia Tax-Exempt
Bond Fund
Summary Section
A Shares and I Shares
Investment Objective
The Seix Georgia Tax-Exempt Bond Fund (the “Fund”)
seeks current income exempt from federal and state income taxes for Georgia residents consistent with capital preservation.
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 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
4.75%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
I
Shares |
Management
Fees |
0.50%
|
|
0.50%
|
Distribution
(12b-1) Fees |
0.15%
|
|
None
|
Other
Expenses |
0.10%
|
|
0.18%
|
Total
Annual Fund Operating Expenses |
0.75%
|
|
0.68%
|
Fee
Waivers and/or Expense Reimbursements(1) |
—
|
|
(0.03)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.75%
|
|
0.65%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.80% and 0.65% for the A and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser by
RidgeWorth Funds. |
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
Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$548
|
$703
|
$872
|
$1,361
|
I
Shares |
$
66 |
$215
|
$376
|
$
844 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 41% 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 municipal securities with income exempt from U.S. federal and Georgia state income taxes. Issuers of these securities can be located in Georgia, Puerto Rico and other U.S. territories
and possessions. The Fund may invest up to 20% of its assets in securities subject to the U.S. federal alternative minimum tax. The Fund may also invest a portion of its net assets in certain taxable debt securities.
In selecting investments for purchase and sale, the
Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), tries to manage risk as much as possible. Based on the Subadviser’s analysis of municipalities, credit risk, market trends and
investment cycles, the Subadviser attempts to invest more of the Fund’s assets in undervalued market sectors and less in overvalued sectors taking into consideration maturity, sector, credit, state and supply and demand levels. There are no
limits on the Fund’s average-weighted maturity or on the remaining maturities of individual securities. The Subadviser tries to diversify the Fund’s holdings within the State of Georgia.
The Subadviser also attempts to identify and invest in
municipal issuers with improving credit and avoid those with deteriorating credit. The Fund invests in securities rated investment grade by at least one national securities rating agency or unrated securities that the Subadviser believes are of
comparable quality. The Subadviser may retain securities if the rating of the security falls below investment grade and the Subadviser deems retention of the security to be in the best interests of the Fund.
Seix
Georgia Tax-Exempt Bond Fund
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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.
Municipal Securities Risk: Municipal securities can be significantly affected by litigation, political or economic events, as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal
security holders. Municipal securities backed by current or anticipated revenues from specific projects or assets can be negatively affected by the inability of the issuer to collect revenues for the projects or from the assets.
State Concentration Risk: The
Fund’s concentration of investments in securities of issuers located in the State of Georgia may subject the Fund to economic and government policies within the State.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
6.69%
|
-5.43%
|
(9/30/2009)
|
(12/31/2010)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 4.40%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(1.81)%
|
3.92%
|
3.42%
|
I
Shares Return Before Taxes |
3.09%
|
5.07%
|
4.07%
|
I
Shares Return After Taxes on Distributions |
3.09%
|
5.07%
|
4.07%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
2.84%
|
4.65%
|
3.93%
|
Barclays
U.S. Municipal Bond Index (reflects no deduction for fees, expenses or taxes) |
3.30%
|
5.35%
|
4.72%
|
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-advantaged 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 Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Seix Georgia Tax-Exempt
Bond Fund
Portfolio Management
Mr. Chris Carter, CFA, Director and Portfolio Manager of Seix,
has managed the Fund since August 2003.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund
shares on any business day. You may purchase and redeem A 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
I
Shares |
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 I Shares.
Tax Information
The Fund intends to distribute income that is exempt from
regular federal and Georgia income taxes. A portion of the Fund’s distributions may be subject to Georgia or federal income taxes or to the federal alternative minimum tax.
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 intermediary’s website for more information.
Seix High
Grade Municipal Bond Fund
Summary Section
A Shares and I Shares
Investment Objective
The Seix High Grade Municipal Bond Fund (the
“Fund”) seeks to maximize total return through (i) current income that is exempt from federal income taxes and (ii) capital appreciation consistent with capital preservation.
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 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
4.75%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
I
Shares |
Management
Fees |
0.50%
|
|
0.50%
|
Distribution
(12b-1) Fees |
0.15%
|
|
None
|
Other
Expenses |
0.14%
|
|
0.19%
|
Acquired
Fund Fees and Expenses(1) |
0.01%
|
|
0.01%
|
Total
Annual Fund Operating Expenses |
0.80%
|
|
0.70%
|
Fee
Waivers and/or Expense Reimbursements(2) |
—
|
|
(0.04)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.80%
|
|
0.66%
|
(1)
|
“Acquired Fund Fees and
Expenses” reflect the Fund’s 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 Fund’s net asset value per share (“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 Fund’s
prospectus. |
(2)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.80% and 0.65% for the A and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser by
RidgeWorth Funds. |
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$553
|
$718
|
$898
|
$1,418
|
I
Shares |
$
67 |
$220
|
$386
|
$
867 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 171% 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 investment grade municipal securities, including securities subject to the U.S. federal alternative minimum tax, with income exempt from regular U.S. federal income tax. The Fund may
invest its remaining assets in cash, cash equivalents and certain taxable debt securities. As a result of its investment strategy, the Fund’s portfolio turnover rate may be 100% or more.
In selecting investments for purchase and sale, Seix Investment
Advisors LLC (“Seix” or the “Subadviser”) tries to manage risk as much as possible. Based on the Subadviser’s analysis of municipalities, credit risk, market trends and investment cycles, the Subadviser attempts to
invest more of the Fund’s assets in undervalued municipal securities and less in overvalued municipal securities taking into consideration maturity, sector, credit, state and supply and demand levels.
The Subadviser also attempts to identify and invest in
municipal issuers with improving credit and avoid those with deteriorating credit. The Fund invests in securities rated investment grade by at least one national securities rating agency or unrated securities that the Subadviser believes are of
comparable quality. The Subadviser may retain securities if the
Seix High Grade Municipal
Bond Fund
rating of the security falls below investment grade and the
Subadviser deems retention of the security to be in the best interests of the Fund.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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.
Frequent Trading Risk: Frequent buying and selling of investments may involve higher trading costs and other expenses and may affect the Fund's 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.
Municipal Securities Risk: Municipal securities can be significantly affected by litigation, political or economic events, as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal
security holders. Municipal securities backed by current or anticipated revenues from specific projects or assets can be negatively affected by the inability of the issuer to collect revenues for the projects or from the assets.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
7.78%
|
-4.89%
|
(9/30/2009)
|
(12/31/2010)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 4.84%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(1.83)%
|
5.14%
|
4.42%
|
I
Shares Return Before Taxes |
3.12%
|
6.33%
|
5.08%
|
I
Shares Return After Taxes on Distributions |
2.70%
|
5.87%
|
4.84%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
2.76%
|
5.41%
|
4.61%
|
Barclays
U.S. Municipal Bond Index (reflects no deduction for fees, expenses or taxes) |
3.30%
|
5.35%
|
4.72%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal
Seix High
Grade Municipal Bond Fund
income tax bracket for each year and would have been able to
immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Ronald Schwartz, CFA, Managing Director and Senior
Portfolio Manager of Seix, has managed the Fund since its inception.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
I
Shares |
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 I Shares.
Tax Information
The Fund intends to distribute income that is exempt from
regular federal income taxes, although such income may be subject to the federal alternative minimum tax. A portion of the Fund’s distributions may be subject to regular U.S. federal income taxes.
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 intermediary’s website for more information.
Seix Investment Grade
Tax-Exempt Bond Fund
Summary Section
A Shares and I Shares
Investment Objective
The Seix Investment Grade Tax-Exempt Bond Fund (the
“Fund”) seeks to maximize high total return through (i) current income that is exempt from federal income taxes and (ii) capital appreciation consistent with capital preservation.
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 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
4.75%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
I
Shares |
Management
Fees |
0.49%
|
|
0.49%
|
Distribution
(12b-1) Fees |
0.30%
|
|
None
|
Other
Expenses |
0.14%
|
|
0.19%
|
Acquired
Fund Fees and Expenses(1) |
0.01%
|
|
0.01%
|
Total
Annual Fund Operating Expenses |
0.94%
|
|
0.69%
|
Fee
Waivers and/or Expense Reimbursements(2) |
(0.13)%
|
|
(0.03)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.81%
|
|
0.66%
|
(1)
|
“Acquired Fund Fees and
Expenses” reflect the Fund’s 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 Fund’s net asset value per share (“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 Fund’s
prospectus. |
(2)
|
The
Adviser and Subadviser have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute
dividend expenses on securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.80% and 0.65% for the A and I Shares, respectively. This agreement may be terminated upon written notice to
the Adviser by RidgeWorth Funds. |
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
Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$554
|
$748
|
$958
|
$1,564
|
I
Shares |
$
67 |
$218
|
$381
|
$
856 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 139% of the average value of its portfolio.
Principal Investment Strategies
The Fund invests at least 80% of its net assets (plus any
borrowings for investment purposes) in investment grade tax-exempt obligations, such as municipal securities. The issuers of these securities may be located in any U.S. state, territory or possession. The Fund may invest up to 20% of its assets in
securities subject to the U.S. federal alternative minimum tax. The Fund may also invest a portion of its net assets in certain taxable debt securities. As a result of its investment strategy, the Fund’s portfolio turnover rate may be 100% or
more.
In selecting investments for purchase and sale, the
Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), tries to manage risk as much as possible. Based on the Subadviser’s analysis of municipalities, credit risk, market trends and
investment cycles, the Subadviser attempts to invest more of the Fund’s assets in undervalued municipal securities and less in overvalued municipal securities taking into consideration maturity, sector, credit, state and supply and demand
levels.
The Subadviser also attempts to identify and
invest in municipal issuers with improving credit and avoid those with deteriorating credit. The Subadviser anticipates that the Fund’s average-weighted maturity will range from 4 to 10 years but there is no limit on the maturities of
individual securities. The
Seix
Investment Grade Tax-Exempt Bond Fund
Fund invests in securities rated investment grade by at least
one national securities rating agency or unrated securities that the Subadviser believes are of comparable quality. The Subadviser may retain securities if the rating of the security falls below investment grade and the Subadviser deems retention of
the security to be in the best interests of the Fund.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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.
Frequent Trading Risk: Frequent buying and selling of investments may involve higher trading costs and other expenses and may affect the Fund's 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.
Municipal Securities Risk: Municipal securities can be significantly affected by litigation, political or economic events, as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal
security holders. Municipal securities backed by current or anticipated revenues from specific projects or assets can be negatively affected by the inability of the issuer to collect revenues for the projects or from the assets.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
6.32%
|
-3.51%
|
(9/30/2009)
|
(12/31/2010)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 3.76%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(2.71)%
|
3.37%
|
3.86%
|
I
Shares Return Before Taxes |
2.26%
|
4.56%
|
4.61%
|
I
Shares Return After Taxes on Distributions |
1.88%
|
4.08%
|
4.20%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
2.46%
|
3.94%
|
4.10%
|
Barclays
U.S. Municipal Bond 1-15 Year Blend Index (reflects no deduction for fees, expenses or taxes) |
2.83%
|
4.28%
|
4.42%
|
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-advantaged 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.
Seix Investment Grade
Tax-Exempt Bond Fund
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Ronald Schwartz, CFA, Managing Director and Senior
Portfolio Manager of Seix, has managed the Fund since its inception.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
I
Shares |
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 I Shares.
Tax Information
The Fund intends to distribute income that is exempt from
regular federal income taxes. A portion of the Fund’s distributions may be subject to federal income taxes or to the federal alternative minimum tax.
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 intermediary’s website for more information.
Seix North
Carolina Tax-Exempt Bond Fund
Summary Section
A Shares and I Shares
Investment Objective
The Seix North Carolina Tax-Exempt Bond Fund (the
“Fund”) seeks current income exempt from federal and state income taxes for North Carolina residents consistent with capital preservation.
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 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
4.75%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
I
Shares |
Management
Fees |
0.50%
|
|
0.50%
|
Distribution
(12b-1) Fees |
0.15%
|
|
None
|
Other
Expenses |
0.16%
|
|
0.23%
|
Total
Annual Fund Operating Expenses |
0.81%
|
|
0.73%
|
Fee
Waivers and/or Expense Reimbursements(1) |
(0.01)%
|
|
(0.08)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.80%
|
|
0.65%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.80% and 0.65% for the A and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser by
RidgeWorth Funds. |
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
Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$553
|
$720
|
$902
|
$1,428
|
I
Shares |
$
66 |
$225
|
$398
|
$
899 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 42% 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 municipal securities with income exempt from U.S. federal and North Carolina state income taxes. Issuers of these securities can be located in North Carolina, Puerto Rico and other U.S.
territories and possessions. The Fund may invest up to 20% of its assets in securities subject to the U.S. federal alternative minimum tax. The Fund may also invest a portion of its net assets in certain taxable debt securities.
In selecting investments for purchase and sale, the
Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), tries to manage risk as much as possible. Based on the Subadviser’s analysis of municipalities, credit risk, market trends and
investment cycles, the Subadviser attempts to invest more of the Fund’s assets in undervalued market sectors and less in overvalued sectors taking into consideration maturity, sector, credit, state and supply and demand levels. There are no
limits on the Fund’s average-weighted maturity or on the remaining maturities of individual securities.
The Subadviser attempts to diversify the Fund’s holdings
within the State of North Carolina. The Subadviser also attempts to identify and invest in municipal issuers with improving credit and avoid those with deteriorating credit.
The Fund invests in securities rated investment grade by at
least one national securities rating agency or unrated securities that the Subadviser believes are of comparable quality. The Subadviser may retain securities if the rating of the security falls below investment grade and the Subadviser deems
retention of the security to be in the best interests of the Fund.
Seix North Carolina
Tax-Exempt Bond Fund
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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.
Municipal Securities Risk: Municipal securities can be significantly affected by litigation, political or economic events, as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal
security holders. Municipal securities backed by current or anticipated revenues from specific projects or assets can be negatively affected by the inability of the issuer to collect revenues for the projects or from the assets.
Non-Diversification Risk: The
risk that, because the Fund may invest a higher percentage of its assets in a small number of issuers, the Fund is more susceptible to any single economic, political or regulatory event affecting those issuers than is a diversified
fund.
State Concentration Risk: The Fund’s concentration of investments in securities of issuers located in the State of North Carolina may subject the Fund to economic and government policies within the State.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. The Fund commenced operations on March 21, 2005. Performance between
January 8, 2004 and March 21, 2005 is that of the CCMI Tax-Exempt North Carolina Bond Fund, the Fund’s predecessor. The performance of the predecessor fund has not been adjusted to reflect the Fund’s A 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
6.54%
|
-5.20%
|
(9/30/2009)
|
(12/31/2010)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 4.21%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(1.99)%
|
3.80%
|
3.43%
|
I
Shares Return Before Taxes |
3.16%
|
4.97%
|
4.09%
|
I
Shares Return After Taxes on Distributions |
3.00%
|
4.79%
|
4.00%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
2.91%
|
4.49%
|
3.90%
|
Barclays
U.S. Municipal Bond Index (reflects no deduction for fees, expenses or taxes) |
3.30%
|
5.35%
|
4.72%
|
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-advantaged 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 Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Seix North
Carolina Tax-Exempt Bond Fund
Portfolio Management
Mr. Chris Carter, CFA, Director and Portfolio Manager of Seix,
has managed the Fund since March 2005.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund
shares on any business day. You may purchase and redeem A 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
I
Shares |
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 I Shares.
Tax Information
The Fund intends to distribute income that is exempt from
regular federal and North Carolina income taxes. A portion of the Fund’s distributions may be subject to North Carolina or federal income taxes or to the federal alternative minimum tax.
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 intermediary’s website for more information.
Seix Short-Term Municipal
Bond Fund
Summary Section
A Shares and I Shares
Investment Objective
The Seix Short-Term Municipal Bond Fund (the
“Fund”) seeks to maximize total return through (i) current income that is exempt from federal income taxes and (ii) capital appreciation consistent with capital preservation.
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 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
2.50%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
I
Shares |
Management
Fees |
0.35%
|
|
0.35%
|
Distribution
(12b-1) Fees |
0.15%
|
|
None
|
Other
Expenses |
0.22%
|
|
0.27%
|
Acquired
Fund Fees and Expenses(1) |
0.01%
|
|
0.01%
|
Total
Annual Fund Operating Expenses |
0.73%
|
|
0.63%
|
Fee
Waivers and/or Expense Reimbursements(2) |
(0.04)%
|
|
(0.14)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.69%
|
|
0.49%
|
(1)
|
“Acquired Fund Fees and
Expenses” reflect the Fund’s 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 Fund’s net asset value per share (“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 Fund’s
prospectus. |
(2)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.68% and 0.48% for the A and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser by
RidgeWorth Funds. |
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
Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$319
|
$474
|
$642
|
$1,130
|
I
Shares |
$
50 |
$188
|
$337
|
$
773 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 82% 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 municipal securities, including securities subject to the U.S. federal alternative minimum tax, with the income exempt from regular U.S. federal income tax. The Fund will invest
primarily in investment grade short-term municipal securities. The issuers of these securities may be located in any U.S. state, territory or possession. The Fund may also invest a portion of its net assets in certain taxable debt securities. The
Fund expects that it will normally maintain an effective maturity of 3 years or less.
In selecting investments for purchase and sale, the
Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), tries to manage risk as much as possible. Based on the Subadviser’s analysis of municipalities, credit risk, market trends and
investment cycles, the Subadviser attempts to invest more of the Fund’s assets in undervalued municipal securities and less in overvalued municipal securities taking into consideration maturity, sector, credit, state and supply and demand
levels.
The Subadviser also attempts to identify and
invest in municipal issuers with improving credit and avoid those with deteriorating credit. The Fund invests in securities rated
Seix
Short-Term Municipal Bond Fund
investment grade by at least one national securities rating
agency or unrated securities that the Subadviser believes are of comparable quality. The Subadviser may retain securities if the rating of the security falls below investment grade and the Subadviser deems retention of the security to be in the best
interests of the Fund.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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.
Municipal Securities Risk: Municipal securities can be significantly affected by litigation, political or economic events, as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal
security holders. Municipal securities backed by current or anticipated revenues from specific projects or assets can be negatively affected by the inability of the issuer to collect revenues for the projects or from the assets.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
6.09%
|
-4.71%
|
(9/30/2009)
|
(12/31/2010)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 0.86%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(2.32)%
|
2.26%
|
3.03%
|
I
Shares Return Before Taxes |
0.40%
|
2.93%
|
3.39%
|
I
Shares Return After Taxes on Distributions |
0.34%
|
2.44%
|
3.13%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.43%
|
2.57%
|
3.20%
|
Barclays
1-5 Year Municipal Bond Index (reflects no deduction for fees, expenses or taxes) |
1.21%
|
1.76%
|
2.95%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal
Seix Short-Term Municipal
Bond Fund
income tax bracket for each year and would have been able to
immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Ronald Schwartz, CFA, Managing Director and Senior
Portfolio Manager of Seix, and Ms. Dusty Self, Managing Director and Portfolio Manager of Seix, have co-managed the Fund since November 2011.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem A 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
I
Shares |
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 I Shares.
Tax Information
The Fund intends to distribute income that is exempt from
regular federal income taxes. A portion of the Fund’s distributions may be subject to federal income taxes or to the federal alternative minimum tax.
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 intermediary’s website for more information.
Seix
Virginia Intermediate Municipal Bond Fund
Summary Section
A Shares and I Shares
Investment Objective
The Seix Virginia Intermediate Municipal Bond Fund (the
“Fund”) seeks current income exempt from federal and state income taxes for Virginia residents consistent with capital preservation.
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 76 of the Fund’s prospectus and Rights of Accumulation on page 89 of the Fund’s statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
|
A
Shares |
I
Shares |
Maximum
Sales Charge (load) Imposed On Purchases (as a % of offering price) |
4.75%
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
A
Shares |
|
I
Shares |
Management
Fees |
0.50%
|
|
0.50%
|
Distribution
(12b-1) Fees |
0.15%
|
|
None
|
Other
Expenses |
0.11%
|
|
0.18%
|
Total
Annual Fund Operating Expenses |
0.76%
|
|
0.68%
|
Fee
Waivers and/or Expense Reimbursements(1) |
—
|
|
(0.03)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.76%
|
|
0.65%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.80% and 0.65% for the A and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser by
RidgeWorth Funds. |
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
Fund’s operating expenses remain the same and that you reinvest all
dividends and distributions. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$549
|
$706
|
$877
|
$1,372
|
I
Shares |
$
66 |
$215
|
$376
|
$
844 |
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 48% 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 municipal securities, including securities subject to the U.S. federal alternative minimum tax, with income exempt from regular U.S. federal income tax and Virginia commonwealth income
tax. Issuers of these securities can be located in Virginia, Puerto Rico and other U.S. territories and possessions. In addition, the Fund may invest a portion of its net assets in certain taxable debt securities.
In selecting investments for purchase and sale, the
Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), tries to manage risk by buying investment grade securities. Based on the Subadviser’s analysis of municipalities, credit risk, market
trends and investment cycles, the Subadviser attempts to invest more of the Fund’s assets in undervalued sectors and less in overvalued sectors.
The Fund invests in securities rated investment grade by at
least one national securities rating agency or unrated securities that the Subadviser believes are of comparable quality. The Subadviser expects that the Fund’s average-weighted maturity will range from 5 to 10 years but there is no limit on
the maturities of individual securities. The Subadviser may retain securities if the rating of the security falls below investment grade and the Subadviser deems retention of the security to be in the best interests of the Fund.
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.
Seix Virginia Intermediate
Municipal Bond 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 or interest or will default. Changes in an issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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.
Municipal Securities Risk: Municipal securities can be significantly affected by litigation, political or economic events, as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal
security holders. Municipal securities backed by current or anticipated revenues from specific projects or assets can be negatively affected by the inability of the issuer to collect revenues for the projects or from the assets.
State Concentration Risk: The Fund’s concentration of investments in securities of issuers located in the Commonwealth of Virginia may subject the Fund to economic and government policies within the Commonwealth.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
4.47%
|
-3.37%
|
(9/30/2009)
|
(12/31/2010)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 3.70%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
A
Shares Return Before Taxes |
(2.53)%
|
2.65%
|
3.26%
|
I
Shares Return Before Taxes |
2.42%
|
3.79%
|
3.90%
|
I
Shares Return After Taxes on Distributions |
1.76%
|
3.46%
|
3.72%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
2.88%
|
3.59%
|
3.77%
|
Barclays
U.S. Municipal Bond 1-15 Year Blend Index (reflects no deduction for fees, expenses or taxes) |
2.83%
|
4.28%
|
4.42%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account,
Seix
Virginia Intermediate Municipal Bond Fund
is in the actual historical highest individual federal
marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax
advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Chris Carter, CFA, Director and Portfolio Manager of Seix,
has 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 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, waived, or not applicable in some cases.
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
I
Shares |
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 I Shares.
Tax Information
The Fund intends to distribute income that is exempt from
regular federal and Virginia income taxes. A portion of the Fund’s distributions may be subject to Virginia or federal income taxes or to the federal alternative minimum tax.
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 intermediary’s website for more information.
More Information
More Information About Principal Investment Strategies
Please see the section entitled “Principal Investment
Strategies” in the “Summary Section” for each Fund for a complete discussion of each Fund’s principal investment strategies.
With respect to each Fund that is subject to Rule 35d-1 under
the 1940 Act, except the Seix Georgia Tax-Exempt Bond Fund, Seix High Grade Municipal Bond Fund, Seix Investment Grade Tax-Exempt Bond Fund, Seix North Carolina Tax-Exempt Bond Fund, Seix Short-Term Municipal Bond Fund, and Seix Virginia
Intermediate Municipal Bond Fund, any change to a Fund’s investment policy of investing at least 80% of such Fund’s net assets in a particular type or category of securities is subject to 60 days prior notice to shareholders.
More Information About Principal Risks
Below Investment Grade Securities Risk
Seix Core Bond Fund
Seix Corporate Bond Fund
Seix
Floating Rate High Income Fund
Seix High Income Fund
Seix High Yield Fund
Seix Short-Term Bond Fund
Seix Total Return Bond Fund
Securities that are rated below investment grade (commonly
referred to as “junk bonds,” which include those bonds rated lower than “BBB-” by Standard & Poor’s Financial Services LLC and Fitch, Inc. or “Baa3” by Moody’s Investors Service), or are unrated
but judged by the Subadviser to be of comparable quality at the time of purchase, may be more volatile than higher-rated securities of similar maturity.
High yield securities may also be subject to greater levels of
credit or default risk than higher-rated securities. The value of high yield securities can be adversely affected by overall economic conditions, such as an economic downturn or a period of rising interest rates, and high yield securities may be
less liquid and more difficult to sell at an advantageous time or price or to value than higher-rated securities.
In particular, high yield securities are often issued by
smaller, less creditworthy or highly leveraged (indebted) issuers, which are generally less able than more financially stable issuers to make scheduled payments of interest and principal.
Debt Securities Risk
All Funds
The prices of a Fund’s fixed income securities respond to
economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments. Generally, a Fund’s fixed income securities will decrease in value if interest rates
rise and vice versa. Treasury Inflation Protected Securities (“TIPS”)
can also exhibit such price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Long-term
debt securities generally are more sensitive to changes in interest rates, usually making them more volatile than short-term debt securities and thereby increasing risk.
Debt securities are also subject to credit risk, which is the
possibility than an issuer will fail to make timely payments of interest or principal or go bankrupt. The lower the ratings of such debt securities, the greater their risks. In addition, lower-rated securities have higher risk characteristics, and
changes in economic conditions are likely to cause issuers of these securities to be unable to meet their obligations.
Debt securities are also subject to income risk, which is the
possibility that falling interest rates will cause a Fund’s income to decline. Income risk is generally higher for short-term bonds.
An additional risk of debt securities is reinvestment risk,
which is the possibility that a Fund may not be able to reinvest interest or dividends earned from an investment in such a way that they earn the same rate of return as the invested funds that generated them. For example, falling interest rates may
prevent bond coupon payments from earning the same rate of return as the original bond. Furthermore, pre-funded loans and issues may cause a Fund to reinvest those assets at a rate lower than originally anticipated.
Derivative Related Risks
Seix Core Bond Fund
Seix Corporate Bond Fund
Seix
Floating Rate High Income Fund
Seix High Income Fund
Seix High Yield Fund
Seix Limited Duration Fund
Seix Short-Term Bond Fund
Seix Total Return Bond Fund
Seix U.S. Government Securities Ultra-Short Bond Fund
Seix U.S.
Mortgage Fund
Seix Ultra-Short Bond Fund
Derivatives
Risks. A derivative is a financial contract whose value adjusts in accordance with the value of one or more underlying assets, reference rates or indices. Derivatives (such as credit linked notes, futures, options,
inverse floaters, swaps and warrants) may be used to attempt to achieve investment objectives or to offset certain investment risks. These positions may be established for hedging, substitution of a position in the underlying asset or for
speculation purposes. Hedging involves making an investment (e.g., in a futures contract) to reduce the risk of adverse price movements in an already existing investment position. Because leveraging is inherent in
derivatives, the use of derivatives also involves the risk of
leveraging. Risks involved with hedging and leveraging activities include:
• |
The success of a hedging
strategy may depend on an ability to predict movements in the prices of individual securities, fluctuations in markets, and movements in interest rates. |
• |
A Fund may experience losses
over certain market movements that exceed losses experienced by a Fund that does not use derivatives. |
• |
There may be an imperfect or
no correlation between the changes in market value of the securities held by a Fund and the prices of derivatives used to hedge those positions. |
• |
There may not be a liquid
secondary market for derivatives. |
• |
Trading restrictions or
limitations may be imposed by an exchange. |
• |
Government regulations may
restrict trading in derivatives. |
•
|
The other
party to an agreement (e.g., options or swaps) may default. |
Because premiums or totals paid or received on derivatives are
small in relation to the market value of the underlying investments, buying and selling derivatives can be more speculative than investing directly in securities. In addition, many types of derivatives have limited investment lives and may expire or
necessitate being sold at inopportune times.
The use of
derivatives may cause a Fund to recognize higher amounts of short-term capital gains, which are generally taxed to shareholders at ordinary income tax rates.
Leverage may cause a 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 on the value of a Fund’s portfolio securities. To limit leveraging risk, a Fund observes asset segregation requirements to cover fully
its future obligations.
By setting aside assets equal
only to its net obligations rather than the full notional amount under certain derivative instruments, a Fund will have the ability to employ leverage to a greater extent than if it were required to segregate assets equal to the full notional value
of such derivative instruments.
Swap Risks. Each 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 Fund’s 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.
Floating Rate Loan Risk
Seix Floating Rate High Income Fund
Seix High Income
Fund
Seix High Yield Fund
Seix Limited Duration Fund
Seix Total Return Bond Fund
Investments in floating rate loans are subject to interest rate
risk although the risk is less than fixed rate loans because the interest rate of the loan adjusts periodically. Investments in floating rate loans are also subject to credit risk.
Many floating rate loans are rated below investment grade or
are unrated. Therefore, a Fund relies heavily on the analytical ability of the Fund’s Subadviser. Many floating rate loans share the same risks as high yield securities, although these risks are reduced when the floating rate loans are senior
and secured as opposed to many high yield securities that are junior and unsecured. Floating rate loans are often subject to restrictions on resale which can result in reduced liquidity. The risk is greater for the Seix Floating Rate High Income
Fund, because of its concentration in these types of instruments.
Borrowers may repay principal faster than the scheduled due
date which may result in a Fund replacing that loan with a lower-yielding security. Investment in loan participation interests may result in increased exposure to financial services sector risk. A loan may not be collateralized fully which may cause
the loan to decline significantly in value.
Seix
currently serves as collateral manager to six collateralized loan obligation (“CLO”) funds that invest in bank loans. In addition to the CLO funds, Seix serves as subadviser to an unaffiliated registered fund and as investment manager to
three unregistered funds that may invest in bank loans. As a result of multiple investment-oriented and associated relationships, there exists a potential risk that the portfolio managers may favor other adviser and non-adviser contracted businesses
over a Fund. Seix, the Subadviser to the Seix Floating Rate High Income Fund, has created and implemented additional policies and procedures designed to protect shareholders against such conflicts; however, there can be no absolute guarantee
that a Fund will always participate in the same or similar investments or receive equal or better individual investment allocations at any given time.
Foreign Companies and Securities Risk
Seix Core Bond Fund
Seix Floating Rate High Income Fund
Seix High Income Fund
Seix High Yield Fund
Seix Limited Duration Fund
Seix Short-Term Bond Fund
Seix Total Return Bond Fund
Seix Ultra-Short Bond Fund
Investments in securities of foreign companies or governments
can be more volatile than investments in U.S. companies or governments. Diplomatic, political or economic developments, including nationalization or appropriation, unique to a country or region will affect those markets and their issuers. Foreign
securities markets generally have less trading volume and less
liquidity than U.S. markets.
The value of securities
denominated in foreign currencies, and of dividends from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. As a result, changes in the value of those currencies compared to the U.S.
dollar may affect (positively or negatively) the value of a Fund’s investment.
Foreign currency exchange rates may fluctuate significantly.
They are determined by supply and demand in the foreign exchange markets, the relative merits of investments in different countries, actual or perceived changes in interest rates, and other complex factors.
Currency exchange rates also can be affected unpredictably by
intervention (or the failure to intervene) by U.S. or foreign governments or central banks or by currency controls or political developments. Currency movements may happen separately from, and in response to, events that do not otherwise affect the
value of the security in the issuer’s home country.
Foreign companies or governments generally are not subject to
uniform accounting, auditing, and financial reporting standards comparable to those applicable to domestic U.S. companies or governments. Transaction costs are generally higher than those in the U.S. and expenses for custodial arrangements of
foreign securities may be somewhat greater than typical expenses for custodial arrangements of similar U.S. securities. Some foreign governments levy withholding taxes against dividend and interest income. Although in some countries a portion of
these taxes are recoverable, the non-recovered portion will reduce the income received from the securities comprising the portfolio.
All of these risks are increased for investments in emerging
markets. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. In addition, the financial stability of issuers (including governments) in emerging market
countries may be more precarious than in other countries. Emerging market countries are generally countries covered by the Bank of America Merrill Lynch Emerging Markets Diversified Corporate Index.
Mortgage-Backed and Asset-Backed Securities Risk
Seix Core Bond Fund
Seix High Income Fund
Seix High
Yield Fund
Seix Limited Duration Fund
Seix Short-Term Bond Fund
Seix Total Return Bond Fund
Seix U.S. Government Securities Ultra-Short Bond Fund
Seix U.S. Mortgage Fund
Seix Ultra-Short Bond Fund
Mortgage- and asset-backed securities are fixed income
securities representing an interest in a pool of underlying mortgage- or asset-backed secured and unsecured cash-flow
producing assets such as automobile loans and leases, credit card receivables
and other financial assets.
The risks associated with
these types of securities include: (1) prepayment risk that could result in earlier or later return of principal than expected and can lead to significant fluctuations in the value and yield of the securities; (2) liquidity/market risk which can
result in higher than expected changes in security valuation and transactions costs especially in times of general market stress; and (3) credit risk that is associated with the underlying borrowers being unable or unwilling to make timely principal
and/or interest payments or to otherwise honor its payment obligations and can also be driven by general economic conditions which can result in the loss of invested principal.
The value of some mortgage- or asset-backed securities may be
particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-backed securities may expose a Fund to a lower rate of return upon reinvestment of principal. When interest rates rise, the value of these
securities generally will decline; however, when interest rates are declining, the value of these securities with prepayment features may not increase as much as other fixed income securities. The rate of prepayments on underlying mortgages will
affect the price and volatility of a mortgage-backed security, and may shorten or extend the effective maturity of the security beyond what was anticipated at the time of purchase.
If unanticipated rates of prepayment on underlying mortgages
increase the effective maturity of a mortgage-related security, the volatility of the security can be expected to increase. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the
issuers. Additionally, although mortgage-backed securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.
In recent years, the market for mortgage-backed securities
experienced substantially lower valuations and greatly reduced liquidity. Ongoing economic and market uncertainty suggests that mortgage-backed securities may continue to be more difficult to value and to dispose of than previously.
Municipal Securities Risk
Seix Georgia Tax-Exempt Bond Fund
Seix High Grade Municipal
Bond Fund
Seix Investment Grade Tax-Exempt Bond Fund
Seix North Carolina Tax-Exempt Bond Fund
Seix Short-Term Municipal Bond Fund
Seix Virginia Intermediate Municipal Bond Fund
Municipal securities can be significantly affected by political
changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Because many municipal securities are issued to finance similar projects, especially those relating to
education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal
market. In addition, changes in the financial condition of an
individual municipal insurer can affect the overall municipal market.
Municipal securities backed by current or anticipated revenues
from a specific project or specific assets can be negatively affected by the discontinuance of the taxation supporting the project or assets or the inability to collect revenues for the project or from the assets. If the Internal Revenue Service
determines an issuer of a municipal security has not complied with applicable tax requirements, interest from the security could become taxable and the security could decline significantly in value.
In addition, a Fund’s concentration of investments in
issuers located in a single state makes the Fund more susceptible to adverse political or economic developments affecting that state. The Fund also may be riskier than mutual funds that buy securities of issuers in numerous states.
Non-Diversification Risk
Seix North Carolina Tax-Exempt Bond Fund
The Fund is non-diversified, which means that it may invest in
the securities of relatively few issuers. As a result, the Fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, and may experience increased volatility due to its investments in
those securities.
Prepayment and Call Risk
Seix Core Bond Fund
Seix High Income Fund
Seix High
Yield Fund
Seix Limited Duration Fund
Seix Short-Term Bond Fund
Seix Total Return Bond Fund
Seix U.S. Government Securities Ultra-Short Bond Fund
Seix U.S. Mortgage Fund
Seix Ultra-Short Bond Fund
A bond issuer may decide to pay back the principal at an
unexpected time and such an event may result in greater price and yield volatility and a possible decline in income, increased capital gains and unexpected capital loss for the bond holder. For instance, the prices and yields of mortgage-backed
securities typically assume that the securities will be redeemed at a given time before maturity.
When interest rates fall substantially, they usually are
redeemed early because the underlying mortgages often are prepaid. The Fund would then have to reinvest the proceeds it receives because of those redemptions at a lower rate. The price or yield of mortgage-backed securities also may fall if they are
redeemed after that date.
Restricted Securities Risk
Seix Core Bond Fund
Seix Corporate Bond Fund
Seix
Floating Rate High Income Fund
Seix High Income Fund
Seix High Yield Fund
Seix Limited Duration Fund
Seix Short-Term Bond Fund
Seix Total Return Bond Fund
Seix U.S. Mortgage Fund
Seix Ultra-Short Bond Fund
Non-publicly traded securities may involve a high degree of
business and financial risk and may result in substantial losses. These securities may be less liquid than publicly traded securities and the Fund may take longer to liquidate these positions than would be the case for publicly traded securities.
Companies whose securities are not publicly traded may not be subject to the disclosure and other investor protection requirements applicable to companies whose securities are publicly traded. The Fund’s investments in restricted securities
are subject to the risk that should the Fund desire to sell any of these securities when a ready buyer is not available at a price that is deemed to be representative of their value, the value of the Fund’s net assets could be adversely
affected.
Senior Loan Risk
Seix Floating Rate High Income Fund
Portfolio transactions in loans may settle in as short as seven
days but typically can take up to two or three weeks, and in some cases much longer. Unlike the securities markets, there is no central clearinghouse for loan trades, and the loan market has not established enforceable settlement standards or
remedies for failure to settle. Credit risk is heightened for loans in which the Fund invests because companies that issue such loans may be leveraged and thus are more susceptible to the risks of interest deferral, default and/or bankruptcy.
State Concentration Risk
Seix Georgia Tax-Exempt Bond Fund
Seix North Carolina
Tax-Exempt Bond Fund
Seix Virginia Intermediate Municipal Bond Fund
To the extent that a Fund’s investments are concentrated
in a specific geographic region, a Fund may be subject to the political and other developments affecting that region. Regional economies are often closely interrelated, and political and economic developments affecting one region, country or state
often affect other regions, countries or states, thus subjecting the Fund to additional risks.
More Information About
Indices
U.S. Government-Related Risks
Seix Core Bond Fund
Seix Corporate Bond Fund
Seix
Floating Rate High Income Fund
Seix High Income Fund
Seix High Yield Fund
Seix Limited Duration Fund
Seix Short-Term Bond Fund
Seix Total Return Bond Fund
Seix U.S. Government Securities Ultra-Short Bond Fund
Seix U.S.
Mortgage Fund
Seix Ultra-Short Bond Fund
With respect
to each Fund (except the Seix Corporate Bond Fund) 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.
With respect to the Seix Corporate Bond Fund, 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 agencies debt securities may underperform other segments of
the fixed income market or the fixed income market as a whole.
Risk Information Common to RidgeWorth Funds
Each Fund is an open-end management investment company
registered with the SEC, and commonly known as a mutual fund. A mutual fund pools shareholders’ money and, using professional investment managers, invests it in securities.
Each Fund has its own investment objective and strategies for
reaching that objective. The Adviser or Subadviser invests Fund assets in a way that it believes will help a Fund achieve its objective. Still, investing in each Fund involves risk and there is no guarantee that a Fund will achieve its
objective. The Adviser’s or Subadviser's judgments about the markets, the economy or companies may not anticipate actual market movements, economic conditions or company performance, and these judgments may affect the return on your
investment. In fact, no matter how good a job the Adviser or Subadviser does, you could lose money on your investment in a Fund, just as you could with other investments. The value of your investment in a Fund is based on the market prices of
the securities the Fund holds. These prices change daily due to economic and other events that affect particular companies and other issuers. These price movements, sometimes called volatility, may be greater or lesser depending on the types of
securities a Fund owns and the markets in which they trade. The effect on a Fund of a change in the value of a single security will depend on how widely the Fund diversifies its holdings.
Each Fund’s investment objective may be changed without shareholder
approval. Shareholders will be given notice of any change in investment objective. Before investing, make sure that the Fund’s objective matches your own.
The Funds are not managed to achieve tax efficiency. Seix
Georgia Tax-Exempt Bond, Seix High Grade Municipal Bond, Seix Investment Grade Tax-Exempt Bond, Seix North Carolina Tax-Exempt Bond, Seix Short-Term Municipal Bond and Seix Virginia Intermediate Municipal Bond Funds intend to distribute income that
is exempt from regular U.S. federal income tax, however, a portion of distributions from those Funds may be subject to state or federal income taxes or to the federal alternative minimum tax.
More Information About Indices
Each Fund compares its performance with a
broad-based securities market index in order to provide some indication of the risks of an investment in the Fund.
An index measures the market prices of a specific group of
securities in a particular market or market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance
would be lower.
The Barclays U.S. Corporate Investment
Grade Index covers U.S. dollar-denominated, investment grade, fixed-rate, taxable securities sold by industrial, utility and financial issuers. It includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified
maturity, liquidity, and quality requirements.
The
Barclays U.S. Municipal Bond Index covers the U.S. dollar-denominated long-term tax-exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and pre-refunded bonds.
The Barclays 1-5 Year Municipal Bond Index is composed of
tax-exempt bonds with maturities ranging between 1-6 years. The index has four main sectors: state and local general obligation bonds, insured bonds and pre-refunded bonds.
The Barclays U.S. Municipal Bond 1-15 Year Blend Index is
composed of tax-exempt bonds with maturities ranging between 1-15 years.
The Barclays U.S. Aggregate Bond Index measures the U.S.
dollar-denominated, investment grade and fixed-rate taxable bond market of SEC-registered securities. The index includes bonds from the U.S. Treasury, government-related, corporate, mortgage-backed securities (agency fixed-rate and hybrid
adjustable-rate mortgage (“ARM”) pass-throughs), asset-backed securities and commercial mortgage-backed securities sectors.
The Barclays U.S. Corporate High Yield Bond Index covers the
U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high yield if the middle rating of Moody’s Investors Service, Inc.,
More
Information About Fund Investments, Information About Portfolio Holdings and Management
Fitch, Inc. and Standard & Poor’s Financial Services
LLC is Ba1/BB+/BB+ or below. The index excludes emerging markets debt.
The Barclays U.S. Government/Credit Bond Index is the
non-securitized component of the Barclays U.S. Aggregate Index and includes U.S. Treasuries (public obligations of the U.S. Treasury that have remaining maturities of more than one year), government-authority issues (agency, sovereign,
supranational, and local authority debt), and U.S. dollar-denominated corporates.
The Barclays U.S. Mortgage-Backed Securities Index covers
agency mortgage-backed pass-through securities (both fixed-rate and hybrid ARM) issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC).
The Barclays 1-3 Year Government/Credit Index is the 1-3 year
component of the U.S. Government/Credit index and includes securities in the U.S. Government and Credit indices. The Government Index includes U.S. Treasuries (public obligations of the U.S. Treasury that have remaining maturities of more than one
year) and U.S. agencies (publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government). The Credit Index includes publicly issued U.S. corporate and foreign debentures
and secured notes that meet specified maturity, liquidity, and quality requirements.
The Barclays 1-3 Year U.S. Treasury Index is the 1-3 year
component of the Barclays U.S. Treasury Index. It includes securities in the Treasury Index (public obligations of the U.S. Treasury) with a maturity from 1 up to (but not including) 3 years.
The Barclays 3-6 Month U.S. Treasury Bill Index is the 3-6
Months component of the Barclays U.S. Treasury Bills Index. It includes U.S. Treasury bills with a remaining maturity from 1 up to (but not including) 12 months. It excludes zero coupon strips.
The Credit Suisse Institutional Leveraged Loan Index is a
sub-index of the Credit Suisse Leveraged Loan Index, which contains only institutional loan facilities priced above 90, excluding TL and TLA facilities and loans that are rated CC or C or are in default. It is designed to more closely reflect the
investment criteria of institutional investors. The Index reflects reinvestment of all distributions and changes and market prices.
The Credit Suisse Leveraged Loan Index is an
index designed to mirror the investable universe of the $US-denominated leveraged loan market. The Index inception is January 1992. The Index frequency is monthly. New loans are added to the Index on their effective date if they qualify according to
the following criteria: Loans must be rated “5B” or lower; only fully- funded term loans are included; the tenor must be at least one year; and the Issuers must be domiciled in developed countries (Issuers from developing countries are
excluded). Fallen angels are added to the Index subject to the new loan criteria. Loans are removed from the Index when they are upgraded to investment grade, or when they exit the market (for example, at maturity, refinancing or bankruptcy
workout). Note that issuers remain in the Index following default. Total return of the Index is
the sum of three components: principal, interest, and reinvestment return. The
cumulative return assumes that coupon payments are reinvested into the Index at the beginning of each period.
The Bank of America Merrill Lynch BB-B U.S. High Yield
Constrained Index tracks the performance of BB1 through B3 rated U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market.
The Bank of America Merrill Lynch 3 Month U.S. Treasury Bill
Index tracks the monthly price-only and total return performance of a three-month U.S. Treasury bill, based on monthly average auction rates.
More Information About Fund Investments
This prospectus describes the Funds’ primary strategies,
and the Funds will normally invest in the types of securities described in this prospectus. However, in addition to the investments and strategies described in this prospectus, each Fund also may invest in other securities, use other strategies and
engage in other investment practices. These investments and strategies, as well as those described in this prospectus, are described in detail in the Funds’ Statement of Additional Information (“SAI”).
The investments and strategies described in this prospectus are
those that the Funds use under normal conditions. During unusual economic or market conditions, or for temporary defensive or liquidity purposes, each Fund may invest up to 100% of its assets in cash, money market instruments, repurchase agreements
and short-term obligations that would not ordinarily be consistent with a Fund’s objectives. Temporary defensive investments may limit a Fund’s ability to meet its investment objective. A Fund will do so only if the Adviser or its
Subadviser believes that the risk of loss outweighs the opportunity for capital gains or higher income. Of course, a Fund cannot guarantee that it will achieve its investment objective.
Each Fund may invest in other mutual funds for cash management
purposes. When a Fund invests in another mutual fund, in addition to directly bearing expenses associated with its own operations, it will bear a pro rata portion of the other mutual fund’s expenses.
Information About Portfolio Holdings
A description of the Funds’ policies and procedures with
respect to the circumstances under which the Funds disclose their respective portfolio securities is available in the SAI. The Funds publicly disclose their portfolio holdings on its website at www.ridgeworth.com.
Management
The Board of Trustees (the “Board”) is responsible
for the overall supervision and management of the business and affairs of the Funds. The Board supervises the Adviser and Subadviser and
establishes policies that the Adviser and Subadviser must
follow in their fund-related management activities. The day-to-day operations of the Funds are the responsibilities of the officers and various service organizations retained by the Funds.
Investment Adviser
RidgeWorth Investments, located at 3333 Piedmont Road, Suite 1500, Atlanta, GA 30305 (“RidgeWorth” or the “Adviser”), serves as the investment adviser to the Funds. In addition to being an investment adviser registered
with the Securities and Exchange Commission (the “SEC”), RidgeWorth is a money-management holding company with multiple style-focused investment boutiques. As of June 30, 2016, the Adviser had approximately $37.0 billion in assets under
management. The Adviser is responsible for overseeing the Subadviser to ensure compliance with each Fund’s investment policies and guidelines, and monitors the Subadviser’s adherence to its investment style. The Adviser pays the
Subadviser out of the fees it receives from the Funds.
In addition, for all the Funds except the Seix Total Return
Bond Fund, under a manager of managers arrangement, the Adviser may enter into or materially modify a subadvisory agreement with an unaffiliated subadviser, subject to approval by the Board and certain other conditions, without approval from the
applicable Fund’s shareholders. Any significant change in a Fund’s subadvisory arrangement will be communicated to shareholders.
The Adviser may use its affiliates as brokers for Fund
transactions.
An investment adviser has a fiduciary
obligation to its clients when the adviser has authority to vote their proxies. Under the current contractual agreement, the Adviser is authorized to vote proxies on behalf of each Fund. Information regarding the Adviser’s, and thus each
Fund’s, Proxy Voting Policies and Procedures is provided in the SAI. A copy of the Adviser’s Proxy Voting Policies and Procedures may be obtained by contacting the Funds at 1-888-784-3863 or by visiting www.ridgeworth.com.
For the fiscal year ended March 31, 2016, the
following Funds paid the Adviser advisory fees (after waivers) based on the respective Fund’s average daily net assets of:
Seix
Core Bond Fund |
0.25%
|
Seix
Corporate Bond Fund |
0.33%
|
Seix
Floating Rate High Income Fund |
0.41%
|
Seix
Georgia Tax-Exempt Bond Fund |
0.50%
|
Seix
High Grade Municipal Bond Fund |
0.50%
|
Seix
High Income Fund |
0.54%
|
Seix
High Yield Fund |
0.44%
|
Seix
Investment Grade Tax-Exempt Bond Fund |
0.49%
|
Seix
Limited Duration Fund |
0.10%
|
Seix
North Carolina Tax-Exempt Bond Fund |
0.50%
|
Seix
Short-Term Bond Fund |
0.40%
|
Seix
Short-Term Municipal Bond Fund |
0.31%
|
Seix
Total Return Bond Fund |
0.24%
|
Seix
U.S. Government Securities Ultra-Short Bond Fund |
0.19%
|
Seix
U.S. Mortgage Fund |
0.37%
|
Seix
Ultra-Short Bond Fund |
0.22%
|
Seix
Virginia Intermediate Municipal Bond Fund |
0.50%
|
The Adviser and the Subadviser have
contractually agreed to waive fees and reimburse expenses until at least August 1, 2017, in order to keep total annual operating expenses of each Fund from exceeding the applicable expense cap shown. If at any point before August 1, 2019, total
annual operating expenses are less than the expense cap, the Adviser may retain the difference to recapture any of the prior waivers or reimbursements. Such recapture is limited by the expense cap and, if lower, the expense cap that was applicable
at the time of the waiver of fees and/or reimbursement of expenses.
|
Expense
Limitation |
Funds
|
A
|
|
C
|
|
R
|
|
I
|
|
IS
|
Seix
Core Bond |
0.75%
|
|
N/A
|
|
1.05%
|
|
0.54%
|
|
0.44%
|
Seix
Corporate Bond |
0.95%
|
|
1.65%
|
|
N/A
|
|
0.70%
|
|
N/A
|
Seix
Floating Rate High Income |
1.00%
|
|
1.60%
|
|
N/A
|
|
0.72%
|
|
0.60%
|
Seix
Georgia Tax-Exempt Bond |
0.80%
|
|
N/A
|
|
N/A
|
|
0.65%
|
|
N/A
|
Seix
High Grade Municipal Bond |
0.80%
|
|
N/A
|
|
N/A
|
|
0.65%
|
|
N/A
|
Seix
High Income |
1.10%
|
|
N/A
|
|
1.50%
|
|
0.85%
|
|
0.70%
|
Seix
High Yield |
0.90%
|
|
N/A
|
|
1.30%
|
|
0.70%
|
|
0.64%
|
Seix
Investment Grade Tax-Exempt Bond |
0.80%
|
|
N/A
|
|
N/A
|
|
0.65%
|
|
N/A
|
Seix
Limited Duration |
N/A
|
|
N/A
|
|
N/A
|
|
0.35%
|
|
N/A
|
Seix
North Carolina Tax-Exempt Bond |
0.80%
|
|
N/A
|
|
N/A
|
|
0.65%
|
|
N/A
|
Seix
Short-Term Bond |
0.80%
|
|
1.58%
|
|
N/A
|
|
0.60%
|
|
N/A
|
Seix
Short-Term Municipal Bond |
0.68%
|
|
N/A
|
|
N/A
|
|
0.48%
|
|
N/A
|
Seix
Total Return Bond |
0.75%
|
|
N/A
|
|
1.15%
|
|
0.54%
|
|
0.44%
|
Seix
U.S. Government Securities Ultra-Short Bond |
N/A
|
|
N/A
|
|
N/A
|
|
0.46%
|
|
0.40%
|
Seix
U.S. Mortgage |
0.90%
|
|
1.65%
|
|
N/A
|
|
0.70%
|
|
N/A
|
Seix
Ultra-Short Bond |
N/A
|
|
N/A
|
|
N/A
|
|
0.46%
|
|
N/A
|
Seix
Virginia Intermediate Municipal Bond |
0.80%
|
|
N/A
|
|
N/A
|
|
0.65%
|
|
N/A
|
The Adviser has voluntarily
undertaken to reduce and/or subsidize certain expenses of the Seix Short-Term Bond Fund and Seix U.S. Mortgage Fund to the extent necessary to maintain a minimum annualized yield of 0.00% for each of the Fund’s share classes. This voluntary
expense reduction and/or expense subsidy may be modified or discontinued at any time without prior notice. There can be no assurance that this fee reduction will be sufficient to avoid any loss.
The following breakpoints are used in computing the advisory
fee:
Average
Daily Net Assets |
|
Discount
From Full Fee |
First
$500 million |
|
None
— Full Fee |
Next
$500 million |
|
5%
|
Next
$4 billion |
|
10%
|
Over
$5 billion |
|
15%
|
Based on average daily net assets as of March
31, 2016, the asset levels of the following Funds had reached a breakpoint in the advisory fee.* Had the Funds’ asset levels been lower, the Adviser may have been entitled to receive maximum advisory fees as follows:
Seix
High Income Fund |
0.55%
|
Seix
Investment Grade Tax-Exempt Bond Fund |
0.50%
|
Seix
Floating Rate High Income Fund |
0.45%
|
Seix
High Yield Fund |
0.45%
|
Seix
Total Return Bond Fund |
0.25%
|
Seix
U.S. Government Securities Ultra-Short Bond Fund |
0.20%
|
*
|
Fund expenses in the
“Annual Fund Operating Expenses” tables shown earlier in this prospectus reflect the advisory breakpoints. |
A discussion regarding the basis for the
Board’s approval of the continuation of the investment advisory agreement with the Adviser appears in the Funds’ annual report to shareholders for the period ended March 31, 2016.
Investment Subadviser
The Subadviser is responsible for
managing the portfolios of its Funds on a day-to-day basis and selecting the specific securities to buy, sell and hold for the Funds under the supervision of the Adviser and the Board. A discussion regarding the basis for the Board’s approval
of the investment subadvisory agreements appears in the Funds’ annual report to shareholders for the year ended March 31, 2016.
Information about the Subadviser and the individual portfolio
managers of the Funds is provided below. The SAI provides additional information regarding the portfolio managers’ compensation, other accounts managed by the portfolio managers, potential conflicts of interest and the portfolio
managers’ ownership of securities in the Funds.
Seix Investment Advisors LLC (“Seix”)
One Maynard
Drive, Suite 3200
Park Ridge, New Jersey 07656
www.seixadvisors.com
Seix, established in 2008 as a wholly-owned subsidiary of
RidgeWorth, is an investment adviser registered with the SEC. Its predecessor, Seix Investment Advisors, Inc., was founded in 1992 and was independently owned until 2004 when the firm
joined RidgeWorth as the institutional fixed
income management division. As of June 30, 2016, Seix had approximately $25.1 billion in assets under management.
Seix is a fundamental, credit driven fixed income boutique
specializing in investment grade and high yield bond and leveraged loan management. Seix has employed its bottom-up, research-oriented approach to fixed income management for over 20 years. Seix is focused on delivering superior, risk-adjusted
investment performance for its clients. Seix selects, buys and sells assets for the Funds it subadvises under the supervision of the Adviser and the Board.
Seix utilizes a team management approach for the Funds for
which it acts as Subadviser. Seix is organized into teams of portfolio managers and credit analysts along sectors and broad investment categories, including government securities, corporate bonds, securitized assets, high yield bonds, high yield
loans, emerging market debt, non-U.S. securities and global currencies. The senior portfolio managers are responsible for security selection, portfolio structure and rebalancing, compliance with stated investment objectives, and cash flow
monitoring.
The following individuals are primarily
responsible for the day-to-day management of the following Funds:
Investment Grade and Short Duration Funds
James F. Keegan
Seix Core
Bond Fund—2008
Seix Corporate Bond Fund—2008
Seix U.S. Mortgage Fund—2008
Seix Total Return Bond Fund—2008
Seix Limited Duration Fund—2008
Seix Short-Term Bond Fund—2014
Seix Ultra-Short
Bond Fund—2014
Seix U.S. Government Securities Ultra-Short Bond Fund—2014
Jim Keegan is Chief Investment Officer and Chairman of Seix
Investment Advisors LLC. He has oversight responsibilities for the Seix Investment Advisor investment teams and specific portfolio management responsibilities within the Investment Grade team. Jim leads the Seix Investment Policy Group, which
determines firm-wide asset allocation policy. He also serves on the Board of Directors of RidgeWorth Holdings LLC and is a member of the Management Member Working Group.
Prior to joining the firm in 2008, Jim was Head of Investment
Grade Corporate & High Yield Bond Management for American Century Investments. In that role, he was responsible for managing the top-performing division including portfolio management, strategy, credit research and trading. Prior to this, Jim
was Chief Investment Officer at Westmoreland Capital Management and Managing Director of High Grade and High Yield Fixed Income at UBS Global Asset Management. At UBS, he was Chairman of the Investment Strategy and Credit Policy Committee and
directly responsible for management of a number of highly ranked funds. Earlier in his career, Jim served as Director of Research and Chairman of the Credit Strategy Committee at Bankers Trust. He has worked in investment management since
1982.
Jim earned a Master of Business Administration degree, Beta
Gamma Sigma, from Fordham University and a Bachelor of Science degree in Business Management, magna cum laude, from St. Francis College.
Perry Troisi
Seix Core Bond
Fund—2004
Seix Corporate Bond Fund—2004
Seix U.S. Mortgage Fund—2007
Seix Total Return Bond Fund—2002
Seix Limited Duration Fund—Inception
Seix Short-Term Bond Fund—2014
Seix Ultra-Short
Bond Fund—2014
Seix U.S. Government Securities Ultra-Short Bond Fund—2014
Perry Troisi is a Senior Portfolio Manager and Managing
Director at Seix Investment Advisors where he is responsible for the government, government-related, and securitized (residential mortgage-backed security/commercial mortgage-backed security/asset-backed security) asset classes. Perry is a member of
the Seix Investment Policy Group, which determines firm-wide asset allocation policy.
Before joining the firm in 1999, Perry was a portfolio manager
at GRE Insurance Group, where he was responsible for all North American fixed income assets within the group. Prior to that, he served as a portfolio manager and analyst at Home Insurance Company, focused primarily on Mortgage Backed Securities.
Perry began his career as an Account Analyst at Goldman, Sachs & Company. He has worked in investment management since 1986.
Perry earned a Master of Business Administration degree in
Finance from New York University and a Bachelor of Science degree in Economics and Computer Coordinate with Economics from Trinity College.
Michael Rieger
Seix Core
Bond Fund—2007
Seix U.S. Mortgage Fund—2007
Seix Total Return Bond Fund—2007
Seix Limited Duration Fund—2007
Seix Short-Term Bond Fund—2014
Seix Ultra-Short Bond Fund—2014
Seix U.S.
Government Securities Ultra-Short Bond Fund—2014
Michael Rieger is a Senior Portfolio Manager and Managing
Director at Seix Investment Advisors where he focuses on the securitized sector and is a member of the Seix Investment Policy Group, which determines firm-wide asset allocation policy.
Before joining the firm in 2007, Michael was a portfolio
manager at AIG Global Investment, where he managed an asset-backed security portfolio covering the full rating spectrum in addition to non-agency senior residential mortgage-backed securities (MBS), adjustable-rate senior mortgage portfolio and
international AAA residential MBS portfolios. Earlier at SunAmerica Investments, he managed the residential MBS portfolio and was a vice president at GB Capital Management (now Redwood Trust). Michael began his investment management career at Aetna
Life and Casualty’s
Portfolio Hedging Group as an analyst. He has worked in investment management
since 1986.
Michael earned a Bachelor of Arts degree, cum
laude, in Mathematics from Dartmouth College.
Seth
Antiles
Seix U.S. Mortgage Fund—2009
Seix Total Return Bond Fund—2007
Seix Limited Duration Fund—2009
Seth Antiles is a Senior Portfolio Manager and Managing
Director of Seix Investment Advisors specializing in global macro strategies. Seth is focused on research and oversight for all emerging market and non-dollar investments and is a member of the Seix Investment Policy Group, which determines
firm-wide asset allocation policy.
Before joining the
firm in 2005, Seth was Director of Emerging Market Fixed Income and Currency Strategist at Citigroup/Salomon Smith Barney and Head of Economic and Political Analysis for Mexico, Venezuela and Peru. Prior to that, he was the Latin American equity
strategist for Merrill Lynch, where he advised clients on Latin American equity markets and macro outlook. Seth began his career at Chemical Bank as a macroeconomic and political research analyst. There, he co-authored the Weekly Latin America
Update and the Latin American Quarterly, providing comprehensive economic and political analysis. Seth has worked in investment management since 1994.
He earned his Ph.D. and Master of Arts degrees in Political
Economy and a Bachelor of Arts degree in Economics and Political Science from Columbia University.
Jonathan Yozzo
Seix Core
Bond Fund—2015
Seix Corporate Bond Fund—2015
Seix U.S. Mortgage Fund—2015
Seix Total Return Bond Fund—2015
Seix Limited Duration Fund—2015
Seix Short-Term Bond Fund—2015
Seix Ultra-Short
Bond Fund—2015
Jonathan Yozzo is a Portfolio
Manager for Credit and Managing Director focused on investment grade credit.
Before joining Seix in 2000, he was a natural gas commodities
broker at PVM Oil Associates responsible for brokerage of domestic natural gas products & foreign & domestic crude oil. Prior to that, Jonathan was a member of capital markets group & energy derivatives group at Prebon Yamane (U.S.A.)
Inc. responsible for brokerage of short term eurodollars & forward rate agreements and sales associate at JPMorgan Securities, Inc. working primarily on the investment grade corporate sales desk. He has worked in investment management since
1991.
Jonathan received a B.S. degree in History
from Syracuse University.
Carlos Catoya
Seix Core Bond Fund—2015
Seix Corporate Bond Fund—2015
Seix U.S. Mortgage Fund—2015
Seix Total Return Bond Fund—2015
Seix Limited Duration Fund—2015
Seix Short-Term Bond
Fund—2015
Seix Ultra-Short Bond Fund—2015
Carlos Catoya is a Portfolio Manager for
Credit and Managing Director at Seix Investment Advisors.
Before joining Seix in 2001, Carlos was a vice president of the
global banking energy group at Royal Bank of Canada (RBC), and responsible for rating agency relationships. Previously, Carlos was director and group leader of Standard & Poor’s oil and gas corporate ratings team. Carlos was responsible
for the ratings of independent oil and gas producers, refiner & marketers, and oilfield service companies. In addition he led the corporate rating’s input into rating decisions for certain sovereign and selected project finance ratings.
Prior to joining the rating agency, Carlos was a commercial banker having served in different analytical and lending relationship manager capacities as an officer at Credit Suisse US and First Fidelity (now Wells Fargo). He has worked in investment
management since 1994.
Carlos received a B.S.
degree (magna cum laude) from Rutgers University, and received an M.B.A. degree in Finance (with concentration in International Business) & Accounting (with concentration in Financial Statement Analysis) from New York University.
High Yield Funds
George Goudelias
Seix Floating Rate High Income Fund—Inception
George Goudelias is a Senior Portfolio Manager, Head of
Leveraged Finance and a Senior High Yield Research Analyst covering the Telecommunications sector for Seix Investment Advisors. He is a member of the Seix Investment Policy Group, which determines firm-wide asset allocation policy. George has
extensive experience covering the telecommunications industry and is well known on both the sell side and buy side of the business.
Prior to joining the firm, George was a senior high yield
research analyst at J.P. Morgan Securities and was a member of the high yield team. Prior to that, he was an associate in financial reporting for J.P. Morgan, focused on developing financial tools to monitor risk-based capital. He has worked in
investment management since 1987.
George earned a Master of Business Administration degree in Finance and a
Bachelor of Science degree in Finance and Accounting from New York University.
Vincent Flanagan
Seix
Floating Rate High Income Fund—2011
Vince
Flanagan is a Portfolio Manager and Senior High Yield Research Analyst focusing on Media and Technology sectors for Seix Investment Advisors.
Vince joined the firm in 2006, and became a portfolio manager
in October 2011. Previously, he was the Director of Research for Assurant, Inc., covering the telecommunications, cable/media, utility and broadcasting industries, where he was instrumental in building and maintaining a proprietary credit database
of in-house credit opinions on specific industries and credits. He began his career at TD Securities, advancing to a senior high yield research analyst, where he focused on U.S. and Canadian wireless carriers. Vince has worked in investment
management since 1997.
He earned a Bachelor of Science
degree in Finance from New York University and is a Chartered Financial Analyst charterholder.
Michael Kirkpatrick
Seix
High Income Fund—2011
Seix High Yield Fund—2007
Michael Kirkpatrick is a Senior Portfolio Manager, Managing
Director and Senior High Yield Research Analyst primarily covering the Gaming and Finance sectors for Seix Investment Advisors and is a member of the Seix Investment Policy Group, which determines firm-wide asset allocation policy.
Prior to joining the firm in 2002, Michael was a senior analyst
with Oppenheimer Funds, Inc., covering the telecommunications and cable industries. He was previously vice president and co-head of research at BNY Capital Markets, Inc., where he held responsibility for the telecommunications and consumer related
industries. Prior to that he was at Mendham Capital Group as a managing partner in high yield research, where he focused on consumer-related industries. Mike has worked in investment management since 1991.
He earned a Master of Business Administration degree from
Rutgers University and a Bachelor of Science degree in Civil Engineering from the University of Delaware, School of Engineering.
James FitzPatrick
Seix High
Income Fund—2013
Seix High Yield Fund—2013
James FitzPatrick is a Portfolio Manager, Managing Director and
Head of Leveraged Finance Trading for Seix Investment Advisors.
Upon joining the firm in 1997 with a background in fixed income
analysis and trading, James served as an analyst, co-portfolio manager and head trader in the mortgage-backed securities group. In 2002, he joined the high yield group as a trader and was later named head of the team. Previously, James was with
Prudential Securities, where he handled corporate, government
Purchasing, Selling and
Exchanging Fund Shares
and mortgage trades as well as settlement and portfolio
administration. He has worked in investment management since 1996.
James earned a Bachelor of Arts degree in Marketing from the
University of Delaware and is a Chartered Financial Analyst charterholder.
Municipal Funds
Ronald Schwartz
Seix High
Grade Municipal Bond Fund—Inception
Seix Investment Grade Tax-Exempt Bond Fund—Inception
Seix Short-Term Municipal Bond Fund—2011
Ron Schwartz is a Senior Portfolio Manager and Managing
Director and leads the Investment Grade Tax-Exempt group at Seix Investment Advisors and is a member of the Seix Investment Policy Group, which determines firm-wide asset allocation policy.
Ron joined Seix Investment Advisors’ predecessor firm in
1988 and has worked in investment management since 1982.
He earned a Bachelor of Arts degree in Business Administration
from Adelphi University. Ron is a Chartered Financial Analyst (CFA) Charterholder, member of the CFA Society of Orlando and National Federation of Municipal Analysts.
Dusty Self
Seix Short-Term
Municipal Bond Fund—2011
Dusty Self is a
Portfolio Manager and Managing Director at Seix Investment Advisors and provides analysis for all the Investment Grade Tax-Exempt Bond Funds.
Dusty began her career as a portfolio
specialist and then as a performance analyst at Seix Investment Advisors’ predecessor firm. She has worked in investment management since 1992.
Dusty earned a Bachelor of Science degree in Business
Management from the University of Maryland and is a member of the National Federation of Municipal Analysts and the Southern Municipal Finance Society.
Chris Carter
Seix Georgia
Tax-Exempt Bond Fund—2003
Seix North Carolina Tax-Exempt Bond Fund—2005
Seix Virginia Intermediate Municipal Bond Fund—2011
Christopher Carter is a Portfolio Manager and Managing Director
at Seix Investment Advisors.
Prior to joining Seix Investment
Advisors’ predecessor firm in 2003, Chris worked for Wachovia Bank, N.A., Wachovia Asset Management and Evergreen Investment Management Company, where he held fixed income trading and portfolio management responsibilities. Prior to that Chris
worked at Integon Corporation as a securities settlement specialist. He has worked in investment management since 1991.
Chris earned a Master of Business Administration degree from
the University of North Carolina at Greensboro and a Bachelor of Science degree, cum laude, from Elon University. Chris is a Chartered Financial Analyst (CFA) charterholder and a member of the CFA Society of Orlando.
Purchasing, Selling and Exchanging Fund Shares
This section tells you how to purchase, sell (sometimes called
“redeem”) and exchange A Shares, C Shares, R Shares, I Shares and IS Shares of the Funds. Participants in retirement plans must contact their Employee Benefits Office or their Plan’s Administrator for information regarding the
purchase, redemption or exchange of shares, or for questions about their specific accounts. Plans may require separate documentation and the plan’s policies and procedures may be different than those described in this prospectus. Investors
purchasing or selling shares through a retirement plan should also refer to their Plan documents. Please review the information you have about your retirement plan.
Investors purchasing or selling shares through a financial
intermediary may be charged transaction-based or other fees by the financial intermediary for its services. Please consult your financial intermediary for more information regarding such fees and for purchase instructions.
Purchasing Fund Shares
Where can I buy Fund shares?
You may purchase shares of the Funds through financial
institutions or intermediaries that are authorized to place transactions for their customers. Please contact your financial institution or intermediary directly and follow its procedures for purchase transactions. Your financial institution or
intermediary may charge a fee for its services, in addition to the fees charged by a Fund. You will also, generally, have to address your correspondence or questions regarding a Fund to your financial institution or intermediary. Your investment
professional can assist you in opening a brokerage account that will be used for purchasing shares of RidgeWorth Funds.
Eligible shareholders may purchase directly
from the Funds. Please see the section entitled “How Do I Open an Account?” for additional information.
Who can buy shares?
A Shares and C Shares may be purchased by all eligible investors that meet the requirements of the “Where can I buy Fund shares?” section, above.
R Shares are designed to be
sold only through various third-party intermediaries that offer employer-sponsored defined contribution retirement plans and other retirement plan platforms including brokers, dealers, banks, insurance companies, retirement plan record-keepers and
others. R Shares require an agreement with the Funds prior to investment. The intermediary may charge a fee for its services. Please consult your intermediary to find out about how to purchase R Shares of the Funds.
R Shares may also be purchased by shareholders of the Seix
Total Return Bond Fund who owned C Shares in the Fund on February 12, 2009 and by shareholders of the Seix Core Bond
Purchasing, Selling
and Exchanging Fund Shares
Fund, the Seix High Income Fund, and the Seix High Yield Fund
who owned C Shares in the applicable Fund on July 31, 2009.
I Shares are offered to
financial institutions and intermediaries for their own accounts or for the accounts of customers for whom they act as fiduciary, agent, investment adviser, or custodian. Financial intermediaries include brokers, dealers, banks (including bank trust
departments), trust companies, registered investment advisers, financial planners, retirement plan administrators, insurance companies, and any other institution having a service, administration, or any similar arrangement with the Funds or their
service providers. These accounts primarily consist of:
• |
assets of a bona fide trust,
|
• |
assets of a business entity
possessing a tax identification number, |
• |
assets of an employee benefit
plan, |
• |
assets held within select
fee-based programs, or |
•
|
assets
held within certain non-discretionary intermediary no-load platforms. |
Employee benefit plans generally include profit sharing, 401(k)
and 403(b) plans. Employee benefit plans generally do not include IRAs; SIMPLE, SEP, SARSEP plans; plans covering self-employed individuals and their employees; or health savings accounts unless you, as a customer of a financial institution or
intermediary, meet the Funds’ established criteria as described above.
As a result, you, as a customer of a financial institution or
intermediary, may, under certain circumstances that meet the Funds’ established criteria, be able to purchase I Shares through accounts made with select financial institutions or intermediaries. I Shares will be held of record by (in the name
of) your financial institution or intermediary. Depending upon the terms of your account, you may have, or be given, the right to vote your I Shares. Financial institutions or intermediaries may impose eligibility requirements for each of their
clients or customers investing in the Funds, including investment minimum requirements, which may differ from those imposed by the Funds. Please contact your financial institution or intermediary for complete details for purchasing I Shares.
I Shares may also be purchased directly from the Funds by
officers, directors or trustees, and employees and their immediate families (strictly limited to current spouses/domestic partners and dependent children) of RidgeWorth Funds, the Adviser and Subadvisers to the RidgeWorth Funds.
Validation of current employment/service will be required upon
establishment of the account. The Funds, in their sole discretion, may determine if an applicant qualifies for this program.
IS Shares do not pay, nor will they pay, any
type of servicing, administrative, or revenue sharing payments, nor will the Adviser or any of its affiliates make any such payments. IS Shares are offered to the following investors (provided that
they do not require nor receive any such payments with respect to IS Shares)
without a minimum initial investment:
• |
qualified retirement plans,
including, but not limited to, 401(k) plans, 457 plans, employer sponsored 403(b) plans, defined benefit plans and other accounts or plans whereby IS Shares are held on the books of the Fund through plan level or omnibus accounts |
• |
bank and trust companies;
|
• |
insurance companies;
|
• |
registered investment
companies; and |
•
|
non-qualified
deferred compensation plans. |
Other
institutional investors not included in the list above may be permitted to purchase IS Shares subject to management’s determination of eligibility and may be subject to a $2,500,000 minimum initial investment requirement. The minimum initial
investment amount may be waived subject to management’s discretion, and/or purchased by or through:
• |
certain registered open-end
investment companies whose shares are distributed by the Distributor; |
• |
accounts held by, or for the
benefit of, an affiliate of the Fund; or |
•
|
investments made
in connection with certain reorganizations as approved by the Adviser. |
If your account is subject to the minimum investment
requirement, and the value of your account falls below the minimum initial investment requirements for IS Shares as a result of share redemptions or you no longer meet one of the waiver criteria set forth above, your account may be subject to
involuntary conversion or involuntary redemption, as applicable. You will be notified prior to any such conversions or redemptions.
Foreign Investors
To purchase A Shares, C Shares, R Shares and IS
Shares of the Funds, you must be a U.S. citizen, a U.S. resident alien, or a U.S. entity, with a U.S. tax identification number, and reside in the U.S. or its territories (which includes U.S. military APO or FPO
addresses). If you owned shares on July 31, 2006, you may keep your account open even if you do not reside in the U.S. or its territories, but you may not make additional purchases or exchanges.
The Funds do not generally accept investments in I Shares by
non-U.S. citizens or entities. Investors in I Shares generally must reside in the U.S. or its territories (which includes U.S. military APO or FPO addresses) and have a U.S. tax identification number.
Purchasing the Seix Limited Duration Fund
Effective June 30, 2011, the Seix Limited Duration Fund is open
solely to (i) clients of Seix Investment Advisors LLC, the Fund’s Subadviser, and its affiliates, and (ii) such other investors as RidgeWorth Investments, shall approve in its discretion. All shareholders of the Limited Duration Fund as of
June 30, 2011, however, can continue to hold and purchase additional shares.
Purchasing, Selling and
Exchanging Fund Shares
When can I purchase shares?
The Funds are open for business on days when the New York Stock
Exchange (the “NYSE”) is open for regular trading (a “Business Day”). The RidgeWorth Funds reserve the right to open one or more Funds on days that the principal bond markets (as recommended by the Securities Industry and
Financial Markets Association) are open, even if the NYSE is closed. Each Fund calculates its net asset value per share (“NAV”) once each Business Day at the close of regular trading on the NYSE (normally 4:00 p.m. Eastern Time).
If a Fund or its authorized agent receives your purchase or
redemption request in proper form before 4:00 p.m. Eastern Time, your transaction will be priced at that Business Day’s NAV. If your request is received after 4:00 p.m. Eastern Time, it will be priced at the next Business Day’s
NAV.
The time at which transactions and shares are priced
and the time until which trades are accepted may be changed if the NYSE closes early or if the principal bond markets close early on days when the NYSE is closed. For those Funds that open on days when the NYSE is closed, these times will be the
time the principal bond markets close.
The Funds will not
accept trades that request a particular day or price for the transaction or any other special conditions.
You may be required to transmit your purchase, sale and exchange
orders to your financial institutions or intermediaries at an earlier time for your transaction to become effective that day. This allows your financial institution or intermediary time to process your order and transmit it to the transfer agent in
time to meet the above stated Fund cut-off times. For more information about how to purchase, sell or exchange Fund shares, including your financial institution’s or intermediary’s internal order entry cut-off times, please contact your
financial institution or intermediary directly.
A Fund
may reject any purchase order.
How do the Funds calculate
NAV?
The offering price of A Shares is the NAV
next calculated after the Funds receive your request, in proper form, plus any front-end sales charge. The offering price of C Shares, R Shares, I Shares and IS Shares is simply the next calculated NAV.
The NAV is calculated by adding the total value of a
Fund’s investments and other assets, subtracting its liabilities, and then dividing that figure by the number of outstanding shares of the Fund.
In calculating the NAV, each Fund generally values its
investment portfolio at market price. If market prices are not readily available, or a Fund reasonably believes that market prices or amortized cost valuation methods are unreliable, such as in the case of a security value that has been materially
affected by events occurring after the relevant market closes, a Fund is required to price those securities at fair value as determined in good faith using methods approved by the Board. A Fund’s determination of a security’s fair value
price often involves the consideration of a number of subjective factors,
and is, therefore, subject to the unavoidable risk that the value that a Fund
assigns to a security may be higher or lower than the security’s value would be if a reliable market quotation for the security was readily available.
With respect to non-U.S. securities held by a Fund, the Fund
may take factors influencing specific markets or issues into consideration in determining its fair value. International securities markets may be open on days when the U.S. markets are closed. In such cases, the value of any international securities
owned by a Fund may be significantly affected on days when investors cannot buy or sell shares. In addition, due to the difference in times between the close of the international markets and the time a Fund prices its shares, the value the Fund
assigns to securities generally will not be the same as the primary markets or exchanges. In determining fair value prices, a Fund may consider the performance of securities on their primary exchanges, foreign currency appreciation/depreciation,
securities market movements in the U.S., or other relevant information as related to the securities.
When valuing fixed income securities with remaining maturities
of more than 60 days, the Funds use the value of the security provided by pricing services. The values provided by a pricing service may be based upon market quotations for the same security, securities expected to trade in a similar manner, or a
pricing matrix. When valuing fixed income securities with remaining maturities of 60 days or less, the Funds use the security’s amortized cost. Amortized cost and the use of a pricing matrix in valuing fixed income securities are forms of fair
value pricing. Fair value prices may be determined in good faith using methods approved by the Board.
How do I open an account?
Read this prospectus carefully, select the Fund or Funds and
share class most appropriate for you, and decide how much you want to invest.
The Funds do not accept cash, credit card checks, third-party
checks, travelers’ checks, money orders, bank starter checks, or checks drawn in a foreign currency, as payment for Fund shares.
If your payment does not clear or is not received in a timely
manner, your purchase may be canceled. You will be responsible for any losses or expenses incurred by the Funds or its transfer agent, and the Funds can redeem shares you own in any of the Funds or in another identically registered RidgeWorth Funds
account as reimbursement.
Eligible shareholders who
purchase shares directly from the Funds may purchase additional Fund shares by:
• |
Mail
|
• |
Telephone (1-888-784-3863)
|
• |
Wire
|
• |
Fax (1-800-451-8377)
|
•
|
Automated
Clearing House (“ACH”) |
Purchasing, Selling
and Exchanging Fund Shares
In-Kind Purchases
Payment for shares of a Fund may, at the discretion of the
Adviser, be made in the form of securities that are permissible investments for such Fund. In connection with an in-kind securities payment, a Fund will require, among other things, that the securities: (a) meet the investment objectives and
policies of the Fund; (b) are acquired for investment and not for resale; (c) are liquid securities that are not restricted as to transfer either by law or liquidity of markets; (d) have a value that is readily ascertainable (e.g., by a listing on a
nationally recognized securities exchange); and (e) are valued on the day of purchase in accordance with the pricing methods used by the Fund. For further information about this form of payment, please call 1-888-784-3863.
Systematic Investment Plan
The Systematic Investment Plan is only available to
shareholders who own A Shares or C Shares. If you have a checking or savings account with a bank, you may purchase A Shares and C Shares automatically through regular
deductions from your bank account. With a $500 minimum initial investment, you may begin regularly-scheduled investments of $50 or more, once or twice a month. Shareholders should contact their financial intermediaries for more information on how to
take advantage of this feature.
What is the minimum
amount to purchase shares of Fund?
To purchase shares for
the first time, you must invest in any Fund at least:
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
R
Shares |
No
minimum |
I
Shares |
No
minimum |
IS
Shares |
$2,500,000
(no minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
Purchases of C Shares of the Seix U.S. Mortgage Fund or the
Seix Short-Term Bond Fund requested in an amount of $250,000 or more will be converted to A Shares of that Fund. Purchases of C Shares of any other Fund requested in an amount of $1,000,000 or more will be converted to A Shares of that Fund. No fees
will be incurred as a result of these conversions.
For A
and C Shares purchases, your subsequent investments must be made in amounts of at least $1,000. The Funds reserve the right to waive and/or reduce the minimum or subsequent investment amounts.
For investors who qualify to purchase R shares and I Shares,
there are no minimum investment amounts for initial or subsequent purchases.
Officers, directors or trustees, and employees and their immediate families
(strictly limited to current spouses/domestic partners and dependent children) of the Funds, Adviser and the Subadvisers may also purchase I Shares. There is no minimum investment.
Sales Charges
A Shares
The offering price of A Shares is the NAV next calculated after
a Fund receives your request in proper form, plus the front-end sales charge.
The amount of any front-end sales charge included in your
offering price varies, depending on the amount of your investment.
For the Funds listed below, the immediately following table
applies:
Seix Core Bond Fund
Seix Corporate Bond
Fund
Seix Georgia Tax-Exempt Bond Fund
Seix High Grade Municipal Bond Fund
Seix High Income Fund
Seix High Yield Fund
Seix Investment Grade Tax-Exempt Bond Fund
Seix North Carolina Tax-Exempt Bond Fund
Seix Total Return
Bond Fund
Seix Virginia Intermediate Municipal Bond Fund
If
Your Investment is: |
Your
Sales Charge as a Percentage of Offering Price* |
Your
Sales Charge as a Percentage of Your Net Investment |
Less
than $50,000 |
4.75%
|
4.99%
|
$50,000
but less than $100,000 |
4.50%
|
4.71%
|
$100,000
but less than $250,000 |
3.50%
|
3.63%
|
$250,000
but less than $500,000 |
2.50%
|
2.56%
|
$500,000
but less than $1,000,000 |
2.00%
|
2.04%
|
$1,000,000
and over |
None
|
None
|
*
|
RidgeWorth Distributors LLC
(the “Distributor”) may pay a percentage of the offering price as a commission to broker-dealers. While investments over $1,000,000 are not subject to a front-end sales charge, the Distributor may pay dealer commissions ranging from
0.25% to 0.50%. |
For the Funds listed
below, the immediately following table applies:
Seix
Floating Rate High Income Fund
Seix Short-Term Bond Fund
Seix Short-Term Municipal Bond Fund
Seix U.S. Mortgage Fund
If
Your Investment is: |
Your
Sales Charge as a Percentage of Offering Price* |
Your
Sales Charge as a Percentage of Your Net Investment |
Less
than $50,000 |
2.50%
|
2.56%
|
$50,000
but less than $100,000 |
2.25%
|
2.30%
|
$100,000
but less than $250,000 |
2.00%
|
2.04%
|
Purchasing, Selling and
Exchanging Fund Shares
If
Your Investment is: |
Your
Sales Charge as a Percentage of Offering Price* |
Your
Sales Charge as a Percentage of Your Net Investment |
$250,000
but less than $500,000 |
1.75%
|
1.78%
|
$500,000
but less than $1,000,000 |
1.50%
|
1.52%
|
$1,000,000
and over |
None
|
None
|
*
|
The Distributor may pay a
percentage of the offering price as a commission to broker-dealers. While investments over $1,000,000 are not subject to a front-end sales charge, the Distributor may pay dealer commissions ranging from 0.25% to 0.50%. |
Waiver of Front-End Sales Charge
The front-end sales charge may be waived on A Shares
purchased:
• |
through reinvestment of
dividends and distributions; |
• |
by persons repurchasing shares
they redeemed within the last 180 days (see “Repurchase of A Shares”); |
• |
by employees, and members of
their immediate family (spouse/domestic partner, mother, father, mother-in-law, father-in-law, and children, including step-children, under the age of 21 years), of the Adviser and its affiliates; |
• |
through financial
intermediaries or institutions; retirement plans, plan administrators or record-keepers; asset allocation, or wrap programs or self-directed investment brokerage accounts; that, under the terms of their respective agreements with the Distributor or
otherwise, agree to either (i) not charge the front-end sales charge, or (ii) do not receive compensation derived from the front-end sales charge, but may or may not charge a transaction fee to their customers; or |
• |
by Trustees and Officers of
the RidgeWorth Funds. |
Repurchase of
Shares
You may repurchase any amount of A Shares of
any Fund at the NAV (without the normal front-end sales charge), up to the limit of the value of any amount of A Shares (other than those which were purchased with reinvested dividends and distributions) that you redeemed within the past 180 days.
In effect, this allows you to reacquire shares that you may have had to redeem, without re-paying the front-end sales charge. Such repurchases may be subject to special tax rules. See the “Taxes” section of the SAI for more information.
To exercise this privilege, the Funds must receive your purchase order within 180 days of your redemption. In addition, you must notify the Funds when you send in your purchase order that you are
repurchasing shares.
Reduced Sales
Charges
Rights of Accumulation. You may take into account your accumulated holdings in all share classes of RidgeWorth Funds to determine the initial sales charge you pay on each purchase of A Shares. In calculating the appropriate sales charge rate,
this right allows you to add the market value (at the close of business on the day of the current purchase) of your existing
holdings in any class of shares to the amount of A Shares you are currently
purchasing. The Funds may amend or terminate this right at any time. Please see the Funds’ SAI for details.
Letter of Intent. A Letter of
Intent allows you to purchase A Shares over a 13-month period and receive the same sales charge as if you had purchased all the shares at the same time. The Funds will hold a certain portion of your investment in escrow until you fulfill your
commitment. Please see the SAI for details.
Combined
Purchase/Quantity Discount Privilege. When calculating the appropriate sales charge rate, the Funds will combine same day purchases of shares of any class made by you, your spouse/domestic partner and your minor
children (under age 21). This combination also applies to A Shares you purchase with a Letter of Intent.
Contingent Deferred Sales Charges (“CDSC”)
You do not pay a sales charge when you purchase C Shares. The offering price of C Shares is simply the next calculated NAV. But, if you sell your shares within the first year after your purchase, you will pay a CDSC equal to 1% of either (i) the NAV of the shares
at the time of purchase, or (ii) the NAV of the shares next calculated after the Funds receive your sale request, whichever is less. The Funds will use the first-in, first-out (FIFO) method to determine the holding period. You never pay a CDSC on
any increase in your investment above the initial offering price. The CDSC does not apply to shares you purchase through reinvestment of dividends or distributions or to exchanges of C Shares of one Fund for C Shares of another Fund.
A
Shares - Investments of $1,000,000 or more. You do not pay an initial sales charge when you buy $1,000,000 or more of A Shares in either a single investment or through our
rights of accumulation, letter of intent, or combined purchase/quantity discount programs. However, you will pay a CDSC of 0.50% if you redeem any of these A Shares within two years of purchase. The CDSC may be waived from time to time for certain
broker-dealers that waive payment of compensation to them. The CDSC is calculated based on the lesser of (i) the NAV of the shares at the time of purchase or (ii) the NAV of the shares next calculated after the Fund receives your redemption request.
The CDSC does not apply to shares you purchase through reinvestment of dividends or capital gains distributions.
Waiver of CDSC
The CDSC for A Shares or
C Shares will be waived if you sell your shares for the following reasons:
• |
Death or Post-purchase
Disablement (as defined in Section 72(m)(7) of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”)) |
You are shareholder/joint
shareholder or participant/beneficiary of certain retirement plans;
–
|
You die or become disabled
after the account is opened; |
–
|
Redemption
must be made within 1 year of such death/disability; |
Purchasing, Selling
and Exchanging Fund Shares
–
|
The Funds must be notified in
writing of such death/disability at time of redemption request; and |
–
|
The Funds must be provided
with satisfactory evidence of death (death certificate) or disability (doctor’s certificate specifically referencing disability as defined in 72(m)(7) of the Internal Revenue Code). |
• |
Shares purchased through
dividend and capital gains reinvestment. |
•
|
Participation
in the Systematic Withdrawal Plan described below: |
–
|
Withdrawal not to exceed 10%
of the current balance of a Fund in a 12 month period. The 10% amount will be calculated as of the date of the initial Systematic Withdrawal Plan and recalculated annually on the 12 month anniversary date. Shares purchased through dividend or
capital gains reinvestment, although not subject to the CDSC, will be included in calculating the account value and 10% limitation amount. |
–
|
If the total of all Fund
account withdrawals (Systematic Withdrawal Plan or otherwise) exceeds the 10% limit within the 12 month period following the initial calculation date, the entire Systematic Withdrawal Plan for the period will be subject to the applicable sales
charge. In the initial year of a Systematic Withdrawal Plan, the withdrawal limitation period shall begin 12 months before the initial Systematic Withdrawal Plan payment. |
–
|
To qualify for the CDSC waiver
under the Systematic Withdrawal Plan, a Fund account must have a minimum of $10,000 at Systematic Withdrawal Plan inception and must also reinvest dividends and capital gains distributions. |
• |
Required mandatory minimum
withdrawals made after 70½ under any retirement plan qualified under Sections 401, 408 or 403(b) of the Internal Revenue Code or resulting from the tax free return of an excess distribution to an IRA. Satisfactory qualified plan documentation
to support any waiver includes employer letter (separation from services) and plan administrator certificate (certain distributions under plan requirements). |
• |
Permitted exchanges of
shares, except if shares acquired by exchange are then redeemed within the period during which a CDSC would apply to the initial shares purchased. |
•
|
Exchanges
in connection with plans of Fund reorganizations such as mergers and acquisitions. |
To take advantage of any of these waivers, you must qualify in
advance. To see if you qualify, please call your investment professional or other investment representative. These waivers are subject to change or elimination at any time at the discretion of the Funds.
The CDSC will be waived for certain retirement plan providers
that have entered into administrative agreements with the Funds. Please see the SAI for more information on this program.
The CDSC may also be waived from time to time for certain
broker-dealers that waive payment of compensation to them.
You can also obtain information about sales charges, rights of accumulation and
letters of intent on the Funds’ website at www.ridgeworth.com.
Customer Identification and Verification
To help the government fight the funding of terrorism and money
laundering activities, U.S. federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
When you open an account, you will be asked to provide your
name, residential street address, date of birth, and Social Security Number or tax identification number. You may also be asked for other information that will allow us to identify you. Entities are also required to provide additional documentation.
This information will be verified to ensure the identity of all persons opening a mutual fund account.
In certain instances, the Funds are required to collect
documents to fulfill their legal obligation. Documents provided in connection with your application will be used solely to establish and verify a customer’s identity.
The Funds are required by law to reject your new account
application if the required identifying information is not provided. Attempts to collect the missing information required on the application will be performed by either contacting you or, if applicable, your broker. If this information is unable to
be obtained within a timeframe established at the sole discretion of the Funds, your application will be rejected.
Upon receipt of your application in proper form (or upon
receipt of all identifying information required on the application), your investment will be accepted and your order will be processed at the NAV next determined.
However, the Funds reserve the right to close your account at
the then-current day’s price if the Funds are unable to verify your identity. Attempts to verify your identity will be performed within a timeframe established at the sole discretion of the Funds. If the Funds are unable to verify your
identity, the Funds reserve the right to liquidate your account at the then-current day’s price and remit proceeds to you via check. The Funds reserve the further right to hold your proceeds until your original check clears the bank. In such
an instance, you may be subject to a gain or loss on Fund shares and will be subject to corresponding tax implications.
Anti-Money Laundering Program
Customer identification and verification is part of the
Funds’ overall obligation to deter money laundering under U.S. federal law. The Funds have adopted an anti-money laundering compliance program designed to prevent the Funds from being used for money laundering or the financing of terrorist
activities. In this regard, the Funds reserve the right to (i) refuse, cancel or rescind any purchase or exchange order, (ii) freeze any account and/or suspend account services, or (iii) involuntarily redeem your account in cases of threatening
conduct or suspected fraudulent or illegal activity. These actions will be
Purchasing, Selling and
Exchanging Fund Shares
taken when, at the sole discretion of Fund management, they
are deemed to be in the best interest of the Funds or in cases when the Funds are requested or compelled to do so by governmental or law enforcement authority.
Selling Fund Shares
Shares may be sold on any Business Day by contacting your
financial institution or intermediary. Your financial institution or intermediary will give you information about how to sell your shares including any specific cut-off times required. Shares may be sold by following the procedures established at
the time your account was opened with the Funds or financial institution or intermediary. The sale price of each share will be the next NAV determined after the Funds receive your request in proper form. Your broker, financial institution or
intermediary may charge a fee for its services, in addition to the fees charged by the Funds.
Shareholders who purchased shares directly from the Funds may
sell their Fund shares by:
• |
Mail
|
• |
Telephone (1-888-784-3863)
|
• |
Wire
|
• |
Fax (1-800-451-8377)
|
•
|
ACH
|
To sell shares by telephone:
• |
redemption checks must be
made payable to the registered shareholder; and |
•
|
redemption
checks must be mailed to an address of record that has been associated with the shareholder account for at least 30 days. |
Signature Authentication
This section describes the Funds’ Medallion Signature
Guarantee and Signature Validation Program (SVP) policies. If you purchased your shares through a financial institution or intermediary, the below policies may not apply. Please contact your financial institution or intermediary for additional
information on their signature authentication policy.
For
certain financial and non-financial transactions, the Funds require proof that your signature is authentic and you have the authority to provide the instruction(s) contained in the request. This verification can be provided by either a Medallion
Signature Guarantee Stamp for financial transactions or an SVP Stamp for non-financial transactions.
Both types of stamps can be obtained from a financial
institution such as a domestic bank, trust company, broker/dealer, clearing agency, savings association, or other financial institution that participates in the Medallion Signature Guarantee Program or SVP. Please visit www.ridgeworth.com for a
Letter of Instruction Form that you can provide to your financial institution to obtain the appropriate stamp. Please note a notarized signature is not an acceptable substitute for a Medallion Signature Guarantee or an SVP Stamp. The Funds
reserve the right, at their sole discretion, to waive such requirements for a
specific request.
Financial Transactions
An original document containing a Medallion Signature Guarantee
is required for certain types of financial transactions. Examples include:
• |
Redemption proceeds payable
or sent to any person, address, or bank account other than the one currently on record. |
• |
Redemption requests sent to
an address of record that has been changed within the last 30 days. |
•
|
Registration
or ownership changes to your account. Ownership changes may include but are not limited to, certain types of transfers, gifting shares, beneficial inheritance, and loan collateral agreements. |
Non-Financial Transactions
For certain non-financial transactions, the Funds will accept
an original document containing an SVP Stamp. In the event an SVP Stamp is not used by the financial institution, you should request that it use its Medallion Signature Guarantee in lieu of the SVP Stamp. Examples include:
• |
Changing your name.
|
• |
Requests to add or change
banking information that the Funds have on file. |
•
|
Updates to
authorized signers on your account. |
Sale Price of Fund Shares
The sale price of each share will be the next NAV determined
after the Funds receive your request, in proper form, less any applicable CDSC.
Systematic Withdrawal Plan
The Systematic Withdrawal Plan is only available to
shareholders who own A Shares or C Shares. If you have at least $10,000 of A Shares and C Shares in your account, you may use the Systematic Withdrawal Plan. Under the
plan you may arrange monthly, quarterly, semi-annual or annual automatic withdrawals of at least $50 from any Fund. The proceeds of each withdrawal will be mailed to you by check or, if you have a checking or savings account with a bank, may be
electronically transferred to your account. Please check with your bank. Withdrawals under the Systematic Withdrawal Plan may be subject to a CDSC unless they meet the requirements described above under “Waiver of the CDSC.” Shareholders
should contact their financial intermediaries for more information on how to take advantage of this feature.
Redemptions In-Kind
The Funds generally pay redemption proceeds in cash. However,
under unusual conditions that make the payment of cash unwise (and for the protection of the Funds’ remaining shareholders), the Funds might pay all or part of your
Purchasing, Selling
and Exchanging Fund Shares
redemption proceeds in liquid securities with a market value
equal to the redemption price (redemption in kind). It is highly unlikely that your shares would ever be redeemed in kind, but if they were you would probably have to pay transaction costs to sell the securities distributed to you, as well as taxes
on any capital gains recognized in the redemption or in the sale of the securities distributed to you.
Involuntary Sales of Your Shares
If your account balance drops below the required minimum as a
result of redemptions you may be required to sell your shares. The account balance minimums are:
Class
|
Dollar
Amount |
A
Shares |
$2,000
|
C
Shares |
$5,000
($2,000 for IRAs or other tax-advantaged accounts) |
R
Shares |
No
minimums |
I
Shares |
No
minimums |
IS
Shares |
$2,500,000
(no minimum for certain investors. Please see the section entitled “Who can buy shares?”) |
The Funds will always give you at least 60 days written notice
to give you time to add to your account and avoid the sale of your shares.
Shareholders should contact their financial intermediary
regarding minimum investment requirements.
If the value
of your account falls below the minimum initial investment requirements for IS Shares as a result of share redemptions or you no longer meet one of the waiver criteria set forth above, your account may be subject to involuntary conversion or
involuntary redemption, as applicable. You will be notified prior to any such conversions or redemptions.
Receiving Your Money
Normally, the Funds will send your sale proceeds within five
Business Days after the Funds receive your request, but a Fund may take up to seven days to pay the sale proceeds if making immediate payments would adversely affect the Fund (for example, to allow the Fund to raise capital in the case of a large
redemption). Your sale proceeds can be wired to your bank account (subject to a fee) or sent to you by check. If you recently purchased your shares by check or through ACH, redemption proceeds may not be available
until your funds have cleared (which may take up to 10 calendar days from your date of purchase).
Each Fund tries to manage large redemptions of positions in the
Fund. However, a large redemption by a shareholder holding a significant investment in a Fund may have an adverse impact on the remaining shareholders in the Fund. For example, such a redemption may cause the Fund to (i) utilize outside sources of
liquidity, which may be more costly, or (ii) liquidate securities that otherwise would not have been sold, potentially impacting the Fund’s performance and generating capital gains distributions.
Suspension of Your Right to Sell Your Shares
A Fund may suspend your right to sell your shares if the NYSE
restricts trading, the SEC declares an emergency or for other reasons approved by the SEC. More information about this is in the Funds’ SAI.
Exchanging and Converting Your Shares
You must meet investor eligibility requirements applicable to
the share class into which you are exchanging. The Funds may accept investments of smaller amounts at its discretion. The Funds will treat any cross class conversion between classes of shares of the same Fund as a tax-free event. An exchange between
the same classes of shares of different Funds generally is treated as a taxable event.
For the purpose of computing the CDSC applicable to C Shares,
the length of time you have owned your shares will be measured from the original date of purchase and will not be affected by any exchange.
The exchange privilege is not intended as a vehicle for
short-term trading. Excessive exchange activity may interfere with Fund management and may have an adverse effect on all shareholders. In order to limit excessive exchange activity and in other circumstances where it is in the best interests of a
Fund, all Funds reserve the right to revise or terminate the exchange privilege, limit the amount or number of exchanges or reject any exchange or restrict or refuse purchases if (i) a Fund or its manager(s) believes the Fund would be harmed or
unable to invest effectively, or (ii) a Fund receives or anticipates orders that may dramatically affect the Fund as outlined under “Market Timing Policies and Procedures” below.
If you recently purchased shares by check or through ACH, you
may not be able to exchange your shares until your funds have cleared (which may take up to 10 calendar days from your date of purchase).
Exchanging Your Shares
You may exchange your Fund shares for the same class of shares
of any other RidgeWorth Fund. Your sales price and purchase price will be based on the NAV next calculated after the Funds receive your exchange request in proper form.
Exchanges into the RidgeWorth Ultra-Short
Funds — I Shares
At any time, you may exchange your
A, C or I Shares of any RidgeWorth Fund for shares of the RidgeWorth Seix U.S. Government Securities Ultra-Short Bond Fund I Shares and the RidgeWorth Seix Ultra-Short Bond Fund I Shares (the “RidgeWorth Ultra-Short Funds”). You should
read the RidgeWorth Ultra-Short Funds’ prospectus prior to investing in those Funds. You can obtain a prospectus by calling 1-888-784-3863 or by visiting www.ridgeworth.com. Qualifying exchanges between the Funds’ A and C Shares and the
RidgeWorth Ultra-Short Funds’ I Shares are eligible for exchange into the Funds’ A and/or C Shares without the
Market Timing Policies and
Procedures
imposition of the applicable front-end sales
charge and/or CDSC. If applicable, the CDSC of the Fund from which you exchanged will be carried over to the RidgeWorth Ultra-Short Funds and may be assessed if you sell your shares. Please see the Sales Charges section of the prospectus for more
information.
If you purchased shares though a
financial institution or intermediary please contact your financial institution or intermediary regarding the availability of this exchange privilege.
Cross Class Conversions
You may convert your shares for shares of a different class of
the same Fund based on the NAV of each class next calculated after the Fund receives your exchange request in proper form. If you have held your current shares for less than one year, your financial intermediary may assess any applicable CDSC on
your shares when you make the conversion.
Instructions
for Exchanging and Converting Shares
You may exchange or
convert your shares on any Business Day by contacting the Funds at 1-888-784-3863 or the financial institution or intermediary through which your shares are held.
Systematic Exchange Plan
The Systematic Exchange Plan is only available to shareholders
who own A Shares or C Shares. For investors who qualify, a systematic exchange feature may be added to your account. Shareholders should contact their financial
intermediary for more information about how to take advantage of this feature and the minimum investment requirements.
Telephone Transactions
Purchasing, selling and exchanging Fund shares over the
telephone is extremely convenient, but not without risk. Although the Funds have certain safeguards and procedures to confirm the identity of callers and the authenticity of instructions, the Funds are not responsible for any losses or costs
incurred by following telephone instructions the Funds reasonably believe to be genuine. If you or your financial institution or intermediary transact with the Funds over the telephone, you will generally bear the risk of any loss. The Funds reserve
the right to modify, suspend or terminate telephone transaction privileges at any time.
Market Timing Policies and Procedures
The Funds are intended for long-term investment purposes only
and discourage shareholders from engaging in “market timing” or other types of excessive short-term trading.
This frequent trading into and out of the Funds may present
risks to the Funds’ long-term shareholders, all of which could adversely affect shareholder returns. The risks posed by frequent trading include interfering with the efficient implementation of the Funds’ investment strategies,
triggering the recognition of taxable gains and losses on the sale of Fund
investments, requiring the Funds to maintain higher cash balances to meet
redemption requests, and experiencing increased transaction costs.
A Fund that invests a significant amount of its assets in
overseas markets is particularly susceptible to the risk of certain investors using a strategy known as time-zone arbitrage. Investors using this strategy attempt to take advantage of the differences in value of foreign securities that might result
from events that occur between the close of the foreign securities market on which a foreign security is traded and the time at which the Fund calculates its NAV.
The Funds and/or their service providers will take steps
reasonably designed to detect and deter frequent trading by shareholders pursuant to the Funds’ policies and procedures described in this prospectus and approved by the Funds’ Board. The Funds seek to discourage short-term trading by
using fair value pricing procedures to fair value certain investments under some circumstances. For purposes of applying these policies, the Funds’ service providers may consider the trading history of accounts under common ownership or
control. The Funds’ policies and procedures include:
• |
Restrictions on shareholders
from making more than one (1) “round trip” into and out of a Fund within 14 days or more than two (2) “round trips” within any continuous 90 day period. If a shareholder exceeds either “round trip” restriction, he
or she may be deemed a “Market Timer,” and the Funds and/or their service providers may, at their discretion, reject any additional purchase orders. The Funds define a round trip as a purchase into a Fund by a shareholder, followed by a
subsequent redemption out of the Fund. Anyone considered to be a Market Timer by the Funds, the Adviser, the Subadviser or a shareholder servicing agent may be notified in writing of their designation as a Market Timer; and |
•
|
Reserving
the right to reject any purchase request by any investor or group of investors for any reason without prior notice, including, in particular, if the Funds or the Adviser reasonably believes that the trading activity would be harmful or disruptive to
the Funds. |
The Funds and/or their
service providers seek to apply these policies to the best of their abilities uniformly and in a manner they believe is consistent with the interests of the Funds’ long-term shareholders.
Although these policies are designed to deter frequent trading,
none of these measures alone, nor all of them taken together, eliminate the possibility that frequent trading in the Funds will occur, particularly with respect to trades placed by shareholders that invest in the Funds through omnibus arrangements
maintained by brokers, retirement plan accounts and other financial intermediaries.
Purchase and redemption transactions submitted to the Funds by
these intermediaries reflect the transactions of multiple beneficial owners whose individual transactions are not automatically disclosed to the Funds. Therefore, the Funds rely in large part on the intermediaries who maintain omnibus arrangements
(which may represent a majority of Fund shares)
Distribution
of Fund Shares
to aid in the Funds’ efforts to detect and deter
short-term trading. The Funds monitor trading activity at the omnibus account level and look for activity that indicates potential short-term trading. If they detect suspicious trading activity, the Funds contact the intermediaries to determine
whether the short-term trading policy has been violated and may request and receive personal identifying information and transaction histories for some or all beneficial owners to make this determination.
If a Fund believes that a shareholder has violated the
short-term trading policy, it will take further steps to prevent any future short-term trading by such shareholder in accordance with the policy. The Funds cannot guarantee the accuracy of the information provided by the intermediaries and may not
always be able to track short-term trading affected through these intermediaries. A Fund has the right to terminate an intermediary’s ability to invest in a Fund if excessive trading activity persists and a Fund or its Adviser or Subadviser
reasonably believes that such termination would be in the best interests of long-term shareholders.
In addition to the Funds’ market timing policies and
procedures described above, you may be subject to the market timing policies and procedures of the intermediary through which you invest. Please consult with your intermediary for additional information regarding its frequent trading
restrictions.
Distribution of Fund Shares
Distribution of Fund Shares Generally
The Adviser, the Subadviser or their affiliates may make
payments from their own funds based on gross sales and current assets to selected brokerage firms or institutions. The amount of these payments may be substantial. The minimum aggregate sales required for eligibility for such payments, and the
factors in selecting the brokerage firms and institutions to which they will be made, are determined from time to time by the Adviser or Subadviser. Furthermore, the Adviser, the Subadviser or their affiliates may pay fees from their own
capital resources to financial intermediaries (such as brokers, banks, financial advisers and retirement plan service providers) to compensate them for providing distribution-related or shareholder services, for marketing expenses they incur, for
travel and lodging in connection with educational events or to pay for the opportunity to have them distribute the Funds.
The amount of these payments is determined by the
Adviser or Subadviser and may differ among financial intermediaries. Such payments may provide incentives for financial intermediaries to make shares of the Funds available to their customers, and may allow the Funds greater access to such
financial intermediaries and their customers than would be the case if no payments were made. You may wish to consider whether such arrangements exist when evaluating any recommendation to purchase shares of the Funds.
Please refer to the SAI for more information regarding these
arrangements.
Distribution Plan – A Shares, C Shares and R Shares
The A Shares, C Shares and R Shares of each Fund have adopted a
distribution plan that allows the Fund to pay distribution and service fees for the sale and distribution of its shares, and for services provided to shareholders. Because these fees are paid out of a Fund’s assets continuously, over time
these fees will increase the cost of your investment and may cost you more than paying other types of sales charges.
Broker-dealers who initiate and are responsible for selling C
Shares may receive an initial payment at the time of sale of 1.00% and annual 12b-1 payout effective in the 13th month of 1.00%. Through the distribution plan, the Funds’ Distributor is reimbursed for these payments, as well as other
distribution related services provided by the Distributor.
For A Shares, each Fund’s distribution plan authorizes
payment of up to the amount shown under “Maximum Fee” in the table that follows. Currently, however, the Board has only approved payment of up to the amount shown under “Current Approved Fee” in the table that follows. Fees
are shown as a percentage of average daily net assets of the Fund’s A Shares.
|
Maximum
Fee |
|
Current
Approved Fee |
Investment
Grade Funds |
|
|
|
Seix
Core Bond Fund |
0.25%
|
|
0.25%
|
Seix
Corporate Bond Fund |
0.35%
|
|
0.30%
|
Seix
Total Return Bond Fund |
0.25%
|
|
0.25%
|
Seix
U.S. Mortgage Fund |
0.23%
|
|
0.20%
|
Short
Duration Funds |
|
|
|
Seix
Short-Term Bond Fund |
0.23%
|
|
0.20%
|
High
Yield Funds |
|
|
|
Seix
Floating Rate High Income Fund |
0.35%
|
|
0.30%
|
Seix
High Income Fund |
0.30%
|
|
0.30%
|
Seix
High Yield Fund |
0.25%
|
|
0.25%
|
Municipal
Bond Funds |
|
|
|
Seix
Georgia Tax-Exempt Bond Fund |
0.18%
|
|
0.15%
|
Seix
High Grade Municipal Bond Fund |
0.18%
|
|
0.15%
|
Seix
Investment Grade Tax-Exempt Bond Fund |
0.35%
|
|
0.30%
|
Seix
North Carolina Tax-Exempt Bond Fund |
0.15%
|
|
0.15%
|
Seix
Short-Term Municipal Bond Fund |
0.15%
|
|
0.15%
|
Seix
Virginia Intermediate Municipal Bond Fund |
0.15%
|
|
0.15%
|
For C Shares, the maximum
distribution fee is 1.00% of the average daily net assets of a Fund’s C Shares.
The R Shares maximum distribution and service fee is 0.50%
of the average daily net assets of a Fund’s R Shares.
The Funds may provide financial assistance in connection with
pre-approved seminars, conferences and advertising to the extent permitted by applicable state or self-regulatory agencies, such as the Financial Industry Regulatory Authority.
Shareholder Servicing Plans, Dividends and
Distributions, Household Mailings and
Taxes
Shareholder Servicing Plans
With respect to the A Shares and I Shares of
certain of the Funds, the A Shares and I Shares Shareholder Servicing Plan permits the A Shares and I Shares of that Fund to pay financial intermediaries for shareholder support services they provide, at a rate of up to 0.20% of the average daily
net assets of each of the A Shares and I Shares of that Fund. The R Shares Shareholder Servicing Plan permits R Shares for certain of the Funds to pay specified benefit plans or other financial service firms for shareholder support services they
provide, at a rate of up to 0.25% of the average daily net assets of each of the R Shares of that Fund. Financial intermediaries include brokers, dealers, banks (including bank trust departments), trust companies, registered investment advisers,
financial planners, retirement plan administrators, insurance companies, and any other institution having a service, administration, or any similar arrangement with the Funds or their service providers. The shareholder support services may include,
among others, providing general shareholder liaison services (including responding to shareholder inquiries), providing information on shareholder investments, and establishing and maintaining shareholder accounts and records.
Dividends and Distributions
Each Fund declares dividends daily and pays these dividends
monthly. Each Fund makes distributions of its net realized capital gains, if any, at least annually. If you own Fund shares on a Fund’s record date, you will be entitled to receive the distribution.
You will receive dividends and distributions in the form of
additional Fund shares unless you elect to receive payment in cash. To elect cash payment, you must notify the Funds in writing prior to the date of the distribution. Your election will be effective for dividends and distributions paid after the
Funds receive your written notice. To cancel your election, simply send the Funds written notice.
Shareholders of the Funds are entitled to receive dividends
declared starting on the next business day after a purchase is received in good order.
Shareholders of the Funds are entitled to receive dividends
declared on the day their shares are redeemed.
401(k)
plan participants will receive dividends and distributions in the form of additional Fund shares if the participant owns shares of a Fund on the date the dividend or distribution is allocated by the 401(k) plan. Therefore, a participant will not
receive a dividend or distribution if the participant does not own shares of the applicable Fund on the date the dividend or distribution is allocated.
Household Mailings
To reduce expenses, we may mail only one copy of the Fund's
prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to
receive individual copies of these documents, please call us at 1-888-784-3863
(or contact your financial institution). We will begin sending you individual copies thirty days after receiving your request.
Taxes
Please consult your tax advisor regarding your specific questions
about U.S. federal, state, local, and foreign tax considerations relating to any investment in any Fund.
Summarized below are some important tax issues that affect the
Funds and their shareholders. This summary is based on current tax laws, which may change. More information on taxes is in the Funds’ SAI.
Each Fund will distribute substantially all of its net
investment income and its net realized capital gains, if any, at least annually. The dividends and distributions you receive may be subject to federal, state and local taxation, depending upon your tax situation. Distributions you receive from a
Fund may be taxable whether or not you reinvest them in additional shares.
Income distributions are generally taxable as
ordinary income. Capital gains distributions (i.e., distributions of the excess of net long-term capital gain over net short-term capital loss, if any) are generally taxable at the rates applicable to long-term capital gains. Long-term capital gains
are generally taxable to noncorporate shareholders at rates of up to 20%. Distributions from a Fund’s net short-term capital gains are generally taxable as ordinary income. Since each Fund's income is derived primarily from sources that
do not pay dividends, it is not expected that a substantial portion of the dividends paid by a Fund will qualify either for the dividends-received deduction for corporations or for any favorable U.S. federal income tax rate available to noncorporate
shareholders on "qualified dividend income." A high portfolio turnover rate and the use of certain derivatives may cause a Fund to recognize higher amounts of short-term capital gains.
If a Fund declares a dividend in October, November or December,
payable to shareholders of record in such a month, and pays it in January of the following year, you will be taxed on the dividend as if you received it in the year in which it was declared.
If you invest in a Fund shortly before a
capital gain distribution, generally you will pay a higher price per share and, unless you are exempt from tax, you will pay taxes on the amount of the distribution.
Distributions from a Fund and capital gains on a disposition of
Fund shares are generally taken into account for purposes of the 3.8% U.S. federal Medicare contribution tax on all or a portion of the “net investment income” of individuals with income exceeding certain thresholds. This 3.8% tax also
applies to all or a portion of the undistributed net investment income of certain shareholders that are estates and trusts. “Net investment income” for this purpose does not include exempt-interest dividends (described
below).
Each Fund in which you invest will inform you shortly after
the close of each calendar year of the amounts of your distributions that may qualify as ordinary income dividends, qualified dividend income, exempt-interest dividends, and capital gain distributions.
You must provide your social security number or other taxpayer
identification number to a Fund along with any certifications required by the Internal Revenue Service. If you do not, or if it is otherwise legally required to do so, a Fund will apply “backup withholding” tax on your dividends
(including exempt-interest dividends) and other distributions, sale proceeds and any other payments to you that are subject to backup withholding. The backup withholding rate is 28%.
Dividends and distributions will accumulate on a tax-deferred
basis if you are investing through a 401(k) plan or any other employer-sponsored retirement or savings plan that qualifies for tax-advantaged treatment under federal income tax laws. Generally, you will not owe taxes on these distributions until you
begin withdrawals from the plan. Withdrawals from the plan are subject to numerous complex and special tax rules and may be subject to a penalty tax in the case of premature withdrawals. You should consult your tax advisor or plan administrator
regarding the tax rules governing your retirement or savings plan.
The Seix Georgia Tax-Exempt Bond Fund, Seix High Grade
Municipal Bond Fund, Seix Investment Grade Tax-Exempt Bond Fund, Seix North Carolina Tax-Exempt Bond Fund, Seix Short-Term Municipal Bond Fund and Seix Virginia Intermediate Municipal Bond Fund intend to distribute exempt-interest dividends.
Exempt-interest dividends are distributions from a Fund’s tax-exempt interest income and are exempt from regular federal income tax. A portion of exempt-interest dividends may be a tax preference item for purposes of the federal alternative
minimum tax applicable to individuals. Exempt-interest dividends distributed to corporate shareholders may result in increased liability under the federal alternative minimum tax applicable to corporations. Each of these Funds may invest a portion
of its assets in securities that generate taxable income for federal income tax purposes. Income exempt from federal tax may be subject to state and local taxes. Any capital gains distributed by these Funds may be taxable. While shareholders of
state-specific Funds may receive distributions that are exempt from a particular state’s income tax, such distributions may be taxable in other states where the shareholder files tax returns.
Except for the Funds that expect to distribute exempt-interest
dividends (described above), the Funds expect to distribute primarily ordinary income dividends.
The Seix Core Bond Fund, the Seix Short-Term Bond Fund, the
Seix Ultra-Short Bond Fund and the Seix U.S. Government Securities Ultra-Short Bond Fund expect that some portion of their distributions will be derived from interest earned on U.S. Government obligations. Subject to certain limitations, dividends
paid from interest earned on direct obligations of the U.S. Government (but generally not to distributions of gain from the sale of such obligations) may be, in some states, exempt from certain state and local taxes.
Certain Funds may be able to pass along a tax credit for foreign income taxes
they pay. In such event, the applicable Fund will provide you with the information necessary to reflect such foreign taxes on your federal income tax return.
The financial highlights table is intended to
help you understand a Fund’s financial performance for the past 5 years. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on
an investment in the Fund (assuming reinvestment of all dividends and distributions). This financial information has been audited by PricewaterhouseCoopers LLP. The Report of Independent Registered Public Accounting Firm for each period shown, along
with the Funds’ financial statements and related notes, are included in the Funds’ Annual Reports to Shareholders for such periods. The 2016 Annual Report is available upon request and without charge by calling 1-888-784-3863 or on the
Funds’ website at www.ridgeworth.com.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
Core Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$11.04
|
|
$0.20
|
|
$(0.08)
|
|
$
0.12 |
|
$(0.21)
|
|
$—
|
|
$(0.09)
|
|
$(0.30)
|
|
$10.86
|
|
$255,522
|
|
1.18%
|
|
0.48%
|
|
0.48%
|
|
1.82%
|
|
232%
|
|
Year Ended March 31,
2015
|
10.65
|
|
0.21
|
|
0.40
|
|
0.61
|
|
(0.22)
|
|
—
|
|
—
|
|
(0.22)
|
|
11.04
|
|
191,905
|
|
5.80
|
|
0.45
|
|
0.45
|
|
1.90
|
|
168
|
|
Year Ended March 31,
2014
|
11.16
|
|
0.18
|
|
(0.23)
|
|
(0.05)
|
|
(0.22)
|
|
—
|
|
(0.24)
|
|
(0.46)
|
|
10.65
|
|
200,371
|
|
(0.38)
|
|
0.42
|
|
0.42
|
|
1.67
|
|
208
|
|
Year Ended March 31,
2013
|
11.10
|
|
0.15
|
|
0.24
|
|
0.39
|
|
(0.20)
|
|
—
|
|
(0.13)
|
|
(0.33)
|
|
11.16
|
|
370,455
|
|
3.53
|
|
0.38
|
|
0.38
|
|
1.33
|
|
151
|
|
Year Ended March 31,
2012
|
11.00
|
|
0.24
|
|
0.81
|
|
1.05
|
|
(0.27)
|
|
—
|
|
(0.68)
|
|
(0.95)
|
|
11.10
|
|
439,017
|
|
9.65
|
|
0.48
|
|
0.48
|
|
2.15
|
|
211
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
11.04
|
|
0.18
|
|
(0.07)
|
|
0.11
|
|
(0.20)
|
|
—
|
|
(0.09)
|
|
(0.29)
|
|
10.86
|
|
10,170
|
|
1.01
|
|
0.65
|
|
0.65
|
|
1.65
|
|
232
|
|
Year Ended March 31,
2015
|
10.65
|
|
0.18
|
|
0.41
|
|
0.59
|
|
(0.20)
|
|
—
|
|
—
|
|
(0.20)
|
|
11.04
|
|
7,411
|
|
5.58
|
|
0.67
|
|
0.67
|
|
1.70
|
|
168
|
|
Year Ended March 31,
2014
|
11.16
|
|
0.15
|
|
(0.23)
|
|
(0.08)
|
|
(0.19)
|
|
—
|
|
(0.24)
|
|
(0.43)
|
|
10.65
|
|
9,848
|
|
(0.66)
|
|
0.71
|
|
0.71
|
|
1.38
|
|
208
|
|
Year Ended March 31,
2013
|
11.10
|
|
0.11
|
|
0.24
|
|
0.35
|
|
(0.16)
|
|
—
|
|
(0.13)
|
|
(0.29)
|
|
11.16
|
|
20,687
|
|
3.20
|
|
0.70
|
|
0.69
|
|
1.02
|
|
151
|
|
Year Ended March 31,
2012
|
11.00
|
|
0.21
|
|
0.80
|
|
1.01
|
|
(0.23)
|
|
—
|
|
(0.68)
|
|
(0.91)
|
|
11.10
|
|
21,644
|
|
9.29
|
|
0.82
|
|
0.82
|
|
1.84
|
|
211
|
|
R
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
11.05
|
|
0.15
|
|
(0.07)
|
|
0.08
|
|
(0.17)
|
|
—
|
|
(0.09)
|
|
(0.26)
|
|
10.87
|
|
3,448
|
|
0.78
|
|
0.88
|
|
0.88
|
|
1.41
|
|
232
|
|
Year Ended March 31,
2015
|
10.66
|
|
0.16
|
|
0.41
|
|
0.57
|
|
(0.18)
|
|
—
|
|
—
|
|
(0.18)
|
|
11.05
|
|
3,490
|
|
5.37
|
|
0.85
|
|
0.85
|
|
1.51
|
|
168
|
|
Year Ended March 31,
2014
|
11.17
|
|
0.14
|
|
(0.24)
|
|
(0.10)
|
|
(0.17)
|
|
—
|
|
(0.24)
|
|
(0.41)
|
|
10.66
|
|
4,115
|
|
(0.80)
|
|
0.85
|
|
0.85
|
|
1.29
|
|
208
|
|
Year Ended March 31,
2013
|
11.10
|
|
0.10
|
|
0.24
|
|
0.34
|
|
(0.14)
|
|
—
|
|
(0.13)
|
|
(0.27)
|
|
11.17
|
|
5,135
|
|
3.15
|
|
0.84
|
|
0.84
|
|
0.87
|
|
151
|
|
Year Ended March 31,
2012
|
11.01
|
|
0.18
|
|
0.78
|
|
0.96
|
|
(0.19)
|
|
—
|
|
(0.68)
|
|
(0.87)
|
|
11.10
|
|
5,952
|
|
8.83
|
|
1.16
|
|
1.16
|
|
1.55
|
|
211
|
|
IS
Shares(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.77
|
|
0.14
|
|
0.13
|
|
0.27
|
|
(0.15)
|
|
—
|
|
(0.03)
|
|
(0.18)
|
|
10.86
|
|
22
|
|
2.51
|
|
0.34
|
|
0.34
|
|
2.00
|
|
232
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
Corporate Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$8.95
|
|
$0.25
|
|
$(0.29)
|
|
$(0.04)
|
|
$(0.24)
|
|
$(0.01)
|
|
$(0.20)
|
|
$(0.45)
|
|
$8.46
|
|
$
8,943 |
|
(0.29)%
|
|
0.70%
|
|
0.83%
|
|
2.86%
|
|
84%
|
|
Year Ended March 31,
2015
|
8.80
|
|
0.26
|
|
0.32
|
|
0.58
|
|
(0.26)
|
|
—
|
|
(0.17)
|
|
(0.43)
|
|
8.95
|
|
24,172
|
|
6.73
|
|
0.66
|
|
0.69
|
|
2.95
|
|
90
|
|
Year Ended March 31,
2014
|
9.30
|
|
0.28
|
|
(0.21)
|
|
0.07
|
|
(0.28)
|
|
—
|
|
(0.29)
|
|
(0.57)
|
|
8.80
|
|
28,017
|
|
0.91
|
|
0.63
|
|
0.64
|
|
3.18
|
|
143
|
|
Year Ended March 31,
2013
|
9.35
|
|
0.32
|
|
0.30
|
|
0.62
|
|
(0.32)
|
|
—
|
|
(0.35)
|
|
(0.67)
|
|
9.30
|
|
51,828
|
|
6.71
|
|
0.60
|
|
0.61
|
|
3.36
|
|
58
|
|
Year Ended March 31,
2012
|
9.59
|
|
0.39
|
|
0.46
|
|
0.85
|
|
(0.39)
|
|
—
|
|
(0.70)
|
|
(1.09)
|
|
9.35
|
|
57,203
|
|
9.10
|
|
0.61
|
|
0.61
|
|
3.98
|
|
88
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
8.99
|
|
0.23
|
|
(0.29)
|
|
(0.06)
|
|
(0.22)
|
|
(0.01)
|
|
(0.20)
|
|
(0.43)
|
|
8.50
|
|
500
|
|
(0.52)
|
|
0.95
|
|
1.11
|
|
2.68
|
|
84
|
|
Year Ended March 31,
2015
|
8.84
|
|
0.24
|
|
0.32
|
|
0.56
|
|
(0.24)
|
|
—
|
|
(0.17)
|
|
(0.41)
|
|
8.99
|
|
807
|
|
6.40
|
|
0.95
|
|
0.99
|
|
2.67
|
|
90
|
|
Year Ended March 31,
2014
|
9.35
|
|
0.25
|
|
(0.21)
|
|
0.04
|
|
(0.26)
|
|
—
|
|
(0.29)
|
|
(0.55)
|
|
8.84
|
|
783
|
|
0.52
|
|
0.92
|
|
0.93
|
|
2.76
|
|
143
|
|
Year Ended March 31,
2013
|
9.40
|
|
0.29
|
|
0.30
|
|
0.59
|
|
(0.29)
|
|
—
|
|
(0.35)
|
|
(0.64)
|
|
9.35
|
|
4,020
|
|
6.39
|
|
0.88
|
|
0.88
|
|
3.06
|
|
58
|
|
Year Ended March 31,
2012
|
9.64
|
|
0.36
|
|
0.46
|
|
0.82
|
|
(0.36)
|
|
—
|
|
(0.70)
|
|
(1.06)
|
|
9.40
|
|
4,325
|
|
8.78
|
|
0.88
|
|
0.88
|
|
3.68
|
|
88
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
8.95
|
|
0.17
|
|
(0.29)
|
|
(0.12)
|
|
(0.16)
|
|
(0.01)
|
|
(0.20)
|
|
(0.37)
|
|
8.46
|
|
8,105
|
|
(1.22)
|
|
1.65
|
|
1.80
|
|
2.01
|
|
84
|
|
Year Ended March 31,
2015
|
8.80
|
|
0.18
|
|
0.32
|
|
0.50
|
|
(0.18)
|
|
—
|
|
(0.17)
|
|
(0.35)
|
|
8.95
|
|
9,289
|
|
5.69
|
|
1.64
|
|
1.67
|
|
1.97
|
|
90
|
|
Year Ended March 31,
2014
|
9.30
|
|
0.19
|
|
(0.21)
|
|
(0.02)
|
|
(0.19)
|
|
—
|
|
(0.29)
|
|
(0.48)
|
|
8.80
|
|
10,385
|
|
(0.07)
|
|
1.62
|
|
1.63
|
|
2.18
|
|
143
|
|
Year Ended March 31,
2013
|
9.35
|
|
0.23
|
|
0.30
|
|
0.53
|
|
(0.23)
|
|
—
|
|
(0.35)
|
|
(0.58)
|
|
9.30
|
|
15,558
|
|
5.67
|
|
1.57
|
|
1.58
|
|
2.39
|
|
58
|
|
Year Ended March 31,
2012
|
9.59
|
|
0.29
|
|
0.46
|
|
0.75
|
|
(0.29)
|
|
—
|
|
(0.70)
|
|
(0.99)
|
|
9.35
|
|
18,317
|
|
8.05
|
|
1.58
|
|
1.58
|
|
3.00
|
|
88
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
Floating Rate High Income Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$8.86
|
|
$0.40
|
|
$(0.53)
|
|
$(0.13)
|
|
$(0.40)
|
|
$—
|
|
$—
|
|
$(0.40)
|
|
$8.33
|
|
$3,040,875
|
|
(1.50)%
|
|
0.62%
|
|
0.62%
|
|
4.69%
|
|
33%
|
|
Year Ended March 31,
2015
|
9.06
|
|
0.39
|
|
(0.20)
|
|
0.19
|
|
(0.39)
|
|
—
|
|
—
|
|
(0.39)
|
|
8.86
|
|
6,048,771
|
|
2.17
|
|
0.61
|
|
0.61
|
|
4.34
|
|
29
|
|
Year Ended March 31,
2014
|
9.06
|
|
0.38
|
|
(0.01)
|
|
0.37
|
|
(0.37)
|
|
—
|
|
—
|
|
(0.37)
|
|
9.06
|
|
8,965,312
|
|
4.16
|
|
0.60
|
|
0.60
|
|
4.13
|
|
47
|
|
Year Ended March 31,
2013
|
8.83
|
|
0.46
|
|
0.20
|
|
0.66
|
|
(0.43)
|
|
—
|
|
—
|
|
(0.43)
|
|
9.06
|
|
5,780,847
|
|
7.67
|
|
0.60
|
|
0.60
|
|
5.13
|
|
70
|
|
Year Ended March 31,
2012
|
9.01
|
|
0.50
|
|
(0.22)
|
|
0.28
|
|
(0.46)
|
|
—
|
|
—
|
|
(0.46)
|
|
8.83
|
|
3,419,351
|
|
3.31
|
|
0.60
|
|
0.60
|
|
5.69
|
|
72
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
8.86
|
|
0.38
|
|
(0.54)
|
|
(0.16)
|
|
(0.37)
|
|
—
|
|
—
|
|
(0.37)
|
|
8.33
|
|
143,325
|
|
(1.79)
|
|
0.92
|
|
0.92
|
|
4.42
|
|
33
|
|
Year Ended March 31,
2015
|
9.06
|
|
0.36
|
|
(0.19)
|
|
0.17
|
|
(0.37)
|
|
—
|
|
—
|
|
(0.37)
|
|
8.86
|
|
147,560
|
|
1.88
|
|
0.91
|
|
0.91
|
|
4.06
|
|
29
|
|
Year Ended March 31,
2014
|
9.06
|
|
0.35
|
|
(0.01)
|
|
0.34
|
|
(0.34)
|
|
—
|
|
—
|
|
(0.34)
|
|
9.06
|
|
212,336
|
|
3.86
|
|
0.89
|
|
0.89
|
|
3.82
|
|
47
|
|
Year Ended March 31,
2013
|
8.83
|
|
0.43
|
|
0.21
|
|
0.64
|
|
(0.41)
|
|
—
|
|
—
|
|
(0.41)
|
|
9.06
|
|
99,040
|
|
7.39
|
|
0.85
|
|
0.85
|
|
4.85
|
|
70
|
|
Year Ended March 31,
2012
|
9.01
|
|
0.48
|
|
(0.22)
|
|
0.26
|
|
(0.44)
|
|
—
|
|
—
|
|
(0.44)
|
|
8.83
|
|
51,185
|
|
3.05
|
|
0.85
|
|
0.85
|
|
5.47
|
|
72
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
8.86
|
|
0.33
|
|
(0.54)
|
|
(0.21)
|
|
(0.32)
|
|
—
|
|
—
|
|
(0.32)
|
|
8.33
|
|
55,203
|
|
(2.37)
|
|
1.51
|
|
1.51
|
|
3.82
|
|
33
|
|
Year Ended March 31,
2015
|
9.07
|
|
0.31
|
|
(0.21)
|
|
0.10
|
|
(0.31)
|
|
—
|
|
—
|
|
(0.31)
|
|
8.86
|
|
64,445
|
|
1.16
|
|
1.50
|
|
1.50
|
|
3.46
|
|
29
|
|
Year Ended March 31,
2014
|
9.06
|
|
0.29
|
|
0.01
|
|
0.30
|
|
(0.29)
|
|
—
|
|
—
|
|
(0.29)
|
|
9.07
|
|
83,149
|
|
3.33
|
|
1.51
|
|
1.51
|
|
3.21
|
|
47
|
|
Year Ended March 31,
2013
|
8.83
|
|
0.38
|
|
0.20
|
|
0.58
|
|
(0.35)
|
|
—
|
|
—
|
|
(0.35)
|
|
9.06
|
|
40,493
|
|
6.69
|
|
1.51
|
|
1.51
|
|
4.22
|
|
70
|
|
Year Ended March 31,
2012
|
9.02
|
|
0.42
|
|
(0.23)
|
|
0.19
|
|
(0.38)
|
|
—
|
|
—
|
|
(0.38)
|
|
8.83
|
|
30,132
|
|
2.26
|
|
1.52
|
|
1.52
|
|
4.77
|
|
72
|
|
IS
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
8.86
|
|
0.41
|
|
(0.53)
|
|
(0.12)
|
|
(0.41)
|
|
—
|
|
—
|
|
(0.41)
|
|
8.33
|
|
1,127,337
|
|
(1.39)
|
|
0.51
|
|
0.51
|
|
4.83
|
|
33
|
|
Period Ended March 31,
2015(f)
|
8.74
|
|
0.07
|
|
0.12
|
|
0.19
|
|
(0.07)
|
|
—
|
|
—
|
|
(0.07)
|
|
8.86
|
|
12,629
|
|
2.15
|
|
0.47
|
|
0.47
|
|
5.08
|
|
29
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
Georgia Tax-Exempt Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$10.86
|
|
$0.27
|
|
$
0.10 |
|
$
0.37 |
|
$(0.27)
|
|
$—
|
|
$
— |
|
$(0.27)
|
|
$10.96
|
|
$107,691
|
|
3.50%
|
|
0.65%
|
|
0.68%
|
|
2.52%
|
|
41%
|
|
Year Ended March 31,
2015
|
10.42
|
|
0.28
|
|
0.44
|
|
0.72
|
|
(0.28)
|
|
—
|
|
—
|
|
(0.28)
|
|
10.86
|
|
131,881
|
|
7.00
|
|
0.64
|
|
0.64
|
|
2.63
|
|
55
|
|
Year Ended March 31,
2014
|
10.78
|
|
0.31
|
|
(0.36)
|
|
(0.05)
|
|
(0.31)
|
|
—
|
|
—
|
|
(0.31)
|
|
10.42
|
|
120,835
|
|
(0.37)
|
|
0.57
|
|
0.57
|
|
3.01
|
|
67
|
|
Year Ended March 31,
2013
|
10.55
|
|
0.34
|
|
0.23
|
|
0.57
|
|
(0.34)
|
|
—
|
|
—
|
|
(0.34)
|
|
10.78
|
|
148,153
|
|
5.44
|
|
0.59
|
|
0.59
|
|
3.15
|
|
50
|
|
Year Ended March 31,
2012
|
9.73
|
|
0.36
|
|
0.82
|
|
1.18
|
|
(0.36)
|
|
—
|
|
—
|
|
(0.36)
|
|
10.55
|
|
145,803
|
|
12.33
|
|
0.62
|
|
0.62
|
|
3.55
|
|
57
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.88
|
|
0.26
|
|
0.10
|
|
0.36
|
|
(0.26)
|
|
—
|
|
—
|
|
(0.26)
|
|
10.98
|
|
3,621
|
|
3.40
|
|
0.75
|
|
0.75
|
|
2.43
|
|
41
|
|
Year Ended March 31,
2015
|
10.44
|
|
0.27
|
|
0.44
|
|
0.71
|
|
(0.27)
|
|
—
|
|
—
|
|
(0.27)
|
|
10.88
|
|
3,637
|
|
6.89
|
|
0.73
|
|
0.73
|
|
2.55
|
|
55
|
|
Year Ended March 31,
2014
|
10.80
|
|
0.30
|
|
(0.36)
|
|
(0.06)
|
|
(0.30)
|
|
—
|
|
—
|
|
(0.30)
|
|
10.44
|
|
4,139
|
|
(0.52)
|
|
0.72
|
|
0.72
|
|
2.87
|
|
67
|
|
Year Ended March 31,
2013
|
10.57
|
|
0.32
|
|
0.23
|
|
0.55
|
|
(0.32)
|
|
—
|
|
—
|
|
(0.32)
|
|
10.80
|
|
4,566
|
|
5.27
|
|
0.74
|
|
0.74
|
|
2.99
|
|
50
|
|
Year Ended March 31,
2012
|
9.75
|
|
0.35
|
|
0.82
|
|
1.17
|
|
(0.35)
|
|
—
|
|
—
|
|
(0.35)
|
|
10.57
|
|
4,280
|
|
12.14
|
|
0.77
|
|
0.77
|
|
3.39
|
|
57
|
|
Seix
High Grade Municipal Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
12.29
|
|
0.27
|
|
0.19
|
|
0.46
|
|
(0.27)
|
|
—
|
|
(0.12)
|
|
(0.39)
|
|
12.36
|
|
99,803
|
|
3.85
|
|
0.65
|
|
0.69
|
|
2.21
|
|
171
|
|
Year Ended March 31,
2015
|
11.86
|
|
0.31
|
|
0.59
|
|
0.90
|
|
(0.31)
|
|
—
|
|
(0.16)
|
|
(0.47)
|
|
12.29
|
|
95,761
|
|
7.64
|
|
0.65
|
|
0.69
|
|
2.53
|
|
228
|
|
Year Ended March 31,
2014
|
12.10
|
|
0.34
|
|
(0.19)
|
|
0.15
|
|
(0.34)
|
|
—
|
|
(0.05)
|
|
(0.39)
|
|
11.86
|
|
47,737
|
|
1.40
|
|
0.65
|
|
0.68
|
|
2.90
|
|
227
|
|
Year Ended March 31,
2013
|
11.96
|
|
0.34
|
|
0.50
|
|
0.84
|
|
(0.34)
|
|
—
|
|
(0.36)
|
|
(0.70)
|
|
12.10
|
|
54,892
|
|
7.12
|
|
0.65
|
|
0.68
|
|
2.78
|
|
168
|
|
Year Ended March 31,
2012
|
10.92
|
|
0.38
|
|
1.07
|
|
1.45
|
|
(0.38)
|
|
—
|
|
(0.03)
|
|
(0.41)
|
|
11.96
|
|
42,963
|
|
13.43
|
|
0.64
|
|
0.66
|
|
3.29
|
|
218
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
12.29
|
|
0.25
|
|
0.19
|
|
0.44
|
|
(0.25)
|
|
—
|
|
(0.12)
|
|
(0.37)
|
|
12.36
|
|
13,996
|
|
3.70
|
|
0.79
|
|
0.79
|
|
2.07
|
|
171
|
|
Year Ended March 31,
2015
|
11.86
|
|
0.29
|
|
0.59
|
|
0.88
|
|
(0.29)
|
|
—
|
|
(0.16)
|
|
(0.45)
|
|
12.29
|
|
16,499
|
|
7.48
|
|
0.80
|
|
0.80
|
|
2.38
|
|
228
|
|
Year Ended March 31,
2014
|
12.11
|
|
0.32
|
|
(0.20)
|
|
0.12
|
|
(0.32)
|
|
—
|
|
(0.05)
|
|
(0.37)
|
|
11.86
|
|
8,967
|
|
1.16
|
|
0.80
|
|
0.82
|
|
2.75
|
|
227
|
|
Year Ended March 31,
2013
|
11.97
|
|
0.32
|
|
0.50
|
|
0.82
|
|
(0.32)
|
|
—
|
|
(0.36)
|
|
(0.68)
|
|
12.11
|
|
11,363
|
|
6.97
|
|
0.80
|
|
0.83
|
|
2.63
|
|
168
|
|
Year Ended March 31,
2012
|
10.92
|
|
0.36
|
|
1.08
|
|
1.44
|
|
(0.36)
|
|
—
|
|
(0.03)
|
|
(0.39)
|
|
11.97
|
|
8,155
|
|
13.36
|
|
0.79
|
|
0.81
|
|
3.15
|
|
218
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
High Income Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$6.67
|
|
$0.40
|
|
$(0.75)
|
|
$(0.35)
|
|
$(0.40)
|
|
$—
|
|
$
— |
|
$(0.40)
|
|
$5.92
|
|
$546,793
|
|
(5.31)%
|
|
0.79%
|
|
0.79%
|
|
6.34%
|
|
77%
|
|
Year Ended March 31,
2015
|
7.26
|
|
0.40
|
|
(0.38)
|
|
0.02
|
|
(0.40)
|
|
—
|
|
(0.21)
|
|
(0.61)
|
|
6.67
|
|
753,851
|
|
0.47
|
|
0.77
|
|
0.77
|
|
5.63
|
|
86
|
|
Year Ended March 31,
2014
|
7.32
|
|
0.43
|
|
0.11
|
|
0.54
|
|
(0.44)
|
|
—
|
|
(0.16)
|
|
(0.60)
|
|
7.26
|
|
783,072
|
|
7.68
|
|
0.77
|
|
0.77
|
|
6.00
|
|
110
|
|
Year Ended March 31,
2013
|
6.89
|
|
0.45
|
|
0.43
|
|
0.88
|
|
(0.45)
|
|
—
|
|
—
|
|
(0.45)
|
|
7.32
|
|
784,870
|
|
13.17
|
|
0.74
|
|
0.75
|
|
6.33
|
|
118
|
|
Year Ended March 31,
2012
|
7.29
|
|
0.51
|
|
(0.32)
|
|
0.19
|
|
(0.52)
|
|
—
|
|
(0.07)
|
|
(0.59)
|
|
6.89
|
|
576,626
|
|
3.04
|
|
0.71
|
|
0.71
|
|
7.37
|
|
148
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
6.68
|
|
0.38
|
|
(0.75)
|
|
(0.37)
|
|
(0.39)
|
|
—
|
|
—
|
|
(0.39)
|
|
5.92
|
|
43,433
|
|
(5.68)
|
|
1.03
|
|
1.03
|
|
6.08
|
|
77
|
|
Year Ended March 31,
2015
|
7.27
|
|
0.38
|
|
(0.38)
|
|
—
|
|
(0.38)
|
|
—
|
|
(0.21)
|
|
(0.59)
|
|
6.68
|
|
65,121
|
|
0.26
|
|
0.99
|
|
0.99
|
|
5.34
|
|
86
|
|
Year Ended March 31,
2014
|
7.32
|
|
0.42
|
|
0.11
|
|
0.53
|
|
(0.42)
|
|
—
|
|
(0.16)
|
|
(0.58)
|
|
7.27
|
|
157,360
|
|
7.60(g)
|
|
0.97
|
|
0.97
|
|
5.82
|
|
110
|
|
Year Ended March 31,
2013
|
6.90
|
|
0.43
|
|
0.42
|
|
0.85
|
|
(0.43)
|
|
—
|
|
—
|
|
(0.43)
|
|
7.32
|
|
119,006
|
|
12.72
|
|
0.99
|
|
0.99
|
|
6.09
|
|
118
|
|
Year Ended March 31,
2012
|
7.29
|
|
0.49
|
|
(0.31)
|
|
0.18
|
|
(0.50)
|
|
—
|
|
(0.07)
|
|
(0.57)
|
|
6.90
|
|
99,210
|
|
2.74
|
|
1.00
|
|
1.00
|
|
7.09
|
|
148
|
|
R
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
6.68
|
|
0.37
|
|
(0.76)
|
|
(0.39)
|
|
(0.37)
|
|
—
|
|
—
|
|
(0.37)
|
|
5.92
|
|
14,574
|
|
(5.87)
|
|
1.23
|
|
1.23
|
|
5.92
|
|
77
|
|
Year Ended March 31,
2015
|
7.27
|
|
0.37
|
|
(0.38)
|
|
(0.01)
|
|
(0.37)
|
|
—
|
|
(0.21)
|
|
(0.58)
|
|
6.68
|
|
20,887
|
|
0.05
|
|
1.21
|
|
1.21
|
|
5.20
|
|
86
|
|
Year Ended March 31,
2014
|
7.32
|
|
0.40
|
|
0.12
|
|
0.52
|
|
(0.41)
|
|
—
|
|
(0.16)
|
|
(0.57)
|
|
7.27
|
|
22,317
|
|
7.37
|
|
1.20
|
|
1.20
|
|
5.57
|
|
110
|
|
Year Ended March 31,
2013
|
6.89
|
|
0.41
|
|
0.43
|
|
0.84
|
|
(0.41)
|
|
—
|
|
—
|
|
(0.41)
|
|
7.32
|
|
23,956
|
|
12.61
|
|
1.23
|
|
1.23
|
|
5.85
|
|
118
|
|
Year Ended March 31,
2012
|
7.29
|
|
0.47
|
|
(0.33)
|
|
0.14
|
|
(0.47)
|
|
—
|
|
(0.07)
|
|
(0.54)
|
|
6.89
|
|
20,317
|
|
2.25
|
|
1.35
|
|
1.35
|
|
6.76
|
|
148
|
|
IS
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
6.68
|
|
0.40
|
|
(0.75)
|
|
(0.35)
|
|
(0.41)
|
|
—
|
|
—
|
|
(0.41)
|
|
5.92
|
|
1,117
|
|
(5.30)
|
|
0.63
|
|
0.63
|
|
6.27
|
|
77
|
|
Period Ended March 31,
2015(h)
|
7.22
|
|
0.28
|
|
(0.33)
|
|
(0.05)
|
|
(0.28)
|
|
—
|
|
(0.21)
|
|
(0.49)
|
|
6.68
|
|
3,455
|
|
(0.51)
|
|
0.63
|
|
0.63
|
|
5.99
|
|
86
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
High Yield Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$
8.73 |
|
$0.47
|
|
$(0.92)
|
|
$(0.45)
|
|
$(0.48)
|
|
$—
|
|
$
— |
|
$(0.48)
|
|
$
7.80 |
|
$
523,206 |
|
(5.23)%
|
|
0.61%
|
|
0.61%
|
|
5.71%
|
|
76%
|
|
Year Ended March 31,
2015
|
9.95
|
|
0.54
|
|
(0.43)
|
|
0.11
|
|
(0.54)
|
|
—
|
|
(0.79)
|
|
(1.33)
|
|
8.73
|
|
695,060
|
|
1.53
|
|
0.58
|
|
0.58
|
|
5.63
|
|
72
|
|
Year Ended March 31,
2014
|
10.26
|
|
0.58
|
|
0.06
|
|
0.64
|
|
(0.59)
|
|
—
|
|
(0.36)
|
|
(0.95)
|
|
9.95
|
|
1,211,146
|
|
6.65
|
|
0.55
|
|
0.55
|
|
5.79
|
|
89
|
|
Year Ended March 31,
2013
|
9.69
|
|
0.64
|
|
0.56
|
|
1.20
|
|
(0.63)
|
|
—
|
|
—
|
|
(0.63)
|
|
10.26
|
|
1,792,768
|
|
12.80
|
|
0.54
|
|
0.54
|
|
6.41
|
|
79
|
|
Year Ended March 31,
2012
|
10.07
|
|
0.70
|
|
(0.38)
|
|
0.32
|
|
(0.70)
|
|
—
|
|
—
|
|
(0.70)
|
|
9.69
|
|
2,123,625
|
|
3.44
|
|
0.54
|
|
0.54
|
|
7.27
|
|
83
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
8.51
|
|
0.44
|
|
(0.89)
|
|
(0.45)
|
|
(0.45)
|
|
—
|
|
—
|
|
(0.45)
|
|
7.61
|
|
7,463
|
|
(5.36)
|
|
0.84
|
|
0.84
|
|
5.48
|
|
76
|
|
Year Ended March 31,
2015
|
9.72
|
|
0.51
|
|
(0.43)
|
|
0.08
|
|
(0.50)
|
|
—
|
|
(0.79)
|
|
(1.29)
|
|
8.51
|
|
8,110
|
|
1.24
|
|
0.87
|
|
0.87
|
|
5.31
|
|
72
|
|
Year Ended March 31,
2014
|
10.03
|
|
0.55
|
|
0.05
|
|
0.60
|
|
(0.55)
|
|
—
|
|
(0.36)
|
|
(0.91)
|
|
9.72
|
|
69,921
|
|
6.39
|
|
0.81
|
|
0.81
|
|
5.57
|
|
89
|
|
Year Ended March 31,
2013
|
9.47
|
|
0.59
|
|
0.56
|
|
1.15
|
|
(0.59)
|
|
—
|
|
—
|
|
(0.59)
|
|
10.03
|
|
72,703
|
|
12.56
|
|
0.79
|
|
0.79
|
|
6.09
|
|
79
|
|
Year Ended March 31,
2012
|
9.84
|
|
0.65
|
|
(0.36)
|
|
0.29
|
|
(0.66)
|
|
—
|
|
—
|
|
(0.66)
|
|
9.47
|
|
38,016
|
|
3.21
|
|
0.78
|
|
0.78
|
|
6.91
|
|
83
|
|
R
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
8.72
|
|
0.44
|
|
(0.91)
|
|
(0.47)
|
|
(0.45)
|
|
—
|
|
—
|
|
(0.45)
|
|
7.80
|
|
573
|
|
(5.52)
|
|
1.04
|
|
1.04
|
|
5.29
|
|
76
|
|
Year Ended March 31,
2015
|
9.94
|
|
0.49
|
|
(0.42)
|
|
0.07
|
|
(0.50)
|
|
—
|
|
(0.79)
|
|
(1.29)
|
|
8.72
|
|
782
|
|
1.05
|
|
1.04
|
|
1.04
|
|
5.18
|
|
72
|
|
Year Ended March 31,
2014
|
10.26
|
|
0.53
|
|
0.05
|
|
0.58
|
|
(0.54)
|
|
—
|
|
(0.36)
|
|
(0.90)
|
|
9.94
|
|
1,237
|
|
6.04
|
|
1.04
|
|
1.04
|
|
5.31
|
|
89
|
|
Year Ended March 31,
2013
|
9.68
|
|
0.59
|
|
0.57
|
|
1.16
|
|
(0.58)
|
|
—
|
|
—
|
|
(0.58)
|
|
10.26
|
|
2,385
|
|
12.36
|
|
1.03
|
|
1.03
|
|
5.92
|
|
79
|
|
Year Ended March 31,
2012
|
10.07
|
|
0.65
|
|
(0.40)
|
|
0.25
|
|
(0.64)
|
|
—
|
|
—
|
|
(0.64)
|
|
9.68
|
|
2,427
|
|
2.69
|
|
1.18
|
|
1.18
|
|
6.68
|
|
83
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
Investment Grade Tax-Exempt Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$12.29
|
|
$0.28
|
|
$
0.07 |
|
$0.35
|
|
$(0.28)
|
|
$—
|
|
$(0.14)
|
|
$(0.42)
|
|
$12.22
|
|
$629,435
|
|
2.96%
|
|
0.65%
|
|
0.68%
|
|
2.32%
|
|
139%
|
|
Year Ended March 31,
2015
|
12.13
|
|
0.31
|
|
0.32
|
|
0.63
|
|
(0.31)
|
|
—
|
|
(0.16)
|
|
(0.47)
|
|
12.29
|
|
657,851
|
|
5.25
|
|
0.65
|
|
0.68
|
|
2.53
|
|
144
|
|
Year Ended March 31,
2014
|
12.45
|
|
0.28
|
|
(0.23)
|
|
0.05
|
|
(0.28)
|
|
—
|
|
(0.09)
|
|
(0.37)
|
|
12.13
|
|
643,828
|
|
0.48
|
|
0.64
|
|
0.64
|
|
2.29
|
|
104
|
|
Year Ended March 31,
2013
|
12.49
|
|
0.25
|
|
0.35
|
|
0.60
|
|
(0.25)
|
|
—
|
|
(0.39)
|
|
(0.64)
|
|
12.45
|
|
982,171
|
|
4.87
|
|
0.62
|
|
0.63
|
|
1.98
|
|
151
|
|
Year Ended March 31,
2012
|
11.65
|
|
0.29
|
|
0.93
|
|
1.22
|
|
(0.29)
|
|
—
|
|
(0.09)
|
|
(0.38)
|
|
12.49
|
|
950,629
|
|
10.62
|
|
0.61
|
|
0.61
|
|
2.38
|
|
199
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
12.30
|
|
0.26
|
|
0.08
|
|
0.34
|
|
(0.26)
|
|
—
|
|
(0.14)
|
|
(0.40)
|
|
12.24
|
|
24,861
|
|
2.89
|
|
0.80
|
|
0.93
|
|
2.17
|
|
139
|
|
Year Ended March 31,
2015
|
12.14
|
|
0.29
|
|
0.32
|
|
0.61
|
|
(0.29)
|
|
—
|
|
(0.16)
|
|
(0.45)
|
|
12.30
|
|
29,439
|
|
5.09
|
|
0.80
|
|
0.91
|
|
2.37
|
|
144
|
|
Year Ended March 31,
2014
|
12.47
|
|
0.26
|
|
(0.24)
|
|
0.02
|
|
(0.26)
|
|
—
|
|
(0.09)
|
|
(0.35)
|
|
12.14
|
|
30,100
|
|
0.23
|
|
0.80
|
|
0.90
|
|
2.13
|
|
104
|
|
Year Ended March 31,
2013
|
12.50
|
|
0.23
|
|
0.36
|
|
0.59
|
|
(0.23)
|
|
—
|
|
(0.39)
|
|
(0.62)
|
|
12.47
|
|
36,958
|
|
4.75
|
|
0.82
|
|
0.87
|
|
1.78
|
|
151
|
|
Year Ended March 31,
2012
|
11.66
|
|
0.26
|
|
0.93
|
|
1.19
|
|
(0.26)
|
|
—
|
|
(0.09)
|
|
(0.35)
|
|
12.50
|
|
37,840
|
|
10.33
|
|
0.87
|
|
0.87
|
|
2.12
|
|
199
|
|
Seix
Limited Duration Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
9.83
|
|
0.03
|
|
—(i)
|
|
0.03
|
|
(0.03)
|
|
—
|
|
—
|
|
(0.03)
|
|
9.83
|
|
6,649
|
|
0.26
|
|
0.35
|
|
0.47
|
|
0.29
|
|
50
|
|
Year Ended March 31,
2015
|
9.83
|
|
0.02
|
|
—(i)
|
|
0.02
|
|
(0.02)
|
|
—
|
|
—
|
|
(0.02)
|
|
9.83
|
|
6,650
|
|
0.18
|
|
0.34
|
|
0.46
|
|
0.21
|
|
45
|
|
Year Ended March 31,
2014
|
9.83
|
|
0.03
|
|
(0.01)
|
|
0.02
|
|
(0.02)
|
|
—
|
|
—
|
|
(0.02)
|
|
9.83
|
|
6,650
|
|
0.21
|
|
0.32
|
|
0.43
|
|
0.27
|
|
104
|
|
Year Ended March 31,
2013
|
9.76
|
|
0.05
|
|
0.06
|
|
0.11
|
|
(0.04)
|
|
—
|
|
—
|
|
(0.04)
|
|
9.83
|
|
9,357
|
|
1.08
|
|
0.30
|
|
0.33
|
|
0.50
|
|
56
|
|
Year Ended March 31,
2012
|
9.76
|
|
0.07
|
|
(0.01)
|
|
0.06
|
|
(0.06)
|
|
—
|
|
—
|
|
(0.06)
|
|
9.76
|
|
16,002
|
|
0.58
|
|
0.28
|
|
0.28
|
|
0.68
|
|
58
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
North Carolina Tax-Exempt Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$10.49
|
|
$0.24
|
|
$
0.11 |
|
$
0.35 |
|
$(0.24)
|
|
$—
|
|
$(0.07)
|
|
$(0.31)
|
|
$10.53
|
|
$28,576
|
|
3.39%
|
|
0.65%
|
|
0.73%
|
|
2.31%
|
|
42%
|
|
Year Ended March 31,
2015
|
10.06
|
|
0.25
|
|
0.43
|
|
0.68
|
|
(0.25)
|
|
—
|
|
—
|
|
(0.25)
|
|
10.49
|
|
37,190
|
|
6.80
|
|
0.65
|
|
0.69
|
|
2.40
|
|
51
|
|
Year Ended March 31,
2014
|
10.68
|
|
0.26
|
|
(0.31)
|
|
(0.05)
|
|
(0.27)
|
|
—
|
|
(0.30)
|
|
(0.57)
|
|
10.06
|
|
37,311
|
|
(0.38)
|
|
0.61
|
|
0.61
|
|
2.59
|
|
77
|
|
Year Ended March 31,
2013
|
10.47
|
|
0.30
|
|
0.21
|
|
0.51
|
|
(0.30)
|
|
—
|
|
—
|
|
(0.30)
|
|
10.68
|
|
50,991
|
|
4.88
|
|
0.62
|
|
0.62
|
|
2.79
|
|
79
|
|
Year Ended March 31,
2012
|
9.70
|
|
0.33
|
|
0.77
|
|
1.10
|
|
(0.33)
|
|
—
|
|
—
|
|
(0.33)
|
|
10.47
|
|
50,412
|
|
11.51
|
|
0.67
|
|
0.67
|
|
3.27
|
|
39
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.46
|
|
0.22
|
|
0.12
|
|
0.34
|
|
(0.23)
|
|
—
|
|
(0.07)
|
|
(0.30)
|
|
10.50
|
|
492
|
|
3.23
|
|
0.80
|
|
0.81
|
|
2.15
|
|
42
|
|
Year Ended March 31,
2015
|
10.04
|
|
0.23
|
|
0.42
|
|
0.65
|
|
(0.23)
|
|
—
|
|
—
|
|
(0.23)
|
|
10.46
|
|
795
|
|
6.56
|
|
0.79
|
|
0.79
|
|
2.27
|
|
51
|
|
Year Ended March 31,
2014
|
10.65
|
|
0.25
|
|
(0.31)
|
|
(0.06)
|
|
(0.25)
|
|
—
|
|
(0.30)
|
|
(0.55)
|
|
10.04
|
|
861
|
|
(0.45)
|
|
0.77
|
|
0.77
|
|
2.44
|
|
77
|
|
Year Ended March 31,
2013
|
10.45
|
|
0.28
|
|
0.20
|
|
0.48
|
|
(0.28)
|
|
—
|
|
—
|
|
(0.28)
|
|
10.65
|
|
910
|
|
4.63
|
|
0.77
|
|
0.77
|
|
2.60
|
|
79
|
|
Year Ended March 31,
2012
|
9.67
|
|
0.32
|
|
0.78
|
|
1.10
|
|
(0.32)
|
|
—
|
|
—
|
|
(0.32)
|
|
10.45
|
|
633
|
|
11.47
|
|
0.82
|
|
0.82
|
|
3.11
|
|
39
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
Short-Term Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$
9.98 |
|
$
0.06 |
|
$
0.01 |
|
$
0.07 |
|
$(0.07)
|
|
$—
|
|
$—
|
|
$(0.07)
|
|
$
9.98 |
|
$
49,749 |
|
0.68%
|
|
0.60%
|
|
0.68%
|
|
0.58%
|
|
87%
|
|
Year Ended March 31,
2015
|
9.95
|
|
0.05
|
|
0.04
|
|
0.09
|
|
(0.06)
|
|
—
|
|
—
|
|
(0.06)
|
|
9.98
|
|
50,689
|
|
0.93
|
|
0.60
|
|
0.67
|
|
0.52
|
|
199
|
|
Year Ended March 31,
2014
|
10.00
|
|
0.12
|
|
(0.05)
|
|
0.07
|
|
(0.12)
|
|
—
|
|
—
|
|
(0.12)
|
|
9.95
|
|
38,400
|
|
0.75
|
|
0.58
|
|
0.58
|
|
1.22
|
|
79
|
|
Year Ended March 31,
2013
|
9.99
|
|
0.15
|
|
0.01
|
|
0.16
|
|
(0.15)
|
|
—
|
|
—
|
|
(0.15)
|
|
10.00
|
|
78,383
|
|
1.65
|
|
0.48
|
|
0.48
|
|
1.51
|
|
128
|
|
Year Ended March 31,
2012
|
9.95
|
|
0.20
|
|
0.06
|
|
0.26
|
|
(0.22)
|
|
—
|
|
—
|
|
(0.22)
|
|
9.99
|
|
310,854
|
|
2.60
|
|
0.48
|
|
0.48
|
|
2.00
|
|
86
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.00
|
|
0.04
|
|
0.02
|
|
0.06
|
|
(0.05)
|
|
—
|
|
—
|
|
(0.05)
|
|
10.01
|
|
2,104
|
|
0.58
|
|
0.80
|
|
0.81
|
|
0.38
|
|
87
|
|
Year Ended March 31,
2015
|
9.98
|
|
0.04
|
|
0.02
|
|
0.06
|
|
(0.04)
|
|
—
|
|
—
|
|
(0.04)
|
|
10.00
|
|
2,316
|
|
0.63
|
|
0.80
|
|
0.81
|
|
0.37
|
|
199
|
|
Year Ended March 31,
2014
|
10.03
|
|
0.10
|
|
(0.05)
|
|
0.05
|
|
(0.10)
|
|
—
|
|
—
|
|
(0.10)
|
|
9.98
|
|
2,748
|
|
0.54
|
|
0.78
|
|
0.80
|
|
1.00
|
|
79
|
|
Year Ended March 31,
2013
|
10.02
|
|
0.13
|
|
0.01
|
|
0.14
|
|
(0.13)
|
|
—
|
|
—
|
|
(0.13)
|
|
10.03
|
|
2,069
|
|
1.40
|
|
0.73
|
|
0.74
|
|
1.27
|
|
128
|
|
Year Ended March 31,
2012
|
9.98
|
|
0.17
|
|
0.06
|
|
0.23
|
|
(0.19)
|
|
—
|
|
—
|
|
(0.19)
|
|
10.02
|
|
2,478
|
|
2.32
|
|
0.76
|
|
0.76
|
|
1.75
|
|
86
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.00
|
|
(0.01)
|
|
0.01
|
|
—
|
|
—(i)
|
|
—
|
|
—
|
|
—(i)
|
|
10.00
|
|
1,742
|
|
—
|
|
1.29
|
|
1.58
|
|
(0.10)
|
|
87
|
|
Year Ended March 31,
2015
|
9.97
|
|
(0.01)
|
|
0.04
|
|
0.03
|
|
—(i)
|
|
—
|
|
—
|
|
—(i)
|
|
10.00
|
|
1,730
|
|
0.31
|
|
1.22
|
|
1.58
|
|
(0.06)
|
|
199
|
|
Year Ended March 31,
2014
|
10.02
|
|
0.02
|
|
(0.04)
|
|
(0.02)
|
|
(0.03)
|
|
—
|
|
—
|
|
(0.03)
|
|
9.97
|
|
1,899
|
|
(0.24)
|
|
1.56
|
|
1.56
|
|
0.23
|
|
79
|
|
Year Ended March 31,
2013
|
10.01
|
|
0.05
|
|
0.01
|
|
0.06
|
|
(0.05)
|
|
—
|
|
—
|
|
(0.05)
|
|
10.02
|
|
2,425
|
|
0.65
|
|
1.48
|
|
1.48
|
|
0.52
|
|
128
|
|
Year Ended March 31,
2012
|
9.98
|
|
0.10
|
|
0.05
|
|
0.15
|
|
(0.12)
|
|
—
|
|
—
|
|
(0.12)
|
|
10.01
|
|
3,009
|
|
1.48
|
|
1.48
|
|
1.48
|
|
1.01
|
|
86
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
Short-Term Municipal Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$10.00
|
|
$0.04
|
|
—(i)
|
|
$0.04
|
|
$(0.04)
|
|
$—
|
|
$(0.02)
|
|
$(0.06)
|
|
$
9.98 |
|
$32,184
|
|
0.41%
|
|
0.51%
|
|
0.62%
|
|
0.41%
|
|
82%
|
|
Year Ended March 31,
2015
|
9.99
|
|
0.04
|
|
0.08
|
|
0.12
|
|
(0.04)
|
|
—
|
|
(0.07)
|
|
(0.11)
|
|
10.00
|
|
38,669
|
|
1.21
|
|
0.55
|
|
0.62
|
|
0.42
|
|
148
|
|
Year Ended March 31,
2014
|
10.01
|
|
0.02
|
|
0.01
|
|
0.03
|
|
(0.02)
|
|
—
|
|
(0.03)
|
|
(0.05)
|
|
9.99
|
|
30,852
|
|
0.37
|
|
0.54
|
|
0.71
|
|
0.21
|
|
260
|
|
Year Ended March 31,
2013
|
10.73
|
|
0.05
|
|
0.27
|
|
0.32
|
|
(0.06)
|
|
—
|
|
(0.98)
|
|
(1.04)
|
|
10.01
|
|
11,121
|
|
3.01
|
|
0.58
|
|
0.91
|
|
0.52
|
|
199
|
|
Year Ended March 31,
2012
|
10.16
|
|
0.32
|
|
0.70
|
|
1.02
|
|
(0.31)
|
|
—
|
|
(0.14)
|
|
(0.45)
|
|
10.73
|
|
5,956
|
|
10.16
|
|
0.67
|
|
0.77
|
|
3.00
|
|
27
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.00
|
|
0.02
|
|
—(i)
|
|
0.02
|
|
(0.02)
|
|
—
|
|
(0.02)
|
|
(0.04)
|
|
9.98
|
|
7,354
|
|
0.23
|
|
0.67
|
|
0.72
|
|
0.24
|
|
82
|
|
Year Ended March 31,
2015
|
9.99
|
|
0.03
|
|
0.08
|
|
0.11
|
|
(0.03)
|
|
—
|
|
(0.07)
|
|
(0.10)
|
|
10.00
|
|
3,863
|
|
1.06
|
|
0.70
|
|
0.75
|
|
0.26
|
|
148
|
|
Year Ended March 31,
2014
|
10.01
|
|
0.01
|
|
0.01
|
|
0.02
|
|
(0.01)
|
|
—
|
|
(0.03)
|
|
(0.04)
|
|
9.99
|
|
5,900
|
|
0.25
|
|
0.65
|
|
0.82
|
|
0.10
|
|
260
|
|
Year Ended March 31,
2013
|
10.73
|
|
0.04
|
|
0.26
|
|
0.30
|
|
(0.04)
|
|
—
|
|
(0.98)
|
|
(1.02)
|
|
10.01
|
|
3,694
|
|
2.86
|
|
0.73
|
|
1.04
|
|
0.39
|
|
199
|
|
Year Ended March 31,
2012
|
10.16
|
|
0.29
|
|
0.71
|
|
1.00
|
|
(0.29)
|
|
—
|
|
(0.14)
|
|
(0.43)
|
|
10.73
|
|
3,445
|
|
10.00
|
|
0.82
|
|
0.97
|
|
2.77
|
|
27
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
Total Return Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$10.75
|
|
$0.19
|
|
$(0.05)
|
|
$
0.14 |
|
$(0.21)
|
|
$—
|
|
$(0.01)
|
|
$(0.22)
|
|
$10.67
|
|
$
971,159 |
|
1.35(g)
|
|
0.45%
|
|
0.45%
|
|
1.82%
|
|
181%
|
|
Year Ended March 31,
2015
|
10.43
|
|
0.23
|
|
0.34
|
|
0.57
|
|
(0.25)
|
|
—
|
|
—
|
|
(0.25)
|
|
10.75
|
|
972,117
|
|
5.47
|
|
0.44
|
|
0.44
|
|
2.17
|
|
173
|
|
Year Ended March 31,
2014
|
10.79
|
|
0.22
|
|
(0.26)
|
|
(0.04)
|
|
(0.22)
|
|
—
|
|
(0.10)
|
|
(0.32)
|
|
10.43
|
|
1,022,101
|
|
(0.31)
|
|
0.41
|
|
0.41
|
|
2.12
|
|
217
|
|
Year Ended March 31,
2013
|
10.77
|
|
0.18
|
|
0.25
|
|
0.43
|
|
(0.21)
|
|
—
|
|
(0.20)
|
|
(0.41)
|
|
10.79
|
|
1,204,228
|
|
4.01
|
|
0.39
|
|
0.40
|
|
1.69
|
|
139
|
|
Year Ended March 31,
2012
|
10.40
|
|
0.25
|
|
0.73
|
|
0.98
|
|
(0.36)
|
|
—
|
|
(0.25)
|
|
(0.61)
|
|
10.77
|
|
996,213
|
|
9.62
|
|
0.37
|
|
0.37
|
|
2.30
|
|
170
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
11.11
|
|
0.17
|
|
(0.06)
|
|
0.11
|
|
(0.19)
|
|
—
|
|
(0.01)
|
|
(0.20)
|
|
11.02
|
|
32,366
|
|
1.02
|
|
0.71
|
|
0.71
|
|
1.55
|
|
181
|
|
Year Ended March 31,
2015
|
10.77
|
|
0.21
|
|
0.35
|
|
0.56
|
|
(0.22)
|
|
—
|
|
—
|
|
(0.22)
|
|
11.11
|
|
43,401
|
|
5.28
|
|
0.71
|
|
0.71
|
|
1.90
|
|
173
|
|
Year Ended March 31,
2014
|
11.15
|
|
0.20
|
|
(0.28)
|
|
(0.08)
|
|
(0.20)
|
|
—
|
|
(0.10)
|
|
(0.30)
|
|
10.77
|
|
41,134
|
|
(0.70)
|
|
0.70
|
|
0.70
|
|
1.82
|
|
217
|
|
Year Ended March 31,
2013
|
11.12
|
|
0.16
|
|
0.25
|
|
0.41
|
|
(0.18)
|
|
—
|
|
(0.20)
|
|
(0.38)
|
|
11.15
|
|
50,279
|
|
3.76
|
|
0.66
|
|
0.68
|
|
1.42
|
|
139
|
|
Year Ended March 31,
2012
|
10.73
|
|
0.22
|
|
0.76
|
|
0.98
|
|
(0.34)
|
|
—
|
|
(0.25)
|
|
(0.59)
|
|
11.12
|
|
44,359
|
|
9.31
|
|
0.65
|
|
0.65
|
|
1.95
|
|
170
|
|
R
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.75
|
|
0.13
|
|
(0.05)
|
|
0.08
|
|
(0.15)
|
|
—
|
|
(0.01)
|
|
(0.16)
|
|
10.67
|
|
50,402
|
|
0.74
|
|
1.06
|
|
1.06
|
|
1.21
|
|
181
|
|
Year Ended March 31,
2015
|
10.43
|
|
0.17
|
|
0.33
|
|
0.50
|
|
(0.18)
|
|
—
|
|
—
|
|
(0.18)
|
|
10.75
|
|
64,539
|
|
4.83
|
|
1.05
|
|
1.06
|
|
1.56
|
|
173
|
|
Year Ended March 31,
2014
|
10.80
|
|
0.16
|
|
(0.27)
|
|
(0.11)
|
|
(0.16)
|
|
—
|
|
(0.10)
|
|
(0.26)
|
|
10.43
|
|
72,556
|
|
(1.02)
|
|
1.03
|
|
1.07
|
|
1.52
|
|
217
|
|
Year Ended March 31,
2013
|
10.78
|
|
0.12
|
|
0.25
|
|
0.37
|
|
(0.15)
|
|
—
|
|
(0.20)
|
|
(0.35)
|
|
10.80
|
|
72,697
|
|
3.34
|
|
0.96
|
|
1.05
|
|
1.11
|
|
139
|
|
Year Ended March 31,
2012
|
10.40
|
|
0.18
|
|
0.76
|
|
0.94
|
|
(0.31)
|
|
—
|
|
(0.25)
|
|
(0.56)
|
|
10.78
|
|
20,315
|
|
9.15
|
|
0.90
|
|
0.90
|
|
1.63
|
|
170
|
|
IS
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.75
|
|
0.21
|
|
(0.06)
|
|
0.15
|
|
(0.22)
|
|
—
|
|
(0.01)
|
|
(0.23)
|
|
10.67
|
|
56,133
|
|
1.49
|
|
0.31
|
|
0.31
|
|
1.95
|
|
181
|
|
Period Ended March 31,
2015(h)
|
10.56
|
|
0.16
|
|
0.20
|
|
0.36
|
|
(0.17)
|
|
—
|
|
—
|
|
(0.17)
|
|
10.75
|
|
71,520
|
|
3.39
|
|
0.31
|
|
0.31
|
|
2.20
|
|
173
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
U.S. Government Securities Ultra-Short Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$10.12
|
|
$
0.06 |
|
$(0.07)
|
|
$(0.01)
|
|
$(0.08)
|
|
$—
|
|
$—
|
|
$(0.08)
|
|
$10.03
|
|
$1,557,899
|
|
(0.11)%
|
|
0.41%
|
|
0.41%
|
|
0.57%
|
|
52%
|
|
Year Ended March 31,
2015
|
10.12
|
|
0.06
|
|
0.02
|
|
0.08
|
|
(0.08)
|
|
—
|
|
—
|
|
(0.08)
|
|
10.12
|
|
1,665,888
|
|
0.77
|
|
0.39
|
|
0.39
|
|
0.55
|
|
34
|
|
Year Ended March 31,
2014
|
10.17
|
|
0.03
|
|
(0.02)
|
|
0.01
|
|
(0.06)
|
|
—
|
|
—
|
|
(0.06)
|
|
10.12
|
|
1,993,215
|
|
0.13
|
|
0.38
|
|
0.38
|
|
0.31
|
|
36
|
|
Year Ended March 31,
2013
|
10.14
|
|
0.03
|
|
0.08
|
|
0.11
|
|
(0.08)
|
|
—
|
|
—
|
|
(0.08)
|
|
10.17
|
|
2,331,913
|
|
1.10
|
|
0.36
|
|
0.36
|
|
0.29
|
|
137
|
|
Year Ended March 31,
2012
|
10.07
|
|
0.06
|
|
0.12
|
|
0.18
|
|
(0.11)
|
|
—
|
|
—
|
|
(0.11)
|
|
10.14
|
|
2,033,765
|
|
1.76
|
|
0.36
|
|
0.36
|
|
0.55
|
|
70
|
|
Seix
U.S. Mortgage Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
11.32
|
|
0.12
|
|
0.09
|
|
0.21
|
|
(0.20)
|
|
—
|
|
—
|
|
(0.20)
|
|
11.33
|
|
25,068
|
|
1.84
|
|
0.70
|
|
0.86
|
|
1.03
|
|
223
|
|
Year Ended March 31,
2015
|
10.90
|
|
0.19
|
|
0.48
|
|
0.67
|
|
(0.25)
|
|
—
|
|
—
|
|
(0.25)
|
|
11.32
|
|
3,650
|
|
6.16
|
|
0.69
|
|
1.26
|
|
1.75
|
|
165
|
|
Year Ended March 31,
2014
|
11.16
|
|
0.12
|
|
(0.16)
|
|
(0.04)
|
|
(0.22)
|
|
—
|
|
—
|
|
(0.22)
|
|
10.90
|
|
3,692
|
|
(0.38)
|
|
0.66
|
|
1.10
|
|
1.08
|
|
236
|
|
Year Ended March 31,
2013
|
11.09
|
|
0.04
|
|
0.21
|
|
0.25
|
|
(0.18)
|
|
—
|
|
—
|
|
(0.18)
|
|
11.16
|
|
8,851
|
|
2.26
|
|
0.66
|
|
0.85
|
|
0.37
|
|
163
|
|
Year Ended March 31,
2012
|
10.59
|
|
0.12
|
|
0.62
|
|
0.74
|
|
(0.24)
|
|
—
|
|
—
|
|
(0.24)
|
|
11.09
|
|
24,688
|
|
7.01
|
|
0.66
|
|
0.72
|
|
1.06
|
|
299
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
11.29
|
|
0.08
|
|
0.11
|
|
0.19
|
|
(0.17)
|
|
—
|
|
—
|
|
(0.17)
|
|
11.31
|
|
6,560
|
|
1.72
|
|
0.90
|
|
1.10
|
|
0.76
|
|
223
|
|
Year Ended March 31,
2015
|
10.88
|
|
0.16
|
|
0.47
|
|
0.63
|
|
(0.22)
|
|
—
|
|
—
|
|
(0.22)
|
|
11.29
|
|
5,201
|
|
5.86
|
|
0.89
|
|
1.43
|
|
1.45
|
|
165
|
|
Year Ended March 31,
2014
|
11.14
|
|
0.11
|
|
(0.18)
|
|
(0.07)
|
|
(0.19)
|
|
—
|
|
—
|
|
(0.19)
|
|
10.88
|
|
1,721
|
|
(0.58)
|
|
0.86
|
|
1.27
|
|
1.02
|
|
236
|
|
Year Ended March 31,
2013
|
11.07
|
|
0.02
|
|
0.21
|
|
0.23
|
|
(0.16)
|
|
—
|
|
—
|
|
(0.16)
|
|
11.14
|
|
2,271
|
|
2.06
|
|
0.86
|
|
1.05
|
|
0.15
|
|
163
|
|
Year Ended March 31,
2012
|
10.57
|
|
0.09
|
|
0.62
|
|
0.71
|
|
(0.21)
|
|
—
|
|
—
|
|
(0.21)
|
|
11.07
|
|
6,279
|
|
6.81
|
|
0.86
|
|
0.93
|
|
0.78
|
|
299
|
|
C
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
11.32
|
|
—(i)
|
|
0.10
|
|
0.10
|
|
(0.09)
|
|
—
|
|
—
|
|
(0.09)
|
|
11.33
|
|
5,478
|
|
0.88
|
|
1.65
|
|
1.79
|
|
0.01
|
|
223
|
|
Year Ended March 31,
2015
|
10.90
|
|
0.09
|
|
0.47
|
|
0.56
|
|
(0.14)
|
|
—
|
|
—
|
|
(0.14)
|
|
11.32
|
|
3,989
|
|
5.15
|
|
1.65
|
|
2.15
|
|
0.79
|
|
165
|
|
Year Ended March 31,
2014
|
11.16
|
|
0.03
|
|
(0.18)
|
|
(0.15)
|
|
(0.11)
|
|
—
|
|
—
|
|
(0.11)
|
|
10.90
|
|
4,780
|
|
(1.36)
|
|
1.66
|
|
2.04
|
|
0.23
|
|
236
|
|
Year Ended March 31,
2013
|
11.09
|
|
(0.07)
|
|
0.21
|
|
0.14
|
|
(0.07)
|
|
—
|
|
—
|
|
(0.07)
|
|
11.16
|
|
6,039
|
|
1.25
|
|
1.66
|
|
1.84
|
|
(0.65)
|
|
163
|
|
Year Ended March 31,
2012
|
10.59
|
|
0.01
|
|
0.62
|
|
0.63
|
|
(0.13)
|
|
—
|
|
—
|
|
(0.13)
|
|
11.09
|
|
7,376
|
|
5.94
|
|
1.66
|
|
1.71
|
|
0.06
|
|
299
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
Ultra-Short Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$
9.97 |
|
$0.08
|
|
$(0.04)
|
|
$
0.04 |
|
$(0.08)
|
|
$—
|
|
$
— |
|
$(0.08)
|
|
$
9.93 |
|
$104,950
|
|
0.42%
|
|
0.38%
|
|
0.38%
|
|
0.77%
|
|
59%
|
|
Year Ended March 31,
2015
|
9.98
|
|
0.06
|
|
—(i)
|
|
0.06
|
|
(0.07)
|
|
—
|
|
—
|
|
(0.07)
|
|
9.97
|
|
142,680
|
|
0.55
|
|
0.37
|
|
0.37
|
|
0.57
|
|
54
|
|
Year Ended March 31,
2014
|
9.98
|
|
0.07
|
|
0.01
|
|
0.08
|
|
(0.08)
|
|
—
|
|
—
|
|
(0.08)
|
|
9.98
|
|
122,053
|
|
0.76
|
|
0.35
|
|
0.35
|
|
0.65
|
|
134
|
|
Year Ended March 31,
2013
|
9.95
|
|
0.10
|
|
0.04
|
|
0.14
|
|
(0.11)
|
|
—
|
|
—
|
|
(0.11)
|
|
9.98
|
|
109,224
|
|
1.39
|
|
0.33
|
|
0.33
|
|
0.98
|
|
127
|
|
Year Ended March 31,
2012
|
9.93
|
|
0.10
|
|
0.03
|
|
0.13
|
|
(0.11)
|
|
—
|
|
—
|
|
(0.11)
|
|
9.95
|
|
112,617
|
|
1.34
|
|
0.34
|
|
0.34
|
|
0.99
|
|
97
|
|
Seix
Virginia Intermediate Municipal Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.24
|
|
0.24
|
|
0.08
|
|
0.32
|
|
(0.24)
|
|
—
|
|
(0.26)
|
|
(0.50)
|
|
10.06
|
|
64,653
|
|
3.30
|
|
0.65
|
|
0.68
|
|
2.38
|
|
48
|
|
Year Ended March 31,
2015
|
10.12
|
|
0.25
|
|
0.21
|
|
0.46
|
|
(0.25)
|
|
—
|
|
(0.09)
|
|
(0.34)
|
|
10.24
|
|
119,103
|
|
4.54
|
|
0.65
|
|
0.65
|
|
2.42
|
|
59
|
|
Year Ended March 31,
2014
|
10.54
|
|
0.29
|
|
(0.32)
|
|
(0.03)
|
|
(0.29)
|
|
—
|
|
(0.10)
|
|
(0.39)
|
|
10.12
|
|
120,600
|
|
(0.20)
|
|
0.58
|
|
0.58
|
|
2.83
|
|
65
|
|
Year Ended March 31,
2013
|
10.63
|
|
0.31
|
|
0.08
|
|
0.39
|
|
(0.31)
|
|
—
|
|
(0.17)
|
|
(0.48)
|
|
10.54
|
|
144,889
|
|
3.70
|
|
0.59
|
|
0.59
|
|
2.93
|
|
33
|
|
Year Ended March 31,
2012
|
10.21
|
|
0.33
|
|
0.53
|
|
0.86
|
|
(0.33)
|
|
—
|
|
(0.11)
|
|
(0.44)
|
|
10.63
|
|
147,599
|
|
8.55
|
|
0.63
|
|
0.63
|
|
3.12
|
|
23
|
|
A
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.23
|
|
0.23
|
|
0.09
|
|
0.32
|
|
(0.23)
|
|
—
|
|
(0.26)
|
|
(0.49)
|
|
10.06
|
|
4,365
|
|
3.29
|
|
0.76
|
|
0.76
|
|
2.29
|
|
48
|
|
Year Ended March 31,
2015
|
10.11
|
|
0.24
|
|
0.21
|
|
0.45
|
|
(0.24)
|
|
—
|
|
(0.09)
|
|
(0.33)
|
|
10.23
|
|
5,152
|
|
4.45
|
|
0.74
|
|
0.74
|
|
2.34
|
|
59
|
|
Year Ended March 31,
2014
|
10.53
|
|
0.27
|
|
(0.32)
|
|
(0.05)
|
|
(0.27)
|
|
—
|
|
(0.10)
|
|
(0.37)
|
|
10.11
|
|
7,668
|
|
(0.35)
|
|
0.73
|
|
0.73
|
|
2.67
|
|
65
|
|
Year Ended March 31,
2013
|
10.63
|
|
0.30
|
|
0.07
|
|
0.37
|
|
(0.30)
|
|
—
|
|
(0.17)
|
|
(0.47)
|
|
10.53
|
|
10,996
|
|
3.45
|
|
0.74
|
|
0.74
|
|
2.78
|
|
33
|
|
Year Ended March 31,
2012
|
10.21
|
|
0.31
|
|
0.53
|
|
0.84
|
|
(0.31)
|
|
—
|
|
(0.11)
|
|
(0.42)
|
|
10.63
|
|
12,509
|
|
8.38
|
|
0.78
|
|
0.78
|
|
2.97
|
|
23
|
|
See Notes to Financial Highlights.
NOTES TO
FINANCIAL HIGHLIGHTS
(a)
|
Per share data calculated
using average shares outstanding method. |
(b)
|
Total return excludes sales
charge. Not annualized for periods less than one year. |
(c)
|
Annualized for periods less
than one year. |
(d)
|
Not
annualized for periods less than one year. |
(e)
|
IS Shares commenced operations
on August 3, 2015. |
(f)
|
IS Shares commenced operations
on February 2, 2015. |
(g) |
Generally accepted accounting
principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from
the net asset values and returns reported in the management’s discussion of Fund performance. |
(h) |
IS Shares commenced operations
on August 1, 2014. |
(i)
|
Rounds to
less than $0.005 per share |
Investment Adviser:
RidgeWorth Investments
3333 Piedmont Road, Suite 1500
Atlanta, GA
30305
www.ridgeworth.com
Investment Subadviser:
Seix Investment Advisors LLC
One
Maynard Drive, Suite 3200
Park Ridge, NJ 07656
www.seixadvisors.com
More information about the RidgeWorth Funds is available
without charge through the following:
Statement of
Additional Information (SAI):
The SAI includes detailed information
about the RidgeWorth Funds. The SAI is on file with the SEC and is incorporated by reference into this prospectus. This means that the SAI, for legal purposes, is a part of this prospectus.
Annual and Semi-Annual Reports:
These reports list each Fund’s holdings and contain information from
the Funds’ managers about strategies and recent market conditions and trends and their impact on Fund performance. The reports also contain detailed financial information about the Funds.
To Obtain an SAI, Annual or Semi-Annual Report, or More
Information:
Telephone: Shareholder Services
1-888-784-3863
Mail:
RidgeWorth Funds
P.O. Box 8053
Boston, MA 02266-8053
Website: www.ridgeworth.com
SEC:
You can also obtain the SAI or the Annual and Semi-Annual reports, as well as
other information about the RidgeWorth Funds, from the EDGAR Database on the SEC’s website at http://www.sec.gov. You may review and copy documents at the SEC Public Reference Room in Washington, DC (for information on the operation of the
Public Reference Room, call 202-551-8090). You may request documents by mail from the SEC, upon payment of a duplicating fee, by writing to: Securities and Exchange Commission, Public Reference Section, Washington, DC 20549-1520. You may also obtain
this information, upon payment of a duplicating fee, by e-mailing the SEC at publicinfo@sec.gov.
The RidgeWorth Funds’ Investment
Company Act registration number is 811-06557.
RidgeWorth Investments is the trade name of RidgeWorth Capital Management
LLC
RFPRO-FI-0816
FIXED INCOME FUNDS
I SHARES PROSPECTUS
August 1, 2016
Investment Adviser: RidgeWorth Investments
Subadviser: Seix Investment Advisors LLC
|
I
Shares |
Investment
Grade Funds |
|
•
Seix Core Bond Fund |
STIGX
|
•
Seix Corporate Bond Fund |
STICX
|
•
Seix Total Return Bond Fund |
SAMFX
|
•
Seix U.S. Mortgage Fund |
SLMTX
|
•
Short Duration Funds |
|
•
Seix Short-Term Bond Fund |
SSBTX
|
•
Seix U.S. Government Securities Ultra-Short Bond Fund |
SIGVX
|
•
Seix Ultra-Short Bond Fund |
SISSX
|
•
High Yield Funds |
|
•
Seix Floating Rate High Income Fund |
SAMBX
|
•
Seix High Income Fund |
STHTX
|
•
Seix High Yield Fund |
SAMHX
|
•
Municipal Bond Funds |
|
•
Seix Georgia Tax-Exempt Bond Fund |
SGATX
|
•
Seix High Grade Municipal Bond Fund |
SCFTX
|
•
Seix Investment Grade Tax-Exempt Bond Fund |
STTBX
|
•
Seix North Carolina Tax-Exempt Bond Fund |
CNCFX
|
•
Seix Short-Term Municipal Bond Fund |
CMDTX
|
•
Seix Virginia Intermediate Municipal Bond Fund |
CRVTX
|
The
Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
August 1, 2016
RidgeWorth Investments is the trade name of
RidgeWorth Capital Management LLC
Investment Objective
The Seix Core Bond Fund (the “Fund”) seeks to
maximize long term total return through a combination of current income and capital appreciation, consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.25%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.23%
|
Total
Annual Fund Operating Expenses |
0.48%
|
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$49
|
$154
|
$269
|
$604
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 232% 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 obligations of U.S. and non-
U.S. issuers, including investment grade rated emerging market debt. The
Fund’s 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 Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), believes are of comparable quality.
A security’s rating will be governed by
the Barclays methodology as follows: when Standard & Poor’s Financial Services LLC, Moody’s Investors Service, Inc. and Fitch, Inc. provide a rating, Seix will use the middle rating of the three; if only two of those three rating
agencies rate the security, Seix will use 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 Fund’s 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 Fund’s comparative benchmark, and a lower relative weighting in U.S. Treasury and government agency issues.
The Subadviser anticipates that the
Fund’s modified-adjusted duration will mirror that of the Barclays U.S. Aggregate Bond Index, plus or minus 20%. For example, if the duration of the Barclays U.S. Aggregate Bond Index is 5 years, the Fund’s duration may be 4–6
years. As of July 1, 2016, the duration of the Barclays U.S. Aggregate Bond Index was 5.47 years. Duration measures a bond or Fund’s 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.
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 also utilize Treasury Inflation Protection Securities (“TIPS”) opportunistically. The Fund may count the value of certain
derivatives with investment grade fixed income characteristics
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of 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 Fund's 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 Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s 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.
A liquid secondary market may not always
exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk that the other party to the derivative
transaction will not meet its obligations.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s 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 Fund’s 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.
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 Fund’s 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 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 Fund’s 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
8.51%
|
-2.53%
|
(12/31/2008)
|
(6/30/2013)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 5.45%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
0.11%
|
3.35%
|
4.90%
|
I
Shares Return After Taxes on Distributions |
(0.99)%
|
1.95%
|
3.31%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.18%
|
2.15%
|
3.30%
|
Barclays
U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) |
0.55%
|
3.25%
|
4.51%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2008. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2004. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2007. Mr. Jonathan Yozzo, Managing Director, has been a member of the Fund’s management
team since 2015. Mr. Carlos Catoya, Managing Director, has been a member of the Fund’s management team since 2015.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Investment Objective
The Seix Corporate Bond Fund (the “Fund”) seeks to
maximize long term total return through a combination of current income and capital appreciation, consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.40%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.43%
|
Total
Annual Fund Operating Expenses |
0.83%
|
Fee
Waivers and/or Expense Reimbursements(1) |
(0.13)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.70%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.95%, 1.65% and 0.70% for the A, C and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser
by RidgeWorth Funds. |
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
Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$72
|
$252
|
$448
|
$1,013
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 84% of the average value of its portfolio.
Principal Investment Strategies
The Fund primarily invests in a diversified portfolio of U.S.
dollar denominated corporate obligations and other fixed income securities that are rated BBB-/Baa3 or better or unrated securities that the Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”),
believes are of comparable quality.
Under normal
circumstances, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in corporate bonds. The Fund may also invest in U.S. Treasury and agency obligations, floating rate loans, and below investment grade, high
yield debt obligations (sometimes referred to as “junk bonds”), including emerging market securities. The Fund may invest in U.S. dollar denominated obligations of U.S. and non-U.S. issuers. The Fund may invest a portion of its assets in
securities that are restricted as to resale.
A security’s rating will be governed by the Barclays
methodology as follows: when Standard & Poor’s Financial Services LLC, Moody’s Investors Service, Inc. and Fitch, Inc. provide a rating, Seix will use the middle rating of the three; if only two of those three rating agencies rate
the security, Seix will use 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 will maintain an overall credit quality of investment grade or better.
Buy and sell decisions are based on a wide number of factors
that determine the risk-reward profile of each security within the context of the broader portfolio. The Subadviser attempts to identify investment grade corporate bonds offering above-average total return. In selecting corporate debt investments
for purchase and sale, the Subadviser seeks out companies with good fundamentals and above-average return prospects that are currently priced at attractive levels. The primary basis for security selection is the potential income offered by the
security relative to the Subadviser’s assessment of the issuer’s ability to generate the cash flow required to meet its obligations. The Subadviser employs a “bottom-up” approach, identifying investment opportunities based on
the underlying financial and economic fundamentals of the specific issuer.
The Subadviser anticipates that the
Fund’s modified-adjusted-duration will mirror that of the Barclays U.S. Corporate Investment Grade Index, plus or minus 20%. For example, if the duration of the Barclays U.S. Corporate Investment Grade Index is 5 years, the Fund’s
duration may be 4–6 years. As of July 1, 2016, the Barclays U.S. Corporate Investment Grade Index duration was 7.49 years. Duration measures a bond or Fund’s
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.
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 corporate bond characteristics
towards its policy to invest, under normal circumstances, at least 80% of its net assets in corporate bonds.
While the Fund generally does not invest in
equity securities, equity securities may be obtained through a restructuring of a debt security held in the Fund and may be retained in the Fund if the Subadviser deems it to be in the Fund’s best interests.
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 & Poor’s Financial Services LLC and
Fitch, Inc. or “Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These instruments have a higher degree of default risk and may
be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of high yield investments generally, and
less secondary market liquidity. This potential lack of liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s 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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to
sell or realize the full value of its loans in the event of a need to liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be considered securities
and, therefore, the Fund may not have the protections of the federal securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
Futures Contract Risk: The
risks associated with futures include: the Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s 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.
A liquid secondary market may not always
exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk that the other party to the derivative
transaction will not meet its obligations.
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.
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 Fund’s 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 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 Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. The Fund began operating April 1, 2009. Performance prior to
April 1, 2009 is that of the Strategic Income Fund, the Fund’s predecessor, which began operations on November 30, 2001. 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
7.54%
|
-4.04%
|
(6/30/2009)
|
(6/30/2013)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 8.81%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
(1.43)%
|
3.96%
|
5.11%
|
I
Shares Return After Taxes on Distributions |
(3.35)%
|
1.72%
|
2.89%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
(0.50)%
|
2.48%
|
3.28%
|
Barclays
U.S. Corporate Investment Grade Index (reflects no deduction for fees, expenses or taxes) |
(0.68)%
|
4.53%
|
5.29%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal
income tax bracket for each year and would have been able to
immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2008. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2004. Mr. Jonathan Yozzo, Managing Director, has been a member of the Fund’s management team since 2015. Mr. Carlos Catoya, Managing Director, has been a member of the Fund’s management team since 2015.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Seix Total Return Bond
Fund
Investment Objective
The Seix Total Return Bond Fund (the “Fund”) seeks
to maximize long term total return through a combination of current income and capital appreciation, consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.24%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.21%
|
Total
Annual Fund Operating Expenses |
0.45%
|
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$46
|
$144
|
$252
|
$567
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 181% 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 obligations of
U.S. and non-U.S. issuers, including emerging market debt. The Fund’s
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 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 Fund’s
Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), believes are of comparable quality.
A security’s rating will be governed by
the Barclays methodology as follows: when Standard & Poor’s Financial Services LLC, Moody’s Investors Service, Inc. and Fitch, Inc. provide a rating, Seix will use the middle rating of the three; if only two of those three rating
agencies rate the security, Seix will use 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 may invest up to 20% of its net assets in below
investment grade, high yield debt obligations (sometimes referred to as “junk bonds”). 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
Fund’s portfolio turnover rate may be 100% or more.
The Subadviser anticipates that the
Fund’s modified-adjusted duration will mirror that of the Barclays U.S. Aggregate Bond Index, plus or minus 20%. For example, if the duration of the Barclays U.S. Aggregate Bond Index is 5 years, the Fund’s duration may be 4–6
years. As of July 1, 2016, the duration of the Barclays U.S. Aggregate Bond Index was 5.47 years. Duration measures a bond or Fund’s 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.
In selecting investments for purchase and sale, the Subadviser
generally selects a greater weighting in corporate obligations and mortgage-backed securities relative to the Fund’s 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
Seix Total
Return Bond Fund
derivatives with investment grade fixed income characteristics
towards its policy to invest, under normal circumstances, at least 80% of its net assets in fixed income securities.
While the Fund generally does not invest in
equity securities, equity securities may be obtained through a restructuring of a debt security held in the Fund and may be retained in the Fund if the Subadviser deems it to be in the Fund’s best interests.
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 & Poor’s Financial Services LLC and
Fitch, Inc. or “Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These instruments have a higher degree of default risk and may
be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of high yield investments generally, and
less secondary market liquidity. This potential lack of liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s 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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to
sell or realize the full value of its loans in the event of a need to liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be considered securities
and, therefore, the Fund may not have the protections of the federal securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
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.
Frequent Trading Risk: Frequent buying and selling of investments may involve higher trading costs and other expenses and may affect the Fund's 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 Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s
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.
A
liquid secondary market may not always exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be
Seix Total Return Bond
Fund
liquid. Over-the-counter instruments also involve the risk
that the other party to the derivative transaction will not meet its obligations.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s 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 Fund’s 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.
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 Fund’s 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 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 Fund’s 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. The performance for
I Shares prior to October 11, 2004 is that of the I Shares of the Seix Core Bond Fund, the Fund’s predecessor. 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
6.61%
|
-2.50%
|
(12/31/2008)
|
(6/30/2013)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 5.46%.
The following table compares the Fund’s average annual
total returns for the periods indicated with those of a broad measure of market performance.
Seix Total
Return Bond Fund
AVERAGE ANNUAL TOTAL RETURNS
(for periods ended December 31, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
0.19%
|
3.55%
|
4.92%
|
I
Shares Return After Taxes on Distributions |
(0.69)%
|
2.30%
|
3.35%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.13%
|
2.31%
|
3.27%
|
Barclays
U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) |
0.55%
|
3.25%
|
4.51%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2008. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2002. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2007. Mr. Seth Antiles, Ph.D., Managing Director and Senior Portfolio Manager of Seix, has been
a member of the management team for the Fund since 2007. Mr. Jonathan Yozzo, Managing Director, has been a member of the Fund’s management team since 2015. Mr. Carlos Catoya, Managing Director, has been a member of the Fund’s management
team since 2015.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Investment Objective
The Seix U.S. Mortgage Fund (the “Fund”) seeks
to maximize long term total return through a combination of current income and capital appreciation, consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.40%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.46%
|
Total
Annual Fund Operating Expenses |
0.86%
|
Fee
Waivers and/or Expense Reimbursements(1) |
(0.16)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.70%
|
(1) |
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.90%, 1.65% and 0.70% for the A, C and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser
by RidgeWorth Funds. |
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
Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$72
|
$258
|
$461
|
$1,046
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 223% 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 U.S. government agency mortgage-backed securities, such as the Federal National Mortgage Association (“FNMA”), Government National Mortgage Association (“GNMA”)
and collateralized mortgage obligations. The Fund may invest a portion of its assets in securities that are restricted as to resale. As a result of its investment strategy, the Fund’s portfolio turnover rate may be 100% or more.
Buy and sell decisions are based on a wide number of factors
that determine the risk-reward profile of each security within the context of the broader portfolio. In selecting investments for purchase and sale the Subadviser attempts to identify mortgage securities that it expects to perform well in rising and
falling markets, such as those which have stable pre-payments, call protection, below par prices, and refinancing barriers. The Subadviser also attempts to reduce the risk that the underlying mortgages are prepaid by focusing on securities that it
believes are less prone to this risk. For example, FNMA or GNMA securities that were issued years ago may be less prone to prepayment risk because there have been many opportunities for refinancing.
The Fund’s Subadviser, Seix Investment
Advisors LLC (“Seix” or the “Subadviser”) anticipates that the Fund’s modified-adjusted duration will mirror that of the Barclays U.S. Mortgage-Backed Securities Index, plus or minus 20%. For example, if the duration of
the Barclays U.S. Mortgage-Backed Securities Index is 5 years, the Fund’s duration may be 4–6 years. As of July 1, 2016, the duration of the Barclays U.S. Mortgage-Backed Securities Index was 2.45 years. Duration measures a bond or
Fund’s 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 invest a portion of its assets in securities that are restricted as to resale.
In addition, to implement its investment strategy, the Fund may
buy or sell, to a limited extent, derivative instruments (such as credit linked notes, futures, options, inverse floaters, swaps 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 risk and credit risk. Further, the Fund may utilize exchange traded futures to manage interest rate exposure.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s initial investment. Derivatives may be difficult to value, may become illiquid and may not correlate perfectly with the overall securities
market.
Frequent Trading Risk: Frequent buying and selling of investments may involve higher trading costs and other expenses and may affect the Fund's 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 Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s
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.
A
liquid secondary market may not always exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk
that the other party to the derivative transaction will not meet its obligations.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s 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 Fund’s 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.
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 Fund’s 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 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 Fund’s 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
4.10%
|
-2.46%
|
(12/31/2008)
|
(6/30/2013)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 2.99%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
1.43%
|
3.02%
|
4.29%
|
I
Shares Return After Taxes on Distributions |
0.65%
|
2.22%
|
3.13%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.81%
|
1.99%
|
2.88%
|
Barclays
U.S. Mortgage Backed Securities Index (reflects no deduction for fees, expenses or taxes) |
1.51%
|
2.96%
|
4.64%
|
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-advantaged
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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2008. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2007. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2007. Mr. Seth Antiles, Ph.D., Managing Director and Senior Portfolio Manager of Seix, has been
a member of the Fund’s management team since 2009. Mr. Jonathan Yozzo, Managing Director, has been a member of the Fund’s management team since 2015. Mr. Carlos Catoya, Managing Director, has been a member of the Fund’s management
team since 2015.
Purchasing and Selling Your
Shares
You may purchase or redeem Fund shares on any
business day. You may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Seix Short-Term Bond
Fund
Investment Objective
The Seix Short-Term Bond Fund (the “Fund”) seeks to
maximize long term total return through a combination of current income and capital appreciation, consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.40%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.28%
|
Total
Annual Fund Operating Expenses |
0.68%
|
Fee
Waivers and/or Expense Reimbursements(1) |
(0.08)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.60%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.80%, 1.58% and 0.60% for the A, C and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser
by RidgeWorth Funds. |
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
Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$61
|
$210
|
$371
|
$839
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 87% 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 diversified portfolio of short- to medium-term investment grade U.S. Treasury, corporate debt, mortgage-backed and asset-backed securities. These securities may be rated investment
grade by at least one national securities rating agency or may be unrated securities that the Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), believes are of comparable quality. The Fund
expects that it will normally maintain an effective maturity of 3 years or less. The Fund’s investment in non-U.S. issuers may at times be significant.
A security’s rating will be governed by
the Barclays methodology as follows: when Standard & Poor’s Financial Services LLC, Moody’s Investors Service, Inc. and Fitch, Inc. provide a rating, Seix will use the middle rating of the three; if only two of those three rating
agencies rate the security, Seix will use 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 Subadviser may retain securities if the rating of the
security falls below investment grade and the Subadviser deems retention of the security to be in the best interests of the Fund.
The Fund may invest a portion of its assets in securities that
are restricted as to resale. As a result of its investment strategy, the Fund’s portfolio turnover rate may be 100% or more.
In selecting securities for purchase and sale, the Subadviser
attempts to identify securities that are expected to offer a comparably better investment return for a given level of risk. For example, short-term bonds generally have better returns than money market instruments with a fairly modest increase in
risk and/or volatility. The Subadviser manages the Fund from a total return perspective. That is, the Subadviser makes day-to-day investment decisions for the Fund with a view towards maximizing returns. The Subadviser analyzes, among other things,
yields, market sectors and credit risk in an effort to identify attractive investments with attractive risk/reward trade-offs.
The Subadviser anticipates that the
Fund’s modified-adjusted duration will mirror that of the Barclays 1-3 Year Government/Credit Index, plus or minus 20%. For example, if the duration of the Barclays 1-3 Government/Credit Index is 1.5 years, the
Seix
Short-Term Bond Fund
Fund’s duration may be 1.2 - 1.8 years. As of July 1,
2016, the duration of the Barclays 1-3 Year Government/Credit Index was 1.90 years.
Duration measures a bond or Fund’s 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 invest a portion of its assets in securities that are restricted as to resale.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including credit default swaps, futures and options) 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 risk.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s initial investment. Derivatives may be difficult to value, may become illiquid and may not correlate perfectly with the overall securities
market.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of 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 Fund's 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 Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s
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.
A
liquid secondary market may not always exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk
that the other party to the derivative transaction will not meet its obligations.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s 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 Fund’s income.
Seix Short-Term Bond
Fund
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.
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 Fund’s 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 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 Fund’s 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
3.85%
|
-2.34%
|
(6/30/2009)
|
(9/30/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 1.51%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
0.31%
|
1.21%
|
2.81%
|
I
Shares Return After Taxes on Distributions |
0.04%
|
0.71%
|
1.88%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.18%
|
0.73%
|
1.83%
|
Barclays
1-3 Year Government/Credit Index (reflects no deduction for fees, expenses or taxes) |
0.65%
|
0.98%
|
2.74%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal
Seix
Short-Term Bond Fund
income tax bracket for each year and would have been able to
immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2014. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2014. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2014. Mr. Jonathan Yozzo, Managing Director, has been a member of the Fund’s management
team since 2015. Mr. Carlos Catoya, Managing Director, has been a member of the Fund’s management team since 2015.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Seix U.S. Government
Securities Ultra-Short Bond Fund
Investment Objective
The Seix U.S. Government Securities Ultra-Short Bond Fund
(the “Fund”) seeks to maximize current income consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.19%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.22%
|
Total
Annual Fund Operating Expenses |
0.41%
|
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$42
|
$132
|
$230
|
$518
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 52% 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 short duration U.S. government securities. These securities may include, but are not limited to, U.S. Treasury securities, U.S. agency securities, U.S. agency mortgage-backed
securities, repurchase agreements and other U.S. government securities.
The Fund expects to maintain an average effective duration between 3 months
and 1 year. Individual purchases will generally be limited to securities with an effective duration of less than 5 years. Duration measures a bond or Fund’s 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 five years, its value will change by 5% if rates change by 1%. Shorter duration bonds result in lower expected volatility.
In selecting securities for purchase and sale, the Fund’s
Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), attempts to maximize income by identifying securities that offer an acceptable yield for a given maturity.
The Fund may use U.S. Treasury securities futures as a vehicle
to adjust duration and manage its interest rate exposure.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s 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 Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s
position, mispricing or improper valuation and that the other party to a derivative transaction will not meet its obligations. The prices of
Seix
U.S. Government Securities Ultra-Short Bond Fund
derivatives may move in unexpected ways, especially in unusual
market conditions, and may result in increased volatility and unexpected losses.
A liquid secondary market may not always exist for the
Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk that the other party to the derivative transaction
will not meet its obligations.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform
and affect the Fund’s 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 Fund’s 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 Fund’s 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 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 Fund’s 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
2.14%
|
-0.23%
|
(3/31/2009)
|
(6/30/2013)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 0.27%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
(0.03)%
|
0.78%
|
2.47%
|
I
Shares Return After Taxes on Distributions |
(0.36)%
|
0.45%
|
1.65%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
(0.01)%
|
0.47%
|
1.61%
|
Barclays
3-6 Month U.S. Treasury Bill Index (reflects no deduction for fees, expenses or taxes) |
0.12%
|
0.13%
|
1.41%
|
Seix U.S. Government
Securities Ultra-Short Bond Fund
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2014. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2014. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2014.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Seix
Ultra-Short Bond Fund
Investment Objective
The Seix Ultra-Short Bond Fund (the “Fund”) seeks
to maximize current income consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.22%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.16%
|
Total
Annual Fund Operating Expenses |
0.38%
|
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$39
|
$122
|
$213
|
$480
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 59% 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 short duration fixed income securities. These securities may include, but are not limited to, U.S. Treasury and agency securities, obligations of supranational entities and foreign
governments, domestic and foreign-corporate debt obligations, taxable-municipal debt securities, mortgage-backed and
asset-backed securities, and repurchase agreements. The Fund’s
investment in foreign issuers may at times be significant.
A security’s rating will be governed by
the Barclays methodology as follows: when Standard & Poor’s Financial Services LLC, Moody’s Investors Service, Inc. and Fitch, Inc. provide a rating, Seix will use the middle rating of the three; if only two of those three rating
agencies rate the security, Seix will use 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 normally expects to maintain an average effective
duration between 3 months and 1 year. Individual purchases will generally be limited to securities with an effective duration of less than 5 years. Duration measures a bond or Fund’s 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 five years, its value will change by 5% if rates change by 1%. Shorter duration bonds result in lower expected
volatility. The Fund may invest a portion of its assets in securities that are restricted as to resale.
In selecting investments for purchase and sale, the
Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), attempts to maximize income by identifying securities that offer an acceptable yield for a given level of credit risk and maturity. The
Subadviser attempts to identify short duration securities that offer a comparably better return potential and yield than money market funds. The Subadviser may retain securities if the rating of the security falls below investment grade and the
Subadviser deems retention of the security to be in the best interests of the Fund.
In addition, to implement its investment strategy, the Fund may
buy or sell, derivative instruments (such as swaps, including credit default swaps, futures and options) 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 credit and interest rate risk.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the
Seix Ultra-Short Bond
Fund
Fund’s investment in that issuer. The degree of credit
risk depends on the issuer’s 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 Fund’s initial investment. Derivatives may be difficult to value, may become illiquid and may not correlate perfectly with the overall securities
market.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
Futures Contract Risk: The
risks associated with futures include: the Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s 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.
A liquid secondary market may not always
exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk that the other party to the derivative
transaction will not meet its obligations.
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 Fund’s adjustable-rate securities are not able to reset to market interest rates during any one adjustment period, the value of the Fund’s 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 security’s interest rate may prevent the rate from adjusting to prevailing market rates. In such an event, the security could underperform and affect the Fund’s 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 Fund’s 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.
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 Fund’s 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 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 Fund’s 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.
Seix
Ultra-Short Bond Fund
This bar chart shows the changes in performance of the
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
3.10%
|
-1.75%
|
(6/30/2009)
|
(9/30/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 0.81%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
0.45%
|
0.89%
|
2.25%
|
I
Shares Return After Taxes on Distributions |
0.13%
|
0.53%
|
1.42%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.26%
|
0.54%
|
1.43%
|
Barclays
3-6 Month U.S. Treasury Bill Index (reflects no deduction for fees, expenses or taxes) |
0.12%
|
0.13%
|
1.41%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to
immediately utilize the full realized loss to reduce his or her federal tax
liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. James F. Keegan, Chairman, Chief
Investment Officer and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2014. Mr. Perry Troisi, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management
team since 2014. Mr. Michael Rieger, Managing Director and Senior Portfolio Manager of Seix, has been a member of the Fund’s management team since 2014. Mr. Jonathan Yozzo, Managing Director, has been a member of the Fund’s management
team since 2015. Mr. Carlos Catoya, Managing Director, has been a member of the Fund’s management team since 2015.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Seix Floating Rate High
Income Fund
Investment Objective
The Seix Floating Rate High Income Fund (the
“Fund”) attempts to provide a high level of current income.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.41%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.21%
|
Total
Annual Fund Operating Expenses |
0.62%
|
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$63
|
$199
|
$346
|
$774
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 33% 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 generally floating, not fixed, and are tied to a benchmark lending rate, the most popular of which is the London Interbank Offered Rate
(“LIBOR”) or are set at a specified floor, whichever is higher. 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 loans and debt
securities. The interest rates of these floating rate loans and debt securities vary periodically based upon a benchmark indicator of prevailing interest rates.
The Fund invests all or substantially all of its assets in
floating rate loans and debt securities that are rated below investment grade by the Merrill Composite Rating 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. The Fund may invest a portion of its assets in securities that are restricted as to resale.
In selecting investments for purchase and
sale, the Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), will emphasize loans and securities which are within the segment of the high yield market it has targeted, which are loans and
securities rated below investment grade or unrated loans and 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 portfolio’s loans are non-U.S. dollar denominated. The Fund may also engage in certain hedging transactions.
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 borrower’s 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
Fund’s 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 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
Seix
Floating Rate High Income Fund
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.
While the Fund generally does not invest in
equity securities, equity securities may be obtained through a restructuring of a debt security held in the Fund and may be retained in the Fund if the Subadviser deems it to be in the Fund’s best interests.
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 & Poor’s Financial Services LLC and
Fitch, Inc. or “Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These instruments have a higher degree of default risk and may
be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of high yield investments generally, and
less secondary market liquidity. This potential lack of liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s 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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to
sell or realize the full value of its loans in the event of a need to liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be considered securities
and, therefore, the Fund may not have the protections of the federal securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
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.
Futures Contract Risk: The risks associated with futures include: the Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s
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.
A
liquid secondary market may not always exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk
that the other party to the derivative transaction will not meet its obligations.
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
Seix Floating Rate High
Income Fund
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 Fund’s 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.
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.
Difficulty in selling a senior loan can result in a loss. In
addition, senior loans generally are subject to extended settlement periods, which may impair the a Fund’s ability to sell or realize the full value of its loans in the event of a need to liquidate such loans.
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 Fund’s 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 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 Fund’s 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. 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
12.47%
|
-18.40%
|
(6/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 5.48%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
Since
Inception* |
I
Shares Return Before Taxes |
(1.17)%
|
3.13%
|
3.74%
|
I
Shares Return After Taxes on Distributions |
(3.11)%
|
1.23%
|
1.61%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
(0.63)%
|
1.63%
|
2.03%
|
Credit
Suisse Leveraged Loan Index (reflects no deduction for fees, expenses or taxes)** |
2.60%
|
4.33%
|
3.18%
|
Credit
Suisse Institutional Leveraged Loan Index (reflects no deduction for fees, expenses or taxes)*** |
(0.38)%
|
3.76%
|
4.01%
|
*
|
Since Inception of Benchmark
from 2/28/2006 is 3.39%. (Benchmark returns available only on a month end basis.) |
**
|
Effective December 31, 2015
the benchmark index for the Fund changed from the Credit Suisse Leveraged Loan Index to the Credit Suisse Institutional Leveraged Loan Index because it more closely aligns to the Fund’s investments. |
***
|
Index
returns reflect the returns of the Credit Suisse Leveraged Loan Index, the Fund’s 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
Seix
Floating Rate High Income Fund
those shown. After-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. George Goudelias, Managing Director and Head of Leveraged
Finance of Seix, has managed the Fund since its inception. Mr. 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 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Investment Objective
The Seix High Income Fund (the “Fund”) seeks high
current income and, secondarily, total return (comprised of capital appreciation and income).
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if
you buy and hold shares of the Fund.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.54%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.25%
|
Total
Annual Fund Operating Expenses |
0.79%
|
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$81
|
$252
|
$439
|
$978
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 77% of the average value of its portfolio.
Principal Investment Strategies
The Fund invests primarily in a diversified portfolio of higher
yielding, lower-rated income-producing debt instruments, including corporate obligations, floating rate loans and other debt obligations. The Fund may invest in debt obligations of U.S. and non-U.S. issuers, including emerging market corporate debt.
The Fund’s investment in non-U.S. issuers may at times
be significant. The Fund will invest at least 65%, and may invest up to 100%,
of its assets in securities rated below investment grade by the Merrill Composite Rating or in unrated securities that the Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), believes are of
comparable quality. Such securities are commonly known as “junk bonds” and present greater risks than investment grade debt securities. The Fund may also invest a portion of its assets in securities that are restricted as to resale. As a
result of its investment strategy, the Fund’s portfolio turnover rate may be 100% or more.
In selecting investments for purchase and sale, the Subadviser
employs a research driven process designed to identify value areas within the high yield market. The Subadviser seeks to identify securities that generally meet the following criteria: (i) industries that have sound fundamentals; (ii) companies that
have good business prospects and increasing credit strength; and (iii) issuers with stable or growing cash flows and effective management.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as 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 below investment grade fixed income characteristics
towards its policy to invest, under normal circumstances, at least 65% of its net assets in non-investment grade fixed income securities.
Principal Investment Risks
You may lose money if you invest in the Fund. A Fund share is not a bank deposit and it is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
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 & Poor’s Financial Services LLC and
Fitch, Inc. or “Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These instruments have a higher degree of default risk and may
be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of high yield investments generally,
and
less secondary market liquidity. This potential lack of
liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s 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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to
sell or realize the full value of its loans in the event of a need to liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be considered securities
and, therefore, the Fund may not have the protections of the federal securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
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.
Frequent Trading Risk: Frequent
buying and selling of investments may involve higher trading costs and other expenses and may affect the Fund's 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 Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s 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.
A liquid secondary market may not always
exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk that the other party to the derivative
transaction will not meet its obligations.
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 Fund’s 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.
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 Fund’s 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 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 Fund’s 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
18.23%
|
-21.86%
|
(6/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 9.62%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
(6.19)%
|
3.87%
|
6.80%
|
I
Shares Return After Taxes on Distributions |
(8.58)%
|
0.86%
|
3.60%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
(3.40)%
|
1.84%
|
4.02%
|
Barclays
U.S. Corporate High Yield Bond Index (reflects no deduction for fees, expenses or taxes) |
(4.47)%
|
5.04%
|
6.96%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The
calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to
reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Michael Kirkpatrick, Managing Director and Senior Portfolio
Manager of Seix, has co-managed the Fund since August 2011. Mr. James FitzPatrick, CFA, Managing Director, Portfolio Manager and Head of Leveraged Finance Trading of Seix, has co-managed the Fund since June 2013.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Investment Objective
The Seix High Yield Fund (the “Fund”) seeks high
income and, secondarily, capital appreciation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.44%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.17%
|
Total
Annual Fund Operating Expenses |
0.61%
|
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$62
|
$195
|
$340
|
$762
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 76% of the average value of its portfolio.
Principal Investment Strategies
Under normal circumstances, the Fund invests in various types
of lower-rated, higher yielding debt instruments, including corporate obligations, floating rate loans and other debt obligations. The Fund may invest in debt obligations of U.S. and non-U.S. issuers, including emerging market debt. The Fund’s
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 high yield securities.
These securities will be chosen from the broad universe of
available U.S. dollar denominated, high yield securities rated below investment grade by either the Merrill Composite Rating or unrated securities that the Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the
“Subadviser”), believes are of comparable quality. Such securities are commonly known as “junk bonds” and present greater risks than investment grade bonds. Although the Fund seeks to achieve its investment objective
primarily through investment in high yield securities, the Fund may invest up to 20% of its net assets in investment grade securities.
The Fund will be managed with a duration that is close to the
Fund’s comparative benchmark, the Merrill Lynch U.S. High Yield BB/B Rated Constrained Index, which is generally between 3 and 6 years. Duration measures a bond or Fund’s 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 five years, its value will change by 5% if rates change by 1%. Shorter duration bonds result in lower expected
volatility. The Fund may also invest a portion of its assets in securities that are restricted as to resale.
In selecting investments for purchase and sale, the Subadviser
employs a research driven process designed to identify value areas within the high yield market and attempts to identify lower-rated, higher yielding bonds offering above-average total return. Additionally, the Subadviser will emphasize securities
which are within the segment of the high yield market it has targeted for emphasis, which are “BB” and “B” rated issuers. The Subadviser seeks to identify securities that generally meet the following criteria: (1) industries
that have sound fundamentals; (2) companies that have good business prospects and increasing credit strength; and (3) issuers with stable or growing cash flows and effective management.
In addition, to implement its investment strategy, the Fund may
buy or sell derivative instruments (such as swaps, including credit default swaps, futures and warrants) to use as a substitute for a purchase or sale of a position in the underlying assets and/or as part of a strategy designed to reduce exposure to
other risks, such as interest rate or credit risks. The Fund may count the value of certain derivatives with below investment grade fixed income characteristics towards its policy to invest, under normal circumstances, at least 80% of its net assets
in high yield securities.
While the Fund generally does not invest in
equity securities, equity securities may be obtained through a restructuring of a debt security held in the Fund and may be retained in the Fund if the Subadviser deems it to be in the Fund’s best interests.
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 & Poor’s Financial Services LLC and
Fitch, Inc. or “Baa3” by Moody’s Investors Service), 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 and are considered speculative.
These instruments have a higher degree of default risk and may
be less liquid than higher-rated bonds. These instruments may be subject to a greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of high yield investments generally, and
less secondary market liquidity. This potential lack of liquidity may make it more difficult for the Fund to value these instruments accurately.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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 Fund’s 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. In addition, floating rate loans generally are subject to extended settlement periods in excess of seven days, which may impair the Fund’s ability to sell or realize the full value of its loans in the
event of a need to liquidate such loans. The Fund participates in a line of credit facility to assist with cash flow management and liquidity. Floating rate loans may not be considered securities and, therefore, the Fund may not have the protections
of the federal securities laws with respect to its holdings of such loans.
Foreign Companies and Securities Risk: Foreign securities and 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. Foreign securities also involve risks such as currency fluctuations and delays in enforcement of rights. All of these risks are increased for investments in emerging markets.
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.
Futures Contract Risk: The risks associated with futures include: the Subadviser’s ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Fund’s
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.
A
liquid secondary market may not always exist for the Fund’s derivative positions at any time. In fact, many over-the-counter instruments (instruments not traded on exchange) may not be liquid. Over-the-counter instruments also involve the risk
that the other party to the derivative transaction will not meet its obligations.
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 Fund’s
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.
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 Fund’s
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 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 Fund’s 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 between
December 29, 2000 to October 11, 2004 is that of the I Shares of the Seix High Yield Fund, the Fund’s predecessor. 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
11.39%
|
-14.52%
|
(6/30/2009)
|
(12/31/2008)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 7.07%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
(4.91)%
|
4.12%
|
5.26%
|
I
Shares Return After Taxes on Distributions |
(7.18)%
|
0.88%
|
2.17%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
(2.70)%
|
2.06%
|
2.91%
|
Bank
of America Merrill Lynch BB-B U.S. High Yield Constrained Index (reflects no deduction for fees, expenses or taxes) |
(2.79)%
|
5.25%
|
6.43%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Michael Kirkpatrick, Managing Director and Senior Portfolio
Manager of Seix, has co-managed the Fund since 2007. Mr. James FitzPatrick, CFA, Managing Director, Portfolio Manager and Head of Leveraged Finance Trading of Seix, has co-managed the Fund since 2013.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund’s distributions are generally taxable as
ordinary income or capital gains unless you are investing through a tax-advantaged 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 intermediary’s website for more information.
Seix Georgia Tax-Exempt
Bond Fund
Investment Objective
The Seix Georgia Tax-Exempt Bond Fund (the “Fund”)
seeks current income exempt from federal and state income taxes for Georgia residents consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.50%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.18%
|
Total
Annual Fund Operating Expenses |
0.68%
|
Fee
Waivers and/or Expense Reimbursements(1) |
(0.03)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.65%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.80% and 0.65% for the A and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser by
RidgeWorth Funds. |
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
Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$66
|
$215
|
$376
|
$844
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 41% 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 municipal securities with income exempt from U.S. federal and Georgia state income taxes. Issuers of these securities can be located in Georgia, Puerto Rico and other U.S. territories
and possessions. The Fund may invest up to 20% of its assets in securities subject to the U.S. federal alternative minimum tax. The Fund may also invest a portion of its net assets in certain taxable debt securities.
In selecting investments for purchase and sale, the
Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), tries to manage risk as much as possible. Based on the Subadviser’s analysis of municipalities, credit risk, market trends and
investment cycles, the Subadviser attempts to invest more of the Fund’s assets in undervalued market sectors and less in overvalued sectors taking into consideration maturity, sector, credit, state and supply and demand levels. There are no
limits on the Fund’s average-weighted maturity or on the remaining maturities of individual securities. The Subadviser tries to diversify the Fund’s holdings within the State of Georgia.
The Subadviser also attempts to identify and invest in
municipal issuers with improving credit and avoid those with deteriorating credit. The Fund invests in securities rated investment grade by at least one national securities rating agency or unrated securities that the Subadviser believes are of
comparable quality. The Subadviser may retain securities if the rating of the security falls below investment grade and the Subadviser deems retention of the security to be in the best interests of the Fund.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s financial condition and on the terms of the securities.
Seix
Georgia Tax-Exempt Bond Fund
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.
Municipal Securities Risk: Municipal securities can be significantly affected by litigation, political or economic events, as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal
security holders. Municipal securities backed by current or anticipated revenues from specific projects or assets can be negatively affected by the inability of the issuer to collect revenues for the projects or from the assets.
State Concentration Risk: The
Fund’s concentration of investments in securities of issuers located in the State of Georgia may subject the Fund to economic and government policies within the State.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
6.69%
|
-5.43%
|
(9/30/2009)
|
(12/31/2010)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 4.40%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
3.09%
|
5.07%
|
4.07%
|
I
Shares Return After Taxes on Distributions |
3.09%
|
5.07%
|
4.07%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
2.84%
|
4.65%
|
3.93%
|
Barclays
U.S. Municipal Bond Index (reflects no deduction for fees, expenses or taxes) |
3.30%
|
5.35%
|
4.72%
|
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-advantaged 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 Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Chris Carter, CFA, Director and Portfolio Manager of Seix,
has managed the Fund since August 2003.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund
shares on any business day. You may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund intends to distribute income that is exempt from
regular federal and Georgia income taxes. A portion of the Fund’s distributions may be subject to Georgia or federal income taxes or to the federal alternative minimum tax.
Seix Georgia Tax-Exempt
Bond Fund
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 intermediary’s website for more information.
Seix High
Grade Municipal Bond Fund
Investment Objective
The Seix High Grade Municipal Bond Fund (the
“Fund”) seeks to maximize total return through (i) current income that is exempt from federal income taxes and (ii) capital appreciation consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.50%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.19%
|
Acquired
Fund Fees and Expenses(1) |
0.01%
|
Total
Annual Fund Operating Expenses |
0.70%
|
Fee
Waivers and/or Expense Reimbursements(2) |
(0.04)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.66%
|
(1)
|
“Acquired Fund Fees and
Expenses” reflect the Fund’s 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 Fund’s net asset value per share (“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 Fund’s
prospectus. |
(2)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.80% and 0.65% for the A and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser by
RidgeWorth Funds. |
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$67
|
$220
|
$386
|
$867
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 171% 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 investment grade municipal securities, including securities subject to the U.S. federal alternative minimum tax, with income exempt from regular U.S. federal income tax. The Fund may
invest its remaining assets in cash, cash equivalents and certain taxable debt securities. As a result of its investment strategy, the Fund’s portfolio turnover rate may be 100% or more.
In selecting investments for purchase and sale, Seix Investment
Advisors LLC (“Seix” or the “Subadviser”) tries to manage risk as much as possible. Based on the Subadviser’s analysis of municipalities, credit risk, market trends and investment cycles, the Subadviser attempts to
invest more of the Fund’s assets in undervalued municipal securities and less in overvalued municipal securities taking into consideration maturity, sector, credit, state and supply and demand levels.
The Subadviser also attempts to identify and invest in
municipal issuers with improving credit and avoid those with deteriorating credit. The Fund invests in securities rated investment grade by at least one national securities rating agency or unrated securities that the Subadviser believes are of
comparable quality. The Subadviser may retain securities if the rating of the security falls below investment grade and the Subadviser deems retention of the security to be in the best interests of the Fund.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the
Seix High Grade Municipal
Bond Fund
Fund’s investment in that issuer. The degree of credit
risk depends on the issuer’s 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.
Frequent Trading Risk: Frequent buying and selling of investments may involve higher trading costs and other expenses and may affect the Fund's 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.
Municipal Securities Risk: Municipal securities can be significantly affected by litigation, political or economic events, as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal
security holders. Municipal securities backed by current or anticipated revenues from specific projects or assets can be negatively affected by the inability of the issuer to collect revenues for the projects or from the assets.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
7.78%
|
-4.89%
|
(9/30/2009)
|
(12/31/2010)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 4.84%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
3.12%
|
6.33%
|
5.08%
|
I
Shares Return After Taxes on Distributions |
2.70%
|
5.87%
|
4.84%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
2.76%
|
5.41%
|
4.61%
|
Barclays
U.S. Municipal Bond Index (reflects no deduction for fees, expenses or taxes) |
3.30%
|
5.35%
|
4.72%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to
Seix High
Grade Municipal Bond Fund
immediately utilize the full realized loss to reduce his or
her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Ronald Schwartz, CFA, Managing Director and Senior
Portfolio Manager of Seix, has managed the Fund since its inception.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund intends to distribute income that is exempt from
regular federal income taxes, although such income may be subject to the federal alternative minimum tax. A portion of the Fund’s distributions may be subject to regular U.S. federal income taxes.
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 intermediary’s website for more information.
Seix Investment Grade
Tax-Exempt Bond Fund
Investment Objective
The Seix Investment Grade Tax-Exempt Bond Fund (the
“Fund”) seeks to maximize high total return through (i) current income that is exempt from federal income taxes and (ii) capital appreciation consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.49%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.19%
|
Acquired
Fund Fees and Expenses(1) |
0.01%
|
Total
Annual Fund Operating Expenses |
0.69%
|
Fee
Waivers and/or Expense Reimbursements(2) |
(0.03)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.66%
|
(1)
|
“Acquired Fund Fees and
Expenses” reflect the Fund’s 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 Fund’s net asset value per share (“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 Fund’s
prospectus. |
(2)
|
The
Adviser and Subadviser have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute
dividend expenses on securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.80% and 0.65% for the A and I Shares, respectively. This agreement may be terminated upon written notice to
the Adviser by RidgeWorth Funds. |
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
Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$67
|
$218
|
$381
|
$856
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 139% of the average value of its portfolio.
Principal Investment Strategies
The Fund invests at least 80% of its net assets (plus any
borrowings for investment purposes) in investment grade tax-exempt obligations, such as municipal securities. The issuers of these securities may be located in any U.S. state, territory or possession. The Fund may invest up to 20% of its assets in
securities subject to the U.S. federal alternative minimum tax. The Fund may also invest a portion of its net assets in certain taxable debt securities. As a result of its investment strategy, the Fund’s portfolio turnover rate may be 100% or
more.
In selecting investments for purchase and sale, the
Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), tries to manage risk as much as possible. Based on the Subadviser’s analysis of municipalities, credit risk, market trends and
investment cycles, the Subadviser attempts to invest more of the Fund’s assets in undervalued municipal securities and less in overvalued municipal securities taking into consideration maturity, sector, credit, state and supply and demand
levels.
The Subadviser also attempts to identify and
invest in municipal issuers with improving credit and avoid those with deteriorating credit. The Subadviser anticipates that the Fund’s average-weighted maturity will range from 4 to 10 years but there is no limit on the maturities of
individual securities. The Fund invests in securities rated investment grade by at least one national securities rating agency or unrated securities that the Subadviser believes are of comparable quality. The Subadviser may retain securities if the
rating of the security falls below investment grade and the Subadviser deems retention of the security to be in the best interests of the Fund.
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 issuer’s credit rating or the market’s perception of
an
Seix
Investment Grade Tax-Exempt Bond Fund
issuer’s creditworthiness may also affect the value of
the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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.
Frequent Trading Risk: Frequent buying and selling of investments may involve higher trading costs and other expenses and may affect the Fund's 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.
Municipal Securities Risk: Municipal securities can be significantly affected by litigation, political or economic events, as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal
security holders. Municipal securities backed by current or anticipated revenues from specific projects or assets can be negatively affected by the inability of the issuer to collect revenues for the projects or from the assets.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
6.32%
|
-3.51%
|
(9/30/2009)
|
(12/31/2010)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 3.76%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
2.26%
|
4.56%
|
4.61%
|
I
Shares Return After Taxes on Distributions |
1.88%
|
4.08%
|
4.20%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
2.46%
|
3.94%
|
4.10%
|
Barclays
U.S. Municipal Bond 1-15 Year Blend Index (reflects no deduction for fees, expenses or taxes) |
2.83%
|
4.28%
|
4.42%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal
Seix Investment Grade
Tax-Exempt Bond Fund
income tax bracket for each year and would have been able to
immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Ronald Schwartz, CFA, Managing Director and Senior
Portfolio Manager of Seix, has managed the Fund since its inception.
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund intends to distribute income that is exempt from
regular federal income taxes. A portion of the Fund’s distributions may be subject to federal income taxes or to the federal alternative minimum tax.
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 intermediary’s website for more information.
Seix North
Carolina Tax-Exempt Bond Fund
Investment Objective
The Seix North Carolina Tax-Exempt Bond Fund (the
“Fund”) seeks current income exempt from federal and state income taxes for North Carolina residents consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.50%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.23%
|
Total
Annual Fund Operating Expenses |
0.73%
|
Fee
Waivers and/or Expense Reimbursements(1) |
(0.08)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.65%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.80% and 0.65% for the A and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser by
RidgeWorth Funds. |
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
Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$66
|
$225
|
$398
|
$899
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 42% 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 municipal securities with income exempt from U.S. federal and North Carolina state income taxes. Issuers of these securities can be located in North Carolina, Puerto Rico and other U.S.
territories and possessions. The Fund may invest up to 20% of its assets in securities subject to the U.S. federal alternative minimum tax. The Fund may also invest a portion of its net assets in certain taxable debt securities.
In selecting investments for purchase and sale, the
Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), tries to manage risk as much as possible. Based on the Subadviser’s analysis of municipalities, credit risk, market trends and
investment cycles, the Subadviser attempts to invest more of the Fund’s assets in undervalued market sectors and less in overvalued sectors taking into consideration maturity, sector, credit, state and supply and demand levels. There are no
limits on the Fund’s average-weighted maturity or on the remaining maturities of individual securities.
The Subadviser attempts to diversify the Fund’s holdings
within the State of North Carolina. The Subadviser also attempts to identify and invest in municipal issuers with improving credit and avoid those with deteriorating credit.
The Fund invests in securities rated investment grade by at
least one national securities rating agency or unrated securities that the Subadviser believes are of comparable quality. The Subadviser may retain securities if the rating of the security falls below investment grade and the Subadviser deems
retention of the security to be in the best interests of the Fund.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s financial condition and on the terms of the securities.
Seix North Carolina
Tax-Exempt Bond Fund
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.
Municipal Securities Risk: Municipal securities can be significantly affected by litigation, political or economic events, as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal
security holders. Municipal securities backed by current or anticipated revenues from specific projects or assets can be negatively affected by the inability of the issuer to collect revenues for the projects or from the assets.
Non-Diversification Risk: The
risk that, because the Fund may invest a higher percentage of its assets in a small number of issuers, the Fund is more susceptible to any single economic, political or regulatory event affecting those issuers than is a diversified
fund.
State Concentration Risk: The Fund’s concentration of investments in securities of issuers located in the State of North Carolina may subject the Fund to economic and government policies within the State.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. The Fund commenced operations on March 21, 2005. Performance between
January 8, 2004 and March 21, 2005 is that of the CCMI Tax-Exempt North Carolina Bond Fund, the Fund’s predecessor. The performance of the predecessor fund has not been adjusted to reflect the Fund’s A 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 Fund’s I Shares
from year to year.*
Best
Quarter |
Worst
Quarter |
6.54%
|
-5.20%
|
(9/30/2009)
|
(12/31/2010)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 4.21%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
3.16%
|
4.97%
|
4.09%
|
I
Shares Return After Taxes on Distributions |
3.00%
|
4.79%
|
4.00%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
2.91%
|
4.49%
|
3.90%
|
Barclays
U.S. Municipal Bond Index (reflects no deduction for fees, expenses or taxes) |
3.30%
|
5.35%
|
4.72%
|
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-advantaged 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 Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Seix North
Carolina Tax-Exempt Bond Fund
Portfolio Management
Mr. Chris Carter, CFA, Director and Portfolio Manager of Seix,
has managed the Fund since March 2005.
Purchasing and
Selling Your Shares
You may purchase or redeem Fund
shares on any business day. You may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund intends to distribute income that is exempt from
regular federal and North Carolina income taxes. A portion of the Fund’s distributions may be subject to North Carolina or federal income taxes or to the federal alternative minimum tax.
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 intermediary’s website for more information.
Seix Short-Term Municipal
Bond Fund
Investment Objective
The Seix Short-Term Municipal Bond Fund (the
“Fund”) seeks to maximize total return through (i) current income that is exempt from federal income taxes and (ii) capital appreciation consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.35%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.27%
|
Acquired
Fund Fees and Expenses(1) |
0.01%
|
Total
Annual Fund Operating Expenses |
0.63%
|
Fee
Waivers and/or Expense Reimbursements(2) |
(0.14)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.49%
|
(1)
|
“Acquired Fund Fees and
Expenses” reflect the Fund’s 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 Fund’s net asset value per share (“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 Fund’s
prospectus. |
(2)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.68% and 0.48% for the A and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser by
RidgeWorth Funds. |
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
Fund’s 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:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$50
|
$188
|
$337
|
$773
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 82% 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 municipal securities, including securities subject to the U.S. federal alternative minimum tax, with the income exempt from regular U.S. federal income tax. The Fund will invest
primarily in investment grade short-term municipal securities. The issuers of these securities may be located in any U.S. state, territory or possession. The Fund may also invest a portion of its net assets in certain taxable debt securities. The
Fund expects that it will normally maintain an effective maturity of 3 years or less.
In selecting investments for purchase and sale, the
Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), tries to manage risk as much as possible. Based on the Subadviser’s analysis of municipalities, credit risk, market trends and
investment cycles, the Subadviser attempts to invest more of the Fund’s assets in undervalued municipal securities and less in overvalued municipal securities taking into consideration maturity, sector, credit, state and supply and demand
levels.
The Subadviser also attempts to identify and
invest in municipal issuers with improving credit and avoid those with deteriorating credit. The Fund invests in securities rated investment grade by at least one national securities rating agency or unrated securities that the Subadviser believes
are of comparable quality. The Subadviser may retain securities if the rating of the security falls below investment grade and the Subadviser deems retention of the security to be in the best interests of the Fund.
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 issuer’s credit rating or the market’s perception of
an
Seix
Short-Term Municipal Bond Fund
issuer’s creditworthiness may also affect the value of
the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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.
Municipal Securities Risk: Municipal securities can be significantly affected by litigation, political or economic events, as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal
security holders. Municipal securities backed by current or anticipated revenues from specific projects or assets can be negatively affected by the inability of the issuer to collect revenues for the projects or from the assets.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
6.09%
|
-4.71%
|
(9/30/2009)
|
(12/31/2010)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 0.86%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
0.40%
|
2.93%
|
3.39%
|
I
Shares Return After Taxes on Distributions |
0.34%
|
2.44%
|
3.13%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
0.43%
|
2.57%
|
3.20%
|
Barclays
1-5 Year Municipal Bond Index (reflects no deduction for fees, expenses or taxes) |
1.21%
|
1.76%
|
2.95%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Ronald Schwartz, CFA, Managing Director and Senior
Portfolio Manager of Seix, and Ms. Dusty Self, Managing Director and Portfolio Manager of Seix, have co-managed the Fund since November 2011.
Seix Short-Term Municipal
Bond Fund
Purchasing and Selling Your Shares
You may purchase or redeem Fund shares on any business day. You
may purchase and redeem 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Tax Information
The Fund intends to distribute income that is exempt from
regular federal income taxes. A portion of the Fund’s distributions may be subject to federal income taxes or to the federal alternative minimum tax.
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 intermediary’s website for more information.
Seix
Virginia Intermediate Municipal Bond Fund
Investment Objective
The Seix Virginia Intermediate Municipal Bond Fund (the
“Fund”) seeks current income exempt from federal and state income taxes for Virginia residents consistent with capital preservation.
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.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
I
Shares |
Management
Fees |
0.50%
|
Distribution
(12b-1) Fees |
None
|
Other
Expenses |
0.18%
|
Total
Annual Fund Operating Expenses |
0.68%
|
Fee
Waivers and/or Expense Reimbursements(1) |
(0.03)%
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.65%
|
(1)
|
The Adviser and Subadviser
have contractually agreed to waive fees and reimburse expenses until at least August 1, 2017 in order to keep Total Annual Fund Operating Expenses (excluding, as applicable, taxes, brokerage commissions, substitute dividend expenses on
securities sold short, interest expense, extraordinary expenses and Acquired Fund Fees and Expenses) from exceeding 0.80% and 0.65% for the A and I Shares, respectively. This agreement may be terminated upon written notice to the Adviser by
RidgeWorth Funds. |
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
Fund’s operating expenses remain the same and that you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
I
Shares |
$66
|
$215
|
$376
|
$844
|
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 Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 48% 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 municipal securities, including securities subject to the U.S. federal alternative minimum tax, with income exempt from regular U.S. federal income tax and Virginia commonwealth income
tax. Issuers of these securities can be located in Virginia, Puerto Rico and other U.S. territories and possessions. In addition, the Fund may invest a portion of its net assets in certain taxable debt securities.
In selecting investments for purchase and sale, the
Fund’s Subadviser, Seix Investment Advisors LLC (“Seix” or the “Subadviser”), tries to manage risk by buying investment grade securities. Based on the Subadviser’s analysis of municipalities, credit risk, market
trends and investment cycles, the Subadviser attempts to invest more of the Fund’s assets in undervalued sectors and less in overvalued sectors.
The Fund invests in securities rated investment grade by at
least one national securities rating agency or unrated securities that the Subadviser believes are of comparable quality. The Subadviser expects that the Fund’s average-weighted maturity will range from 5 to 10 years but there is no limit on
the maturities of individual securities. The Subadviser may retain securities if the rating of the security falls below investment grade and the Subadviser deems retention of the security to be in the best interests of the Fund.
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 issuer’s credit rating or the market’s perception of an
issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s 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.
Seix Virginia Intermediate
Municipal Bond Fund
Municipal Securities Risk:
Municipal securities can be significantly affected by litigation, political or economic events, as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal
securities backed by current or anticipated revenues from specific projects or assets can be negatively affected by the inability of the issuer to collect revenues for the projects or from the assets.
State Concentration Risk: The Fund’s concentration of investments in securities of issuers located in the Commonwealth of Virginia may subject the Fund to economic and government policies within the Commonwealth.
Performance
The bar chart and the performance table that follow illustrate
the risks and volatility of an investment in the Fund. The Fund’s 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
Fund’s I Shares from year to year.*
Best
Quarter |
Worst
Quarter |
4.47%
|
-3.37%
|
(9/30/2009)
|
(12/31/2010)
|
* The performance information shown above is
based on a calendar year. The Fund's total return for the six months ended June 30, 2016 was 3.70%.
The following table compares the Fund’s 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, 2015)
|
1
Year |
5
Years |
10
Years |
I
Shares Return Before Taxes |
2.42%
|
3.79%
|
3.90%
|
I
Shares Return After Taxes on Distributions |
1.76%
|
3.46%
|
3.72%
|
I
Shares Return After Taxes on Distributions and Sale of Fund Shares |
2.88%
|
3.59%
|
3.77%
|
Barclays
U.S. Municipal Bond 1-15 Year Blend Index (reflects no deduction for fees, expenses or taxes) |
2.83%
|
4.28%
|
4.42%
|
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-advantaged 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.
In some cases, average annual return after
taxes on distributions and sale of fund shares is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.
The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized
loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.
Investment Adviser and Subadviser
RidgeWorth Investments is the Fund’s investment adviser
(the “Adviser”). Seix Investment Advisors LLC is the Fund’s Subadviser.
Portfolio Management
Mr. Chris Carter, CFA, Director and Portfolio Manager of Seix,
has 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 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.
There is no minimum initial investment amount for the
Fund’s I Shares. There are no minimums for subsequent investments.
Seix
Virginia Intermediate Municipal Bond Fund
Tax Information
The Fund intends to distribute income that is exempt from
regular federal and Virginia income taxes. A portion of the Fund’s distributions may be subject to Virginia or federal income taxes or to the federal alternative minimum tax.
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 intermediary’s website for more information.
More Information
More Information About Principal Investment Strategies
Please see the section entitled “Principal Investment
Strategies” in the “Summary Section” for each Fund for a complete discussion of each Fund’s principal investment strategies.
With respect to each Fund that is subject to Rule 35d-1 under
the 1940 Act, except the Seix Georgia Tax-Exempt Bond Fund, Seix High Grade Municipal Bond Fund, Seix Investment Grade Tax-Exempt Bond Fund, Seix North Carolina Tax-Exempt Bond Fund, Seix Short-Term Municipal Bond Fund, and Seix Virginia
Intermediate Municipal Bond Fund, any change to a Fund’s investment policy of investing at least 80% of such Fund’s net assets in a particular type or category of securities is subject to 60 days prior notice to shareholders.
More Information About Principal Risks
Below Investment Grade Securities Risk
Seix Core Bond Fund
Seix Corporate Bond Fund
Seix
Floating Rate High Income Fund
Seix High Income Fund
Seix High Yield Fund
Seix Short-Term Bond Fund
Seix Total Return Bond Fund
Securities that are rated below investment grade (commonly
referred to as “junk bonds,” which include those bonds rated lower than “BBB-” by Standard & Poor’s Financial Services LLC and Fitch, Inc. or “Baa3” by Moody’s Investors Service), or are unrated
but judged by the Subadviser to be of comparable quality at the time of purchase, may be more volatile than higher-rated securities of similar maturity.
High yield securities may also be subject to greater levels of
credit or default risk than higher-rated securities. The value of high yield securities can be adversely affected by overall economic conditions, such as an economic downturn or a period of rising interest rates, and high yield securities may be
less liquid and more difficult to sell at an advantageous time or price or to value than higher-rated securities.
In particular, high yield securities are often issued by
smaller, less creditworthy or highly leveraged (indebted) issuers, which are generally less able than more financially stable issuers to make scheduled payments of interest and principal.
Debt Securities Risk
All Funds
The prices of a Fund’s fixed income securities respond to
economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments. Generally, a Fund’s fixed income securities will decrease in value if interest rates
rise and vice versa. Treasury Inflation Protected Securities (“TIPS”)
can also exhibit such price movements as a result of changing inflation
expectations and seasonal inflation patterns.
Long-term
debt securities generally are more sensitive to changes in interest rates, usually making them more volatile than short-term debt securities and thereby increasing risk.
Debt securities are also subject to credit risk, which is the
possibility than an issuer will fail to make timely payments of interest or principal or go bankrupt. The lower the ratings of such debt securities, the greater their risks. In addition, lower-rated securities have higher risk characteristics, and
changes in economic conditions are likely to cause issuers of these securities to be unable to meet their obligations.
Debt securities are also subject to income risk, which is the
possibility that falling interest rates will cause a Fund’s income to decline. Income risk is generally higher for short-term bonds.
An additional risk of debt securities is reinvestment risk,
which is the possibility that a Fund may not be able to reinvest interest or dividends earned from an investment in such a way that they earn the same rate of return as the invested funds that generated them. For example, falling interest rates may
prevent bond coupon payments from earning the same rate of return as the original bond. Furthermore, pre-funded loans and issues may cause a Fund to reinvest those assets at a rate lower than originally anticipated.
Derivative Related Risks
Seix Core Bond Fund
Seix Corporate Bond Fund
Seix High
Income Fund
Seix Floating Rate High Income Fund
Seix High Yield Fund
Short-Term Bond Fund
Seix Total Return Bond Fund
Seix U.S. Government Securities Ultra-Short Bond Fund
Seix U.S. Mortgage Fund
Seix Ultra-Short Bond
Fund
Derivatives Risks. A
derivative is a financial contract whose value adjusts in accordance with the value of one or more underlying assets, reference rates or indices. Derivatives (such as credit linked notes, futures, options, inverse floaters, swaps and warrants) may
be used to attempt to achieve investment objectives or to offset certain investment risks. These positions may be established for hedging, substitution of a position in the underlying asset or for speculation purposes. Hedging involves making an
investment (e.g., in a futures contract) to reduce the risk of adverse price movements in an already existing investment position. Because leveraging is inherent in derivatives, the use of derivatives also involves the risk of leveraging. Risks
involved with hedging and leveraging activities include:
• |
The success of a hedging
strategy may depend on an ability to predict movements in the prices of individual securities, fluctuations in markets, and movements in interest rates. |
•
|
A Fund may
experience losses over certain market movements that exceed losses experienced by a Fund that does not use derivatives. |
• |
There may be an imperfect or
no correlation between the changes in market value of the securities held by a Fund and the prices of derivatives used to hedge those positions. |
• |
There may not be a liquid
secondary market for derivatives. |
• |
Trading restrictions or
limitations may be imposed by an exchange. |
• |
Government regulations may
restrict trading in derivatives. |
• |
The other party to an
agreement (e.g., options or swaps) may default. |
Because premiums or totals paid or received on derivatives are
small in relation to the market value of the underlying investments, buying and selling derivatives can be more speculative than investing directly in securities. In addition, many types of derivatives have limited investment lives and may expire or
necessitate being sold at inopportune times.
The use of
derivatives may cause a Fund to recognize higher amounts of short-term capital gains, which are generally taxed to shareholders at ordinary income tax rates.
Leverage may cause a 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 on the value of a Fund’s portfolio securities. To limit leveraging risk, a Fund observes asset segregation requirements to cover fully
its future obligations.
By setting aside assets equal
only to its net obligations rather than the full notional amount under certain derivative instruments, a Fund will have the ability to employ leverage to a greater extent than if it were required to segregate assets equal to the full notional value
of such derivative instruments.
Swap Risks. Each 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 Fund’s 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.
Floating Rate Loan Risk
Seix Floating Rate High Income Fund
Seix High Yield
Fund
Seix High Income Fund
Seix Total Return Bond Fund
Investments in floating rate loans are subject to interest rate
risk although the risk is less than fixed rate loans because the interest rate of the loan adjusts periodically. Investments in floating rate loans are also subject to credit risk.
Many floating rate loans are rated below investment grade or
are unrated. Therefore, a Fund relies heavily on the analytical ability of the Fund’s Subadviser. Many floating rate loans share the same risks as high yield securities, although these risks are reduced when the floating rate loans are senior
and secured as
opposed to many high yield securities that are junior and unsecured. Floating
rate loans are often subject to restrictions on resale which can result in reduced liquidity. The risk is greater for the Seix Floating Rate High Income Fund, because of its concentration in these types of instruments.
Borrowers may repay principal faster than the scheduled due
date which may result in a Fund replacing that loan with a lower-yielding security. Investment in loan participation interests may result in increased exposure to financial services sector risk. A loan may not be collateralized fully which may cause
the loan to decline significantly in value.
Seix
currently serves as collateral manager to six collateralized loan obligation (“CLO”) funds that invest in bank loans. In addition to the CLO funds, Seix serves as subadviser to an unaffiliated registered fund and as investment manager to
three unregistered funds that may invest in bank loans. As a result of multiple investment-oriented and associated relationships, there exists a potential risk that the portfolio managers may favor other adviser and non-adviser contracted businesses
over a Fund. Seix, the Subadviser to the Seix Floating Rate High Income Fund, has created and implemented additional policies and procedures designed to protect shareholders against such conflicts; however, there can be no absolute guarantee that a
Fund will always participate in the same or similar investments or receive equal or better individual investment allocations at any given time.
Foreign Companies and Securities Risk
Seix Core Bond Fund
Seix Floating Rate High Income Fund
Seix High Income Fund
Seix High Yield Fund
Seix Short-Term Bond Fund
Seix Total Return Bond Fund
Seix Ultra-Short Bond Fund
Investments in securities of foreign companies or governments
can be more volatile than investments in U.S. companies or governments. Diplomatic, political or economic developments, including nationalization or appropriation, unique to a country or region will affect those markets and their issuers. Foreign
securities markets generally have less trading volume and less liquidity than U.S. markets.
The value of securities denominated in foreign currencies, and
of dividends from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or
negatively) the value of a Fund’s investment.
Foreign currency exchange rates may fluctuate significantly.
They are determined by supply and demand in the foreign exchange markets, the relative merits of investments in different countries, actual or perceived changes in interest rates, and other complex factors.
Currency exchange rates also can be affected unpredictably by
intervention (or the failure to intervene) by U.S. or foreign governments or central banks or by currency controls or
political developments. Currency movements may happen
separately from, and in response to, events that do not otherwise affect the value of the security in the issuer’s home country.
Foreign companies or governments generally are not subject to
uniform accounting, auditing, and financial reporting standards comparable to those applicable to domestic U.S. companies or governments. Transaction costs are generally higher than those in the U.S. and expenses for custodial arrangements of
foreign securities may be somewhat greater than typical expenses for custodial arrangements of similar U.S. securities. Some foreign governments levy withholding taxes against dividend and interest income. Although in some countries a portion of
these taxes are recoverable, the non-recovered portion will reduce the income received from the securities comprising the portfolio.
All of these risks are increased for investments in emerging
markets. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. In addition, the financial stability of issuers (including governments) in emerging market
countries may be more precarious than in other countries. Emerging market countries are generally countries covered by the Bank of America Merrill Lynch Emerging Markets Diversified Corporate Index.
Mortgage-Backed and Asset-Backed Securities Risk
Seix Core Bond Fund
Seix High Income Fund
Seix High
Yield Fund
Seix Short-Term Bond Fund
Seix Total Return Bond Fund
Seix U.S. Government Securities Ultra-Short Bond Fund
Seix U.S. Mortgage Fund
Seix Ultra-Short Bond Fund
Mortgage- and asset-backed securities are fixed income
securities representing an interest in a pool of underlying mortgage- or asset-backed secured and unsecured cash-flow producing assets such as automobile loans and leases, credit card receivables and other financial assets.
The risks associated with these types of securities include:
(1) prepayment risk that could result in earlier or later return of principal than expected and can lead to significant fluctuations in the value and yield of the securities; (2) liquidity/market risk which can result in higher than expected changes
in security valuation and transactions costs especially in times of general market stress; and (3) credit risk that is associated with the underlying borrowers being unable or unwilling to make timely principal and/or interest payments or to
otherwise honor its payment obligations and can also be driven by general economic conditions which can result in the loss of invested principal.
The value of some mortgage- or asset-backed securities may be
particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-backed securities may expose a Fund to a lower rate of return upon
reinvestment of principal. When interest rates rise, the value of these
securities generally will decline; however, when interest rates are declining, the value of these securities with prepayment features may not increase as much as other fixed income securities. The rate of prepayments on underlying mortgages will
affect the price and volatility of a mortgage-backed security, and may shorten or extend the effective maturity of the security beyond what was anticipated at the time of purchase.
If unanticipated rates of prepayment on underlying mortgages
increase the effective maturity of a mortgage-related security, the volatility of the security can be expected to increase. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the
issuers. Additionally, although mortgage-backed securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.
In recent years, the market for mortgage-backed securities
experienced substantially lower valuations and greatly reduced liquidity. Ongoing economic and market uncertainty suggests that mortgage-backed securities may continue to be more difficult to value and to dispose of than previously.
Municipal Securities Risk
Seix Georgia Tax-Exempt Bond Fund
Seix High Grade Municipal
Bond Fund
Seix Investment Grade Tax-Exempt Bond Fund
Seix North Carolina Tax-Exempt Bond Fund
Seix Short-Term Municipal Bond Fund
Seix Virginia Intermediate Municipal Bond Fund
Municipal securities can be significantly affected by political
changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Because many municipal securities are issued to finance similar projects, especially those relating to
education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market. In addition, changes in the financial condition of an individual municipal insurer can affect the overall municipal
market.
Municipal securities backed by current or
anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the taxation supporting the project or assets or the inability to collect revenues for the project or from the assets. If the
Internal Revenue Service determines an issuer of a municipal security has not complied with applicable tax requirements, interest from the security could become taxable and the security could decline significantly in value.
In addition, a Fund’s concentration of investments in
issuers located in a single state makes the Fund more susceptible to adverse political or economic developments affecting that state. The Fund also may be riskier than mutual funds that buy securities of issuers in numerous states.
Non-Diversification Risk
Seix North Carolina Tax-Exempt Bond Fund
The Fund is non-diversified, which means that it may invest in
the securities of relatively few issuers. As a result, the Fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, and may experience increased volatility due to its investments in
those securities.
Prepayment and Call Risk
Seix Core Bond Fund
Seix High Income Fund
Seix High
Yield Fund
Seix Short-Term Bond Fund
Seix Total Return Bond Fund
Seix U.S. Government Securities Ultra-Short Bond Fund
Seix U.S. Mortgage Fund
Seix Ultra-Short Bond Fund
A bond issuer may decide to pay back the principal at an
unexpected time and such an event may result in greater price and yield volatility and a possible decline in income, increased capital gains and unexpected capital loss for the bond holder. For instance, the prices and yields of mortgage-backed
securities typically assume that the securities will be redeemed at a given time before maturity.
When interest rates fall substantially, they usually are
redeemed early because the underlying mortgages often are prepaid. The Fund would then have to reinvest the proceeds it receives because of those redemptions at a lower rate. The price or yield of mortgage-backed securities also may fall if they are
redeemed after that date.
Restricted Securities
Risk
Seix Core Bond Fund
Seix Corporate Bond Fund
Seix Floating Rate High Income Fund
Seix High Income Fund
Seix High Yield Fund
Seix Short-Term Bond Fund
Seix Total Return Bond Fund
Seix U.S. Mortgage Fund
Seix Ultra-Short Bond Fund
Non-publicly traded securities may involve a high degree of
business and financial risk and may result in substantial losses. These securities may be less liquid than publicly traded securities and the Fund may take longer to liquidate these positions than would be the case for publicly traded securities.
Companies whose securities are not publicly traded may not be subject to the disclosure and other investor protection requirements applicable to companies whose securities are publicly traded. The Fund’s investments in restricted securities
are subject to the risk that should the Fund desire to sell any of these securities when a ready buyer is not available at a price that is deemed to be representative of their value, the value of the Fund’s net assets could be adversely
affected.
Senior Loan Risk
Seix Floating Rate High Income Fund
Portfolio transactions in loans may settle in as short as seven
days but typically can take up to two or three weeks, and in some cases much longer. Unlike the securities markets, there is no central clearinghouse for loan trades, and the loan market has not established enforceable settlement standards or
remedies for failure to settle. Credit risk is heightened for loans in which the Fund invests because companies that issue such loans may be leveraged and thus are more susceptible to the risks of interest deferral, default and/or bankruptcy.
State Concentration Risk
Seix Georgia Tax-Exempt Bond Fund
Seix North Carolina
Tax-Exempt Bond Fund
Seix Virginia Intermediate Municipal Bond Fund
To the extent that a Fund’s investments are concentrated
in a specific geographic region, a Fund may be subject to the political and other developments affecting that region. Regional economies are often closely interrelated, and political and economic developments affecting one region, country or state
often affect other regions, countries or states, thus subjecting the Fund to additional risks.
U.S. Government-Related Risks
Seix Core Bond Fund
Seix Corporate Bond Fund
Seix
Floating Rate High Income Fund
Seix High Income Fund
Seix High Yield Fund
Seix Short-Term Bond Fund
Seix Total Return Bond Fund
Seix U.S. Government Securities Ultra-Short Bond Fund
Seix U.S. Mortgage Fund
Seix
Ultra-Short Bond Fund
With respect to each Fund (except
the Seix Corporate Bond Fund) 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.
With respect to the Seix Corporate Bond Fund, 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 agencies debt securities may underperform other segments of
the fixed income market or the fixed income market as a whole.
More Information About
Indices
Risk Information Common to RidgeWorth Funds
Each Fund is an open-end management investment company
registered with the SEC, and commonly known as a mutual fund. A mutual fund pools shareholders’ money and, using professional investment managers, invests it in securities.
Each Fund has its own investment objective and strategies for
reaching that objective. The Adviser or Subadviser invests Fund assets in a way that it believes will help a Fund achieve its objective. Still, investing in each Fund involves risk and there is no guarantee that a Fund will achieve its
objective. The Adviser’s or Subadviser's judgments about the markets, the economy or companies may not anticipate actual market movements, economic conditions or company performance, and these judgments may affect the return on your
investment. In fact, no matter how good a job the Adviser or Subadviser does, you could lose money on your investment in a Fund, just as you could with other investments. The value of your investment in a Fund is based on the market prices of
the securities the Fund holds. These prices change daily due to economic and other events that affect particular companies and other issuers. These price movements, sometimes called volatility, may be greater or lesser depending on the types of
securities a Fund owns and the markets in which they trade. The effect on a Fund of a change in the value of a single security will depend on how widely the Fund diversifies its holdings.
Each Fund’s investment objective may be changed without
shareholder approval. Shareholders will be given notice of any change in investment objective. Before investing, make sure that the Fund’s objective matches your own.
The Funds are not managed to achieve tax efficiency. Seix
Georgia Tax-Exempt Bond, Seix High Grade Municipal Bond, Seix Investment Grade Tax-Exempt Bond, Seix North Carolina Tax-Exempt Bond, Seix Short-Term Municipal Bond and Seix Virginia Intermediate Municipal Bond Funds intend to distribute income that
is exempt from regular U.S. federal income tax, however, a portion of distributions from those Funds may be subject to state or federal income taxes or to the federal alternative minimum tax.
More Information About Indices
Each Fund compares its performance with a
broad-based securities market index in order to provide some indication of the risks of an investment in the Fund.
An index measures the market prices of a specific group of
securities in a particular market or market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance
would be lower.
The Barclays U.S. Corporate Investment
Grade Index covers U.S. dollar-denominated, investment grade, fixed-rate, taxable securities sold by industrial, utility and financial issuers. It includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified
maturity, liquidity, and quality requirements.
The Barclays U.S. Municipal Bond Index covers the U.S. dollar-denominated
long-term tax-exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and pre-refunded bonds.
The Barclays 1-5 Year Municipal Bond Index is composed of
tax-exempt bonds with maturities ranging between 1-6 years. The index has four main sectors: state and local general obligation bonds, insured bonds and pre-refunded bonds.
The Barclays U.S. Municipal Bond 1-15 Year Blend Index is
composed of tax-exempt bonds with maturities ranging between 1-15 years.
The Barclays U.S. Aggregate Bond Index measures the U.S.
dollar-denominated, investment grade and fixed-rate taxable bond market of SEC-registered securities. The index includes bonds from the U.S. Treasury, government-related, corporate, mortgage-backed securities (agency fixed-rate and hybrid
adjustable-rate mortgage (“ARM”) pass-throughs), asset-backed securities and commercial mortgage-backed securities sectors.
The Barclays U.S. Corporate High Yield Bond Index covers the
U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high yield if the middle rating of Moody’s Investors Service, Inc., Fitch, Inc. and Standard & Poor’s Financial
Services LLC is Ba1/BB+/BB+ or below. The index excludes emerging markets debt.
The Barclays U.S. Government/Credit Bond Index is the
non-securitized component of the Barclays U.S. Aggregate Index and includes U.S. Treasuries (public obligations of the U.S. Treasury that have remaining maturities of more than one year), government-authority issues (agency, sovereign,
supranational, and local authority debt), and U.S. dollar-denominated corporates.
The Barclays U.S. Mortgage-Backed Securities Index covers
agency mortgage-backed pass-through securities (both fixed-rate and hybrid ARM) issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC).
The Barclays 1-3 Year Government/Credit Index is the 1-3 year
component of the U.S. Government/Credit index and includes securities in the U.S. Government and Credit indices. The Government Index includes U.S. Treasuries (public obligations of the U.S. Treasury that have remaining maturities of more than one
year) and U.S. agencies (publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government). The Credit Index includes publicly issued U.S. corporate and foreign debentures
and secured notes that meet specified maturity, liquidity, and quality requirements.
The Barclays 1-3 Year U.S. Treasury Index is the 1-3 year
component of the Barclays U.S. Treasury Index. It includes securities in the Treasury Index (public obligations of the U.S. Treasury) with a maturity from 1 up to (but not including) 3 years.
The Barclays 3-6 Month U.S. Treasury Bill Index is the 3-6
Months component of the Barclays U.S. Treasury Bills Index. It includes U.S. Treasury bills with a remaining maturity
More
Information About Fund Investments, Information About Portfolio Holdings and Management
from 1 up to (but not including) 12 months. It excludes zero
coupon strips.
The Credit Suisse Institutional Leveraged
Loan Index is a sub-index of the Credit Suisse Leveraged Loan Index, which contains only institutional loan facilities priced above 90, excluding TL and TLA facilities and loans that are rated CC or C or are in default. It is designed to more
closely reflect the investment criteria of institutional investors. The Index reflects reinvestment of all distributions and changes and market prices.
The Credit Suisse Leveraged Loan Index is an
index designed to mirror the investable universe of the $US-denominated leveraged loan market. The Index inception is January 1992. The Index frequency is monthly. New loans are added to the Index on their effective date if they qualify according to
the following criteria: Loans must be rated “5B” or lower; only fully- funded term loans are included; the tenor must be at least one year; and the Issuers must be domiciled in developed countries (Issuers from developing countries are
excluded). Fallen angels are added to the Index subject to the new loan criteria. Loans are removed from the Index when they are upgraded to investment grade, or when they exit the market (for example, at maturity, refinancing or bankruptcy
workout). Note that issuers remain in the Index following default. Total return of the Index is the sum of three components: principal, interest, and reinvestment return. The cumulative return assumes that coupon payments are reinvested into the
Index at the beginning of each period.
The Bank
of America Merrill Lynch BB-B U.S. High Yield Constrained Index tracks the performance of BB1 through B3 rated U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market.
More Information About Fund Investments
This prospectus describes the Funds’ primary strategies,
and the Funds will normally invest in the types of securities described in this prospectus. However, in addition to the investments and strategies described in this prospectus, each Fund also may invest in other securities, use other strategies and
engage in other investment practices. These investments and strategies, as well as those described in this prospectus, are described in detail in the Funds’ Statement of Additional Information (“SAI”).
The investments and strategies described in this prospectus are
those that the Funds use under normal conditions. During unusual economic or market conditions, or for temporary defensive or liquidity purposes, each Fund may invest up to 100% of its assets in cash, money market instruments, repurchase agreements
and short-term obligations that would not ordinarily be consistent with a Fund’s objectives. Temporary defensive investments may limit a Fund’s ability to meet its investment objective. A Fund will do so only if the Adviser or its
Subadviser believes that the risk of loss outweighs the
opportunity for capital gains or higher income. Of course, a Fund cannot
guarantee that it will achieve its investment objective.
Each Fund may invest in other mutual funds for cash management
purposes. When a Fund invests in another mutual fund, in addition to directly bearing expenses associated with its own operations, it will bear a pro rata portion of the other mutual fund’s expenses.
Information About Portfolio Holdings
A description of the Funds’ policies and procedures with
respect to the circumstances under which the Funds disclose their respective portfolio securities is available in the SAI. The Funds publicly disclose their portfolio holdings on its website at www.ridgeworth.com.
Management
The Board of Trustees (the “Board”) is responsible
for the overall supervision and management of the business and affairs of the Funds. The Board supervises the Adviser and Subadviser and establishes policies that the Adviser and Subadviser must follow in their fund-related management
activities. The day-to-day operations of the Funds are the responsibilities of the officers and various service organizations retained by the Funds.
Investment Adviser
RidgeWorth Investments, located at 3333 Piedmont Road, Suite 1500, Atlanta, GA 30305 (“RidgeWorth” or the “Adviser”), serves as the investment adviser to the Funds. In addition to being an investment adviser registered
with the Securities and Exchange Commission (the “SEC”), RidgeWorth is a money-management holding company with multiple style-focused investment boutiques. As of June 30, 2016, the Adviser had approximately $37.0 billion in assets under
management. The Adviser is responsible for overseeing the Subadviser to ensure compliance with each Fund’s investment policies and guidelines, and monitors the Subadviser’s adherence to its investment style. The Adviser pays the
Subadviser out of the fees it receives from the Funds.
In addition, for all the Funds except the Seix Total Return
Bond Fund, under a manager of managers arrangement, the Adviser may enter into or materially modify a subadvisory agreement with an unaffiliated subadviser, subject to approval by the Board and certain other conditions, without approval from the
applicable Fund’s shareholders. Any significant change in a Fund’s subadvisory arrangement will be communicated to shareholders.
The Adviser may use its affiliates as brokers for Fund
transactions.
An investment adviser has a fiduciary
obligation to its clients when the adviser has authority to vote their proxies. Under the current contractual agreement, the Adviser is authorized to vote proxies on behalf of each Fund. Information regarding the Adviser’s, and thus each
Fund’s, Proxy Voting Policies and Procedures is provided in the SAI. A copy of the Adviser’s Proxy Voting Policies and Procedures may be obtained by contacting the Funds at 1-888-784-3863 or by visiting www.ridgeworth.com.
For the fiscal year ended March 31, 2016, the
following Funds paid the Adviser advisory fees (after waivers) based on the respective Fund’s average daily net assets of:
Seix
Core Bond Fund |
0.25%
|
Seix
Corporate Bond Fund |
0.33%
|
Seix
Floating Rate High Income Fund |
0.41%
|
Seix
Georgia Tax-Exempt Bond Fund |
0.50%
|
Seix
High Grade Municipal Bond Fund |
0.50%
|
Seix
High Income Fund |
0.54%
|
Seix
High Yield Fund |
0.44%
|
Seix
Investment Grade Tax-Exempt Bond Fund |
0.49%
|
Seix
North Carolina Tax-Exempt Bond Fund |
0.50%
|
Seix
Short-Term Bond Fund |
0.40%
|
Seix
Short-Term Municipal Bond Fund |
0.31%
|
Seix
Total Return Bond Fund |
0.24%
|
Seix
U.S. Government Securities Ultra-Short Bond Fund |
0.19%
|
Seix
U.S. Mortgage Fund |
0.37%
|
Seix
Ultra-Short Bond Fund |
0.22%
|
Seix
Virginia Intermediate Municipal Bond Fund |
0.50%
|
The Adviser and the Subadviser have
contractually agreed to waive fees and reimburse expenses until at least August 1, 2017, in order to keep total annual operating expenses of each Fund from exceeding the applicable expense cap shown. If at any point before August 1, 2019, total
annual operating expenses are less than the expense cap, the Adviser may retain the difference to recapture any of the prior waivers or reimbursements. Such recapture is limited by the expense cap and, if lower, the expense cap that was applicable
at the time of the waiver of fees and/or reimbursement of expenses.
|
Expense
Limitation |
Funds
|
I
|
Seix
Core Bond |
0.54%
|
Seix
Corporate Bond |
0.70%
|
Seix
Floating Rate High Income |
0.72%
|
Seix
Georgia Tax-Exempt Bond |
0.65%
|
Seix
High Grade Municipal Bond |
0.65%
|
Seix
High Income |
0.85%
|
Seix
High Yield |
0.70%
|
Seix
Investment Grade Tax-Exempt Bond |
0.65%
|
Seix
North Carolina Tax-Exempt Bond |
0.65%
|
Seix
Short-Term Bond |
0.60%
|
Seix
Short-Term Municipal Bond |
0.48%
|
Seix
Total Return Bond |
0.54%
|
Seix
U.S. Government Securities Ultra-Short Bond |
0.46%
|
Seix
U.S. Mortgage |
0.70%
|
Seix
Ultra-Short Bond |
0.46%
|
|
Expense
Limitation |
Funds
|
I
|
Seix
Virginia Intermediate Municipal Bond |
0.65%
|
The Adviser has voluntarily
undertaken to reduce and/or subsidize certain expenses of the Seix Short-Term Bond Fund and Seix U.S. Mortgage Fund to the extent necessary to maintain a minimum annualized yield of 0.00% for each of the Fund’s share classes. This voluntary
expense reduction and/or expense subsidy may be modified or discontinued at any time without prior notice. There can be no assurance that this fee reduction will be sufficient to avoid any loss.
The following breakpoints are used in computing the advisory
fee:
Average
Daily Net Assets |
|
Discount
From Full Fee |
First
$500 million |
|
None
— Full Fee |
Next
$500 million |
|
5%
|
Next
$4 billion |
|
10%
|
Over
$5 billion |
|
15%
|
Based on average daily net assets as of March
31, 2016, the asset levels of the following Funds had reached a breakpoint in the advisory fee.* Had the Funds’ asset levels been lower, the Adviser may have been entitled to receive maximum advisory fees as follows:
Seix
High Income Fund |
0.55%
|
Seix
Investment Grade Tax-Exempt Bond Fund |
0.50%
|
Seix
Floating Rate High Income Fund |
0.45%
|
Seix
High Yield Fund |
0.45%
|
Seix
Total Return Bond Fund |
0.25%
|
Seix
U.S. Government Securities Ultra-Short Bond Fund |
0.20%
|
*
|
Fund expenses in the
“Annual Fund Operating Expenses” tables shown earlier in this prospectus reflect the advisory breakpoints. |
A discussion regarding the basis for the
Board’s approval of the continuation of the investment advisory agreement with the Adviser appears in the Funds’ annual report to shareholders for the period ended March 31, 2016.
Investment Subadviser
The Subadviser is responsible for
managing the portfolios of its Funds on a day-to-day basis and selecting the specific securities to buy, sell and hold for the Funds under the supervision of the Adviser and the Board. A discussion regarding the basis for the Board’s approval
of the investment subadvisory agreements appears in the Funds’ annual report to shareholders for the year ended March 31, 2016.
Information about the Subadviser and the individual portfolio
managers of the Funds is provided below. The SAI provides additional information regarding the portfolio managers’ compensation, other accounts managed by the portfolio
managers, potential conflicts of interest and the portfolio
managers’ ownership of securities in the Funds.
Seix Investment Advisors LLC (“Seix”)
One Maynard
Drive, Suite 3200
Park Ridge, New Jersey 07656
www.seixadvisors.com
Seix, established in 2008 as a wholly-owned
subsidiary of RidgeWorth, is an investment adviser registered with the SEC. Its predecessor, Seix Investment Advisors, Inc., was founded in 1992 and was independently owned until 2004 when the firm joined RidgeWorth as the institutional fixed income
management division. As of June 30, 2016, Seix had approximately $25.1 billion in assets under management.
Seix is a fundamental, credit driven fixed income boutique
specializing in investment grade and high yield bond and leveraged loan management. Seix has employed its bottom-up, research-oriented approach to fixed income management for over 20 years. Seix is focused on delivering superior, risk-adjusted
investment performance for its clients. Seix selects, buys and sells assets for the Funds it subadvises under the supervision of the Adviser and the Board.
Seix utilizes a team management approach for the Funds for
which it acts as Subadviser. Seix is organized into teams of portfolio managers and credit analysts along sectors and broad investment categories, including government securities, corporate bonds, securitized assets, high yield bonds, high yield
loans, emerging market debt, non-U.S. securities and global currencies. The senior portfolio managers are responsible for security selection, portfolio structure and rebalancing, compliance with stated investment objectives, and cash flow
monitoring.
The following individuals are primarily
responsible for the day-to-day management of the following Funds:
Investment Grade and Short Duration Funds
James F. Keegan
Seix Core
Bond Fund—2008
Seix Corporate Bond Fund—2008
Seix U.S. Mortgage Fund—2008
Seix Total Return Bond Fund—2008
Seix Short-Term Bond Fund—2014
Seix Ultra-Short Bond Fund—2014
Seix U.S.
Government Securities Ultra-Short Bond Fund—2014
Jim Keegan is Chief Investment Officer and Chairman of Seix
Investment Advisors LLC. He has oversight responsibilities for the Seix Investment Advisor investment teams and specific portfolio management responsibilities within the Investment Grade team. Jim leads the Seix Investment Policy Group, which
determines firm-wide asset allocation policy. He also serves on the Board of
Directors of RidgeWorth Holdings LLC and is a member of the Management Member Working Group.
Prior to joining the firm in 2008, Jim was Head of Investment
Grade Corporate & High Yield Bond Management for American Century Investments. In that role, he was responsible for managing the top-performing division including portfolio management, strategy, credit research and trading. Prior to this, Jim
was Chief Investment Officer at Westmoreland Capital Management and Managing Director of High Grade and High Yield Fixed Income at UBS Global Asset Management. At UBS, he was Chairman of the Investment Strategy and Credit Policy Committee and
directly responsible for management of a number of highly ranked funds. Earlier in his career, Jim served as Director of Research and Chairman of the Credit Strategy Committee at Bankers Trust. He has worked in investment management since
1982.
Jim earned a Master of Business Administration
degree, Beta Gamma Sigma, from Fordham University and a Bachelor of Science degree in Business Management, magna cum laude, from St. Francis College.
Perry Troisi
Seix Core Bond
Fund—2004
Seix Corporate Bond Fund—2004
Seix U.S. Mortgage Fund—2007
Seix Total Return Bond Fund—2002
Seix Short-Term Bond Fund—2014
Seix Ultra-Short Bond Fund—2014
Seix U.S. Government
Securities Ultra-Short Bond Fund—2014
Perry
Troisi is a Senior Portfolio Manager and Managing Director at Seix Investment Advisors where he is responsible for the government, government-related, and securitized (residential mortgage-backed security/commercial mortgage-backed
security/asset-backed security) asset classes. Perry is a member of the Seix Investment Policy Group, which determines firm-wide asset allocation policy.
Before joining the firm in 1999, Perry was a portfolio manager
at GRE Insurance Group, where he was responsible for all North American fixed income assets within the group. Prior to that, he served as a portfolio manager and analyst at Home Insurance Company, focused primarily on Mortgage Backed Securities.
Perry began his career as an Account Analyst at Goldman, Sachs & Company. He has worked in investment management since 1986.
Perry earned a Master of Business Administration degree in
Finance from New York University and a Bachelor of Science degree in Economics and Computer Coordinate with Economics from Trinity College.
Michael Rieger
Seix Core
Bond Fund—2007
Seix U.S. Mortgage Fund—2007
Seix Total Return Bond Fund—2007
Seix Short-Term Bond Fund—2014
Seix Ultra-Short Bond Fund—2014
Seix U.S. Government Securities Ultra-Short Bond
Fund—2014
Michael Rieger is a Senior
Portfolio Manager and Managing Director at Seix Investment Advisors where he focuses on the securitized sector and is a member of the Seix Investment Policy Group, which determines firm-wide asset allocation policy.
Before joining the firm in 2007, Michael was a portfolio
manager at AIG Global Investment, where he managed an asset-backed security portfolio covering the full rating spectrum in addition to non-agency senior residential mortgage-backed securities (MBS), adjustable-rate senior mortgage portfolio and
international AAA residential MBS portfolios. Earlier at SunAmerica Investments, he managed the residential MBS portfolio and was a vice president at GB Capital Management (now Redwood Trust). Michael began his investment management career at Aetna
Life and Casualty’s Portfolio Hedging Group as an analyst. He has worked in investment management since 1986.
Michael earned a Bachelor of Arts degree, cum laude, in
Mathematics from Dartmouth College.
Seth Antiles
Seix U.S. Mortgage Fund—2009
Seix Total Return Bond Fund—2007
Seth Antiles is a Senior Portfolio Manager and Managing
Director of Seix Investment Advisors specializing in global macro strategies. Seth is focused on research and oversight for all emerging market and non-dollar investments and is a member of the Seix Investment Policy Group, which determines
firm-wide asset allocation policy.
Before joining the
firm in 2005, Seth was Director of Emerging Market Fixed Income and Currency Strategist at Citigroup/Salomon Smith Barney and Head of Economic and Political Analysis for Mexico, Venezuela and Peru. Prior to that, he was the Latin American equity
strategist for Merrill Lynch, where he advised clients on Latin American equity markets and macro outlook. Seth began his career at Chemical Bank as a macroeconomic and political research analyst. There, he co-authored the Weekly Latin America
Update and the Latin American Quarterly, providing comprehensive economic and political analysis. Seth has worked in investment management since 1994.
He earned his Ph.D. and Master of Arts degrees in Political Economy and a
Bachelor of Arts degree in Economics and Political Science from Columbia University.
Jonathan Yozzo
Seix Core
Bond Fund—2015
Seix Corporate Bond Fund—2015
Seix U.S. Mortgage Fund—2015
Seix Total Return Bond Fund—2015
Seix Short-Term Bond Fund—2015
Seix Ultra-Short Bond Fund—2015
Jonathan Yozzo is a Portfolio Manager for Credit and Managing
Director focused on investment grade credit.
Before
joining Seix in 2000, he was a natural gas commodities broker at PVM Oil Associates responsible for brokerage of domestic natural gas products & foreign & domestic crude oil. Prior to that, Jonathan was a member of capital markets group
& energy derivatives group at Prebon Yamane (U.S.A.) Inc. responsible for brokerage of short term eurodollars & forward rate agreements and sales associate at JPMorgan Securities, Inc. working primarily on the investment grade corporate
sales desk. He has worked in investment management since 1991.
Jonathan received a B.S. degree in History from Syracuse
University.
Carlos Catoya
Seix Core Bond Fund—2015
Seix Corporate Bond Fund—2015
Seix U.S. Mortgage Fund—2015
Seix Total Return Bond Fund—2015
Seix Short-Term Bond Fund—2015
Seix Ultra-Short Bond
Fund—2015
Carlos Catoya is a Portfolio Manager for
Credit and Managing Director at Seix Investment Advisors.
Before joining Seix in 2001, Carlos was a vice president of the
global banking energy group at Royal Bank of Canada (RBC), and responsible for rating agency relationships. Previously, Carlos was director and group leader of Standard & Poor’s oil and gas corporate ratings team. Carlos was responsible
for the ratings of independent oil and gas producers, refiner & marketers, and oilfield service companies. In addition he led the corporate rating’s input into rating decisions for certain sovereign and selected project finance ratings.
Prior to joining the rating agency, Carlos was a commercial banker having served in different analytical and lending relationship manager capacities as an officer at Credit Suisse US and First Fidelity (now Wells Fargo). He has worked in investment
management since 1994.
Carlos received a B.S.
degree (magna cum laude) from Rutgers University, and received an M.B.A. degree in Finance (with concentration in International Business) & Accounting (with concentration in Financial Statement Analysis) from New York University.
High Yield Funds
George Goudelias
Seix Floating Rate High Income Fund—Inception
George Goudelias is a Senior Portfolio Manager, Head of
Leveraged Finance and a Senior High Yield Research Analyst covering the Telecommunications sector for Seix Investment Advisors. He is a member of the Seix Investment Policy Group, which determines firm-wide asset allocation policy. George has
extensive experience covering the telecommunications industry and is well known on both the sell side and buy side of the business.
Prior to joining the firm, George was a senior high yield
research analyst at J.P. Morgan Securities and was a member of the high yield team. Prior to that, he was an associate in financial reporting for J.P. Morgan, focused on developing financial tools to monitor risk-based capital. He has worked in
investment management since 1987.
George earned a Master
of Business Administration degree in Finance and a Bachelor of Science degree in Finance and Accounting from New York University.
Vincent Flanagan
Seix
Floating Rate High Income Fund—2011
Vince
Flanagan is a Portfolio Manager and Senior High Yield Research Analyst focusing on Media and Technology sectors for Seix Investment Advisors.
Vince joined the firm in 2006, and became a portfolio manager
in October 2011. Previously, he was the Director of Research for Assurant, Inc., covering the telecommunications, cable/media, utility and broadcasting industries, where he was instrumental in building and maintaining a proprietary credit database
of in-house credit opinions on specific industries and credits. He began his career at TD Securities, advancing to a senior high yield research analyst, where he focused on U.S. and Canadian wireless carriers. Vince has worked in investment
management since 1997.
He earned a Bachelor of Science
degree in Finance from New York University and is a Chartered Financial Analyst charterholder.
Michael Kirkpatrick
Seix
High Income Fund—2011
Seix High Yield Fund—2007
Michael Kirkpatrick is a Senior Portfolio Manager, Managing
Director and Senior High Yield Research Analyst primarily covering the Gaming and Finance sectors for Seix Investment Advisors and is a member of the Seix Investment Policy Group, which determines firm-wide asset allocation policy.
Prior to joining the firm in 2002, Michael was a senior analyst
with Oppenheimer Funds, Inc., covering the telecommunications and cable industries. He was previously vice president and co-head of research at BNY Capital Markets, Inc., where he held responsibility for the telecommunications and consumer related
industries. Prior to that he was at Mendham Capital Group as a managing partner in high yield
research, where he focused on consumer-related industries. Mike has worked in
investment management since 1991.
He earned a Master of
Business Administration degree from Rutgers University and a Bachelor of Science degree in Civil Engineering from the University of Delaware, School of Engineering.
James FitzPatrick
Seix High
Income Fund—2013
Seix High Yield Fund—2013
James FitzPatrick is a Portfolio Manager, Managing Director and
Head of Leveraged Finance Trading for Seix Investment Advisors.
Upon joining the firm in 1997 with a background in fixed income
analysis and trading, James served as an analyst, co-portfolio manager and head trader in the mortgage-backed securities group. In 2002, he joined the high yield group as a trader and was later named head of the team. Previously, James was with
Prudential Securities, where he handled corporate, government and mortgage trades as well as settlement and portfolio administration. He has worked in investment management since 1996.
James earned a Bachelor of Arts degree in Marketing from the
University of Delaware and is a Chartered Financial Analyst charterholder.
Municipal Funds
Ronald Schwartz
Seix High
Grade Municipal Bond Fund—Inception
Seix Investment Grade Tax-Exempt Bond Fund—Inception
Seix Short-Term Municipal Bond Fund—2011
Ron Schwartz is a Senior Portfolio Manager and Managing
Director and leads the Investment Grade Tax-Exempt group at Seix Investment Advisors and is a member of the Seix Investment Policy Group, which determines firm-wide asset allocation policy.
Ron joined Seix Investment Advisors’ predecessor firm in
1988 and has worked in investment management since 1982.
He earned a Bachelor of Arts degree in Business Administration
from Adelphi University. Ron is a Chartered Financial Analyst (CFA) Charterholder, member of the CFA Society of Orlando and National Federation of Municipal Analysts.
Dusty Self
Seix Short-Term
Municipal Bond Fund—2011
Dusty Self is a
Portfolio Manager and Managing Director at Seix Investment Advisors and provides analysis for all the Investment Grade Tax-Exempt Bond Funds.
Dusty began her career as a portfolio
specialist and then as a performance analyst at Seix Investment Advisors’ predecessor firm. She has worked in investment management since 1992.
Purchasing, Selling and
Exchanging Fund Shares
Dusty earned a Bachelor of Science degree in Business
Management from the University of Maryland and is a member of the National Federation of Municipal Analysts and the Southern Municipal Finance Society.
Chris Carter
Seix Georgia
Tax-Exempt Bond Fund—2003
Seix North Carolina Tax-Exempt Bond Fund—2005
Seix Virginia Intermediate Municipal Bond Fund—2011
Christopher Carter is a Portfolio Manager and Managing Director
at Seix Investment Advisors.
Prior to joining Seix Investment
Advisors’ predecessor firm in 2003, Chris worked for Wachovia Bank, N.A., Wachovia Asset Management and Evergreen Investment Management Company, where he held fixed income trading and portfolio management responsibilities. Prior to that Chris
worked at Integon Corporation as a securities settlement specialist. He has worked in investment management since 1991.
Chris earned a Master of Business Administration degree from
the University of North Carolina at Greensboro and a Bachelor of Science degree, cum laude, from Elon University. Chris is a Chartered Financial Analyst (CFA) charterholder and a member of the CFA Society of Orlando.
Purchasing, Selling and Exchanging Fund Shares
This section tells you how to purchase, sell (sometimes called
“redeem”) and exchange I Shares of the Funds. Participants in retirement plans must contact their Employee Benefits Office or their Plan’s Administrator for information regarding the purchase, redemption or exchange of shares, or
for questions about their specific accounts. Plans may require separate documentation and the plan’s policies and procedures may be different than those described in this prospectus. Investors purchasing or selling shares through a retirement
plan should also refer to their Plan documents. Please review the information you have about your retirement plan.
Investors purchasing or selling shares through a financial
intermediary may be charged transaction-based or other fees by the financial intermediary for its services. Please consult your financial intermediary for more information regarding such fees and for purchase instructions.
Purchasing Fund Shares
Where can I buy Fund shares?
You may purchase shares of the Funds through financial
institutions or intermediaries that are authorized to place transactions for their customers. Please contact your financial institution or intermediary directly and follow its procedures for purchase transactions. Your financial institution or
intermediary may charge a fee for its services, in addition to the fees charged by a Fund. You will also, generally, have to address your correspondence or questions regarding a Fund to your financial institution or intermediary. Your
investment
professional can assist you in opening a brokerage account that will be used
for purchasing shares of RidgeWorth Funds.
Eligible shareholders may purchase directly
from the Funds. Please see the section entitled “How Do I Open an Account?” for additional information.
Who can buy shares?
I Shares are offered to
financial institutions and intermediaries for their own accounts or for the accounts of customers for whom they act as fiduciary, agent, investment adviser, or custodian. Financial intermediaries include brokers, dealers, banks (including bank trust
departments), trust companies, registered investment advisers, financial planners, retirement plan administrators, insurance companies, and any other institution having a service, administration, or any similar arrangement with the Funds or their
service providers. These accounts primarily consist of:
• |
assets of a bona fide trust,
|
• |
assets of a business entity
possessing a tax identification number, |
• |
assets of an employee benefit
plan, |
• |
assets held within select
fee-based programs, or |
•
|
assets
held within certain non-discretionary intermediary no-load platforms. |
Employee benefit plans generally include profit sharing, 401(k)
and 403(b) plans. Employee benefit plans generally do not include IRAs; SIMPLE, SEP, SARSEP plans; plans covering self-employed individuals and their employees; or health savings accounts unless you, as a customer of a financial institution or
intermediary, meet the Funds’ established criteria as described above.
As a result, you, as a customer of a financial institution or
intermediary, may, under certain circumstances that meet the Funds’ established criteria, be able to purchase I Shares through accounts made with select financial institutions or intermediaries. I Shares will be held of record by (in the name
of) your financial institution or intermediary. Depending upon the terms of your account, you may have, or be given, the right to vote your I Shares. Financial institutions or intermediaries may impose eligibility requirements for each of their
clients or customers investing in the Funds, including investment minimum requirements, which may differ from those imposed by the Funds. Please contact your financial institution or intermediary for complete details for purchasing I Shares.
I Shares may also be purchased directly from the Funds by
officers, directors or trustees, and employees and their immediate families (strictly limited to current spouses/domestic partners and dependent children) of RidgeWorth Funds, the Adviser and Subadvisers to the RidgeWorth Funds.
Validation of current employment/service will be required upon
establishment of the account. The Funds, in their sole discretion, may determine if an applicant qualifies for this program.
Purchasing, Selling
and Exchanging Fund Shares
Foreign Investors
The Funds do not generally accept investments in I Shares by
non-U.S. citizens or entities. Investors in I Shares generally must reside in the U.S. or its territories (which includes U.S. military APO or FPO addresses) and have a U.S. tax identification number.
When can I purchase shares?
The Funds are open for business on days when the New York Stock
Exchange (the “NYSE”) is open for regular trading (a “Business Day”). The RidgeWorth Funds reserve the right to open one or more Funds on days that the principal bond markets (as recommended by the Securities Industry and
Financial Markets Association) are open, even if the NYSE is closed. Each Fund calculates its net asset value per share (“NAV”) once each Business Day at the close of regular trading on the NYSE (normally 4:00 p.m. Eastern Time).
If a Fund or its authorized agent receives your purchase or
redemption request in proper form before 4:00 p.m. Eastern Time, your transaction will be priced at that Business Day’s NAV. If your request is received after 4:00 p.m. Eastern Time, it will be priced at the next Business Day’s
NAV.
The time at which transactions and shares are priced
and the time until which trades are accepted may be changed if the NYSE closes early or if the principal bond markets close early on days when the NYSE is closed. For those Funds that open on days when the NYSE is closed, these times will be the
time the principal bond markets close.
The Funds will not
accept trades that request a particular day or price for the transaction or any other special conditions.
You may be required to transmit your purchase, sale and exchange
orders to your financial institutions or intermediaries at an earlier time for your transaction to become effective that day. This allows your financial institution or intermediary time to process your order and transmit it to the transfer agent in
time to meet the above stated Fund cut-off times. For more information about how to purchase, sell or exchange Fund shares, including your financial institution’s or intermediary’s internal order entry cut-off times, please contact your
financial institution or intermediary directly.
A Fund
may reject any purchase order.
How do the Funds calculate
NAV?
The offering price of A Shares is the NAV
next calculated after the Funds receive your request, in proper form, plus any front-end sales charge. The offering price of C Shares, R Shares, I Shares and IS Shares is simply the next calculated NAV.
The NAV is calculated by adding the total value of a
Fund’s investments and other assets, subtracting its liabilities, and then dividing that figure by the number of outstanding shares of the Fund.
In calculating the NAV, each Fund generally values its investment portfolio at
market price. If market prices are not readily available, or a Fund reasonably believes that market prices or amortized cost valuation methods are unreliable, such as in the case of a security value that has been materially affected by events
occurring after the relevant market closes, a Fund is required to price those securities at fair value as determined in good faith using methods approved by the Board. A Fund’s determination of a security’s fair value price often
involves the consideration of a number of subjective factors, and is, therefore, subject to the unavoidable risk that the value that a Fund assigns to a security may be higher or lower than the security’s value would be if a reliable market
quotation for the security was readily available.
With
respect to non-U.S. securities held by a Fund, the Fund may take factors influencing specific markets or issues into consideration in determining its fair value. International securities markets may be open on days when the U.S. markets are closed.
In such cases, the value of any international securities owned by a Fund may be significantly affected on days when investors cannot buy or sell shares. In addition, due to the difference in times between the close of the international markets and
the time a Fund prices its shares, the value the Fund assigns to securities generally will not be the same as the primary markets or exchanges. In determining fair value prices, a Fund may consider the performance of securities on their primary
exchanges, foreign currency appreciation/depreciation, securities market movements in the U.S., or other relevant information as related to the securities.
When valuing fixed income securities with remaining maturities
of more than 60 days, the Funds use the value of the security provided by pricing services. The values provided by a pricing service may be based upon market quotations for the same security, securities expected to trade in a similar manner, or a
pricing matrix. When valuing fixed income securities with remaining maturities of 60 days or less, the Funds use the security’s amortized cost. Amortized cost and the use of a pricing matrix in valuing fixed income securities are forms of fair
value pricing. Fair value prices may be determined in good faith using methods approved by the Board.
How do I open an account?
Read this prospectus carefully, select the Fund or Funds and
share class most appropriate for you, and decide how much you want to invest.
The Funds do not accept cash, credit card checks, third-party
checks, travelers’ checks, money orders, bank starter checks, or checks drawn in a foreign currency, as payment for Fund shares.
If your payment does not clear or is not received in a timely
manner, your purchase may be canceled. You will be responsible for any losses or expenses incurred by the Funds or its transfer agent, and the Funds can redeem shares you own in any of the Funds or in another identically registered RidgeWorth Funds
account as reimbursement.
Purchasing, Selling and
Exchanging Fund Shares
Eligible shareholders who purchase shares directly from the
Funds may purchase additional Fund shares by:
• |
Mail
|
• |
Telephone (1-888-784-3863)
|
• |
Wire
|
• |
Fax (1-800-451-8377)
|
•
|
Automated
Clearing House (“ACH”) |
In-Kind Purchases
Payment for shares of a Fund may, at the discretion of the
Adviser, be made in the form of securities that are permissible investments for such Fund. In connection with an in-kind securities payment, a Fund will require, among other things, that the securities: (a) meet the investment objectives and
policies of the Fund; (b) are acquired for investment and not for resale; (c) are liquid securities that are not restricted as to transfer either by law or liquidity of markets; (d) have a value that is readily ascertainable (e.g., by a listing on a
nationally recognized securities exchange); and (e) are valued on the day of purchase in accordance with the pricing methods used by the Fund. For further information about this form of payment, please call 1-888-784-3863.
What is the minimum amount to purchase shares of Fund?
To purchase shares for the first time, you must invest in any
Fund at least:
For investors who qualify to purchase I
Shares, there are no minimum investment amounts for initial or subsequent purchases.
Officers, directors or trustees, and employees and their
immediate families (strictly limited to current spouses/domestic partners and dependent children) of the Funds, Adviser and the Subadvisers may also purchase I Shares. There is no minimum investment.
Customer Identification and Verification
To help the government fight the funding of terrorism and money
laundering activities, U.S. federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
When you open an account, you will be asked to provide your
name, residential street address, date of birth, and Social Security Number or tax identification number. You may also be asked for other information that will allow us to identify you. Entities are also required to provide additional documentation.
This information will be verified to ensure the identity of all persons opening a mutual fund account.
In certain instances, the Funds are required to collect
documents to fulfill their legal obligation. Documents provided in connection with your application will be used solely to establish and verify a customer’s identity.
The Funds are required by law to reject your new account application if the
required identifying information is not provided. Attempts to collect the missing information required on the application will be performed by either contacting you or, if applicable, your broker. If this information is unable to be obtained within
a timeframe established at the sole discretion of the Funds, your application will be rejected.
Upon receipt of your application in proper form (or upon
receipt of all identifying information required on the application), your investment will be accepted and your order will be processed at the NAV next determined.
However, the Funds reserve the right to close your account at
the then-current day’s price if the Funds are unable to verify your identity. Attempts to verify your identity will be performed within a timeframe established at the sole discretion of the Funds. If the Funds are unable to verify your
identity, the Funds reserve the right to liquidate your account at the then-current day’s price and remit proceeds to you via check. The Funds reserve the further right to hold your proceeds until your original check clears the bank. In such
an instance, you may be subject to a gain or loss on Fund shares and will be subject to corresponding tax implications.
Anti-Money Laundering Program
Customer identification and verification is part of the
Funds’ overall obligation to deter money laundering under U.S. federal law. The Funds have adopted an anti-money laundering compliance program designed to prevent the Funds from being used for money laundering or the financing of terrorist
activities. In this regard, the Funds reserve the right to (i) refuse, cancel or rescind any purchase or exchange order, (ii) freeze any account and/or suspend account services, or (iii) involuntarily redeem your account in cases of threatening
conduct or suspected fraudulent or illegal activity. These actions will be taken when, at the sole discretion of Fund management, they are deemed to be in the best interest of the Funds or in cases when the Funds are requested or compelled to do so
by governmental or law enforcement authority.
Selling
Fund Shares
Shares may be sold on any Business Day by
contacting your financial institution or intermediary. Your financial institution or intermediary will give you information about how to sell your shares including any specific cut-off times required. Shares may be sold by following the procedures
established at the time your account was opened with the Funds or financial institution or intermediary. The sale price of each share will be the next NAV determined after the Funds receive your request in proper form. Your broker, financial
institution or intermediary may charge a fee for its services, in addition to the fees charged by the Funds.
Shareholders who purchased shares directly from the Funds may
sell their Fund shares by:
• |
Mail
|
•
|
Telephone
(1-888-784-3863) |
Purchasing, Selling
and Exchanging Fund Shares
To sell shares by telephone:
• |
redemption checks must be
made payable to the registered shareholder; and |
• |
redemption checks must be
mailed to an address of record that has been associated with the shareholder account for at least 30 days. |
Signature Authentication
This section describes the Funds’ Medallion Signature
Guarantee and Signature Validation Program (SVP) policies. If you purchased your shares through a financial institution or intermediary, the below policies may not apply. Please contact your financial institution or intermediary for additional
information on their signature authentication policy.
For
certain financial and non-financial transactions, the Funds require proof that your signature is authentic and you have the authority to provide the instruction(s) contained in the request. This verification can be provided by either a Medallion
Signature Guarantee Stamp for financial transactions or an SVP Stamp for non-financial transactions.
Both types of stamps can be obtained from a financial
institution such as a domestic bank, trust company, broker/dealer, clearing agency, savings association, or other financial institution that participates in the Medallion Signature Guarantee Program or SVP. Please visit www.ridgeworth.com for a
Letter of Instruction Form that you can provide to your financial institution to obtain the appropriate stamp. Please note a notarized signature is not an acceptable substitute for a Medallion Signature Guarantee or an SVP Stamp. The Funds reserve
the right, at their sole discretion, to waive such requirements for a specific request.
Financial Transactions
An original document containing a Medallion Signature Guarantee
is required for certain types of financial transactions. Examples include:
• |
Redemption proceeds payable
or sent to any person, address, or bank account other than the one currently on record. |
• |
Redemption requests sent to
an address of record that has been changed within the last 30 days. |
• |
Registration or ownership
changes to your account. Ownership changes may include but are not limited to, certain types of transfers, gifting shares, beneficial inheritance, and loan collateral agreements. |
Non-Financial Transactions
For certain non-financial transactions, the Funds will accept
an original document containing an SVP Stamp. In the event an SVP Stamp is not used by the financial institution, you should
request that it use its Medallion Signature Guarantee in lieu of the SVP
Stamp. Examples include:
• |
Requests to add or change
banking information that the Funds have on file. |
• |
Updates to authorized signers
on your account. |
Sale Price of Fund
Shares
The sale price of each share will be the next NAV
determined after the Funds receive your request, in proper form.
Redemptions In-Kind
The Funds generally pay redemption proceeds in cash. However,
under unusual conditions that make the payment of cash unwise (and for the protection of the Funds’ remaining shareholders), the Funds might pay all or part of your redemption proceeds in liquid securities with a market value equal to the
redemption price (redemption in kind). It is highly unlikely that your shares would ever be redeemed in kind, but if they were you would probably have to pay transaction costs to sell the securities distributed to you, as well as taxes on any
capital gains recognized in the redemption or in the sale of the securities distributed to you.
Receiving Your Money
Normally, the Funds will send your sale proceeds within five
Business Days after the Funds receive your request, but a Fund may take up to seven days to pay the sale proceeds if making immediate payments would adversely affect the Fund (for example, to allow the Fund to raise capital in the case of a large
redemption). Your sale proceeds can be wired to your bank account (subject to a fee) or sent to you by check. If you recently purchased your shares by check or through ACH, redemption proceeds may not be available
until your funds have cleared (which may take up to 10 calendar days from your date of purchase).
Each Fund tries to manage large redemptions of positions in the
Fund. However, a large redemption by a shareholder holding a significant investment in a Fund may have an adverse impact on the remaining shareholders in the Fund. For example, such a redemption may cause the Fund to (i) utilize outside sources of
liquidity, which may be more costly, or (ii) liquidate securities that otherwise would not have been sold, potentially impacting the Fund’s performance and generating capital gains distributions.
Suspension of Your Right to Sell Your Shares
A Fund may suspend your right to sell your shares if the NYSE
restricts trading, the SEC declares an emergency or for other reasons approved by the SEC. More information about this is in the Funds’ SAI.
Market Timing Policies and
Procedures
Exchanging and Converting Your Shares
You must meet investor eligibility requirements applicable to
the share class into which you are exchanging. The Funds may accept investments of smaller amounts at its discretion. The Funds will treat any cross class conversion between classes of shares of the same Fund as a tax-free event. An exchange between
the same classes of shares of different Funds generally is treated as a taxable event.
The exchange privilege is not intended as a vehicle for
short-term trading. Excessive exchange activity may interfere with Fund management and may have an adverse effect on all shareholders. In order to limit excessive exchange activity and in other circumstances where it is in the best interests of a
Fund, all Funds reserve the right to revise or terminate the exchange privilege, limit the amount or number of exchanges or reject any exchange or restrict or refuse purchases if (i) a Fund or its manager(s) believes the Fund would be harmed or
unable to invest effectively, or (ii) a Fund receives or anticipates orders that may dramatically affect the Fund as outlined under “Market Timing Policies and Procedures” below.
If you recently purchased shares by check or through ACH, you
may not be able to exchange your shares until your funds have cleared (which may take up to 10 calendar days from your date of purchase).
Exchanging Your Shares
You may exchange your Fund shares for the same class of shares
of any other RidgeWorth Fund. Your sales price and purchase price will be based on the NAV next calculated after the Funds receive your exchange request in proper form.
Exchanges into the RidgeWorth Ultra-Short
Funds — I Shares
At any time, you may exchange your
A, C or I Shares of any RidgeWorth Fund for shares of the RidgeWorth Seix U.S. Government Securities Ultra-Short Bond Fund I Shares and the RidgeWorth Seix Ultra-Short Bond Fund I Shares (the “RidgeWorth Ultra-Short Funds”). You should
read the RidgeWorth Ultra-Short Funds’ prospectus prior to investing in those Funds. You can obtain a prospectus by calling 1-888-784-3863 or by visiting www.ridgeworth.com. Qualifying exchanges between the Funds’ A and C Shares and the
RidgeWorth Ultra-Short Funds’ I Shares are eligible for exchange into the Funds’ A and/or C Shares without the imposition of the applicable front-end sales charge and/or CDSC. If applicable, the CDSC of the Fund from which you exchanged
will be carried over to the RidgeWorth Ultra-Short Funds and may be assessed if you sell your shares. Please see the Sales Charges section of the prospectus for more information.
If you purchased shares though a financial institution or
intermediary please contact your financial institution or intermediary regarding the availability of this exchange privilege.
Cross Class Conversions
You may convert your shares for shares of a different class of
the same Fund based on the NAV of each class next calculated after the Fund receives your exchange request in proper form. If you have held your current shares for less than one year, your financial intermediary may assess any applicable CDSC on
your shares when you make the conversion.
Instructions
for Exchanging and Converting Shares
You may exchange or
convert your shares on any Business Day by contacting the Funds at 1-888-784-3863 or the financial institution or intermediary through which your shares are held.
Telephone Transactions
Purchasing, selling and exchanging Fund shares over the
telephone is extremely convenient, but not without risk. Although the Funds have certain safeguards and procedures to confirm the identity of callers and the authenticity of instructions, the Funds are not responsible for any losses or costs
incurred by following telephone instructions the Funds reasonably believe to be genuine. If you or your financial institution or intermediary transact with the Funds over the telephone, you will generally bear the risk of any loss. The Funds reserve
the right to modify, suspend or terminate telephone transaction privileges at any time.
Market Timing Policies and Procedures
The Funds are intended for long-term investment purposes only
and discourage shareholders from engaging in “market timing” or other types of excessive short-term trading.
This frequent trading into and out of the Funds may present
risks to the Funds’ long-term shareholders, all of which could adversely affect shareholder returns. The risks posed by frequent trading include interfering with the efficient implementation of the Funds’ investment strategies,
triggering the recognition of taxable gains and losses on the sale of Fund investments, requiring the Funds to maintain higher cash balances to meet redemption requests, and experiencing increased transaction costs.
A Fund that invests a significant amount of its assets in
overseas markets is particularly susceptible to the risk of certain investors using a strategy known as time-zone arbitrage. Investors using this strategy attempt to take advantage of the differences in value of foreign securities that might result
from events that occur between the close of the foreign securities market on which a foreign security is traded and the time at which the Fund calculates its NAV.
The Funds and/or their service providers will take steps
reasonably designed to detect and deter frequent trading by shareholders pursuant to the Funds’ policies and procedures described in this prospectus and approved by the Funds’ Board. The Funds seek to discourage short-term trading by
using fair value pricing procedures to fair value certain investments under some circumstances. For purposes of applying these policies, the Funds’ service providers may consider the trading
Distribution
of Fund Shares and Shareholder Servicing Plans
history of accounts under common ownership or control. The
Funds’ policies and procedures include:
• |
Restrictions on shareholders
from making more than one (1) “round trip” into and out of a Fund within 14 days or more than two (2) “round trips” within any continuous 90 day period. If a shareholder exceeds either “round trip” restriction, he
or she may be deemed a “Market Timer,” and the Funds and/or their service providers may, at their discretion, reject any additional purchase orders. The Funds define a round trip as a purchase into a Fund by a shareholder, followed by a
subsequent redemption out of the Fund. Anyone considered to be a Market Timer by the Funds, the Adviser, the Subadviser or a shareholder servicing agent may be notified in writing of their designation as a Market Timer; and |
•
|
Reserving
the right to reject any purchase request by any investor or group of investors for any reason without prior notice, including, in particular, if the Funds or the Adviser reasonably believes that the trading activity would be harmful or disruptive to
the Funds. |
The Funds and/or their
service providers seek to apply these policies to the best of their abilities uniformly and in a manner they believe is consistent with the interests of the Funds’ long-term shareholders.
Although these policies are designed to deter frequent trading,
none of these measures alone, nor all of them taken together, eliminate the possibility that frequent trading in the Funds will occur, particularly with respect to trades placed by shareholders that invest in the Funds through omnibus arrangements
maintained by brokers, retirement plan accounts and other financial intermediaries.
Purchase and redemption transactions submitted to the Funds by
these intermediaries reflect the transactions of multiple beneficial owners whose individual transactions are not automatically disclosed to the Funds. Therefore, the Funds rely in large part on the intermediaries who maintain omnibus arrangements
(which may represent a majority of Fund shares) to aid in the Funds’ efforts to detect and deter short-term trading. The Funds monitor trading activity at the omnibus account level and look for activity that indicates potential short-term
trading. If they detect suspicious trading activity, the Funds contact the intermediaries to determine whether the short-term trading policy has been violated and may request and receive personal identifying information and transaction histories for
some or all beneficial owners to make this determination.
If a Fund believes that a shareholder has violated the
short-term trading policy, it will take further steps to prevent any future short-term trading by such shareholder in accordance with the policy. The Funds cannot guarantee the accuracy of the information provided by the intermediaries and may not
always be able to track short-term trading affected through these intermediaries. A Fund has the right to terminate an intermediary’s ability to invest in a Fund if excessive trading activity persists and a Fund or its Adviser or Subadviser
reasonably believes that such termination would be in the best interests of long-term shareholders.
In addition to the Funds’ market timing policies and procedures
described above, you may be subject to the market timing policies and procedures of the intermediary through which you invest. Please consult with your intermediary for additional information regarding its frequent trading restrictions.
Distribution of Fund Shares
Distribution of Fund Shares Generally
The Adviser, the Subadviser or their affiliates may make
payments from their own funds based on gross sales and current assets to selected brokerage firms or institutions. The amount of these payments may be substantial. The minimum aggregate sales required for eligibility for such payments, and the
factors in selecting the brokerage firms and institutions to which they will be made, are determined from time to time by the Adviser or Subadviser. Furthermore, the Adviser, the Subadviser or their affiliates may pay fees from their own
capital resources to financial intermediaries (such as brokers, banks, financial advisers and retirement plan service providers) to compensate them for providing distribution-related or shareholder services, for marketing expenses they incur, for
travel and lodging in connection with educational events or to pay for the opportunity to have them distribute the Funds.
The amount of these payments is determined by the
Adviser or Subadviser and may differ among financial intermediaries. Such payments may provide incentives for financial intermediaries to make shares of the Funds available to their customers, and may allow the Funds greater access to such
financial intermediaries and their customers than would be the case if no payments were made. You may wish to consider whether such arrangements exist when evaluating any recommendation to purchase shares of the Funds.
Please refer to the SAI for more information regarding these
arrangements.
Shareholder Servicing Plans
With respect to the I Shares of certain
of the Funds, the I Shares Shareholder Servicing Plan permits the I Shares of that Fund to pay financial intermediaries for shareholder support services they provide, at a rate of up to 0.20% of the average daily net assets of each of the
I Shares of that Fund. Financial intermediaries include brokers, dealers, banks (including bank trust departments), trust companies, registered investment advisers, financial planners, retirement plan administrators, insurance companies, and
any other institution having a service, administration, or any similar arrangement with the Funds or their service providers. The shareholder support services may include, among others, providing general shareholder liaison services (including
responding to shareholder inquiries), providing information on shareholder investments, and establishing and maintaining shareholder accounts and records.
Dividends and
Distributions, Household Mailings and Taxes
Dividends and Distributions
Each Fund declares dividends daily and pays these dividends
monthly. Each Fund makes distributions of its net realized capital gains, if any, at least annually. If you own Fund shares on a Fund’s record date, you will be entitled to receive the distribution.
You will receive dividends and distributions in the form of
additional Fund shares unless you elect to receive payment in cash. To elect cash payment, you must notify the Funds in writing prior to the date of the distribution. Your election will be effective for dividends and distributions paid after the
Funds receive your written notice. To cancel your election, simply send the Funds written notice.
Shareholders of the Funds are entitled to receive dividends
declared starting on the next business day after a purchase is received in good order.
Shareholders of the Funds are entitled to receive dividends
declared on the day their shares are redeemed.
401(k)
plan participants will receive dividends and distributions in the form of additional Fund shares if the participant owns shares of a Fund on the date the dividend or distribution is allocated by the 401(k) plan. Therefore, a participant will not
receive a dividend or distribution if the participant does not own shares of the applicable Fund on the date the dividend or distribution is allocated.
Household Mailings
To reduce expenses, we may mail only one copy of the Fund's
prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please call us at 1-888-784-3863 (or contact your financial institution). We will begin
sending you individual copies thirty days after receiving your request.
Taxes
Please consult your tax advisor regarding your specific questions
about U.S. federal, state, local, and foreign tax considerations relating to any investment in any Fund.
Summarized below are some important tax issues that affect the
Funds and their shareholders. This summary is based on current tax laws, which may change. More information on taxes is in the Funds’ SAI.
Each Fund will distribute substantially all of its net
investment income and its net realized capital gains, if any, at least annually. The dividends and distributions you receive may be subject to federal, state and local taxation, depending upon your tax situation. Distributions you receive from a
Fund may be taxable whether or not you reinvest them in additional shares.
Income distributions are generally taxable as ordinary income.
Capital gains distributions (i.e., distributions of the excess of net long-term capital gain over net short-term capital loss, if any) are generally taxable at the rates applicable to long-term
capital gains. Long-term capital gains are
generally taxable to noncorporate shareholders at rates of up to 20%. Distributions from a Fund’s net short-term capital gains are generally taxable as ordinary income. Since each Fund's income is derived primarily from sources that do
not pay dividends, it is not expected that a substantial portion of the dividends paid by a Fund will qualify either for the dividends-received deduction for corporations or for any favorable U.S. federal income tax rate available to noncorporate
shareholders on "qualified dividend income." A high portfolio turnover rate and the use of certain derivatives may cause a Fund to recognize higher amounts of short-term capital gains.
If a Fund declares a dividend in October, November or December,
payable to shareholders of record in such a month, and pays it in January of the following year, you will be taxed on the dividend as if you received it in the year in which it was declared.
If you invest in a Fund shortly before a
capital gain distribution, generally you will pay a higher price per share and, unless you are exempt from tax, you will pay taxes on the amount of the distribution.
Distributions from a Fund and capital gains on a disposition of
Fund shares are generally taken into account for purposes of the 3.8% U.S. federal Medicare contribution tax on all or a portion of the “net investment income” of individuals with income exceeding certain thresholds. This 3.8% tax also
applies to all or a portion of the undistributed net investment income of certain shareholders that are estates and trusts. “Net investment income” for this purpose does not include exempt-interest dividends (described
below).
Each Fund in which you invest will
inform you shortly after the close of each calendar year of the amounts of your distributions that may qualify as ordinary income dividends, qualified dividend income, exempt-interest dividends, and capital gain distributions.
You must provide your social security number or other taxpayer
identification number to a Fund along with any certifications required by the Internal Revenue Service. If you do not, or if it is otherwise legally required to do so, a Fund will apply “backup withholding” tax on your dividends
(including exempt-interest dividends) and other distributions, sale proceeds and any other payments to you that are subject to backup withholding. The backup withholding rate is 28%.
Dividends and distributions will accumulate on a tax-deferred
basis if you are investing through a 401(k) plan or any other employer-sponsored retirement or savings plan that qualifies for tax-advantaged treatment under federal income tax laws. Generally, you will not owe taxes on these distributions until you
begin withdrawals from the plan. Withdrawals from the plan are subject to numerous complex and special tax rules and may be subject to a penalty tax in the case of premature withdrawals. You should consult your tax advisor or plan administrator
regarding the tax rules governing your retirement or savings plan.
Dividends
and Distributions, Household Mailings and Taxes
The Seix Georgia Tax-Exempt Bond Fund, Seix High Grade
Municipal Bond Fund, Seix Investment Grade Tax-Exempt Bond Fund, Seix North Carolina Tax-Exempt Bond Fund, Seix Short-Term Municipal Bond Fund and Seix Virginia Intermediate Municipal Bond Fund intend to distribute exempt-interest dividends.
Exempt-interest dividends are distributions from a Fund’s tax-exempt interest income and are exempt from regular federal income tax. A portion of exempt-interest dividends may be a tax preference item for purposes of the federal alternative
minimum tax applicable to individuals. Exempt-interest dividends distributed to corporate shareholders may result in increased liability under the federal alternative minimum tax applicable to corporations. Each of these Funds may invest a portion
of its assets in securities that generate taxable income for federal income tax purposes. Income exempt from federal tax may be subject to state and local taxes. Any capital gains distributed by these Funds may be taxable. While shareholders of
state-specific Funds may receive distributions that are exempt from a particular state’s income tax, such distributions may be taxable in other states where the shareholder files tax returns.
Except for the Funds that expect to distribute exempt-interest
dividends (described above), the Funds expect to distribute primarily ordinary income dividends.
The Seix Core Bond Fund, the Seix Short-Term Bond Fund, the
Seix Ultra-Short Bond Fund and the Seix U.S. Government Securities Ultra-Short Bond Fund expect that some portion of their distributions will be derived from interest earned on U.S. Government obligations. Subject to certain limitations, dividends
paid from interest earned on direct obligations of the U.S. Government (but generally not to distributions of gain from the sale of such obligations) may be, in some states, exempt from certain state and local taxes.
Certain Funds may be able to pass along a tax credit for
foreign income taxes they pay. In such event, the applicable Fund will provide you with the information necessary to reflect such foreign taxes on your federal income tax return.
The financial highlights table is intended to
help you understand a Fund’s financial performance for the past 5 years. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on
an investment in the Fund (assuming reinvestment of all dividends and distributions). This financial information has been audited by PricewaterhouseCoopers LLP. The Report of Independent Registered Public Accounting Firm for each period shown, along
with the Funds’ financial statements and related notes, are included in the Funds’ Annual Reports to Shareholders for such periods. The 2016 Annual Report is available upon request and without charge by calling 1-888-784-3863 or on the
Funds’ website at www.ridgeworth.com.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
Core Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$11.04
|
|
$0.20
|
|
$(0.08)
|
|
$
0.12 |
|
$(0.21)
|
|
$
— |
|
$(0.09)
|
|
$(0.30)
|
|
$10.86
|
|
$
255,522 |
|
1.18%
|
|
0.48%
|
|
0.48%
|
|
1.82%
|
|
232%
|
|
Year Ended March 31,
2015
|
10.65
|
|
0.21
|
|
0.40
|
|
0.61
|
|
(0.22)
|
|
—
|
|
—
|
|
(0.22)
|
|
11.04
|
|
191,905
|
|
5.80
|
|
0.45
|
|
0.45
|
|
1.90
|
|
168
|
|
Year Ended March 31,
2014
|
11.16
|
|
0.18
|
|
(0.23)
|
|
(0.05)
|
|
(0.22)
|
|
—
|
|
(0.24)
|
|
(0.46)
|
|
10.65
|
|
200,371
|
|
(0.38)
|
|
0.42
|
|
0.42
|
|
1.67
|
|
208
|
|
Year Ended March 31,
2013
|
11.10
|
|
0.15
|
|
0.24
|
|
0.39
|
|
(0.20)
|
|
—
|
|
(0.13)
|
|
(0.33)
|
|
11.16
|
|
370,455
|
|
3.53
|
|
0.38
|
|
0.38
|
|
1.33
|
|
151
|
|
Year Ended March 31,
2012
|
11.00
|
|
0.24
|
|
0.81
|
|
1.05
|
|
(0.27)
|
|
—
|
|
(0.68)
|
|
(0.95)
|
|
11.10
|
|
439,017
|
|
9.65
|
|
0.48
|
|
0.48
|
|
2.15
|
|
211
|
|
Seix
Corporate Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
8.95
|
|
0.25
|
|
(0.29)
|
|
(0.04)
|
|
(0.24)
|
|
(0.01)
|
|
(0.20)
|
|
(0.45)
|
|
8.46
|
|
8,943
|
|
(0.29)
|
|
0.70
|
|
0.83
|
|
2.86
|
|
84
|
|
Year Ended March 31,
2015
|
8.80
|
|
0.26
|
|
0.32
|
|
0.58
|
|
(0.26)
|
|
—
|
|
(0.17)
|
|
(0.43)
|
|
8.95
|
|
24,172
|
|
6.73
|
|
0.66
|
|
0.69
|
|
2.95
|
|
90
|
|
Year Ended March 31,
2014
|
9.30
|
|
0.28
|
|
(0.21)
|
|
0.07
|
|
(0.28)
|
|
—
|
|
(0.29)
|
|
(0.57)
|
|
8.80
|
|
28,017
|
|
0.91
|
|
0.63
|
|
0.64
|
|
3.18
|
|
143
|
|
Year Ended March 31,
2013
|
9.35
|
|
0.32
|
|
0.30
|
|
0.62
|
|
(0.32)
|
|
—
|
|
(0.35)
|
|
(0.67)
|
|
9.30
|
|
51,828
|
|
6.71
|
|
0.60
|
|
0.61
|
|
3.36
|
|
58
|
|
Year Ended March 31,
2012
|
9.59
|
|
0.39
|
|
0.46
|
|
0.85
|
|
(0.39)
|
|
—
|
|
(0.70)
|
|
(1.09)
|
|
9.35
|
|
57,203
|
|
9.10
|
|
0.61
|
|
0.61
|
|
3.98
|
|
88
|
|
Seix
Floating Rate High Income Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
8.86
|
|
0.40
|
|
(0.53)
|
|
(0.13)
|
|
(0.40)
|
|
—
|
|
—
|
|
(0.40)
|
|
8.33
|
|
3,040,875
|
|
(1.50)
|
|
0.62
|
|
0.62
|
|
4.69
|
|
33
|
|
Year Ended March 31,
2015
|
9.06
|
|
0.39
|
|
(0.20)
|
|
0.19
|
|
(0.39)
|
|
—
|
|
—
|
|
(0.39)
|
|
8.86
|
|
6,048,771
|
|
2.17
|
|
0.61
|
|
0.61
|
|
4.34
|
|
29
|
|
Year Ended March 31,
2014
|
9.06
|
|
0.38
|
|
(0.01)
|
|
0.37
|
|
(0.37)
|
|
—
|
|
—
|
|
(0.37)
|
|
9.06
|
|
8,965,312
|
|
4.16
|
|
0.60
|
|
0.60
|
|
4.13
|
|
47
|
|
Year Ended March 31,
2013
|
8.83
|
|
0.46
|
|
0.20
|
|
0.66
|
|
(0.43)
|
|
—
|
|
—
|
|
(0.43)
|
|
9.06
|
|
5,780,847
|
|
7.67
|
|
0.60
|
|
0.60
|
|
5.13
|
|
70
|
|
Year Ended March 31,
2012
|
9.01
|
|
0.50
|
|
(0.22)
|
|
0.28
|
|
(0.46)
|
|
—
|
|
—
|
|
(0.46)
|
|
8.83
|
|
3,419,351
|
|
3.31
|
|
0.60
|
|
0.60
|
|
5.69
|
|
72
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
Georgia Tax-Exempt Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$10.86
|
|
$0.27
|
|
$
0.10 |
|
$
0.37 |
|
$(0.27)
|
|
$—
|
|
$
— |
|
$(0.27)
|
|
$10.96
|
|
$107,691
|
|
3.50%
|
|
0.65%
|
|
0.68%
|
|
2.52%
|
|
41%
|
|
Year Ended March 31,
2015
|
10.42
|
|
0.28
|
|
0.44
|
|
0.72
|
|
(0.28)
|
|
—
|
|
—
|
|
(0.28)
|
|
10.86
|
|
131,881
|
|
7.00
|
|
0.64
|
|
0.64
|
|
2.63
|
|
55
|
|
Year Ended March 31,
2014
|
10.78
|
|
0.31
|
|
(0.36)
|
|
(0.05)
|
|
(0.31)
|
|
—
|
|
—
|
|
(0.31)
|
|
10.42
|
|
120,835
|
|
(0.37)
|
|
0.57
|
|
0.57
|
|
3.01
|
|
67
|
|
Year Ended March 31,
2013
|
10.55
|
|
0.34
|
|
0.23
|
|
0.57
|
|
(0.34)
|
|
—
|
|
—
|
|
(0.34)
|
|
10.78
|
|
148,153
|
|
5.44
|
|
0.59
|
|
0.59
|
|
3.15
|
|
50
|
|
Year Ended March 31,
2012
|
9.73
|
|
0.36
|
|
0.82
|
|
1.18
|
|
(0.36)
|
|
—
|
|
—
|
|
(0.36)
|
|
10.55
|
|
145,803
|
|
12.33
|
|
0.62
|
|
0.62
|
|
3.55
|
|
57
|
|
Seix
High Grade Municipal Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
12.29
|
|
0.27
|
|
0.19
|
|
0.46
|
|
(0.27)
|
|
—
|
|
(0.12)
|
|
(0.39)
|
|
12.36
|
|
99,803
|
|
3.85
|
|
0.65
|
|
0.69
|
|
2.21
|
|
171
|
|
Year Ended March 31,
2015
|
11.86
|
|
0.31
|
|
0.59
|
|
0.90
|
|
(0.31)
|
|
—
|
|
(0.16)
|
|
(0.47)
|
|
12.29
|
|
95,761
|
|
7.64
|
|
0.65
|
|
0.69
|
|
2.53
|
|
228
|
|
Year Ended March 31,
2014
|
12.10
|
|
0.34
|
|
(0.19)
|
|
0.15
|
|
(0.34)
|
|
—
|
|
(0.05)
|
|
(0.39)
|
|
11.86
|
|
47,737
|
|
1.40
|
|
0.65
|
|
0.68
|
|
2.90
|
|
227
|
|
Year Ended March 31,
2013
|
11.96
|
|
0.34
|
|
0.50
|
|
0.84
|
|
(0.34)
|
|
—
|
|
(0.36)
|
|
(0.70)
|
|
12.10
|
|
54,892
|
|
7.12
|
|
0.65
|
|
0.68
|
|
2.78
|
|
168
|
|
Year Ended March 31,
2012
|
10.92
|
|
0.38
|
|
1.07
|
|
1.45
|
|
(0.38)
|
|
—
|
|
(0.03)
|
|
(0.41)
|
|
11.96
|
|
42,963
|
|
13.43
|
|
0.64
|
|
0.66
|
|
3.29
|
|
218
|
|
Seix
High Income Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
6.67
|
|
0.40
|
|
(0.75)
|
|
(0.35)
|
|
(0.40)
|
|
—
|
|
—
|
|
(0.40)
|
|
5.92
|
|
546,793
|
|
(5.31)
|
|
0.79
|
|
0.79
|
|
6.34
|
|
77.00
|
|
Year Ended March 31,
2015
|
7.26
|
|
0.40
|
|
(0.38)
|
|
0.02
|
|
(0.40)
|
|
—
|
|
(0.21)
|
|
(0.61)
|
|
6.67
|
|
753,851
|
|
0.47
|
|
0.77
|
|
0.77
|
|
5.63
|
|
86
|
|
Year Ended March 31,
2014
|
7.32
|
|
0.43
|
|
0.11
|
|
0.54
|
|
(0.44)
|
|
—
|
|
(0.16)
|
|
(0.60)
|
|
7.26
|
|
783,072
|
|
7.68
|
|
0.77
|
|
0.77
|
|
6.00
|
|
110
|
|
Year Ended March 31,
2013
|
6.89
|
|
0.45
|
|
0.43
|
|
0.88
|
|
(0.45)
|
|
—
|
|
—
|
|
(0.45)
|
|
7.32
|
|
784,870
|
|
13.17
|
|
0.74
|
|
0.75
|
|
6.33
|
|
118
|
|
Year Ended March 31,
2012
|
7.29
|
|
0.51
|
|
(0.32)
|
|
0.19
|
|
(0.52)
|
|
—
|
|
(0.07)
|
|
(0.59)
|
|
6.89
|
|
576,626
|
|
3.04
|
|
0.71
|
|
0.71
|
|
7.37
|
|
148
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
High Yield Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$
8.73 |
|
$0.47
|
|
$(0.92)
|
|
$(0.45)
|
|
$(0.48)
|
|
$—
|
|
$
— |
|
$(0.48)
|
|
$
7.80 |
|
$
523,206 |
|
(5.23)%
|
|
0.61%
|
|
0.61%
|
|
5.71%
|
|
76%
|
|
Year Ended March 31,
2015
|
9.95
|
|
0.54
|
|
(0.43)
|
|
0.11
|
|
(0.54)
|
|
—
|
|
(0.79)
|
|
(1.33)
|
|
8.73
|
|
695,060
|
|
1.53
|
|
0.58
|
|
0.58
|
|
5.63
|
|
72
|
|
Year Ended March 31,
2014
|
10.26
|
|
0.58
|
|
0.06
|
|
0.64
|
|
(0.59)
|
|
—
|
|
(0.36)
|
|
(0.95)
|
|
9.95
|
|
1,211,146
|
|
6.65
|
|
0.55
|
|
0.55
|
|
5.79
|
|
89
|
|
Year Ended March 31,
2013
|
9.69
|
|
0.64
|
|
0.56
|
|
1.20
|
|
(0.63)
|
|
—
|
|
—
|
|
(0.63)
|
|
10.26
|
|
1,792,768
|
|
12.80
|
|
0.54
|
|
0.54
|
|
6.41
|
|
79
|
|
Year Ended March 31,
2012
|
10.07
|
|
0.70
|
|
(0.38)
|
|
0.32
|
|
(0.70)
|
|
—
|
|
—
|
|
(0.70)
|
|
9.69
|
|
2,123,625
|
|
3.44
|
|
0.54
|
|
0.54
|
|
7.27
|
|
83
|
|
Seix
Investment Grade Tax-Exempt Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
12.29
|
|
0.28
|
|
0.07
|
|
0.35
|
|
(0.28)
|
|
—
|
|
(0.14)
|
|
(0.42)
|
|
12.22
|
|
629,435
|
|
2.96
|
|
0.65
|
|
0.68
|
|
2.32
|
|
139
|
|
Year Ended March 31,
2015
|
12.13
|
|
0.31
|
|
0.32
|
|
0.63
|
|
(0.31)
|
|
—
|
|
(0.16)
|
|
(0.47)
|
|
12.29
|
|
657,851
|
|
5.25
|
|
0.65
|
|
0.68
|
|
2.53
|
|
144
|
|
Year Ended March 31,
2014
|
12.45
|
|
0.28
|
|
(0.23)
|
|
0.05
|
|
(0.28)
|
|
—
|
|
(0.09)
|
|
(0.37)
|
|
12.13
|
|
643,828
|
|
0.48
|
|
0.64
|
|
0.64
|
|
2.29
|
|
104
|
|
Year Ended March 31,
2013
|
12.49
|
|
0.25
|
|
0.35
|
|
0.60
|
|
(0.25)
|
|
—
|
|
(0.39)
|
|
(0.64)
|
|
12.45
|
|
982,171
|
|
4.87
|
|
0.62
|
|
0.63
|
|
1.98
|
|
151
|
|
Year Ended March 31,
2012
|
11.65
|
|
0.29
|
|
0.93
|
|
1.22
|
|
(0.29)
|
|
—
|
|
(0.09)
|
|
(0.38)
|
|
12.49
|
|
950,629
|
|
10.62
|
|
0.61
|
|
0.61
|
|
2.38
|
|
199
|
|
Seix
Limited Duration Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
9.83
|
|
0.03
|
|
—(i)
|
|
0.03
|
|
(0.03)
|
|
—
|
|
—
|
|
(0.03)
|
|
9.83
|
|
6,649
|
|
0.26
|
|
0.35
|
|
0.47
|
|
0.29
|
|
50
|
|
Year Ended March 31,
2015
|
9.83
|
|
0.02
|
|
—(i)
|
|
0.02
|
|
(0.02)
|
|
—
|
|
—
|
|
(0.02)
|
|
9.83
|
|
6,650
|
|
0.18
|
|
0.34
|
|
0.46
|
|
0.21
|
|
45
|
|
Year Ended March 31,
2014
|
9.83
|
|
0.03
|
|
(0.01)
|
|
0.02
|
|
(0.02)
|
|
—
|
|
—
|
|
(0.02)
|
|
9.83
|
|
6,650
|
|
0.21
|
|
0.32
|
|
0.43
|
|
0.27
|
|
104
|
|
Year Ended March 31,
2013
|
9.76
|
|
0.05
|
|
0.06
|
|
0.11
|
|
(0.04)
|
|
—
|
|
—
|
|
(0.04)
|
|
9.83
|
|
9,357
|
|
1.08
|
|
0.30
|
|
0.33
|
|
0.50
|
|
56
|
|
Year Ended March 31,
2012
|
9.76
|
|
0.07
|
|
(0.01)
|
|
0.06
|
|
(0.06)
|
|
—
|
|
—
|
|
(0.06)
|
|
9.76
|
|
16,002
|
|
0.58
|
|
0.28
|
|
0.28
|
|
0.68
|
|
58
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
North Carolina Tax-Exempt Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$10.49
|
|
$0.24
|
|
$
0.11 |
|
$
0.35 |
|
$(0.24)
|
|
$—
|
|
$(0.07)
|
|
$(0.31)
|
|
$10.53
|
|
$
28,576 |
|
3.39%
|
|
0.65%
|
|
0.73%
|
|
2.31%
|
|
42%
|
|
Year Ended March 31,
2015
|
10.06
|
|
0.25
|
|
0.43
|
|
0.68
|
|
(0.25)
|
|
—
|
|
—
|
|
(0.25)
|
|
10.49
|
|
37,190
|
|
6.80
|
|
0.65
|
|
0.69
|
|
2.40
|
|
51
|
|
Year Ended March 31,
2014
|
10.68
|
|
0.26
|
|
(0.31)
|
|
(0.05)
|
|
(0.27)
|
|
—
|
|
(0.30)
|
|
(0.57)
|
|
10.06
|
|
37,311
|
|
(0.38)
|
|
0.61
|
|
0.61
|
|
2.59
|
|
77
|
|
Year Ended March 31,
2013
|
10.47
|
|
0.30
|
|
0.21
|
|
0.51
|
|
(0.30)
|
|
—
|
|
—
|
|
(0.30)
|
|
10.68
|
|
50,991
|
|
4.88
|
|
0.62
|
|
0.62
|
|
2.79
|
|
79
|
|
Year Ended March 31,
2012
|
9.70
|
|
0.33
|
|
0.77
|
|
1.10
|
|
(0.33)
|
|
—
|
|
—
|
|
(0.33)
|
|
10.47
|
|
50,412
|
|
11.51
|
|
0.67
|
|
0.67
|
|
3.27
|
|
39
|
|
Seix
Short-Term Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
9.98
|
|
0.06
|
|
0.01
|
|
0.07
|
|
(0.07)
|
|
—
|
|
—
|
|
(0.07)
|
|
9.98
|
|
49,749
|
|
0.68
|
|
0.60
|
|
0.68
|
|
0.58
|
|
87
|
|
Year Ended March 31,
2015
|
9.95
|
|
0.05
|
|
0.04
|
|
0.09
|
|
(0.06)
|
|
—
|
|
—
|
|
(0.06)
|
|
9.98
|
|
50,689
|
|
0.93
|
|
0.60
|
|
0.67
|
|
0.52
|
|
199
|
|
Year Ended March 31,
2014
|
10.00
|
|
0.12
|
|
(0.05)
|
|
0.07
|
|
(0.12)
|
|
—
|
|
—
|
|
(0.12)
|
|
9.95
|
|
38,400
|
|
0.75
|
|
0.58
|
|
0.58
|
|
1.22
|
|
79
|
|
Year Ended March 31,
2013
|
9.99
|
|
0.15
|
|
0.01
|
|
0.16
|
|
(0.15)
|
|
—
|
|
—
|
|
(0.15)
|
|
10.00
|
|
78,383
|
|
1.65
|
|
0.48
|
|
0.48
|
|
1.51
|
|
128
|
|
Year Ended March 31,
2012
|
9.95
|
|
0.20
|
|
0.06
|
|
0.26
|
|
(0.22)
|
|
—
|
|
—
|
|
(0.22)
|
|
9.99
|
|
310,854
|
|
2.60
|
|
0.48
|
|
0.48
|
|
2.00
|
|
86
|
|
Seix
Short-Term Municipal Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.00
|
|
0.04
|
|
—(i)
|
|
0.04
|
|
(0.04)
|
|
—
|
|
(0.02)
|
|
(0.06)
|
|
9.98
|
|
32,184
|
|
0.41
|
|
0.51
|
|
0.62
|
|
0.41
|
|
82
|
|
Year Ended March 31,
2015
|
9.99
|
|
0.04
|
|
0.08
|
|
0.12
|
|
(0.04)
|
|
—
|
|
(0.07)
|
|
(0.11)
|
|
10.00
|
|
38,669
|
|
1.21
|
|
0.55
|
|
0.62
|
|
0.42
|
|
148
|
|
Year Ended March 31,
2014
|
10.01
|
|
0.02
|
|
0.01
|
|
0.03
|
|
(0.02)
|
|
—
|
|
(0.03)
|
|
(0.05)
|
|
9.99
|
|
30,852
|
|
0.37
|
|
0.54
|
|
0.71
|
|
0.21
|
|
260
|
|
Year Ended March 31,
2013
|
10.73
|
|
0.05
|
|
0.27
|
|
0.32
|
|
(0.06)
|
|
—
|
|
(0.98)
|
|
(1.04)
|
|
10.01
|
|
11,121
|
|
3.01
|
|
0.58
|
|
0.91
|
|
0.52
|
|
199
|
|
Year Ended March 31,
2012
|
10.16
|
|
0.32
|
|
0.70
|
|
1.02
|
|
(0.31)
|
|
—
|
|
(0.14)
|
|
(0.45)
|
|
10.73
|
|
5,956
|
|
10.16
|
|
0.67
|
|
0.77
|
|
3.00
|
|
27
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
Total Return Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$10.75
|
|
$0.19
|
|
$(0.05)
|
|
$
0.14 |
|
$(0.21)
|
|
$—
|
|
$(0.01)
|
|
$(0.22)
|
|
$10.67
|
|
$
971,159 |
|
1.35(g)
|
|
0.45%
|
|
0.45%
|
|
1.82%
|
|
181%
|
|
Year Ended March 31,
2015
|
10.43
|
|
0.23
|
|
0.34
|
|
0.57
|
|
(0.25)
|
|
—
|
|
—
|
|
(0.25)
|
|
10.75
|
|
972,117
|
|
5.47
|
|
0.44
|
|
0.44
|
|
2.17
|
|
173
|
|
Year Ended March 31,
2014
|
10.79
|
|
0.22
|
|
(0.26)
|
|
(0.04)
|
|
(0.22)
|
|
—
|
|
(0.10)
|
|
(0.32)
|
|
10.43
|
|
1,022,101
|
|
(0.31)
|
|
0.41
|
|
0.41
|
|
2.12
|
|
217
|
|
Year Ended March 31,
2013
|
10.77
|
|
0.18
|
|
0.25
|
|
0.43
|
|
(0.21)
|
|
—
|
|
(0.20)
|
|
(0.41)
|
|
10.79
|
|
1,204,228
|
|
4.01
|
|
0.39
|
|
0.40
|
|
1.69
|
|
139
|
|
Year Ended March 31,
2012
|
10.40
|
|
0.25
|
|
0.73
|
|
0.98
|
|
(0.36)
|
|
—
|
|
(0.25)
|
|
(0.61)
|
|
10.77
|
|
996,213
|
|
9.62
|
|
0.37
|
|
0.37
|
|
2.30
|
|
170
|
|
Seix
U.S. Government Securities Ultra-Short Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
10.12
|
|
0.06
|
|
(0.07)
|
|
(0.01)
|
|
(0.08)
|
|
—
|
|
—
|
|
(0.08)
|
|
10.03
|
|
1,557,899
|
|
(0.11)
|
|
0.41
|
|
0.41
|
|
0.57
|
|
52
|
|
Year Ended March 31,
2015
|
10.12
|
|
0.06
|
|
0.02
|
|
0.08
|
|
(0.08)
|
|
—
|
|
—
|
|
(0.08)
|
|
10.12
|
|
1,665,888
|
|
0.77
|
|
0.39
|
|
0.39
|
|
0.55
|
|
34
|
|
Year Ended March 31,
2014
|
10.17
|
|
0.03
|
|
(0.02)
|
|
0.01
|
|
(0.06)
|
|
—
|
|
—
|
|
(0.06)
|
|
10.12
|
|
1,993,215
|
|
0.13
|
|
0.38
|
|
0.38
|
|
0.31
|
|
36
|
|
Year Ended March 31,
2013
|
10.14
|
|
0.03
|
|
0.08
|
|
0.11
|
|
(0.08)
|
|
—
|
|
—
|
|
(0.08)
|
|
10.17
|
|
2,331,913
|
|
1.10
|
|
0.36
|
|
0.36
|
|
0.29
|
|
137
|
|
Year Ended March 31,
2012
|
10.07
|
|
0.06
|
|
0.12
|
|
0.18
|
|
(0.11)
|
|
—
|
|
—
|
|
(0.11)
|
|
10.14
|
|
2,033,765
|
|
1.76
|
|
0.36
|
|
0.36
|
|
0.55
|
|
70
|
|
Seix
Ultra-Short Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
9.97
|
|
0.08
|
|
(0.04)
|
|
0.04
|
|
(0.08)
|
|
—
|
|
—
|
|
(0.08)
|
|
9.93
|
|
104,950
|
|
0.42
|
|
0.38
|
|
0.38
|
|
0.77
|
|
59
|
|
Year Ended March 31,
2015
|
9.98
|
|
0.06
|
|
—(i)
|
|
0.06
|
|
(0.07)
|
|
—
|
|
—
|
|
(0.07)
|
|
9.97
|
|
142,680
|
|
0.55
|
|
0.37
|
|
0.37
|
|
0.57
|
|
54
|
|
Year Ended March 31,
2014
|
9.98
|
|
0.07
|
|
0.01
|
|
0.08
|
|
(0.08)
|
|
—
|
|
—
|
|
(0.08)
|
|
9.98
|
|
122,053
|
|
0.76
|
|
0.35
|
|
0.35
|
|
0.65
|
|
134
|
|
Year Ended March 31,
2013
|
9.95
|
|
0.10
|
|
0.04
|
|
0.14
|
|
(0.11)
|
|
—
|
|
—
|
|
(0.11)
|
|
9.98
|
|
109,224
|
|
1.39
|
|
0.33
|
|
0.33
|
|
0.98
|
|
127
|
|
Year Ended March 31,
2012
|
9.93
|
|
0.10
|
|
0.03
|
|
0.13
|
|
(0.11)
|
|
—
|
|
—
|
|
(0.11)
|
|
9.95
|
|
112,617
|
|
1.34
|
|
0.34
|
|
0.34
|
|
0.99
|
|
97
|
|
See Notes to Financial Highlights.
|
Net
Asset Value, Beginning of Period |
|
Net
Investment Income (Loss)(a) |
|
Net
Realized and Unrealized Gains (Losses) on Investments |
|
Total
from Operations |
|
Dividends
from Net Investment Income |
|
Distributions
from Tax Return of Capital |
|
Distributions
from Realized Capital Gains |
|
Total
Dividends and Distributions |
|
Net
Asset Value, End of Period |
|
Net
Assets End of Period (000) |
|
Total
Return(b) |
|
Ratio
of Net Expenses to Average Net Assets(c) |
|
Ratio
of Expenses to Average Net Assets (Excluding Waivers and Reimbursements)(c) |
|
Ratio
of Net Investment Income to Average Net Assets(c) |
|
Portfolio
Turnover Rate(d) |
|
Seix
Virginia Intermediate Municipal Bond Fund |
I
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
2016
|
$10.24
|
|
$0.24
|
|
$
0.08 |
|
$
0.32 |
|
$(0.24)
|
|
$—
|
|
$(0.26)
|
|
$(0.50)
|
|
$10.06
|
|
$
64,653 |
|
3.30%
|
|
0.65%
|
|
0.68%
|
|
2.38%
|
|
48%
|
|
Year Ended March 31,
2015
|
10.12
|
|
0.25
|
|
0.21
|
|
0.46
|
|
(0.25)
|
|
—
|
|
(0.09)
|
|
(0.34)
|
|
10.24
|
|
119,103
|
|
4.54
|
|
0.65
|
|
0.65
|
|
2.42
|
|
59
|
|
Year Ended March 31,
2014
|
10.54
|
|
0.29
|
|
(0.32)
|
|
(0.03)
|
|
(0.29)
|
|
—
|
|
(0.10)
|
|
(0.39)
|
|
10.12
|
|
120,600
|
|
(0.20)
|
|
0.58
|
|
0.58
|
|
2.83
|
|
65
|
|
Year Ended March 31,
2013
|
10.63
|
|
0.31
|
|
0.08
|
|
0.39
|
|
(0.31)
|
|
—
|
|
(0.17)
|
|
(0.48)
|
|
10.54
|
|
144,889
|
|
3.70
|
|
0.59
|
|
0.59
|
|
2.93
|
|
33
|
|
Year Ended March 31,
2012
|
10.21
|
|
0.33
|
|
0.53
|
|
0.86
|
|
(0.33)
|
|
—
|
|
(0.11)
|
|
(0.44)
|
|
10.63
|
|
147,599
|
|
8.55
|
|
0.63
|
|
0.63
|
|
3.12
|
|
23
|
|
See Notes to Financial Highlights.
NOTES TO FINANCIAL
HIGHLIGHTS
(a)
|
Per share data calculated
using average shares outstanding method. |
(b)
|
Total return excludes sales
charge. Not annualized for periods less than one year. |
(c)
|
Annualized for periods less
than one year. |
(d)
|
Not
annualized for periods less than one year. |
Investment Adviser:
RidgeWorth Investments
3333 Piedmont Road, Suite 1500
Atlanta, GA
30305
www.ridgeworth.com
Investment Subadviser:
Seix Investment Advisors LLC
One
Maynard Drive, Suite 3200
Park Ridge, NJ 07656
www.seixadvisors.com
More information about the RidgeWorth Funds is available
without charge through the following:
Statement of
Additional Information (SAI):
The SAI includes detailed information
about the RidgeWorth Funds. The SAI is on file with the SEC and is incorporated by reference into this prospectus. This means that the SAI, for legal purposes, is a part of this prospectus.
Annual and Semi-Annual Reports:
These reports list each Fund’s holdings and contain information from
the Funds’ managers about strategies and recent market conditions and trends and their impact on Fund performance. The reports also contain detailed financial information about the Funds.
To Obtain an SAI, Annual or Semi-Annual Report, or More
Information:
Telephone: Shareholder Services
1-888-784-3863
Mail:
RidgeWorth Funds
P.O. Box 8053
Boston, MA 02266-8053
Website: www.ridgeworth.com
SEC:
You can also obtain the SAI or the Annual and Semi-Annual reports, as well as
other information about the RidgeWorth Funds, from the EDGAR Database on the SEC’s website at http://www.sec.gov. You may review and copy documents at the SEC Public Reference Room in Washington, DC (for information on the operation of the
Public Reference Room, call 202-551-8090). You may request documents by mail from the SEC, upon payment of a duplicating fee, by writing to: Securities and Exchange Commission, Public Reference Section, Washington, DC 20549-1520. You may also obtain
this information, upon payment of a duplicating fee, by e-mailing the SEC at publicinfo@sec.gov.
The RidgeWorth Funds’ Investment
Company Act registration number is 811-06557.
RidgeWorth Investments is the trade name of RidgeWorth Capital Management
LLC
RFPRO-ISEIX-0816
STATEMENT OF ADDITIONAL INFORMATION
RIDGEWORTH FUNDS
August 1, 2016
Investment Adviser:
RIDGEWORTH INVESTMENTS
(the Adviser)
This
Statement of Additional Information (SAI) is not a prospectus. It is intended to provide additional information regarding the activities and operations of RidgeWorth Funds (the Trust) and should be read in conjunction with
the Trusts current prospectuses dated August 1, 2016 as such prospectuses may be supplemented from time to time (each, a Prospectus and collectively, the Prospectuses). This SAI relates to each class of the
following series of the Trust (each, a Fund and collectively, the Funds):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Shares |
|
|
C Shares |
|
|
R Shares |
|
|
I Shares |
|
|
IS Shares |
|
Equity Funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
INNAX |
|
|
|
INNCX |
|
|
|
|
|
|
|
INNNX |
|
|
|
|
|
Ceredex Large Cap Value Equity Fund |
|
|
SVIIX |
|
|
|
SVIFX |
|
|
|
|
|
|
|
STVTX |
|
|
|
STVZX |
|
Ceredex Mid-Cap Value Equity Fund |
|
|
SAMVX |
|
|
|
SMVFX |
|
|
|
|
|
|
|
SMVTX |
|
|
|
SMVZX |
|
Ceredex Small Cap Value Equity Fund |
|
|
SASVX |
|
|
|
STCEX |
|
|
|
|
|
|
|
SCETX |
|
|
|
|
|
Innovative Growth Stock Fund (formerly, Aggressive Growth Stock Fund) |
|
|
SAGAX |
|
|
|
|
|
|
|
|
|
|
|
SCATX |
|
|
|
|
|
International Equity Fund |
|
|
SCIIX |
|
|
|
|
|
|
|
|
|
|
|
STITX |
|
|
|
SCIZX |
|
Silvant Large Cap Growth Stock Fund |
|
|
STCIX |
|
|
|
STCFX |
|
|
|
|
|
|
|
STCAX |
|
|
|
STCZX |
|
Silvant Small Cap Growth Stock Fund |
|
|
SCGIX |
|
|
|
SSCFX |
|
|
|
|
|
|
|
SSCTX |
|
|
|
SCGZX |
|
Taxable Fixed Income Funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix Core Bond Fund |
|
|
STGIX |
|
|
|
|
|
|
|
SCIGX |
|
|
|
STIGX |
|
|
|
STGZX |
|
Seix Corporate Bond Fund |
|
|
SAINX |
|
|
|
STIFX |
|
|
|
|
|
|
|
STICX |
|
|
|
|
|
Seix High Income Fund |
|
|
SAHIX |
|
|
|
|
|
|
|
STHIX |
|
|
|
STHTX |
|
|
|
STHZX |
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Seix Limited Duration Fund |
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SAMLX |
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Seix Floating Rate High Income Fund |
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SFRAX |
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SFRCX |
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SAMBX |
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SFRZX |
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Seix High Yield Fund |
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HYPSX |
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HYLSX |
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SAMHX |
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HYIZX |
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Seix Short-Term Bond Fund |
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STSBX |
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SCBSX |
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SSBTX |
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Seix Total Return Bond Fund |
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CBPSX |
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SCBLX |
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SAMFX |
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SAMZX |
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Seix U.S. Government Securities Ultra-Short Bond Fund |
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SIGVX |
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SIGZX |
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Seix U.S. Mortgage Fund |
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SLTMX |
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SCLFX |
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SLMTX |
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Seix Ultra-Short Bond Fund |
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SISSX |
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Tax-Exempt Fixed Income Funds |
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Seix Georgia Tax-Exempt Bond Fund |
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SGTEX |
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SGATX |
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Seix High Grade Municipal Bond Fund |
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SFLTX |
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SCFTX |
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Seix Investment Grade Tax-Exempt Bond Fund |
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SISIX |
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STTBX |
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Seix North Carolina Tax-Exempt Bond Fund |
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SNCIX |
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CNCFX |
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Seix Short-Term Municipal Bond Fund |
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SMMAX |
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CMDTX |
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Seix Virginia Intermediate Municipal Bond Fund |
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CVIAX |
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CRVTX |
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Allocation Strategies |
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Aggressive Growth Allocation Strategy |
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SLAAX |
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CLVLX |
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CVMGX |
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Conservative Allocation Strategy |
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SVCAX |
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SCCLX |
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SCCTX |
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Growth Allocation Strategy |
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SGIAX |
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SGILX |
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CLVGX |
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Moderate Allocation Strategy |
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SVMAX |
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SVGLX |
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CLVBX |
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The Equity Funds and Allocation Strategies are collectively referred to herein as Equity Funds and the
Taxable Fixed Income Funds and the Tax-Exempt Fixed Income Funds are collectively referred to herein as the Fixed Income Funds.
The
Funds financial statements for the fiscal year ended March 31, 2016 are incorporated by reference into this SAI from the Funds 2016 Annual Report, which is available without charge upon request by calling 1-888-784-3863. Capitalized
terms not defined herein are defined in the Prospectuses. A Prospectus may be obtained by writing to the Trust or calling toll-free 1-888-784-3863.
1
TABLE OF CONTENTS
2
THE TRUST
Each Fund is a separate series of the Trust, an open-end management investment company established under Massachusetts law as a Massachusetts business trust
under a Declaration of Trust dated January 15, 1992. The Declaration of Trust permits the Trust to offer separate series of units of beneficial interest (shares) and different classes of shares of each Fund. The Trust reserves the
right to create and issue shares of additional funds and/or classes. Each Fund, except the North Carolina Tax-Exempt Bond Fund, is diversified, as that term is defined in the Investment Company Act of 1940, as amended (the 1940 Act).
The Capital Innovations Global Resources and Infrastructure Fund previously operated as a series of Investment Managers Series Trust (the
Predecessor Fund). Pursuant to a reorganization that took place on February 19, 2016 (the Reorganization), the Fund is the successor to the Predecessor Fund. As a result of the Reorganization, the Fund assumed the
performance and accounting history of the Predecessor Fund prior to the date of the Reorganization.
DESCRIPTION OF PERMITTED
INVESTMENTS, PRACTICES AND RISKS
The Funds respective investment objectives and principal investment strategies are described in the
Prospectuses. The following information supplements, and should be read in conjunction with, the Prospectuses. Following are descriptions of the permitted investments and investment practices discussed in the Funds applicable Prospectus. The
Funds respective investment subadvisers (each, a Subadviser and collectively, the Subadvisers) may only utilize any of the following instruments or engage in any of the following investment practices if such investment
or activity is consistent with and permitted by the Funds stated investment policies:
American Depositary Receipts (ADRs), European
Depositary Receipts (EDRs) and Global Depositary Receipts (GDRs) (collectively, Depositary Receipts). Depositary Receipts are securities, typically issued by a U.S. financial institution or a non-U.S. financial institution in the
case of an EDR or GDR (a depositary). The institution has ownership interests in a security, or a pool of securities, issued by a foreign issuer and deposited with the depositary.
Depositary Receipts may be available through sponsored or unsponsored facilities. A sponsored facility is established jointly by the
issuer of the security underlying the receipt and a depositary. An unsponsored facility may be established by a depositary without participation by the issuer of the underlying security.
Holders of unsponsored depositary receipts generally bear all the costs of the unsponsored facility. The depositary of an unsponsored facility frequently is
under no obligation to distribute shareholder communications received from the issuer of the deposited security or to pass through, to the holders of the receipts, voting rights with respect to the deposited securities. Securities issued by foreign
companies incorporated outside of the United States, but whose securities are publicly traded in the United States, directly or through sponsored and unsponsored ADRs or GDRs, are not defined as Foreign Securities.
Acquisitional/Equipment Lines (delayed-draw term loans). Acquisitional/equipment lines (delayed-draw term loans) are credits that may be drawn down for
a given period to purchase specified assets or equipment or to make acquisitions. The issuer pays a fee during the commitment period (a ticking fee). The lines are then repaid over a specified period (the term-out period). Repaid amounts may not be
re-borrowed. To avoid any leveraging concerns, a Fund will segregate or earmark liquid assets with the Funds custodian in an amount sufficient to cover its repurchase obligations.
Asset-Backed Securities. Asset-backed securities are securities backed by non-mortgage assets such as company receivables, truck and auto loans,
leases, credit card receivables and mortgage-like assets such as home equity loans or manufactured housing.
These securities may be traded
over-the-counter and typically have a short-intermediate maturity structure depending on the pay down characteristics of the underlying financial assets which are passed through to the security holder.
These securities are generally issued as pass-through certificates, which represent undivided fractional ownership interests in the underlying pool of assets.
3
Asset-backed securities may also be debt obligations, which are known as collateralized obligations and are
generally issued as the debt of a special purpose entity, such as a trust, organized solely for the purpose of owning these assets and issuing debt obligations.
Asset-backed securities that are backed by a single type of asset are pooled together by asset type for purposes of calculating a Funds industry
concentration levels.
Asset-backed securities are not issued or guaranteed by the U.S. government, its agencies or instrumentalities; however, the
payment of principal and interest on such obligations may be guaranteed up to certain amounts and, for a certain period, by a letter of credit issued by a financial institution (such as a bank or insurance company) unaffiliated with the issuers of
such securities.
The purchase of asset-backed securities raises risk considerations peculiar to the financing of the instruments underlying such
securities. There also is the possibility that recoveries on repossessed collateral may not, in some cases, be available to support payments on those securities.
Asset-backed securities entail prepayment risk, which may vary depending on the type of asset, but is generally less than the prepayment risk associated with
mortgage-backed securities. In addition, credit card receivables are unsecured obligations of the cardholder.
For purposes of calculating Annual Fund
Operating Expenses in a Funds Prospectus, direct or indirect fees associated with investing in structured products such as asset-backed securities are not included.
Bank Obligations. A Fund may invest in obligations issued by banks and other savings institutions.
Investments in bank obligations include obligations of domestic branches of foreign banks and foreign branches of domestic banks. Such investments in domestic
branches of foreign banks and foreign branches of domestic banks may involve risks that are different from investments in securities of domestic branches of U.S. banks.
These risks may include future unfavorable political and economic developments, possible withholding taxes on interest income, seizure or nationalization of
foreign deposits, currency controls, interest limitations, or other governmental restrictions, which might affect the payment of principal or interest on the securities held by a Fund.
Additionally, these institutions may be subject to less stringent reserve requirements and to different accounting, auditing, reporting and recordkeeping
requirements than those applicable to domestic branches of U.S. banks.
The Funds may invest in U.S. dollar-denominated obligations of domestic branches
of foreign banks and foreign branches of domestic banks only when a Subadviser believes that the risks associated with such investment are minimal and that all applicable quality standards have been satisfied. Bank obligations include the following:
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Bankers Acceptances. Bankers acceptances are bills of exchange or time drafts drawn on and accepted by a commercial bank. Corporations use bankers acceptances to finance the
shipment and storage of goods and to furnish dollar exchange. Maturities are generally six months or less. |
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Certificates of Deposit. Certificates of deposit are interest-bearing instruments with a specific maturity. They are issued by banks and savings and loan institutions in exchange for the deposit of
funds and normally can be traded in the secondary market prior to maturity. Certificates of deposit with penalties for early withdrawal will be considered illiquid. |
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Time Deposits. Time deposits are non-negotiable receipts issued by a bank in exchange for the deposit of funds. Like a certificate of deposit, it earns a specified rate of interest over a definite period of time;
however, it cannot be traded in the secondary market. Time deposits with a withdrawal penalty or that mature in more than seven days are considered to be illiquid securities. |
4
The Funds are not prohibited from investing in bank obligations issued by clients of the Funds
administrator or distributor or their respective parent or affiliated companies. The purchase of Fund shares by these banks or their customers will not be a consideration in deciding which bank obligations the Funds will purchase. A Fund will not
purchase obligations issued by the Adviser, Subadvisers, or their affiliates.
Below Investment Grade Securities. High yield securities may be
subject to greater levels of credit or default risk than higher-rated securities.
The value of high yield securities can be adversely affected by overall
economic conditions, such as an economic downturn or a period of rising interest rates, and high yield securities may be less liquid and more difficult to sell at an advantageous time or price or to value than higher-rated securities.
In particular, high yield securities are often issued by smaller, less creditworthy or highly leveraged (indebted) issuers, which are generally less able than
more financially stable issuers to make scheduled payments of interest and principal.
Borrowing. As required by the 1940 Act, a Fund must maintain
continuous asset coverage (total assets, including assets acquired with borrowed funds, less liabilities exclusive of borrowings) of 300% of all amounts borrowed.
If, at any time, the value of the Funds assets should fail to meet this 300% coverage test, the Fund, within three days (not including Sundays and
holidays), will reduce the amount of the Funds borrowings to the extent necessary to meet this 300% coverage.
Maintenance of this percentage
limitation may result in the sale of portfolio securities at a time when investment considerations otherwise indicate that it would be disadvantageous to do so. Investment strategies that either obligate a Fund to purchase securities or require a
Fund to segregate assets are not considered to be borrowing.
In addition to the foregoing, the Funds are authorized to borrow money as a temporary
measure for extraordinary or emergency purposes in amounts not in excess of 5% of the value of a Funds total assets. This borrowing is not subject to the foregoing 300% asset coverage requirement.
Borrowing may subject the Funds to interest costs, which may exceed the interest received on the securities purchased with the borrowed funds. The Funds may
borrow at times to meet redemption requests rather than sell portfolio securities to raise the necessary cash. Borrowing can involve leveraging when securities are purchased with the borrowed money.
Collateralized Debt Obligations. Collateralized Debt Obligations (CDOs) are securitized interests in pools of assets. Assets called
collateral usually comprise loans or debt instruments.
A CDO may be called a collateralized loan obligation (CLO) or collateralized bond
obligation (CBO) if it holds only loans or bonds, respectively. Investors bear the credit risk of the collateral.
Multiple tranches of
securities are issued by the CDO, offering investors various maturity and credit risk characteristics. Tranches are categorized as senior, mezzanine, and subordinated/equity, according to their degree of credit risk.
If there are defaults or the CDOs collateral otherwise underperforms, scheduled payments to senior tranches take precedence over those of mezzanine
tranches, and scheduled payments to mezzanine tranches take precedence over those to subordinated/equity tranches.
Senior and mezzanine tranches are
typically rated, with the former receiving ratings of A to AAA/Aaa and the latter receiving ratings of B to BBB/Baa. The ratings reflect both the credit quality of underlying collateral as well as how much protection a given tranche is afforded by
tranches that are subordinate to it.
Commercial Paper. Commercial paper is the term used to designate unsecured short term promissory notes issued
by corporations and other entities. Maturities on these issues vary from a few to 270 days.
5
Contingent Capital Securities. Contingent capital securities (sometimes referred to as CoCos)
are debt or preferred securities with loss absorption characteristics built into the terms of the security, for example a mandatory conversion into common stock of the issuer under certain circumstances, such as the issuers capital ratio
falling below a certain level.
Since the common stock of the issuer may not pay a dividend, investors in these instruments could experience a reduced
income rate, potentially to zero, and conversion would deepen the subordination of the investor, hence worsening a Funds standing in a bankruptcy. Some CoCos provide for a reduction in the value or principal amount of the security under such
circumstances. In addition, most CoCos are considered to be high yield or junk securities and are therefore subject to the risks of investing in below investment grade securities.
Convertible Bonds. Convertible bonds are bonds, which may be converted, at the option of either the issuer or the holder, into a specified amount of
common stock of the issuer, or in the case of exchangeable bonds, into the common stock of another corporation.
Convertible bonds are generally
subordinate to other publicly held debt of the issuer, and therefore typically have a lower credit rating than nonconvertible debt of the issuer. Convertible bonds generally carry a lower coupon rate than the issuer would otherwise pay at issuance
in exchange for the conversion feature.
In addition to the interest rate risk factors generally associated with fixed income investments, the market risk
of a convertible bond is determined by changes in the credit quality of the issuer and price changes and volatility of the stock into which the bond may be converted. The conversion feature may cause a convertible bond to be significantly more
volatile than other types of fixed income investments.
Convertible bonds for which the value of the conversion feature is deemed worthless are generally
referred to as busted convertibles, and the associated risk more closely approximates that of similar debt without the conversion feature.
Corporate Issues. Corporate issues refer to debt instruments issued by private corporations or other business entities. Notes, bonds, debentures and
commercial paper are the most prevalent types of corporate issues. Corporate issues may also be issued by master limited partnerships (MLPs) and real estate investment trusts (REITs).
In addition, the credit risk of an issuers debt security may vary based on its priority for repayment. For example, higher ranking (senior)
debt securities have a higher priority than lower ranking (subordinated) securities. The credit risks of corporate issues may vary widely among issuers. A Fund will buy corporate issues subject to any quality constraints. This means that
the issuer might not make payments on subordinated securities while continuing to make payments on senior securities.
In addition, in the event of
bankruptcy, holders of senior securities may receive amounts otherwise payable to the holders of subordinated securities. Some subordinated securities, such as trust preferred and capital securities notes, also permit the issuer to defer payments
under certain circumstances. For example, insurance companies issue securities known as surplus notes that permit the insurance company to defer any payment that would reduce its capital below regulatory requirements.
Credit Linked Notes. A credit linked note (CLN) is a type of hybrid instrument in which a special purpose entity issues a structured note
(the Note Issuer) that in general is intended to replicate a single bond, a portfolio of bonds, or with respect to the unsecured credit of an issuer (the Reference Instrument).
The purchaser of the CLN (the Note Purchaser) invests a par amount and receives a payment during the term of the CLN that equals a fixed or
floating rate of interest equivalent to a high rated funded asset (such as a bank certificate of deposit) plus an additional premium that relates to taking on the credit risk of the Reference Instrument.
6
Upon maturity of the CLN, the Note Purchaser will receive a payment equal to:
(i) the original par amount paid to the Note Issuer, if there is neither a designated event of default (an Event of Default) with
respect to the Reference Instrument nor a restructuring of the issuer of the Reference Instrument (a Restructuring Event) or
(ii) the value of the Reference Instrument, if an Event of Default or Restructuring Event has occurred.
Depending upon the terms of the CLN, it is also possible that the Note Purchaser may be required to take physical delivery of the Reference Instrument in the
event of an Event of Default or a Restructuring Event. Most CLNs use a corporate bond (or a portfolio of corporate bonds) as the Reference Instrument(s). However, almost any type of fixed income security (including foreign government securities) or
derivative contract (such as a credit default swap) can be used as the Reference Instrument.
In addition to being subject to the risks relating to
the Reference Instrument, the purchaser of a CLN may be subject to the credit risk of the Note Issuer. Also, there may not be a secondary market for the CLN even though such a market exists for the Reference Instrument.
Custodial Receipts. A custodial receipt represents an indirect interest in a tax-exempt bond that is deposited with a custodian.
For example, custodial receipts may be used to permit the sale of the deposited bond in smaller denominations than would otherwise be permitted. Frequently,
custodial receipts are issued to attach bond insurance or other forms of credit enhancement to the deposited tax-exempt bond.
Note, because a
separate security is not created by the issuance of a receipt, many of the tax advantages bestowed upon holders of the deposited tax-exempt bond are also conferred upon the custodial receipt holder.
Cybersecurity. With the increased use of technologies such as the Internet to conduct business, a fund is susceptible to operational, information
security and related risks through breaches in cybersecurity. In general, a breach in cybersecurity can result from deliberate attacks or unintentional events. Cyber-attacks include, but are not limited to, gaining unauthorized access to digital
systems (e.g., through hacking or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data, or causing operational disruption. Cyber-attacks may also be carried out in a manner that
does not require gaining unauthorized access, such as causing denial-of-service attacks on websites (i.e., efforts to make network services unavailable to intended users). Cyber incidents affecting a funds investment adviser, sub-adviser and
other service providers (including, but not limited to, fund accountants, custodians, transfer agents and financial intermediaries) have the ability to cause disruptions and impact business operations, potentially resulting in financial losses,
interference with a funds ability to calculate its NAV, impediments to trading, the inability of fund shareholders to transact business, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage,
reimbursement or other compensation costs, or additional compliance costs. Similar adverse consequences could result from cyber incidents affecting issuers of securities in which a fund invests, counterparties with which a fund engages in
transactions, governmental and other regulatory authorities, exchange and other financial market operators, banks, brokers, dealers, insurance companies and other financial institutions (including financial intermediaries and service providers for
fund shareholders) and other parties. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future. While a funds service providers have established business continuity plans in the event of, and risk
management systems to prevent, such cyber incidents, there are inherent limitations in such plans and systems including the possibility that certain risks have not been adequately identified or prepared for. Furthermore, a fund cannot control the
cyber security plans and systems put in place by its service providers or any other third parties whose operations may affect the fund or its shareholders. Cybersecurity risks may also impact issuers of securities in which the fund invests, which
may cause the funds investments in such issuers to lose value. A fund and its shareholders could be negatively impacted as a result.
Debt
Securities. Debt securities (e.g., bonds, notes, debentures) represent money borrowed that obligates the issuer (e.g., a corporation, municipality, government, government agency) to repay the borrowed amount at maturity (when the
obligation is due and payable) and usually to pay the holder interest at specific times.
Derivatives. A derivative is a financial contract whose
value adjusts in accordance with the value of one or more underlying assets, reference rates or indices.
7
Derivatives (such as credit linked notes, futures, options, inverse floaters, swaps and warrants) may be used to
attempt to achieve investment objectives or to offset certain investment risks.
These positions may be established for hedging, substitution of a
position in the underlying asset or for speculation purposes. Hedging involves making an investment (e.g., in a futures contract) to reduce the risk of adverse price movements in an already existing investment position.
Because leveraging is inherent in derivatives, the use of derivatives also involves the risk of leveraging. Risks involved with hedging and leveraging
activities include:
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The success of a hedging strategy may depend on an ability to predict movements in the prices of individual securities, fluctuations in markets, and movements in interest rates. |
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A Fund may experience losses over certain market movements that exceed losses experienced by a fund that does not use derivatives. |
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There may be an imperfect or no correlation between the changes in market value of the securities held by a Fund and the prices of derivatives used to hedge those positions. |
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There may not be a liquid secondary market for derivatives. |
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Trading restrictions or limitations may be imposed by an exchange. |
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Government regulations may restrict trading in derivatives. |
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The other party to an agreement (e.g., options or swaps) may default; however, in certain circumstances, such counter-party risk may be reduced by the creditworthiness of the counterparty and/or using an exchange as an
intermediary. |
Because premiums or totals paid or received on derivatives are small in relation to the market value of the underlying
investments, buying and selling derivatives can be more speculative than investing directly in securities.
In addition, many types of derivatives have
limited investment lives and may expire or necessitate being sold at inopportune times.
The use of derivatives may cause a Fund to recognize higher
amounts of short-term capital gains, which are generally taxed to shareholders at ordinary income tax rates.
Leverage may cause a 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 on the value of a Funds portfolio securities.
When a Fund uses derivatives, it segregates assets to fully cover its future obligations. It does this to limit the risks associated with leveraging. By
setting aside assets equal only to its net obligations rather than the full notional amount under certain derivative instruments, a Fund will have the ability to employ leverage to a greater extent than if it were required to segregate assets equal
to the full notional value of such derivative instruments.
To the extent a Fund invests in derivatives subject to regulation by the Commodity Futures
Trading Commission (CFTC), such as futures and options on futures, it will do so in accordance with Regulation 4.5 under the Commodity Exchange Act (CEA).
The Trust, on behalf of the Funds, has filed with the National Futures Association a notice claiming an exclusion from the definition of the term
commodity pool operator (CPO) under the CEA and the regulations of the CFTC promulgated thereunder with respect to the Funds operations. The Trust is not subject to registration or regulation as a CPO and does not
intend to operate in a manner that would trigger CFTC regulation.
8
If a Fund were to operate subject to CFTC regulation, it may incur additional expenses.
Dollar Rolls. Dollar rolls are transactions in which securities are sold for delivery in the current month and the seller contracts to repurchase
substantially similar securities on a specified future date. Any difference between the sale price and the purchase price (plus interest earned on the cash proceeds of the sale) is applied against the past interest income on the securities sold to
arrive at an implied borrowing rate.
Dollar rolls may be renewed prior to cash settlement and initially may involve only a firm commitment agreement by
the Fund to buy a security.
Dollar rolls involve selling securities (e.g., mortgage-backed securities or U.S. Treasury securities) and
simultaneously entering into a commitment to purchase those or similar (same collateral type, coupon and maturity) securities on a specified future date and price. Mortgage dollar rolls and U.S. Treasury rolls are types of dollar rolls.
A Fund foregoes principal and interest paid on the securities during the roll period. A Fund is compensated by the difference between the current
sales price and the lower forward price for the future purchase of the securities as well as the interest earned on the cash proceeds of the initial sale.
Dollar rolls involve the risk that the market value of the securities a Fund is obligated to repurchase may decline below the repurchase price or that the
transaction costs may exceed the return earned by a Fund from the transaction.
Dollar rolls also involve risk to a Fund if the other party should default
on its obligation and a Fund is delayed or prevented from completing the transaction. In the event that the buyer of securities under a dollar roll files for bankruptcy or becomes insolvent, a Funds use of proceeds of the dollar roll may be
restricted pending a determination by the other party, or its trustee or receiver, whether to enforce a Funds obligation to repurchase the securities. In addition, the security to be delivered in the future may turn out to be inferior to the
security sold upon entering into the transaction.
If the broker-dealer to whom a Fund sells the security becomes insolvent, the Funds right to
repurchase the security may be restricted. Other risks involved in entering into dollar rolls include the risk that the value of the security may change adversely over the term of the dollar roll and that the security the Fund is required to
repurchase may be worth less than the security that the Fund originally held.
To avoid any leveraging concerns, the Fund will segregate or earmark liquid
assets with the Funds custodian in an amount sufficient to cover its repurchase obligations. A Fund may also cover the transaction by means of an offsetting transaction or by other means permitted under the 1940 Act or the rules and Securities
and Exchange Commission (SEC) interpretations thereunder.
Emerging Markets. Emerging market countries are countries that the World
Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. In addition, the financial
stability of issuers (including governments) in emerging market countries may be more precarious than in other countries.
As a result, there will tend to
be an increased risk of price volatility associated with investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. Governments of some emerging market countries have defaulted on their
bonds and may do so in the future.
Equipment Trust Certificates (ETCs). ETCs are issued by a trust formed to finance large purchases
of equipment, such as airplanes, at favorable interest rates. Legal title on such equipment is held by a trustee. The trustee leases the equipment and sells ETCs at a small discount to the purchase price of the equipment. The lease payments are then
used to pay principal and interest to the ETC holders.
Equity Securities. Equity securities represent ownership interests in a company and consist
of common stocks, preferred stocks, warrants to acquire common stock, and securities convertible into common stock.
9
Investments in equity securities in general are subject to market risks that may cause their prices to fluctuate
over time. Fluctuations in the value of equity securities in which a Fund invests will cause the net asset value of a Fund to fluctuate. The Funds purchase equity securities traded in the U.S. or foreign countries on securities exchanges or the
over-the-counter market.
Equity securities are described in more detail below:
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Commodity Equity Securities. Commodity equity securities represent equity securities of companies that principally engage in the energy, metals, and agriculture group of industries. |
These companies may include, for example, integrated oil companies; companies engaged in the exploration and production of oil and gas;
companies primarily involved in the production and mining of coal, related products, and other consumable fuels; fertilizer and agricultural chemicals companies; producers of aluminum and related products; companies engaged in producing or
extracting metals and minerals; producers of gold, precious metals and minerals, and related products; producers of iron and steel; manufacturers of timber and related wood and paper products; and producers of agricultural products, including crop
growers, owners of plantations, and companies that produce and process foods.
Market conditions, interest rates, and economic, regulatory,
or financial developments could significantly affect a group of related industries, and the securities of companies in that group of industries could react similarly to these or other developments. In addition, from time to time, a small number of
companies may represent a large portion of a group of related industries as a whole, and these companies can be sensitive to adverse economic, regulatory, or financial developments.
The commodities industries can be significantly affected by the level and volatility of commodity prices; world events including international
monetary and political developments; import controls and worldwide competition; exploration and production spending; and tax and other government regulations and economic conditions.
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Common Stock. Common stock represents an equity or ownership interest in an issuer. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds and preferred stock take
precedence over the claims of those who own common stock. |
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Preferred Stock. Preferred stock represents an equity or ownership interest in an issuer that pays dividends at a specified rate and that has precedence over common stock in the payment of dividends. In
the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds take precedence over the claims of those who own preferred and common stock. |
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Convertible Securities. Convertible securities are bonds, debentures, notes, preferred stocks or other securities that may be converted or exchanged (by the holder or by the issuer) into shares of the
underlying common stock (or cash or securities of equivalent value) at a stated exchange ratio. A convertible security may also be called for redemption or conversion by the issuer after a particular date and under certain circumstances (including a
specified price) established upon issue. If a convertible security held by a Fund is called for redemption or conversion, the Fund could be required to tender it for redemption, convert it into the underlying common stock, or sell it to a
third-party. |
Convertible securities generally have less potential for gain or loss than common stocks. Convertible
securities generally provide yields higher than the underlying common stocks, but generally lower than comparable non-convertible securities.
Because of this higher yield, convertible securities generally sell at a price above their conversion value, which is the current
market value of the stock to be received upon conversion. The difference between this conversion value and the price of convertible securities will vary over time depending on changes in the value of the underlying common stocks and interest rates.
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When the underlying common stocks decline in value, convertible securities will tend not to
decline to the same extent because of the interest or dividend payments and the repayment of principal at maturity for certain types of convertible securities. However, securities that are convertible other than at the option of the holder generally
do not limit the potential for loss to the same extent as securities convertible at the option of the holder.
When the underlying common
stocks rise in value, the value of convertible securities may also be expected to increase. At the same time, however, the difference between the market value of convertible securities and their conversion value will narrow, which means that the
value of convertible securities will generally not increase to the same extent as the value of the underlying common stocks.
Because
convertible securities may also be interest rate sensitive, their value may increase as interest rates fall and decrease as interest rates rise. Convertible securities are also subject to credit risk, and are often lower-quality securities.
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Small and Mid-Cap Issuers. Generally, capitalization or market capitalization is a measure of a companys size (the price of a companys stock multiplied by the number of shares outstanding).
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Investing in equity securities of small and mid-cap companies often involves greater risk than is customarily associated
with investments in larger capitalization companies.
This increased risk may be due to the greater business risks of smaller size, limited
markets and financial resources, narrow product lines and frequent lack of depth of management. The securities of smaller companies are often traded in the over-the-counter market and even if listed on a national securities exchange may not be
traded in volumes typical for that exchange.
Consequently, the securities of smaller companies are less likely to be liquid, may have
limited market stability, and may be subject to more abrupt or erratic market movements than securities of larger, more established growth companies or the market averages in general.
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Equity-Linked Securities. A Fund may invest in equity-linked securities, including, among others, PERCS, ELKS or LYONs, which are securities that are convertible into, or the value of which is based
upon the value of, equity securities upon certain terms and conditions. |
The amount received by an investor at maturity of
such securities is not fixed but is based on the price of the underlying common stock. It is impossible to predict whether the price of the underlying common stock will rise or fall.
Trading prices of the underlying common stock will be influenced by the issuers operational results, by complex, interrelated political,
economic, financial or other factors affecting the capital markets, the stock exchanges on which the underlying common stock is traded and the market segment of which the issuer is a part. In addition, it is not possible to predict how equity-linked
securities will trade in the secondary market. The market for such securities may be shallow, and high volume trades may be possible only with discounting.
In addition to the foregoing risks, the return on such securities depends on the creditworthiness of the issuer of the securities, which may be
the issuer of the underlying securities or a third-party investment banker or other lender. The creditworthiness of such third-party issuer equity-linked securities may, and often does, exceed the creditworthiness of the issuer of the underlying
securities.
The advantage of using equity-linked securities over traditional equity and debt securities is that the former are income
producing vehicles that may provide a higher income than the dividend income on the underlying equity securities while allowing some participation in the capital appreciation of the underlying equity securities.
Another advantage of using equity-linked securities is that they may be used for hedging to reduce the risk of investing in the generally more
volatile underlying equity securities.
The following are three examples of equity-linked securities. A Fund may invest in the securities described below
or other similar equity-linked securities.
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PERCS. Preferred Equity Redemption Cumulative Stock (PERCS) technically is preferred stock with some characteristics of common stock. |
PERCS are mandatorily convertible into common stock after a period of time, usually three years, during which the investors capital gains
are capped, usually at 30%.
Commonly, PERCS may be redeemed by the issuer at any time or if the issuers common stock is trading at a
specified price level or better. The redemption price starts at the beginning of the PERCS duration period at a price that is above the cap by the amount of the extra dividends the PERCS holder is entitled to receive relative to the common stock
over the duration of the PERCS and declines to the cap price shortly before maturity of the PERCS.
In exchange for having the cap on
capital gains and giving the issuer the option to redeem the PERCS at any time or at the specified common stock price level, the Fund may be compensated with a substantially higher dividend yield than that on the underlying common stock.
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ELKS. Equity-Linked Securities (ELKS) differ from ordinary debt securities, in that the principal amount received at maturity is not fixed but is based on the price of the issuers common
stock. |
ELKS are debt securities commonly issued in fully registered form for a term of three years under an indenture trust.
At maturity, the holder of ELKS will be entitled to receive a principal amount equal to the lesser of a cap amount, commonly in the range of 30% to 55% greater than the current price of the issuers common stock, or the average closing price
per share of the issuers common stock, subject to adjustment as a result of certain dilution events, for the 10 trading days immediately prior to maturity.
Unlike PERCS, ELKS are commonly not subject to redemption prior to maturity. ELKS usually bear interest six times during the three-year term at
a substantially higher rate than the dividend yield on the underlying common stock. In exchange for having the cap on the return that might have been received as capital gains on the underlying common stock, the Fund may be compensated with the
higher yield, contingent on how well the underlying common stock does.
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LYONS. Liquid Yield Option Notes (LYONs) differ from ordinary debt securities, in that the amount received prior to maturity is not fixed but is based on the price of the issuers common
stock. |
LYONs are zero-coupon notes that sell at a large discount from face value. For an investment in LYONs, a Fund will
not receive any interest payments until the notes mature, typically in 15 to 20 years, when the notes are redeemed at face, or par value.
The yield on LYONs, typically, is lower-than-market rate for debt securities of the same maturity, due in part to the fact that the LYONs are
convertible into common stock of the issuer at any time at the option of the holder of the LYONs.
Commonly, the LYONs are redeemable by
the issuer at any time after an initial period or if the issuers common stock is trading at a specified price level or better, or, at the option of the holder, upon certain fixed dates.
The redemption price typically is the purchase price of the LYONs plus accrued original issue discount to the date of redemption, which amounts
to the lower-than-market yield.
A Fund will receive only the lower-than-market yield unless the underlying common stock increases in value
at a substantial rate. LYONs are attractive to investors, like a Fund, when it appears that they will increase in value due to the rise in value of the underlying common stock.
Eurodollar and Yankee Dollar Obligations. Eurodollar obligations are U.S. dollar denominated obligations issued outside the United States by U.S. and
non-U.S. corporations or other entities.
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Yankee dollar obligations are U.S. dollar denominated obligations issued in the United States by non-U.S.
corporations or other entities.
Eurodollar and Yankee Dollar obligations are subject to the same risks that pertain to the domestic issues, notably
credit risk, market risk and liquidity risk.
Additionally, Eurodollar and Yankee Dollar obligations are subject to certain sovereign risks. One such risk
is the possibility that a sovereign country might prevent capital from flowing across their borders.
Other risks include: adverse political and economic
developments; the extent and quality of government regulation of financial markets and institutions; the imposition of foreign withholding taxes; and the expropriation or nationalization or foreign issuers.
Exchange-Traded Funds (ETFs). ETFs are investment companies whose shares are bought and sold on a securities exchange.
An ETF holds a portfolio of securities designed to track a particular market segment or index. Some examples of ETFs are SPDRs®, DIAMONDSSM, NASDAQ 100 Index Tracking StockSM (QQQsSM), iShares® and VIPERs®.
A Fund could purchase an ETF to temporarily gain exposure to a portion of the U.S. or foreign market. The risks of owning an ETF generally reflect the risks
of owning the underlying securities they are designed to track, although lack of liquidity in an ETF could result in it being more volatile than the underlying portfolio of securities and ETFs have management fees that increase their costs versus
the costs of owning the underlying securities directly. (See also Investment Company Shares below).
The Capital Innovations Global
Resources and Infrastructure Fund may also invest in ETFs related to gold or other special markets (Gold ETFs). Investments in Gold ETFs involve additional risks and considerations not typically associated with other types of
investments: (1) the risk of substantial price fluctuations of gold and precious metals; (2) the concentration of gold supply is mainly in five territories (South Africa, Australia, the Commonwealth of Independent States (the former Soviet
Union), Canada and the United States), and the prevailing economic and political conditions of these countries may have a direct effect on the production and marketing of gold and sales of central bank gold holdings; (3) unpredictable
international monetary policies, economic and political conditions; (4) possible U.S. governmental regulation of metal investments, as well as foreign regulation of such investments; and (5) possible adverse tax consequences for the Fund
in making metal investments, if it fails to qualify as a regulated investment company under the U.S. Internal Revenue Code of 1986, as amended (the Internal Revenue Code). An adverse change with respect to any of these risk
factors could have a significant negative effect on the Funds net asset value per share.
Fixed Income Securities. Fixed income
securities are debt obligations issued by corporations, municipalities and other borrowers.
Coupons may be fixed or adjustable, based on a pre-set
formula.
The market value of fixed income investments may change in response to interest rate changes and other factors. During periods of falling
interest rates, the values of outstanding fixed income securities generally rise. Conversely, during periods of rising interest rates, the values of such securities generally decline. Moreover, while securities with longer maturities tend to produce
higher yields, the prices of longer maturity securities are also subject to greater market fluctuations as a result of changes in interest rates.
Changes
by recognized agencies in the rating of any fixed income security and in the ability of an issuer to make payments of interest and principal will also affect the value of these investments. Changes in the value of portfolio securities will not
affect cash income derived from these securities but will affect a Funds net asset value.
Floating Rate Instruments. Floating rate
instruments have a rate of interest that is set as a specific percentage of a designated base rate (such as the London Interbank Offered Rate or LIBOR).
Such obligations are frequently secured by letters of credit or other credit support arrangements provided by banks. The quality of the underlying credit or
of the bank, as the case may be, must, in the Subadvisers opinion be equivalent to the long-term bond or commercial paper ratings stated in the prospectus.
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The Subadviser will monitor the earning power, cash flow and liquidity ratios of the issuers of such instruments
and the ability of an issuer of a demand instrument to pay principal and interest on demand.
Floating Rate Loans. Investments in floating rate
loans are subject to interest rate risk although the risk is less because the interest rate of the loan adjusts periodically. Investments in floating rate loans are also subject to credit risk.
Many floating rate loans are rated below investment grade or are unrated. Therefore, a Fund relies heavily on the analytical ability of the Funds
Subadviser. Many floating rate loans share the same risks as high yield securities, although these risks are reduced when the floating rate loans are senior and secured as opposed to many high yield securities that are junior and unsecured.
Floating rate loans are often subject to restrictions on resale which can result in reduced liquidity.
The risk is greater for the Seix Floating Rate High Income Fund, because of its concentration in these types of instruments.
Borrowers may repay principal faster than the scheduled due date which may result in a Fund replacing that loan with a lower-yielding security.
Investment in loan participation interests may result in increased exposure to financial services sector risk. A loan may not be collateralized fully which
may cause the loan to decline significantly in value.
One lending institution acting as agent for all of the lenders will generally be required to
administer and manage the loan and, with respect to collateralized loans, to service or monitor the collateral.
Investing in certain types of floating
rate loans, such as revolving credit facilities and unfunded loans, creates a future obligation for a Fund. To avoid any leveraging concerns, a Fund will segregate or earmark liquid assets with the Funds custodian in amounts sufficient to
fully cover any future obligations.
Seix Investment Advisors LLC (Seix) currently serves as collateral manager to nine collateralized
loan obligation (CLO) funds that invest in bank loans. The trustees and custodians of the CLO funds are not affiliated entities of the Adviser or Seix.
In addition to the CLO funds, the Seix serves as Subadviser to an unaffiliated registered fund and as investment manager to two unregistered funds that may
invest in bank loans. The custodian and adviser for the unaffiliated registered fund are not affiliated entities of the Adviser or Seix.
The
custodians and administrators for the two unregistered funds are not affiliated entities of the Adviser or Seix.
There are no trustees for the
unregistered funds. Only the offshore entities that are a part of one of the unregistered funds have independent boards of directors that are not affiliated entities of the Adviser or Seix.
As a result of these multiple investment-oriented and associated relationships, there exists a potential risk that the portfolio managers may favor other
adviser and non-adviser contracted businesses over a Fund.
Seix has created and implemented additional policies and procedures designed to protect
shareholders against such conflicts; however, there can be no absolute guarantee that a Fund will always participate in the same or similar investments or receive equal or better individual investment allocations at any given time.
Foreign Currency. A Fund may temporarily hold funds in bank deposits in foreign currencies during the completion of investment programs.
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A Fund may conduct foreign currency exchange transactions either on a spot (cash) basis at the spot rate
prevailing in the foreign exchange market or by entering into a foreign currency forward contract (forward contract).
A forward contract
involves an obligation to purchase or sell a specific amount of a specific currency at a future date, which may be any fixed number of days (usually less than one year) from the date of the contract agreed upon by the parties, at a price set at the
time of the contract.
Forward contracts are considered derivatives - financial instruments whose performance is derived, at least in part,
from the performance of another asset (such as a security, currency or an index of securities).
A forward contract locks in the exchange rate
between the currency it will deliver and the currency it will receive at the maturity of the contract. A Fund may enter into forward contracts to hedge against risks arising from securities the Fund owns or anticipates purchasing, or the U.S. dollar
value of interest and dividends paid on those securities. In addition, the Fund may enter into forward contracts to gain exposure to foreign markets.
At
or before settlement of a forward contract, a Fund may either deliver the currency or terminate its contractual obligation to deliver the currency by purchasing an offsetting contract. If a Fund makes delivery of the foreign currency, it may be
required to obtain the currency through the conversion of assets of a Fund into the currency. A Fund may close out a forward contract by purchasing or selling an offsetting contract, in which case it will realize a gain or a loss.
A Fund may invest in a combination of forward contracts and U.S. dollar-denominated instruments in an attempt to obtain an investment result that is
substantially the same as a direct investment in a foreign currency-denominated instrument. This investment technique creates a synthetic position in the particular foreign-currency instrument whose performance the manager is trying to
duplicate.
For example, the combination of U.S. dollar-denominated money market instruments with long forward contracts creates a position
economically equivalent to a money market instrument denominated in the foreign currency itself. Such combined positions are sometimes necessary when the money market in a particular foreign currency is small or relatively illiquid.
For hedging purposes, a Fund may invest in forward contracts to hedge either specific transactions (transaction hedging) or portfolio positions (position
hedging).
Transaction hedging is the purchase or sale of forward contracts with respect to specific receivables or payables of a Fund in connection with
the purchase and sale of portfolio securities. Position hedging is the sale of a forward contract on a particular currency with respect to portfolio positions denominated or quoted in that currency.
A Fund may use forward contracts for position hedging if consistent with its policy of trying to expose its net assets to foreign currencies. A Fund is not
required to enter into forward contracts for hedging purposes and it is possible that a Fund may not be able to hedge against a currency. It also is possible, under certain circumstances, that a Fund may have to limit its currency transactions to
qualify as a regulated investment company (RIC) under the Internal Revenue Code.
Each Fund currently does not intend to enter into a
forward currency contract with a term of more than one year, or to engage in position hedging with respect to the currency of a particular country to more than the aggregate market value (at the time the hedging transaction is entered into) of its
portfolio securities denominated in (or quoted in or currently convertible into or directly related through the use of forward currency contracts in conjunction with money market instruments to) that particular currency.
At or before the maturity of a forward currency contract, a Fund may either sell a portfolio security and make delivery of the currency, or retain the
security and terminate its contractual obligation to deliver the currency by buying an offsetting contract obligating it to buy, on the same maturity date, the same amount of the currency. If a Fund engages in an offsetting transaction,
it may later enter into a new forward currency contract to sell the currency.
If a Fund engages in an offsetting transaction, it will incur a gain or
loss to the extent that there has been movement in forward currency contract prices.
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If forward prices go down during the period between the date a Fund enters into a forward currency contract for
the sale of a currency and the date it enters into an offsetting contract for the purchase of the currency, the Fund will realize a gain to the extent that the price of the currency it has agreed to sell exceeds the price of the currency it has
agreed to buy.
If forward prices go up, a Fund will suffer a loss to the extent the price of the currency it has agreed to buy exceeds the price of the
currency it has agreed to sell.
A Fund may also enter into a forward contract to sell, for a fixed amount of U.S. dollars or other appropriate currency,
the amount of foreign currency approximating the value of some or all of the Funds securities denominated in the foreign currency. A Fund may realize a gain or loss from currency transactions.
When a Fund purchases or sells a forward contract, under applicable U.S. federal securities laws, rules, and interpretations thereof and applicable exchange
rules, a Fund must set aside (referred to sometimes as asset segregation) liquid assets, or engage in other measures to cover open positions with respect to such transactions.
For example, with respect to forward contracts that are not contractually required to cash-settle, a Fund must cover its open positions by setting
aside liquid assets equal to the contracts full, notional value.
With respect to forward contracts that are contractually required to
cash-settle, a Fund may set aside or deliver liquid assets, including cash, in an amount equal to a Funds daily marked-to-market (net) obligation rather than the notional value.
By setting aside or delivering assets equal to only its net obligation under cash-settled forward contracts, a Fund will have the ability to
employ leverage to a greater extent than if a Fund were required to segregate assets equal to the full notional value of such contracts.
A Fund may
otherwise cover the transaction by means of an offsetting transaction or by other means permitted by the 1940 Act or the rules and SEC interpretations thereunder.
In as much as these transactions are entered into for hedging purposes or are offset by segregating liquid assets, as permitted by applicable law, the Funds
and their Subadvisers believe that these transactions do not constitute senior securities under the 1940 Act and, accordingly, will not treat them as being subject to a Funds borrowing restrictions.
The Funds reserve the right to modify their asset segregation policies in the future.
Foreign Securities. Foreign securities may include U.S. dollar-denominated obligations or securities of foreign issuers denominated in other
currencies.
Possible investments include obligations of foreign corporations and other entities, obligations of foreign branches of U.S. banks and of
foreign banks, including, without limitation:
European Certificates of Deposit
European Time Deposits
European
Bankers Acceptances
Canadian Time Deposits
Europaper and Yankee Certificates of Deposit; and
investments in Canadian Commercial Paper and foreign securities.
These instruments have investment risks that differ in some respects from those related to investments in obligations of U.S. domestic issuers.
These risks include future adverse political and economic developments, the possible imposition of withholding taxes on interest or other income, possible
seizure, nationalization, or expropriation of foreign deposits, the possible
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establishment of exchange controls or taxation at the source, greater fluctuations in value due to changes in exchange rates, or the adoption of other foreign governmental restrictions which
might adversely affect the payment of principal and interest on such obligations.
These investments may also entail higher custodial fees and sales
commissions than domestic investments.
Foreign issuers of securities or obligations are often subject to accounting treatment and engage in business
practices different from those respecting domestic issuers of similar securities or obligations.
Foreign branches of U.S. banks and foreign banks may be
subject to less stringent reserve requirements than those applicable to domestic branches of U.S. banks.
Securities issued by foreign companies
incorporated outside of the United States, but whose securities are publicly traded in the United States, directly or through sponsored and unsponsored ADRs or GDRs, are not defined as Foreign Securities.
In making investment decisions for the Funds, a Subadviser evaluates the risks associated with investing Fund assets in a particular country, including risks
stemming from a countrys financial infrastructure and settlement practices; the likelihood of expropriation, nationalization or confiscation of invested assets; prevailing or developing custodial practices in the country; the countrys
laws and regulations regarding the safekeeping, maintenance and recovery of invested assets, the likelihood of government-imposed exchange control restrictions which could impair the liquidity of Fund assets maintained with custodians in that
country, as well as risks from political acts of foreign governments (country risks).
Of course, a Subadviser cannot assure that the Fund
will not suffer losses resulting from investing in foreign countries.
Holding Fund assets in foreign countries through specific foreign custodians
presents additional risks, including but not limited to the risks that a particular foreign custodian or depository will not exercise proper care with respect to Fund assets or will not have the financial strength or adequate practices and
procedures to properly safeguard Fund assets.
By investing in foreign securities, the Funds attempt to take advantage of differences between both
economic trends and the performance of securities markets in the various countries, regions and geographic areas as prescribed by each Funds investment objective and policies.
During certain periods the investment return on securities in some or all countries may exceed the return on similar investments in the United States, while
at other times the investment return may be less than that on similar U.S. securities.
The international investments of a Fund may reduce the effect that
events in any one country or geographic area will have on its investment holdings. Of course, negative movement by a Funds investments in one foreign market represented in its portfolio may offset potential gains from the Funds
investments in another countrys markets.
Emerging countries are all countries that are considered to be developing or emerging countries by the
World Bank or the International Finance Corporation, as well as countries classified by the United Nations or otherwise regarded by the international financial community as developing.
Foreign Sovereign Debt Securities. Investing in fixed and floating rate high yield foreign sovereign debt securities will expose a Fund to the direct
or indirect consequences of political, social or economic changes in countries that issue the securities.
The ability of a foreign sovereign obligor to
make timely payments on its external debt obligations will also be strongly influenced by the obligors balance of payments, including export performance, its access to international credits and investments, fluctuations in interest rates and
the extent of its foreign reserves.
A country whose exports are concentrated in a few commodities or whose economy depends on certain strategic imports
could be vulnerable to fluctuations in international prices of these commodities or imports.
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To the extent that a country receives payment for its exports in currencies other than dollars, its ability to
make debt payments denominated in dollars could be adversely affected.
If a foreign sovereign obligor cannot generate sufficient earnings from foreign
trade to service its external debt, it may need to depend on continuing loans and aid from foreign governments, commercial banks and multilateral organizations, and inflows of foreign investment.
The commitment on the part of these foreign governments, multilateral organizations and others to make such disbursements may be conditioned on the
governments implementation of economic reforms and/or economic performance and the timely service of its obligations.
Failure to implement such
reforms, achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of such third parties commitments to lend funds, which may further impair the obligors ability or willingness to
timely service its debts.
Forward Roll Transactions. To enhance current income, each Fund may enter into forward roll transactions with respect to
mortgage-related securities.
In a forward roll transaction, the Fund sells a mortgage-related security to a financial institution, such as a bank or
broker-dealer, and simultaneously agrees to repurchase a similar security from the institution at a later date at an agreed upon price.
The securities
that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different pre-payment histories than those sold.
During the period between the sale and purchase, the Fund will not be entitled to receive interest and principal payments on the securities sold.
Proceeds of the sale typically will be invested in short-term instruments, particularly repurchase agreements, and the income from these investments, together
with any additional fee income received on the sale will be expected to generate income for the Fund exceeding the yield on the securities sold.
Forward
roll transactions involve the risk that the market value of the securities sold by the Fund may decline below the purchase price of those securities. The Fund will segregate permissible liquid assets at least equal to the amount of the repurchase
price (including accrued interest).
Futures and Options on Futures. Futures contracts provide for the future sale by one party and purchase by
another party of a specified amount of a specific security at a specified future time and at a specified price.
An option on a futures contract gives the
purchaser the right, in exchange for a premium, to assume a position in a futures contract at a specified exercise price during the term of the option.
A
Fund will reduce the risk that it will be unable to close out a futures contract by only entering into futures contracts that are traded on a national futures exchange regulated by the CFTC.
A Fund may use futures contracts and related options for bona fide hedging; attempting to offset changes in the value of securities held or expected to
be acquired or be disposed of; attempting to minimize fluctuations in foreign currencies; attempting to gain exposure to a particular market, index or instrument; or other risk management purposes.
An index futures contract is a bilateral agreement pursuant to which two parties agree to take or make delivery of an amount of cash equal to a specified
dollar amount times the difference between the index value at the close of trading of the contract and the price at which the futures contract is originally struck. No physical delivery of the securities comprising the index is made; generally
contracts are closed out prior to the expiration date of the contract.
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When a Fund purchases or sells a futures contract, under applicable federal securities laws, rules, and
interpretations thereof and applicable exchange rules, a Fund must set aside (referred to sometimes as asset segregation) liquid assets, or engage in other measures to cover open positions with respect to such
transactions.
For example, with respect to futures contracts that are not contractually required to cash-settle, a Fund must cover its open
positions by setting aside liquid assets equal to the contracts full, notional value.
With respect to futures contracts that are contractually
required to cash-settle, a Fund may set aside or deliver liquid assets, including cash, in an amount equal to a Funds daily marked-to-market (net) obligation rather than the notional value.
By setting aside or delivering assets equal to only its net obligation under cash-settled futures contracts, a Fund will have the ability to
employ leverage to a greater extent than if a Fund were required to segregate assets equal to the full notional value of such contracts.
The Funds
reserve the right to modify their asset segregation policies in the future.
A Fund may also cover its long position in a futures contract by purchasing a
put option on the same futures contract with a strike price (i.e., an exercise price) as high as or higher than the price of the futures contract.
In the alternative, if the strike price of the put is less than the price of the futures contract, the Fund will maintain, in a segregated account, cash or
liquid securities equal in value to the difference between the strike price of the put and the price of the futures contract.
A Fund may also cover its
long position in a futures contract by taking a short position in the instruments underlying the futures contract, or by taking positions in instruments with prices, which are expected to move relatively consistently with the futures contract.
A Fund may cover its short position in a futures contract by taking a long position in the instruments underlying the futures contracts, or by taking
positions in instruments with prices, which are expected to move relatively consistently with the futures contract.
A Fund may cover its sale of a call
option on a futures contract by taking a long position in the underlying futures contract at a price less than or equal to the strike price of the call option.
In the alternative, if the long position in the underlying futures contract is established at a price greater than the strike price of the written (sold)
call, a Fund will maintain, in a segregated account, cash or liquid securities equal in value to the difference between the strike price of the call and the price of the futures contract.
The Fund may also cover its sale of a call option by taking positions in instruments with prices, which are expected to move relatively consistently with the
call option.
A Fund may cover its sale of a put option on a futures contract by taking a short position in the underlying futures contract at a price
greater than or equal to the strike price of the put option, or, if the short position in the underlying futures contract is established at a price less than the strike price of the written put, the Fund will maintain in a segregated account cash or
liquid securities equal in value to the difference between the strike price of the put and the price of the futures contract.
A Fund may also cover its
sale of a put option by taking positions in instruments with prices, which are expected to move relatively consistently with the put option.
In as much
as these transactions are entered into for hedging purposes or are offset by segregating liquid assets, as permitted by applicable law, the Funds and their Subadvisers believe that these transactions do not constitute senior securities under the
1940 Act and, accordingly, will not treat them as being subject to a Funds borrowing restrictions.
There are significant risks associated with a
Funds use of futures contracts and related options, including the following:
(i) the success of a hedging strategy may depend on the
Advisers ability to predict movements in the prices of individual securities, fluctuations in markets and movements in interest rates,
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(ii) there may be an imperfect or no correlation between the changes in market value of the
securities held by a Fund and the prices of futures and options on futures,
(iii) there may not be a liquid secondary market for a futures
contract or option,
(iv) trading restrictions or limitations may be imposed by an exchange, and
(v) government regulations may restrict trading in futures contracts and options on futures.
In addition, some strategies reduce a Funds exposure to price fluctuations, while others tend to increase its market exposure.
Global Resources and Infrastructure Securities.
Infrastructure Companies. Infrastructure companies are companies that derive significant portions i.e. (at least 50%) of their gross income or net
profits, directly or indirectly, through providing energy, transportation communications, utilities and other essential services to society. Companies in the infrastructure industry may be involved in a variety of areas, including the following:
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The generation, transmission, distribution, or storage of electricity, oil, gas, water, and other natural resources used to produce energy; |
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Alternative energy production and exploration; |
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The building, operation, financing, or maintenance of highways, toll roads, tunnels, bridges, parking lots, dams, pipelines, railroads, mass transit systems, airports, marine ports, and refueling facilities;
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The provision of communications, including telephone, broadcast and wireless towers, and cable, fiber optic, and satellite networks; |
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Sewage treatment and water purification; |
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The construction or operation of essential public structures such as courthouses, hospitals and health care facilities, schools, correctional facilities, subsidized housing, and other public service facilities; and
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The provision of the services and materials necessary for the construction and maintenance of infrastructure assets, including mining, shipping, timber, and steel. |
Infrastructure companies also include energy-related companies organized as REITs and MLPs.
Timber Companies. Timber companies are companies that derive significant portions (at least 50%) of their gross income or net profits, directly or
indirectly, from the ownership, management or upstream supply chain of forests and timberlands, and products related thereto. These include forest products companies, timber MLPs, timber REITs, homebuilding companies, paper products companies, and
paper packaging companies.
Agribusiness Companies. Agribusiness companies are companies that derive significant portions (at least 50%) of their
gross income or net profits, directly or indirectly, from the production, processing, and distribution of agricultural products, packaged foods, and meats, as well as the business operators and suppliers of equipment and materials. Companies in the
agribusiness industry may be involved in a variety of areas, including the following:
Producers, Distributors & Processors:
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Breeding and operation of livestock farms; |
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Production, processing and distribution of fish, hogs, livestock cattle, pigs and poultry; |
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Processing livestock into value-added products; |
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Production and sale of animal feed; |
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Production, processing and refining of agricultural commodities and byproducts. This includes the buying, storing, transporting and distribution of agricultural commodities. (Agricultural commodities include, but are
not limited to, barley, cocoa, corn, cotton, edible nuts, grain, oats, oilseeds, palm oil, soybeans and wheat); and |
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Harvesting and operation of agricultural facilities such as coffee and rubber plantations, cotton fields, mills and farms. |
Equipment & Materials Suppliers:
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Production and sale of crop nutrients, potash, fertilizers and animal feed ingredients; |
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Production and sale of crop protection products such as herbicides and insecticides; |
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Development and production of seeds; and |
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Manufacturing and distribution of agricultural equipment. Agricultural equipment includes, but are not limited to, agricultural tractors, combine harvesters, feed making equipment, hay and forage equipment, irrigation
systems, pavers, seeding and planting equipment, spreaders, sprayers and tillage equipment. Other related agricultural equipment includes equipment used in liquid injection and surface spreading of biosolids. |
Guaranteed Investment Contracts (GICs). A GIC is a general obligation of an issuing insurance company and not one of its separate accounts.
The purchase price paid for a GIC becomes part of the general assets of the issuer, and the contract is paid at maturity from the general assets of the
issuer.
Generally, GICs are not assignable or transferable without the permission of the issuing insurance company. For this reason, an active secondary
market in GICs does not currently exist and GICs are considered to be illiquid investments.
As such, GICs are generally subject to the same risks as
other illiquid securities. (See Illiquid Securities below.)
Hedging Techniques. Hedging is an investment strategy designed to offset
investment risks. Hedging activities include, among other things, the use of options and futures.
There are risks associated with hedging activities,
including:
(i) the success of a hedging strategy may depend on an ability to predict movements in the prices of individual securities,
fluctuations in markets, and movements in interest rates;
(ii) there may be an imperfect or no correlation between the changes in market
value of the securities held by a Fund and the prices of futures and option on futures;
(iii) there may not be a liquid secondary market
for a futures contract or option; and
(iv) trading restrictions or limitations may be imposed by an exchange, and government regulations
may restrict trading in futures contracts and options.
High Yield Securities. High yield securities, commonly referred to as junk bonds, are debt
obligations which are rated below investment grade, i.e., below BBB- by Standard & Poors Financial Services LLC (a subsidiary of The McGraw-Hill Companies) (S&P) and Fitch, Inc. (Fitch), or Baa3 by
Moodys Investors Service, Inc. (Moodys), or their unrated equivalents. The risks associated with investing in high yield securities include:
(i) High yield, lower rated bonds may involve greater risk of default than investments in investment grade securities (e.g., securities rated BBB- or
higher by S&P and Fitch or Baa3 or higher by Moodys) due to changes in the issuers creditworthiness.
(ii) The market for high risk, high
yield securities may be thinner and less active, causing market price volatility and limited liquidity in the secondary market. This may limit the ability of a Fund to sell these securities at their fair market values either to meet redemption
requests, or in response to changes in the economy or the financial markets.
(iii) Market prices for high risk, high yield securities may also be
affected by investors perception of the issuers credit quality and the outlook for economic growth. Thus, prices for high risk, high yield securities may move independently of interest rates and the overall bond market.
(iv) The market for high risk, high yield securities may be adversely affected by legislative and regulatory developments.
Illiquid Securities. Illiquid securities are securities that cannot be sold or disposed of in the ordinary course of business (within seven days) at
approximately the prices at which they are valued.
Because of their illiquid nature, illiquid securities must be priced at fair value as determined in
good faith pursuant to procedures approved by the Trusts Board of Trustees (the Board or the Trustees).
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Despite such good faith efforts to determine fair value prices, a Funds illiquid securities are subject to
the risk that the securitys fair value price may differ from the actual price, which the Fund may ultimately realize upon its sale or disposition.
Difficulty in selling illiquid securities may result in a loss or may be costly to a Fund.
Under the supervision of the Board, the Funds Subadviser determines the liquidity of a Funds investments.
In determining the liquidity of a Funds investments, the Funds Subadviser may consider various factors, including:
(i) the frequency and volume of trades and quotations,
(ii) the number of dealers and prospective purchasers in the marketplace,
(iii) dealer undertakings to make a market, and
(iv) the nature of the security and the market in which it trades (including any demand, put or tender features, the mechanics and other
requirements for transfer, any letters of credit or other credit enhancement features, any ratings, the number of holders, the method of soliciting offers, the time required to dispose of the security, and the ability to assign or offset the rights
and obligations of the security).
A Fund is not permitted to invest more than 15% of its net assets in illiquid securities.
Initial Public Offerings. A Fund may invest in a companys securities at the time of a companys initial public offering (IPO).
Companies involved in IPOs are often smaller and have a limited operating history, which involves a greater risk that the value of their securities will
be impaired following the IPO. In addition, market psychology prevailing at the time of an IPO can have a substantial and unpredictable effect on the price of an IPO security, causing the price of a companys securities to be particularly
volatile at the time of its IPO and for a period thereafter.
As a result, a Funds Adviser or Subadviser might decide to sell an IPO security more
quickly than it would otherwise, which may result in significant gains or losses to the Fund.
Inverse Floaters. Municipal securities whose
interest rates bear an inverse relationship to the interest rate on another security or the value of an index is known as an Inverse Floater.
A Funds investment in Inverse Floaters may involve greater risk than an investment in a fixed rate bond.
Because changes in the interest rate on the other security or index inversely affect the residual interest paid on the Inverse Floater, the value and income
of an inverse floater is generally more volatile than that of a fixed rate bond.
Inverse Floaters have varying degrees of liquidity, and the market for
these securities is relatively volatile.
These securities tend to underperform the market for fixed rate bonds in a rising interest rate environment, but
tend to outperform the market for fixed rate bonds when interest rates decline.
Investment Company Shares. A Fund may invest in the securities of
other investment companies (mutual funds) to the extent that such an investment would be consistent with the requirements of the 1940 Act and the Funds investment objectives.
Notwithstanding these restrictions, each Fund may invest any amount, pursuant to Rule 12d1-1 of the 1940 Act, in affiliated or unaffiliated investment
companies that hold themselves out as money market funds and which operate in accordance with Rule 2a-7 of the 1940 Act.
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A Fund will indirectly bear its proportionate share of any management fees paid by an investment company in which
it invests in addition to the advisory fee paid by the Fund.
Under Section 12(d)(1) of the 1940 Act, a Fund may only invest up to 5% of its total
assets in the securities of any one investment company, but may not own more than 3% of the outstanding voting stock of any one investment company or invest more than 10% of its total assets in the securities of other investment companies.
However, a Fund may exceed these limits if (i) the ETF or the Fund has received an order for exemptive relief from the 3%, 5%, or 10% limitations from
the SEC that is applicable to the Fund; and (ii) the ETF and the Fund take appropriate steps to comply with any conditions in such order.
For
hedging or other purposes, each Fund may invest in investment companies that seek to track the composition and/or performance of specific indexes or portions of specific indexes. Certain of these investment companies, known as ETFs, are traded on a
securities exchange. (See Exchange Traded Funds above.)
The market prices of index-based investments will fluctuate in accordance with
changes in the underlying portfolio securities of the investment company and also due to supply and demand of the investment companys shares on the exchange upon which the shares are traded.
Index-based investments may not replicate or otherwise match the composition or performance of their specified index due to transaction costs, among other
things.
Pursuant to orders issued by the SEC to iShares® Funds, The Select Sector SPDR Trust,
streetTRACKS Series Trust, streetTRACKS Index Shares Fund and Vanguard Trust and procedures approved by the Board, each Fund may invest in iShares® Funds, The Select Sector SPDR Trust,
streetTRACKS Series Trust, streetTRACKS Index Shares Fund and Vanguard Trust in excess of the 5% and 10% limits described above, provided that the Fund has described ETF investments in its prospectus and otherwise complies with the conditions of the
SEC, as may be amended, and any other applicable investment limitations.
iShares® is a
registered trademark of BlackRock Institutional Trust Company, N.A. (BlackRock). Neither BlackRock, The Select Sector SPDR Trust, streetTRACKS Series Trust, streetTRACKS Index Shares Fund nor the iShares® Funds makes any representations regarding the advisability of investing in the Funds.
Investment
Grade Obligations. Investment grade obligations are fixed income obligations rated by one or more of the rating agencies in one of the four highest rating categories at the time of purchase (e.g., AAA, AA, A or BBB by S&P or Fitch, or
Aaa, Aa, A or Baa by Moodys or determined to be of equivalent quality by the Subadviser).
Securities rated BBB or Baa represents the lowest of four
levels of investment grade obligations and are regarded as borderline between sound obligations and those in which the speculative element begins to predominate.
Ratings assigned to fixed income securities represent only the opinion of the rating agency assigning the rating and are not dispositive of the credit risk
associated with the purchase of a particular fixed income obligation.
A Fund may hold unrated securities if its Subadviser considers the risks involved
in owning that security to be equivalent to the risks involved in holding an investment grade security. Moreover, market risk also will affect the prices of even the highest rated fixed income obligation so that their prices may rise or fall even if
the issuers capacity to repay its obligation remains unchanged.
Large-Capitalization Companies. Large-cap stocks can perform differently
from other segments of the equity market or the equity market as a whole.
Companies with large-capitalization tend to go in and out of favor based on
market and economic conditions and, while they can be less volatile than companies with smaller market capitalizations, they may also be less flexible in evolving markets or unable to implement change as quickly as their smaller counterparts.
Accordingly the value of large cap stocks may not rise to the same extent as the value of small or mid-cap companies under certain market conditions or during
certain periods.
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Leveraged Buyouts. A Fund may invest in leveraged buyout limited partnerships and funds that, in turn,
invest in leveraged buyout transactions (LBOs).
An LBO, generally, is an acquisition of an existing business by a newly formed corporation
financed largely with debt assumed by such newly formed corporation to be later repaid with funds generated from the acquired company.
Equity investments
in LBOs may appreciate substantially in value given only modest growth in the earnings or cash flow of the acquired business. Investments in LBO limited partnerships and funds, however, present a number of risks. Investments in LBO limited
partnerships and funds will normally lack liquidity and may be subject to intense competition from other LBO limited partnerships and funds.
Additionally, if the cash flow of the acquired company is insufficient to service the debt assumed in the LBO, the LBO limited partnership or fund could lose
all or part of its investment in such acquired company.
Master Limited Partnerships. MLPs are limited partnerships in which ownership units
are publicly traded.
MLPs often own or own interests in properties or businesses that are related to oil and gas industries, including pipelines,
although MLPs may invest in other types of industries, or in credit-related investments.
Generally, an MLP is operated under the supervision of one or
more managing general partners. Limited partners (like a Fund that invests in an MLP) are not involved in the day-to-day management of the partnership. A Fund also may invest in companies who serve (or whose affiliates serve) as the general partner
of an MLP.
Investments in MLPs are generally subject to many of the risks that apply to partnerships. For example:
(i) holders of the units of MLPs may have limited control and limited voting rights on matters affecting the partnership.
(ii) there may be fewer corporate protections afforded investors in an MLP than investors in a corporation.
(iii) conflicts of interest may exist among unit holders, subordinated unit holders and the general partner of an MLP, including those arising
from incentive distribution payments.
(iv) MLPs that concentrate in a particular industry or region are subject to risks associated with
such industry or region.
(v) MLPs holding credit-related investments are subject to interest rate risk and the risk of default on payment
obligations by debt issuers.
(vi) Investments held by MLPs may be illiquid.
(vii) MLP units may trade infrequently and in limited volume, and they may be subject to more abrupt or erratic price movements than securities
of larger or more broadly based companies.
The Funds may also hold investments in limited liability companies (LLCs) that have many of the same
characteristics and are subject to many of the same risks as master limited partnerships.
Distributions attributable to gain from the sale of MLP
securities may be taxed as ordinary income.
Medium-Term Notes. Medium-term notes are periodically or continuously offered corporate or agency debt
that differs from traditionally underwritten corporate bonds only in the process by which they are issued.
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Money Market Securities. Money market securities include:
(i) short-term U.S. government securities;
(ii) custodial receipts evidencing separately traded interest and principal components of securities issued by the U.S. Treasury;
(iii) commercial paper rated in the highest short-term rating category by a nationally recognized statistical ratings organization
(NRSRO), such as S&P or Moodys, or determined by the Subadviser to be of comparable quality at the time of purchase;
(iv) short-term bank obligations (certificates of deposit, time deposits and bankers acceptances) of U.S. commercial banks with assets of
at least $1 billion as of the end of their most recent fiscal year; and
(v) repurchase agreements involving such securities.
Each of these money market securities are described in this SAI. For a description of ratings, see Appendix A to this SAI.
Mortgage-Backed Securities. Mortgage-backed securities (MBS) are securities which represent ownership interests in, or are debt obligations
secured entirely or primarily by, pools of residential or commercial and reverse mortgage loans or other asset-backed securities (the Underlying Assets).
Such securities may be issued by U.S. government agencies and government-sponsored entities, such as Government National Mortgage Association
(GNMA), Federal National Mortgage Association (FNMA or Fannie Mae), Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac), commercial banks, savings and loan associations, mortgage
banks, or by issuers that are affiliates of or sponsored by such entities.
The payment of interest and principal on mortgage-backed obligations issued by
these entities may be guaranteed by the full faith and credit of the U.S. government (in the case of GNMA), or may be guaranteed by the issuer (in the case of FNMA and FHLMC). However, these guarantees do not apply to the market prices and yields of
these securities, which vary with changes in interest rates.
Obligations of GNMA are backed by the full faith and credit of the U.S. government.
Obligations of Fannie Mae and Freddie Mac are not backed by the full faith and credit of the U.S. government, but are considered to be of high quality since such entities are considered to be instrumentalities of the United States.
In the case of mortgage-backed securities representing ownership interests in the Underlying Assets, the principal and interest payments on the underlying
mortgage loans are distributed monthly to the holders of the mortgage-backed securities.
In the case of mortgage-backed securities representing debt
obligations secured by the Underlying Assets, the principal and interest payments on the underlying mortgage loans, and any reinvestment income thereon, provide the funds to pay debt service on such mortgage-backed securities.
Certain mortgage-backed securities represent an undivided fractional interest in the entirety of the Underlying Assets (or in a substantial portion of the
Underlying Assets, with additional interests junior to that of the mortgage-backed security), and thus have payment terms that closely resemble the payment terms of the Underlying Assets.
In addition, many mortgage-backed securities are issued in multiple classes. Each class of such multi-class mortgage-backed securities, often referred to as a
tranche, is issued at a specific fixed or floating coupon rate and has a stated maturity or final distribution date.
Principal prepayment on
the Underlying Assets may cause the MBS to be retired substantially earlier than their stated maturities or final distribution dates.
Interest is paid or
accrues on all or most classes of the MBS on a periodic basis, typically monthly or quarterly.
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The principal of and interest on the Underlying Assets may be allocated among the several classes of a series of
MBS in many different ways.
In a relatively common structure, payments of principal (including any principal prepayments) on the Underlying Assets are
applied to the classes of a series of MBS in the order of their respective stated maturities so that no payment of principal will be made on any class of MBS until all other classes having an earlier stated maturity have been paid in full.
An important feature of MBS is that the principal amount is generally subject to partial or total prepayment at any time because the Underlying Assets
(i.e., loans) generally may be prepaid at any time.
The occurrence of prepayments is a function of several factors, including interest rates,
general economic conditions, the location of the mortgaged property, the age of the mortgage or other underlying obligations, and other social and demographic conditions. Because prepayment rates of individual mortgage pools vary widely, the average
life of a particular pool is difficult to predict.
A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the
equity in his or her home into cash.
The equity built up over years of home mortgage payments can be paid to the borrower. But unlike a traditional home
equity loan or second mortgage, no repayment is required until the borrower no longer uses the home as his or her principal residence.
A reverse mortgage
derives its name from the pattern of payments that is typically the reverse of a traditional mortgage loan used to buy a home.
The three basic types of
reverse mortgages are single purpose reverse mortgages, Federal Housing Administration (FHA) insured reverse mortgages and proprietary reverse mortgages.
Single purpose reverse mortgages are offered only by some state and local government agencies and nonprofit organizations.
FHA insured reverse mortgages, also known as Home Equity Conversion Mortgages, are the oldest and most popular reverse mortgage product and are insured by the
federal government through FHA, a part of the U.S. Department of Housing and Urban Development.
Proprietary reverse mortgages are private loans that are
typically backed by the companies that originate them.
The rate of principal payments for a reverse mortgage-backed security depends on a variety of
economic, geographic, social, and other factors, including interest rates and borrower mortality.
Reverse mortgage-backed securities may respond
differently to economic, geographic, social, and other factors than other mortgage-backed securities.
Private pass-through securities are mortgage-backed
securities issued by a non-governmental agency, such as a trust. While they are generally structured with one or more types of credit enhancement, private pass-through securities generally lack a guarantee by an entity having the credit status of a
governmental agency or instrumentality.
The two principal types of private mortgage-backed securities are collateralized mortgage obligations
(CMOs) and real estate mortgage investment conduits (REMICs).
CMOs are collateralized mortgage obligations, which are
collateralized by mortgage pass-through securities.
Cash flows from the mortgage pass-through securities are allocated to various tranches (a
tranche is essentially a separate security) in a predetermined, specified order. Each tranche has a stated maturity - the latest date by which the tranche can be completely repaid, assuming no prepayments - and has an average life - the
average of the time to receipt of a principal payment weighted by the size of the principal payment.
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The average life is typically used as a proxy for maturity because the debt is amortized (repaid a portion at a
time), rather than being paid off entirely at maturity, as would be the case in a straight debt instrument.
Although some of the mortgages underlying
CMOs may be supported by various types of insurance, and some CMOs may be backed by GNMA certificates or other mortgage pass-throughs issued or guaranteed by U.S. government agencies or instrumentalities, the CMOs themselves are not generally
guaranteed.
Real Estate Mortgage Investment Conditions (REMICs) are private entities formed for the purpose of holding a fixed pool of
mortgages secured by an interest in real property.
REMICs are similar to CMOs in that they issue multiple classes of securities and are rated in one of
the two highest categories by S&P or Moodys. Investors may purchase beneficial interests in REMICs, which are known as regular interests, or residual interests.
Guaranteed REMIC pass-through certificates (REMIC Certificates) issued by Fannie Mae or Freddie Mac represent beneficial ownership interests in a
REMIC trust consisting principally of mortgage loans or Fannie Mae, Freddie Mac or GNMA-guaranteed mortgage pass-through certificates.
For FHLMC REMIC
Certificates, FHLMC guarantees the timely payment of interest. GNMA REMIC Certificates are backed by the full faith and credit of the U.S. government.
Parallel pay CMOs and REMICs are structured to provide payments of principal on each payment date to more than one class. These simultaneous payments are
taken into account in calculating the stated maturity date or final distribution date of each class, which must be retired by its stated maturity date or final distribution date, but may be retired earlier.
Planned Amortization Class CMOs (PAC Bonds) generally require payments of a specified amount of principal on each payment date. PAC Bonds are
always parallel pay CMOs with the required principal payment on such securities having the highest priority after interest has been paid to all classes.
Stripped mortgage-backed securities are securities that are created when a U.S. government agency or a financial institution separates the interest and
principal components of a mortgage-backed security and sells them as individual securities. The holder of the principal only security (PO) receives the principal payments made by the underlying mortgage-backed security, while
the holder of the interest only security (IO) receives interest payments from the same underlying security.
The prices of
stripped mortgage-backed securities may be particularly affected by changes in interest rates. As interest rates fall, prepayment rates tend to increase, which tends to reduce prices of IOs and increase prices of POs. Rising interest rates can have
the opposite effect.
Delegated Underwriting and Servicing (DUS) bonds are pools of multifamily housing loans issued by Fannie Mae. DUS bonds
have significant call protection in the form of prepayment penalties.
The most common structures at the time of issuance are seven-year balloons with 6.5
years of prepayment protection and 10-year balloons with 9.5 years of prepayment protection.
Borrowers must pay a prepayment penalty to prepay the loan
during the specified prepayment protection period. In the event of default there is no penalty passed on to the investor.
Municipal Forwards.
Municipal forwards are forward commitments for the purchase of tax-exempt bonds with a specified coupon to be delivered by an issuer at a future date, typically exceeding 45 days but, normally less than one year after the commitment date.
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Municipal forwards are normally used as a refunding mechanism for bonds that may only be redeemed on a designated
future date. See When-Issued Securities and Forward Commitment Securities for more information.
Municipal Lease Obligations. Municipal
lease obligations are securities issued by state and local governments and authorities to finance the acquisition of equipment and facilities where the lease obligation is secured by the leased property and subject to renewal or termination by the
issuer. They may take the form of a lease, an installment purchase contract, a conditional sales contract, or a participation interest in any of the above.
Municipal Securities. Municipal bonds include general obligation bonds, revenue or special obligation bonds, private activity and industrial
development bonds and participation interests in municipal bonds.
General obligation bonds are backed by the taxing power of the issuing municipality.
Revenue bonds are backed by the revenues of a project or facility (for example, tolls from a bridge).
Certificates of participation represent an interest
in an underlying obligation or commitment, such as an obligation issued in connection with a leasing arrangement.
The payment of principal and interest
on private activity and industrial development bonds generally is totally dependent on the ability of a facilitys user to meet its financial obligations and the pledge, if any, of real and personal property as security for the payment.
Municipal notes consist of general obligation notes, tax anticipation notes (notes sold to finance working capital needs of the issuer in anticipation of
receiving taxes on a future date), revenue anticipation notes (notes sold to provide needed cash prior to receipt of expected non-tax revenues from a specific source), bond anticipation notes, certificates of indebtedness, demand notes and
construction loan notes.
A Funds investments in any of the notes described above will be limited to those obligations:
(i) where both principal and interest are backed by the full faith and credit of the United States,
(ii) which are rated MIG-2 or V-MIG-2 at the time of investment by Moodys,
(iii) which are rated SP-2 at the time of investment by S&P, or
(iv) which, if not rated by S&P or Moodys, are in the Subadvisers judgment, of at least comparable quality to MIG-2, VMIG-2 or
SP-2.
From time to time, a municipality may refund a bond that it has already issued prior to the original bonds call date by issuing a second
bond, the proceeds of which are used to purchase securities. The securities are placed in an escrow account pursuant to an agreement between the municipality and an independent escrow agent. The principal and interest payments on the securities are
then used to pay off the original bondholders. For purposes of diversification and industry concentration, pre-refunded bonds will be treated as governmental issues.
Municipal bonds generally must be rated investment grade by at least one national securities rating agency or, if not rated, must be deemed by the Subadviser
to essentially have characteristics similar to those of bonds having the above rating. Bonds downgraded to below investment grade may continue to be held at the discretion of a Funds Subadviser.
A Fund may purchase industrial development and pollution control bonds if the interest paid is exempt from U.S. federal income tax. These bonds are issued by
or on behalf of public authorities to raise money to finance various privately-operated facilities for business and manufacturing, housing, sports and pollution control. These bonds are also used to finance public facilities such as airports, mass
transit systems, ports and parking.
The payment of the principal and interest on such bonds is dependent solely on the ability of the facilitys
user to meet its financial obligations and the pledge, if any, of real and personal property so financed as security for such payment.
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Private activity bonds are issued by or on behalf of states, or political subdivisions thereof, to finance
privately owned or operated facilities for business and manufacturing, housing, sports, and pollution control, and to finance activities of and facilities for charitable institutions.
Private activity bonds are also used to finance public facilities such as airports, mass transit systems, ports, parking and low-income housing.
The payment of the principal and interest on private activity bonds is dependent solely on the ability of the facilitys user to meet its financial
obligations and may be secured by a pledge of real and personal property so financed.
Investments in floating rate instruments will normally involve
industrial development or revenue bonds which provide that the rate of interest is set as a specific percentage of a designated base rate (such as the prime rate) at a major commercial bank, and that a Fund can demand payment of the obligation at
all times or at stipulated dates on short notice (not to exceed 30 days) at par plus accrued interest. Such obligations are frequently secured by letters of credit or other credit support arrangements provided by banks. The quality of the underlying
credit or of the bank, as the case may be, must, in the Subadvisers opinion, be equivalent to the long-term bond or commercial paper ratings stated above.
The Subadviser will monitor the earning power, cash flow and liquidity ratios of the issuers of such instruments and the ability of an issuer of a demand
instrument to pay principal and interest on demand.
The Subadviser may purchase other types of tax-exempt instruments as long as they are of a quality
equivalent to the bond or commercial paper ratings stated above.
The Subadviser has the authority to purchase securities at a price which would result in
a yield to maturity lower than that generally offered by the seller at the time of purchase when they can simultaneously acquire the right to sell the securities back to the seller, the issuer, or a third-party (the writer) at an
agreed-upon price at any time during a stated period or on a certain date. Such a right is generally denoted as a standby commitment or a put.
The purpose of engaging in transactions involving puts is to maintain flexibility and liquidity in order to meet redemptions and remain as fully invested as
possible in municipal securities. The right to put the securities depends on the writers ability to pay for the securities at the time the put is exercised.
A Fund will limit its put transactions to those with institutions that the Subadviser believe present minimum credit risks, and the Subadviser will use its
best efforts to initially determine and thereafter monitor the financial strength of the put providers by evaluating their financial statements and such other information as is available in the marketplace. It may, however, be difficult to monitor
the financial strength of the writers where adequate current financial information is not available.
In the event that any writer is unable to honor a
put for financial reasons, the affected Fund would be a general creditor (i.e., on parity with all other unsecured creditors) of the writer.
Furthermore, particular provisions of the contract between a Fund and the writer may excuse the writer from repurchasing the securities in certain
circumstances (for example, a change in the published rating of the underlying municipal securities or any similar event that has an adverse effect on the issuers credit); or a provision in the contract may provide that the put will not be
exercised except in certain special cases, for example, to maintain portfolio liquidity.
A Fund could, however, sell the underlying portfolio security in
the open market or wait until the portfolio security matures, at which time it should realize the full par value of the security.
Municipal securities
purchased subject to a put may be sold to third persons at any time, even though the put is outstanding, but the put itself, unless it is an integral part of the security as originally issued, may not be marketable or otherwise assignable. Sale of
the securities to third parties or lapse of time with the put unexercised may terminate the right to put the securities.
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Prior to the expiration of any put option, a Fund could seek to negotiate terms for the extension of such an
option. If such a renewal cannot be negotiated on terms satisfactory to a Fund, the Fund could, of course, sell the portfolio security. The maturity of the underlying security will generally be different from that of the put.
There will be no limit to the percentage of portfolio securities that a Fund may purchase subject to a put. For the purpose of determining the
maturity of securities purchased subject to an option to put, and for the purpose of determining the dollar-weighted average maturity of a Fund including such securities, a Fund will consider maturity to be the first date on
which it has the right to demand payment from the writer of the put although the final maturity of the security is later than such date.
Other types of
tax-exempt instruments that are permissible investments include floating rate notes. Investments in such floating rate instruments will normally involve industrial development or revenue bonds which provide that the rate of interest is set as a
specific percentage of a designated base rate (such as the prime rate) at a major commercial bank, and that a Fund can demand payment of the obligation at all times or at stipulated dates on short notice (not to exceed 30 days) at par plus accrued
interest.
Such obligations are frequently secured by letters of credit or other credit support arrangements provided by banks.
The quality of the underlying credit or of the bank, as the case may be, must, in the Subadvisers opinion, be equivalent to the long-term bond or
commercial paper ratings stated above. The Subadviser will monitor the earning power, cash flow and liquidity ratios of the issuers of such instruments and the ability of an issuer of a demand instrument to pay principal and interest on demand.
A Fund may also purchase participation interests in municipal securities (such as industrial development bonds and municipal lease/purchase agreements).
A participation interest gives a Fund an undivided interest in the underlying municipal security. If it is unrated, the participation interest will be backed
by an irrevocable letter of credit or guarantee of a credit-worthy financial institution or the payment obligations otherwise will be collateralized by U.S. government securities.
Participation interests may have fixed, variable or floating rates of interest and may include a demand feature.
A participation interest without a demand feature or with a demand feature exceeding seven days may be deemed to be an illiquid security subject to a
Funds investment limitations restricting its purchases of illiquid securities.
A Fund may purchase other types of tax-exempt instruments as long as
they are of a quality equivalent to the bond or commercial paper ratings stated above.
State and local government revenues are highly correlated with
current economic conditions. During periods of very weak economic activity, certain municipalities may experience some fiscal difficulty which could lead to rating downgrades and/or delays in paying principal and interest on their outstanding debt.
Opinions relating to the validity of municipal securities and to the exemption of interest thereon from U.S. federal income tax are rendered by bond
counsel to the respective issuers at the time of issuance.
Neither a Fund nor its Subadviser will review the proceedings relating to the issuance of
municipal securities or the basis for such opinions.
Special Considerations Relating to Municipal Obligations of Designated States
As described in the applicable Prospectus, except for investments in temporary investments, the Tax-Exempt and Municipal Bond Funds invest substantially all of
their net assets (at least 80%) in municipal bonds (Municipal Obligations) that are exempt from U.S. federal and applicable state tax.
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Each Municipal Bond Fund may also invest up to 20% of its net assets in Municipal Obligations which are
subject to the federal Alternative Minimum Tax (AMT). Each Tax-Exempt and Municipal Bond Fund is therefore more susceptible to political, economic or regulatory factors adversely affecting issuers of Municipal Obligations in its relevant
state.
Set forth below is additional information that bears upon the risk of investing in Municipal Obligations issued by public authorities in the
relevant states in which each of the Tax-Exempt and Municipal Bond Funds invests. This information was obtained from official statements of the respective states as well as from other publicly available official documents and sources.
The Tax-Exempt and Municipal Bond Funds have not independently verified any of the information contained in such statements and documents. The information
below is intended only as a general summary.
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Factors Pertaining to Georgia |
The State of Georgia ended April 2016 with General Fund
revenue collections for the fiscal year to date ahead of 2015 levels by 9.9%. During fiscal year 2015, the State saw the unassigned General Fund balance increase to $1.4 billion. Continued conservative budgeting of funds left a total General Fund
balance of $3.5 billion, giving the State ample resources to draw on.
Georgia continues to maintain moderate debt ratios. Moodys
calculates Georgias net tax supported debt per capita at $1,029, ranking Georgia 25th among states. Comparing net tax supported debt to personal income, Moodys calculates Georgias ratio at 2.7% compared to the state average of
3.0%. The States unemployment rate for May 2015 was 5.3%, 0.6% above the national average of 4.7% as of the same period.
Georgias general obligation debt continues to carry Aaa/AAA/AAA ratings from Moodys, S&P, and Fitch. These ratings
reflect the States credit quality only and do not indicate the creditworthiness of other tax-exempt securities in which the Fund may invest. Furthermore, it cannot be assumed that the State will maintain its current credit ratings.
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Factors Pertaining to North Carolina |
The State of North Carolina ended fiscal year 2015
with General Fund revenue collections 6.4% higher than General Fund collections during 2013. Because of conservative budgeting practices, the State improved its unassigned fund balance by $493 million ending the year with a balance of $688 million.
The overall fund balance was $2.5 billion at year end showing solid financial resources. As of June 2016, revised fiscal year 2016 General Fund revenue projections expect revenues to grow 1.2% vs. 2015 levels with a budgetary surplus expected at the
end of the fiscal year.
North Carolina continues to maintain conservative debt ratios though recent State capital needs have pushed the
debt burden into higher territory. Moodys calculates North Carolinas net tax supported debt per capita at $721, ranking North Carolina 17th among states. Comparing net tax supported debt to personal income, Moodys calculates North
Carolinas ratio at 1.8% compared to the state average of 3.0%. The States unemployment rate for May 2015 was 5.1%, 0.4% above the national average of 4.7% as of the same period.
North Carolinas general obligation debt carries Aaa/AAA/AAA ratings from Moodys, S&P, and Fitch. These ratings
reflect the States credit quality only and do not indicate the creditworthiness of other tax-exempt securities in which the Fund may invest. Furthermore, it cannot be assumed that the State will maintain its current credit ratings.
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Factors Pertaining to Virginia |
The Commonwealth of Virginias economy and
employment have grown at a pace exceeding the nation in most years. The States unemployment rate of 3.8% for May 2016 is below the national rate of 4.7%. Virginia continues to benefit from a diverse economy, with higher than average
governmental employment and defense related spending, owing to its proximity to Washington DC. Per capita personal income remains among the highest in the southeast at 108% of national averages.
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For fiscal year 2015, Virginias General Fund revenues were 8.4% higher than those in
2014, a reversal of the prior year. Consequently, the Commonwealths General Fund balance increased by $216 million during the year, finishing with a total balance of $845 million.
Virginia has, historically, maintained low debt ratios; however, the minimal issuance of general obligation debt has been offset by significant
growth in appropriation backed debt issued by various Commonwealth authorities. Moodys calculates Virginias net tax supported debt per capita at $1,418, ranking Virginia 30th among the 50 states. Comparing net tax supported debt to
personal income, Moodys calculates Virginias ratio at 2.9% compared to the state average of 3.0%.
Virginias general
obligation debt carries Aaa/AAA/AAA ratings from Moodys, S&P, and Fitch. These ratings reflect the Commonwealths credit quality only and do not indicate the creditworthiness of other tax-exempt securities in which the
Fund may invest. Furthermore, it cannot be assumed that the Commonwealth will maintain its current credit ratings.
Options. A Fund may
purchase and write put and call options on securities or securities indices (traded on U.S. exchanges or over-the-counter markets) and enter into related closing transactions.
A put option on a security gives the purchaser of the option the right to sell, and the writer of the option the obligation to buy, the underlying security at
any time during the option period.
A call option on a security gives the purchaser of the option the right to buy, and the writer of the option the
obligation to sell, the underlying security at any time during the option period.
The premium paid to the writer is the consideration for undertaking the
obligations under the option contract.
Put and call options on indices are similar to options on securities except that options on an index give the
holder the right to receive, upon exercise of the option, an amount of cash if the closing level of the underlying index is greater than (or less than, in the case of puts) the exercise price of the option. This amount of cash is equal to the
difference between the closing price of the index and the exercise price of the option, expressed in dollars multiplied by a specified number.
Thus,
unlike options on individual securities, all settlements are in cash, and gain or loss depends on price movements in the particular market represented by the index generally, rather than the price movements in individual securities.
The initial purchase (sale) of an option contract is an opening transaction. In order to close out an option position, a Fund may enter into a
closing transaction, which is simply the sale (purchase) of an option contract on the same security with the same exercise price and expiration date as the option contract originally opened.
If a Fund is unable to effect a closing purchase transaction with respect to an option it has written, it will not be able to sell the underlying security
until the option expires or the Fund delivers the security upon exercise.
A Fund may purchase and write options on an exchange or over-the-counter.
Over-the-counter options (OTC options) differ from exchange-traded options in several respects. They are transacted directly with dealers and not with a clearing corporation, and therefore entail the risk of non-performance by the
dealer.
OTC options are available for a greater variety of securities and for a wider range of expiration dates and exercise prices than are available
for exchange-traded options. Because OTC options are not traded on an exchange, pricing is done normally by reference to information from a market maker. It is the SECs position that OTC options are generally illiquid.
The market value of an option generally reflects the market price of an underlying security. Other principal factors affecting market value include supply and
demand, interest rates, the pricing volatility of the underlying security and the time remaining until the expiration date.
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A Fund must cover all options it purchases or writes. For example, when a Fund writes an option on a security,
index or foreign currency, it will segregate or earmark liquid assets with the Funds custodian in an amount at least equal to the market value of the option and will maintain such coverage while the option is open.
A Fund may otherwise cover the transaction by means of an offsetting transaction or other means permitted by the 1940 Act or the rules and SEC interpretations
thereunder.
A Fund may trade put and call options on securities, securities indices or currencies, as its Subadviser determines is appropriate in seeking
the Funds investment objective.
For example, a Fund may purchase put and call options on securities or indices to protect against a decline in the
market value of the securities in its portfolio or to anticipate an increase in the market value of securities that the Fund may seek to purchase in the future.
A Fund purchasing put and call options pays a premium therefor. If price movements in the underlying securities are such that exercise of the options would
not be profitable for a Fund, loss of the premium paid may be offset by an increase in the value of the Funds securities or by a decrease in the cost of acquisition of securities by the Fund.
In another instance, a Fund may write covered call options on securities as a means of increasing the yield on its assets and as a means of providing limited
protection against decreases in its market value.
When a Fund writes an option, if the underlying securities do not increase or decrease to a price level
that would make the exercise of the option profitable to the holder thereof, the option generally will expire without being exercised and the Fund will realize as profit the premium received for such option.
When a call option written by a Fund is exercised, the Fund will be required to sell the underlying securities to the option holder at the strike price, and
will not participate in any increase in the price of such securities above the strike price.
When a put option written by a Fund is exercised, the Fund
will be required to purchase the underlying securities at a price in excess of the market value of such securities.
There are significant risks
associated with a Funds use of options, including the following:
(i) the success of a hedging strategy may depend on the
Subadvisers ability to predict movements in the prices of individual securities, fluctuations in markets and movements in interest rates;
(ii) there may be an imperfect or no correlation between the movement in prices of options held by the Fund and the securities underlying them;
(iii) there may not be a liquid secondary market for options; and
(iv) while a Fund will receive a premium when it writes covered call options, it may not participate fully in a rise in the market value of the
underlying security.
Pay-In-Kind Securities. Pay-In-Kind securities are debt obligations or preferred stocks that pay interest or dividends in the
form of additional debt obligations or preferred stock.
Preferred Stock. Preferred stock is a corporate equity security that pays a fixed or
variable stream of dividends. Preferred stock is generally a non-voting security.
Real Estate Investment Trusts. A REIT is a corporation or
business trust (that would otherwise be taxed as a corporation) which meets the definitional requirements of the Internal Revenue Code.
The Internal
Revenue Code permits a qualifying REIT to deduct from taxable income the dividends paid, thereby effectively eliminating corporate level U.S. federal income tax and making the REIT a pass-through vehicle for U.S. federal income tax purposes.
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A REIT primarily invests in real estate and real estate mortgages. If a corporation, trust or association meets
the REIT requirements, it will be taxed only on its undistributed income and capital gains.
REITs are sometimes informally characterized as Equity REITs
and Mortgage REITs. An Equity REIT invests primarily in the fee ownership or leasehold ownership of land and buildings; a Mortgage REIT invests primarily in mortgages on real property, which may secure construction, development or long-term loans.
REITs in which a Fund invests may be affected by changes in underlying real estate values, which may have an exaggerated effect to the extent that REITs
in which a Fund invests may concentrate investments in particular geographic regions or property types.
Additionally, rising interest rates may cause
investors in REITs to demand a higher annual yield from future distributions, which may in turn decrease market prices for equity securities issued by REITs. Rising interest rates also generally increase the costs of obtaining financing, which could
cause the value of the Funds investments to decline.
During periods of declining interest rates, certain Mortgage REITs may hold mortgages that the
mortgagors elect to prepay, which prepayment may diminish the yield on securities issued by such Mortgage REITs. In addition, Mortgage REITs may be affected by the ability of borrowers to repay when due the debt extended by the REIT and Equity REITs
may be affected by the ability of tenants to pay rent.
Certain REITs have relatively small market capitalization, which may tend to increase the
volatility of the market price of securities issued by such REITs. Furthermore, REITs are dependent upon specialized management skills, have limited diversification and are, therefore, subject to risks inherent in operating and financing a limited
number of projects.
By investing in REITs indirectly through the Fund, a shareholder will bear not only his proportionate share of the expenses of the
Fund, but also, indirectly, similar expenses of the REITs. REITs depend generally on their ability to generate cash flow to make distributions to shareholders.
In addition to these risks, Equity REITs may be affected by changes in the value of the underlying property owned by the trusts, while Mortgage REITs may be
affected by the quality of any credit extended. Further, Equity and Mortgage REITs are dependent upon management skills and generally may not be diversified. Equity and Mortgage REITs are also subject to heavy cash flow dependency defaults by
borrowers and self-liquidation.
In addition, Equity and Mortgage REITs could possibly fail to qualify for the favorable U.S. federal income tax treatment
generally available to REITs under the Internal Revenue Code or to maintain their exemptions from registration under the 1940 Act. The above factors may also adversely affect a borrowers or a lessees ability to meet its obligations to
the REIT. In the event of default by a borrower or lessee, the REIT may experience delays in enforcing its rights as a lender or lessor and may incur substantial costs associated with protecting its investments.
Repurchase Agreements. A Fund may enter into repurchase agreements with financial institutions.
Each Fund follows certain procedures designed to minimize the risks inherent in such agreements. These procedures include effecting repurchase transactions
only with creditworthy financial institutions whose condition will be continually monitored by the Subadviser.
The repurchase agreements entered into by
a Fund will provide that the underlying collateral at all times shall have a value at least equal to 102% of the resale price stated in the agreement. Under all repurchase agreements entered into by a Fund, the custodian or its agent must take
possession of the underlying collateral.
In the event of a default or bankruptcy by a selling financial institution, a Fund will seek to liquidate such
collateral. However, the exercising of each Funds right to liquidate such collateral could involve certain costs or delays and, to the extent that proceeds from any sale upon a default of the obligation to repurchase were less than the
repurchase price, the Fund could suffer a loss.
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It is the current policy of each of the Funds not to invest in repurchase agreements that do not mature within
seven days if any such investment, together with any other illiquid assets held by that Fund, amounts to more than 15% of the Funds net assets.
The
investments of each of the Funds in repurchase agreements, at times, may be substantial when, in the view of the Subadviser, liquidity or other considerations so warrant.
Resource Recovery Bonds. Resource recovery bonds are a type of revenue bond issued to build facilities such as solid waste incinerators or
waste-to-energy plants. Typically, a private corporation will be involved, at least during the construction phase, and the revenue stream will be secured by fees or rents paid by municipalities for use of the facilities. The viability of a resource
recovery project, environmental protection regulations, and project operator tax incentives may affect the value and credit quality of resource recovery bonds.
Restricted Securities. The Funds may purchase securities that are not registered under the Securities Act of 1933, as amended (the 1933
Act) and, therefore, are not publicly traded securities.
These securities will be considered illiquid and subject to a Funds limitation on
the purchase of illiquid securities (no more than 15% of net assets) unless the Adviser or Subadviser determines on an ongoing basis that the securities are liquid in accordance with guidelines adopted by the Board.
Restricted securities include securities that can be sold to qualified institutional buyers in accordance with Rule 144A under the 1933 Act
(Rule 144A Securities). An investment in such securities could have the effect of increasing the level of illiquidity in a Fund to the extent that qualified institutional buyers become uninterested for a time in purchasing Rule 144A
Securities.
More generally, non-publicly traded securities may involve a high degree of business and financial risk and may result in substantial losses.
These securities may be less liquid than publicly traded securities and a Fund may take longer to liquidate these positions than would be the case for publicly traded securities.
Although these securities may be resold in privately negotiated transactions, the prices realized on such sales could be less than those originally paid by a
Fund. Further, companies whose securities are not publicly traded may not be subject to the disclosure and other investor protection requirements applicable to companies whose securities are publicly traded.
A Funds investments in illiquid securities are subject to the risk that should a Fund desire to sell any of these securities when a ready buyer is not
available at a price that is deemed to be representative of their value, the value of the Funds net assets could be adversely affected. (See Illiquid Securities above; see also Rule 144A Securities.)
Reverse Repurchase Agreements. A reverse repurchase agreement is a contract under which a Fund sells a security for cash for a relatively short period
(usually not more than one week) subject to the obligation of the Fund to repurchase such security at a fixed time and price (representing the sellers cost plus interest).
Reverse repurchase agreements involve the risk that the market value of the securities a Fund is obligated to repurchase under the agreement may decline below
the repurchase price.
Also, in the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, a
Funds use of proceeds of the agreement may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Funds obligation to repurchase the securities.
In addition, reverse repurchase agreements are techniques involving leverage, and are subject to asset coverage requirements. To avoid any leveraging
concerns, the Fund will segregate or earmark liquid assets with the Funds custodian in an amount sufficient to cover its repurchase obligations.
Revolving Credit Facilities (Revolvers). Revolvers are borrowing arrangements in which the lender agrees to make loans up to a maximum
amount upon demand by the borrower during a specified term. As the borrower repays the loan, an amount equal to the repayment may be borrowed again during the term of the Revolver and usually provides for floating or variable rates of interest.
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These commitments may have the effect of requiring a Fund to increase its investment in a company at a time when
it might not otherwise decide to do so (including at a time when the companys financial condition makes it unlikely that such amounts will be repaid). To avoid any leveraging concerns, a Fund will segregate or earmark liquid assets with the
Funds custodian in an amount sufficient to cover its obligations to fund Revolvers.
A Fund may invest in Revolvers with credit quality comparable
to that of issuers of its other investments.
Revolvers may be subject to restrictions on transfer, and only limited opportunities may exist to resell
such instruments. As a result, a Fund may be unable to sell such investments at an opportune time or may have to resell them at less than fair market value.
Each Fund currently intends to treat Revolvers for which there is no readily available market as illiquid for purposes of that Funds limitation on
illiquid investments.
Securities Lending. Each Fund may lend portfolio securities to brokers, dealers and other financial organizations that meet
capital and other credit requirements or other criteria established by the Board.
These loans, if and when made, may not exceed 33 1/3% of the total
asset value of the Fund (including the loan collateral).
No Fund will lend portfolio securities to its investment adviser, sub-adviser or their
affiliates unless it has applied for and received specific authority to do so from the SEC.
Loans of portfolio securities will be fully collateralized by
cash, letters of credit or U.S. government securities, and the collateral will be maintained in an amount equal to at least 100% of the current market value of the loaned securities by marking to market daily.
Any gain or loss in the market price of the securities loaned that may occur during the term of the loan would be for the account of the Fund.
A Fund may pay a portion of the interest earned from the investment of collateral or other fee, to an unaffiliated third party for acting as the Funds
securities lending agent.
By lending its securities, a Fund may increase its income by receiving payments from the borrower that reflect the amount of
any interest or any dividends payable on the loaned securities as well as by either investing cash collateral received from the borrower in short-term instruments or obtaining a fee from the borrower when U.S. government securities or letters of
credit are used as collateral.
Each Fund will adhere to the following conditions whenever its portfolio securities are loaned:
(i) the Fund must receive from the borrower at least 100% cash collateral or equivalent securities of the type discussed in the preceding;
(ii) the borrower must increase such collateral whenever the market value of the securities increases above the level of such collateral;
(iii) the Fund must be able to terminate the loan on demand;
(iv) the Fund must receive reasonable interest on the loan, as well as any dividends, interest, or other distributions on the loaned securities
and any increase in market value;
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(v) the Fund may pay only reasonable fees in connection with the loan (which fees may include
fees payable to the lending agent, the borrower, the Funds administrator and the Funds custodian); and
(vi) voting rights on
the loaned securities may pass to the borrower; provided, however, that in the event where a matter is presented for a vote on an issuers proxy which would have a material effect on a Fund or its investment, the Fund must attempt to terminate
the loan and regain the right to vote the securities.
Please refer to Appendix B-1: Proxy Voting Policy: Securities Lending Program for additional
information with respect to the Funds policies for what constitutes a material effect with respect to the practice of recalling securities on loan for the sole purpose of voting proxies for such securities.
There is a risk that the Fund may not be able to recall the security in sufficient time to vote on material proxy matters; however, the Fund will make a best
faith effort where it has been determined that the outcome of such vote would have a material effect on a Fund or its investment.
In
addition, as a general practice, the Funds will not recall loans solely to receive income payments. See Taxes section of this SAI for information on the security lending programs impact on treatment of income which could increase a
Funds tax obligation which is subsequently passed on to its shareholders.
Any securities lending activity in which a Fund may engage will be
undertaken pursuant to Board-approved procedures reasonably designed to ensure that the foregoing criteria will be met.
Loan agreements involve certain
risks in the event of default or insolvency of the borrower, including possible delays or restrictions upon a Funds ability to recover the loaned securities or dispose of the collateral for the loan, which could give rise to loss because of
adverse market action, expenses and/or delays in connection with the disposition of the underlying securities.
Senior Loans
Structure of Senior Loans. A senior floating rate loan (Senior Loan) is typically originated, negotiated and structured by a U.S. or foreign
commercial bank, insurance company, finance company or other financial institution (the Agent) for a group of loan investors (Loan Investors). The Agent typically administers and enforces the Senior Loan on behalf of the
other Loan Investors in the syndicate. In addition, an institution, typically but not always the Agent, holds any collateral on behalf of the Loan Investors.
Senior Loans primarily include senior floating rate loans and secondarily senior fixed rate loans, and interests therein. Loan interests primarily take the
form of assignments purchased in the primary or secondary market. Loan interests may also take the form of participation interests in a Senior Loan. Such loan interests may be acquired from U.S. or foreign commercial banks, insurance companies,
finance companies or other financial institutions who have made loans or are Loan Investors or from other investors in loan interests.
A Fund
typically purchases assignments from the Agent or other Loan Investors. The purchaser of an assignment typically succeeds to all the rights and obligations under the Loan Agreement of the assigning Loan Investor and becomes a Loan
Investor under the Loan Agreement with the same rights and obligations as the assigning Loan Investor.
Assignments may, however, be arranged through
private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than, those held by the assigning Loan Investor.
A Fund may invest up to 10% of its total assets in participations. Loan participations are interests in loans to corporations, which loans are
administered by the lending bank or agent for a syndicate of lending banks. In a loan participation, the borrower corporation is the underlying issuer of the loan, but a Fund derives its rights in the loan participation from the intermediary bank.
Because the intermediary bank does not guarantee a loan participation, it is subject to the credit risks associated with the underlying corporate borrower.
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Participations by a Fund in a Loan Investors portion of a Senior Loan typically will result in a Fund
having a contractual relationship only with such Loan Investor, not with the borrower. As a result, a Fund may have the right to receive payments of principal, interest and any fees to which it is entitled only from the Loan Investor selling the
participation and only upon receipt by such Loan Investor of such payments from the borrower.
In connection with purchasing participations, a Fund
generally will have no right to enforce compliance by the borrower with the terms of the Loan Agreement, nor any rights with respect to any funds acquired by other Loan Investors through set-off against the borrower and a Fund may not directly
benefit from the collateral supporting the Senior Loan in which it has purchased the participation.
As a result, a Fund may assume the credit risk of
both the borrower and the Loan Investor selling the participation.
In the event of the insolvency of the Loan Investor selling a participation, a Fund
may be treated as a general creditor of such Loan Investor. The selling Loan Investors with respect to such participations will likely conduct their principal business activities in the banking, finance and financial services industries.
Persons engaged in such industries may be more susceptible to, among other things, fluctuations in interest rates, changes in the Federal Open Market
Committees monetary policy, governmental regulations concerning such industries and capital raising activities generally, and fluctuations in the financial markets generally.
In the event of bankruptcy or insolvency of the corporate borrower, a loan participation may be subject to certain defenses that can be asserted by the
borrower as a result of improper conduct by the seller.
In addition, in the event the underlying corporate borrower fails to pay principal and
interest when due, a Fund may be subject to delays, expenses, and risks that are greater than those that would have been involved if a Fund had purchased a direct obligation of the borrower.
Under the terms of a loan participation, a Fund may be regarded as a creditor of the seller of the loan participation (rather than of the underlying corporate
borrower), so that a Fund may also be subject to the risk that the seller of the loan participation may become insolvent.
The secondary market for
loan participations is limited and any such participation purchased by a Fund may be regarded as illiquid.
Loan Collateral. In order to borrow
money pursuant to a Senior Loan, a borrower will frequently, for the term of the Senior Loan, pledge collateral, including but not limited to:
(i) working capital assets, such as accounts receivable and inventory;
(ii) tangible fixed assets, such as real property, buildings and equipment;
(iii) intangible assets, such as trademarks and patent rights (but excluding goodwill); and/or
(iv) security interests in shares of stock of subsidiaries or affiliates.
In the case of Senior Loans made to non-public companies, the companys shareholders or owners may provide collateral in the form of secured guarantees
and/or security interests in assets that they own. In many instances, a Senior Loan may be secured only by stock in the borrower or its subsidiaries.
Collateral may consist of assets that may not be readily liquidated, and there is no assurance that the liquidation of such assets would satisfy a
borrowers obligations under a Senior Loan.
Certain Fees Paid to a Fund. In the process of buying, selling and holding Senior Loans, a Fund
may receive and/or pay certain fees.
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These fees are in addition to interest payments received and may include facility fees, commitment fees,
commissions, prepayment penalty, and assignment fees.
When a Fund buys a Senior Loan it may receive a facility fee and when it sells a Senior Loan it may
pay a facility fee.
On an ongoing basis, a Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a
Senior Loan.
In certain circumstances, a Fund may receive a prepayment penalty fee upon the prepayment of a Senior Loan by a borrower.
Other fees received by a Fund may include amendment fees. A Fund may have to pay an assignment to the Agent when it purchases or sells a Senior Loan via
assignment.
Borrower Covenants. A borrower must comply with various restrictive covenants contained in a loan agreement or note purchase agreement
between the borrower and the holders of the Senior Loan (the Loan Agreement).
Such covenants, in addition to requiring the scheduled payment
of interest and principal, may include restrictions on dividend payments and other distributions to stockholders, provisions requiring the borrower to maintain specific minimum financial ratios, and limits on total debt.
In addition, the Loan Agreement may contain a covenant requiring the borrower to prepay the Loan with all or a portion of any free cash flow. Free cash flow
is generally defined as net cash flow after scheduled debt service payments and permitted capital expenditures, and typically includes the proceeds from asset dispositions or sales of securities.
A breach of a covenant which is not waived by the Agent, or by the Loan Investors directly, as the case may be, is normally an event of acceleration;
i.e., the Agent, or the Loan Investors directly, as the case may be, have the right to call the outstanding Senior Loan.
The typical practice of
an Agent or a Loan Investor in relying exclusively or primarily on reports from the borrower may involve a risk of fraud by the borrower.
In the case of
a Senior Loan in the form of a Participation, the agreement between the buyer and seller may limit the rights of the holder to vote on certain changes which may be made to the Loan Agreement, such as loosening a covenant. However, the holder of the
Participation will, in almost all cases, have the right to vote on or direct the seller of the Participation to vote on certain fundamental issues such as changes in principal amount, payment dates and interest rate.
Administration of Loans. In a typical Senior Loan, the Agent administers the terms of the Loan Agreement. In such cases, the Agent is normally
responsible for the collection of principal and interest payments from the borrower and the apportionment of these payments to the credit of all institutions, which are Loan Investors.
A Fund will generally rely upon the Agent or an intermediate participant to receive and forward to a Fund its portion of the principal and interest payments
on the Senior Loan. Furthermore, unless under the terms of a Participation Agreement a Fund has direct recourse against the borrower, a Fund will rely on the Agent and the other Loan Investors to use appropriate credit remedies against the borrower.
The Agent is typically responsible for monitoring compliance with covenants contained in the Loan Agreement based upon reports prepared by the borrower.
The Agent of the Senior Loan usually does, but is often not obligated to, notify holders of Senior Loans of any failures of compliance.
The Agent may
monitor the value of the collateral and, if the value of the collateral declines, may accelerate the Senior Loan, may give the borrower an opportunity to provide additional collateral or may seek other protection for the benefit of the Loan
Investors.
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The Agent is compensated by the borrower for providing these services under a Loan Agreement, and such
compensation may include special fees paid upon structuring and funding the Senior Loan and other fees paid on a continuing basis.
With respect to Senior
Loans for which the Agent does not perform such administrative and enforcement functions, a Fund will perform such tasks on its own behalf, although a collateral bank will typically hold any collateral on behalf of a Fund and the other Loan
Investors pursuant to the applicable Loan Agreement.
A financial institutions appointment as Agent may be terminated in the event that it fails to
observe the requisite standard of care or becomes insolvent, enters Federal Deposit Insurance Corporation (FDIC) receivership, or, if not FDIC insured, enters into bankruptcy proceedings.
A successor Agent would generally be appointed to replace the terminated Agent, and assets held by the Agent under the Loan Agreement should remain available
to holders of Senior Loans. However, if assets held by the Agent for the benefit of a Fund were determined to be subject to the claims of the Agents general creditors, a Fund might incur certain costs and delays in realizing payment on a
Senior Loan, or suffer a loss of principal and/or interest. In situations involving intermediate participants similar risks may arise.
Prepayments.
Senior Loans can require, in addition to scheduled payments of interest and principal, the prepayment of the Senior Loan from free cash flow, as defined above.
The degree to which borrowers prepay Senior Loans, whether as a contractual requirement or at their election, may be affected by general business conditions,
the financial condition of the borrower and competitive conditions among Loan Investors, among others.
As such, prepayments cannot be predicted with
accuracy.
Upon a prepayment, either in part or in full, the actual outstanding debt on which a Fund derives interest income will be reduced. However, a
Fund may receive both a prepayment penalty fee from the prepaying borrower and a facility fee upon the purchase of a new Senior Loan with the proceeds from the prepayment of the former.
Prepayments generally will not materially affect a Funds performance because a Fund should be able to reinvest prepayments in other Senior Loans that
have similar yields (subject to market conditions) and because receipt of such fees may mitigate any adverse impact on a Funds yield.
Other
Information Regarding Senior Loans. From time to time a Subadviser and its affiliates may borrow money from various banks in connection with their business activities. Such banks may also sell interests in Senior Loans to or acquire them from a
Fund or may be intermediate participants with respect to Senior Loans in which a Fund owns interests. Such banks may also act as Agents for Senior Loans held by a Fund.
A Fund may purchase and retain in its portfolio a Senior Loan where the borrower has experienced, or may be perceived to be likely to experience, credit
problems, including involvement in or recent emergence from bankruptcy reorganization proceedings or other forms of debt restructuring.
Such investments
may provide opportunities for enhanced income as well as capital appreciation. At times, in connection with the restructuring of a Senior Loan either outside of bankruptcy court or in the context of bankruptcy court proceedings, a Fund may determine
or be required to accept equity securities or junior debt securities in exchange for all or a portion of a Senior Loan. As soon as reasonably practical, a Fund will divest itself of any equity securities or any junior debt securities received if it
is determined that the security is an ineligible holding for a Fund.
A Fund may acquire interests in Senior Loans which are designed to provide temporary
or bridge financing to a borrower pending the sale of identified assets or the arrangement of longer-term loans or the issuance and sale of debt obligations. Bridge loans are often unrated.
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A Fund may also invest in Senior Loans of borrowers that have obtained bridge loans from other parties. A
borrowers use of bridge loans involves a risk that the borrower may be unable to locate permanent financing to replace the bridge loan, which may impair the borrowers perceived creditworthiness.
A Fund will be subject to the risk that collateral securing a loan will decline in value or have no value.
Such a decline, whether as a result of bankruptcy proceedings or otherwise, could cause the Senior Loan to be under-collateralized or unsecured. In most
credit agreements there is no formal requirement to pledge additional collateral.
In addition, a Fund may invest in Senior Loans guaranteed by, or
secured by assets of, shareholders or owners, even if the Senior Loans are not otherwise collateralized by assets of the borrower; provided, however, that such guarantees are fully secured.
There may be temporary periods when the principal asset held by a borrower is the stock of a related company, which may not legally be pledged to secure a
Senior Loan. On occasions when such stock cannot be pledged, the Senior Loan will be temporarily unsecured until the stock can be pledged or is exchanged for or replaced by other assets, which will be pledged as security for the Senior Loan.
If a borrower becomes involved in bankruptcy proceedings, a court may invalidate a Funds security interest in the loan collateral or subordinate a
Funds rights under the Senior Loan to the interests of the borrowers unsecured creditors or cause interest previously paid to be refunded to the borrower.
If a court requires interest to be refunded, it could negatively affect a Funds performance.
Such action by a court could be based, for example, on a fraudulent conveyance claim to the effect that the borrower did not receive fair
consideration for granting the security interest in the loan collateral to a Fund or a preference claim that a pre-petition creditor received a greater recovery on an existing debt than it would have in a liquidation situation.
For Senior Loans made in connection with a highly leveraged transaction, consideration for granting a security interest may be deemed inadequate if the
proceeds of the Loan were not received or retained by the borrower, but were instead paid to other persons (such as shareholders of the borrower) in an amount which left the borrower insolvent or without sufficient working capital.
There are also other events, such as the failure to perfect a security interest due to faulty documentation or faulty official filings, which could lead to
the invalidation of a Funds security interest in loan collateral.
If a Funds security interest in loan collateral is invalidated or the
Senior Loan is subordinated to other debt of a borrower in bankruptcy or other proceedings, a Fund would have substantially lower recovery, and perhaps no recovery on the full amount of the principal and interest due on the Loan, or a Fund could
also have to refund interest.
A Fund may acquire warrants and other equity securities as part of a unit combining a Senior Loan and equity securities of
a borrower or its affiliates. The acquisition of such equity securities will only be incidental to a Funds purchase of a Senior Loan.
A Fund may
also acquire equity securities or debt securities (including non-dollar denominated debt securities) issued in exchange for a Senior Loan or issued in connection with the debt restructuring or reorganization of a borrower, or if such acquisition, in
the judgment of the Subadviser, may enhance the value of a Senior Loan or would otherwise be consistent with a Funds investment policies.
Regulatory Changes. To the extent that legislation or state or federal regulators that regulate certain financial institutions impose additional
requirements or restrictions with respect to the ability of such institutions to make loans, particularly in connection with highly leveraged transactions, the availability of Senior Loans for investment may be adversely affected. Further, such
legislation or regulation could depress the market value of Senior Loans.
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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.
Short Sales. A Fund may engage in short sales that are either uncovered or
against the box.
A short sale is against the box if at all times during which the short position is open, a Fund owns at least an
equal amount of the securities or securities convertible into, or exchangeable without further consideration for, securities of the same issue as the securities that are sold short.
Uncovered short sales are transactions under which a Fund sells a security it does not own. To complete such a transaction, a Fund must borrow the security to
make delivery to the buyer. A Fund then is obligated to replace the security borrowed by purchasing the security at the market price at the time of the replacement. The price at such time may be more or less than the price at which the security was
sold by a Fund.
Until the security is replaced, a Fund is required to pay the lender amounts equal to any dividends or interest that accrue during the
period of the loan.
To borrow the security, a Fund is required to pay a premium or daily interest, which will increase the total cost of the security
sold. The proceeds of the short sale will be retained by the broker, to the extent necessary to meet margin requirements, until the short position is closed out.
Until a Fund closes its short position or replaces the borrowed security, a Fund will:
(a) earmark or maintain in a segregated account cash or liquid securities at such a level that
(i) the amount earmarked or deposited in the account plus the amount deposited with the broker as collateral will equal the current value of
the security sold short; and
(ii) the amount earmarked or deposited in the segregated account plus the amount deposited with the broker as
collateral will not be less than the current market value of the security sold short, or
(b) otherwise cover a Funds short positions.
Uncovered short sales incur a higher level of risk because to cover the short sale, the security may have to be purchased in the open market at a much higher
price.
Short-Term Obligations. Short-term obligations are debt obligations maturing (becoming payable) in 397 days or less, including commercial
paper and short-term corporate obligations. Short-term corporate obligations are short-term obligations issued by corporations.
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Small- and Mid-Capitalization Companies. Small- and mid-capitalization companies may be either established
or newer companies.
Small-capitalization companies may offer greater opportunities for gain, but also involve a greater risk of loss because they may be
more vulnerable to adverse business or economic events, particularly those companies that have been in operation for less than three years.
Small-capitalization company securities may trade in lower volumes or there may be less information about the company which may cause the investments to be
more volatile or to have less liquidity than larger company investments. They may have unseasoned management or may rely on the efforts of particular members of their management team to a great degree causing turnover in management to pose a greater
risk.
Smaller sized companies may have more limited access to resources, product lines, and financial resources than larger companies.
Small- and mid-sized companies typically reinvest a large proportion of their earnings in their business and may not pay dividends or make interest payments
for some time, particularly if they are newer companies.
Standby Commitments and Puts. A Fund may purchase securities at a price which would
result in a yield to maturity lower than that generally offered by the seller at the time of purchase when the Fund can simultaneously acquire the right to sell the securities back to the seller, the issuer or a third-party (the writer)
at an agreed-upon price at any time during a stated period or on a certain date.
Such a right is generally denoted as a standby commitment or
a put.
The purpose of engaging in transactions involving puts is to maintain flexibility and liquidity to permit a Fund to meet redemptions
and remain as fully invested as possible in municipal securities.
The Funds reserve the right to engage in put transactions.
The right to put the securities depends on the writers ability to pay for the securities at the time the put is exercised. A Fund would limit its put
transactions to institutions which the Subadviser believes present minimal credit risks, and the Subadviser would use its best efforts to initially determine and continue to monitor the financial strength of the sellers of the options by evaluating
their financial statements and such other information as is available in the marketplace.
It may, however, be difficult to monitor the financial strength
of the writers because adequate current financial information may not be available.
In the event that any writer is unable to honor a put for financial
reasons, a Fund would be a general creditor (i.e., on a parity with all other general unsecured creditors) of the writer.
Furthermore, particular
provisions of the contract between a Fund and the writer may excuse the writer from repurchasing the securities. For example, a change in the published rating of the underlying securities or any similar event that has an adverse effect on the
issuers credit or a provision in the contract that the put will not be exercised except in certain special cases (such as to maintain portfolio liquidity). A Fund could, however, at any time sell the underlying portfolio security in the open
market or wait until the portfolio security matures, at which time it should realize the full par value of the security.
The securities purchased subject
to a put may be sold to third persons at any time, even though the put is outstanding, but the put itself, unless it is an integral part of the security as originally issued, may not be marketable or otherwise assignable.
Therefore, the put would have value only to a Fund.
Sale of
the securities to third parties or lapse of time with the put unexercised may terminate the right to put the securities. Prior to the expiration of any put option, a Fund could seek to negotiate terms for the extension of such an option. If such a
renewal cannot be negotiated on terms satisfactory to a Fund, the Fund could, of course, sell the portfolio security.
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The maturity of the underlying security will generally be different from that of the put.
There will be no limit to the percentage of portfolio securities that a Fund may purchase subject to a standby commitment or put, but the amount paid directly
or indirectly for all standby commitments or puts which are not integral parts of the security as originally issued held in a Fund will not exceed one-half of 1% of the value of the total assets of such Fund calculated immediately after any such put
is acquired.
Stapled Securities. A stapled security consists of two or more securities that are combined to form one security such that the
individual securities cannot be traded separately. For example, an interest in a portfolio of real estate properties (a REIT) may be combined with an interest in the operating company that manages the portfolio of those properties. Investors in
stapled securities are subject to the risks inherent with each security that makes up the stapled security.
Structured Investments.
Structured Investments are derivatives in the form of a unit or units representing an undivided interest(s) in assets held in a trust that is not an investment company as defined in the 1940 Act.
A trust unit pays a return based on the total return of securities and other investments held by the trust and the trust may enter into one or more swaps to
achieve its objective.
For example, a trust may purchase a basket of securities and agree to exchange the return generated by those securities for the
return generated by another basket or index of securities.
A Fund will purchase structured investments in trusts that engage in such swaps only where the
counterparties are approved by the Subadviser in accordance with credit-risk guidelines established by the Board.
Structured Notes. Structured
Notes are derivatives where the amount of principal repayment and or interest payments is based upon the movement of one or more factors. These factors include, but are not limited to, currency exchange rates, interest rates (such as the prime
lending rate and LIBOR) and stock indices such as the S&P 500® Index.
In some cases, the
impact of the movements of these factors may increase or decrease through the use of multipliers or deflators. The use of structured notes allows the Fund to tailor its investments to the specific risks and returns the Subadviser wishes to accept
while avoiding or reducing certain other risks.
Supranational Agency Obligations. Supranational Agency Obligations are obligations of
supranational entities established through the joint participation of several governments, including the Asian Development Bank, Inter-American Development Bank, International Bank for Reconstruction and Development (also known as the World
Bank), African Development Bank, European Union, European Investment Bank, and the Nordic Investment Bank.
Swap Agreements. A Fund may enter
into swap agreements for purposes of attempting to gain exposure to the securities making up an index without actually purchasing those instruments, to hedge a position or to gain exposure to a particular instrument or currency.
Swap agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a day to more than one-year.
In a standard swap transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular
predetermined investments or instruments.
The gross returns to be exchanged or swapped between the parties are calculated with respect to a
notional amount, i.e., the return on or increase in value of a particular dollar amount invested in a basket of securities representing a particular index.
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Forms of swap agreements include:
(i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates
exceed a specified rate, or cap,
(ii) interest rate floors, under which, in return for a premium, one party agrees to make
payments to the other to the extent that interest rates fall below a specified level, or floor; and
(iii) interest rate
dollars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels.
A credit default swap is a specific kind of counterparty agreement designed to transfer the third party credit risk between parties.
One party in the swap is a lender and faces credit risk from a third party and the counterparty in the credit default swap agrees to insure this risk in
exchange for regular periodic payments (essentially an insurance premium). If the third party defaults, the party providing insurance will have to purchase from the insured party the defaulted asset.
A Fund may enter into index swap agreements as an additional hedging strategy for cash reserves held by the Fund or to effect investment transactions
consistent with the Funds investment objective and strategies.
The Select Aggregate Market Index (SAMI) is a basket of credit default
swaps whose underlying reference obligations are floating rate loans.
The Loan Credit Default Swap Index (LCDX) is a specialized index of
loan-only credit default swaps covering 100 individual companies that have unsecured debt trading in the broad secondary markets.
Investments in SAMI and
LCDX increase exposure to risks that are not typically associated with investments in other floating rate debt instruments, and involve many of the risks associated with investments in derivative instruments noted above.
The liquidity of the market for SAMI and LCDX is subject to liquidity in the secured loan and credit derivatives markets. The use of equity swaps is a highly
specialized activity, which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions.
A
Funds current obligations under a swap agreement will be accrued daily (offset against any amounts owing to the Fund) and any accrued but unpaid net amounts owed to a swap counterparty will be covered by earmarking or segregating assets
determined to be liquid.
Obligations under swap agreements so covered will not be construed to be senior securities for purposes of a
Funds investment restriction concerning senior securities.
Because they are two party contracts and because they may have terms of greater than
seven days, swap agreements may be considered to be illiquid for the Funds illiquid investment limitations.
A Fund will not enter into any swap
agreement unless the Subadviser believes that the other party to the transaction is creditworthy. A Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap
agreement counterparty.
A Fund may enter into swap agreements to invest in a market without owning or taking physical custody of securities in
circumstances in which direct investment is restricted for legal reasons or is otherwise impracticable.
The counterparty to any swap agreement will
typically be a bank, investment banking firm or broker/dealer. The counterparty will generally agree to pay a Fund the amount, if any, by which the notional amount of the swap agreement would have increased in value had it been invested in the
particular stocks, plus the dividends that would have been received on those stocks.
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A Fund will agree to pay to the counterparty a floating rate of interest on the notional amount of the swap
agreement plus the amount, if any, by which the notional amount would have decreased in value had it been invested in such stocks.
Therefore, the return
to a Fund on any swap agreement should be the gain or loss on the notional amount plus dividends on the stocks less the interest paid by a Fund on the notional amount.
Swap agreements typically are settled on a net basis, which means that the two payment streams are netted out, with a Fund receiving or paying, as the case
may be, only the net amount of the two payments. Payments may be made at the conclusion of a swap agreement or periodically during its term.
Swap
agreements do not involve the delivery of securities or other underlying assets. Accordingly, the risk of loss with respect to swap agreements is limited to the net amount of payments that a Fund is contractually obligated to make.
If the other party to a swap agreement defaults, a Funds risk of loss consists of the net amount of any payments that such Fund is contractually
entitled to receive.
The net amount of the excess, if any, of a Funds obligations over its entitlements with respect to each swap will be accrued
on a daily basis and liquid assets having an aggregate net asset value at least equal to such accrued excess will be earmarked or maintained in a segregated account by the Funds custodian.
In as much as these transactions are entered into for hedging purposes or are offset by segregating liquid assets, as permitted by applicable law, the Funds
and their respective Subadvisers believe that these transactions do not constitute senior securities under the 1940 Act and, accordingly, will not treat them as being subject to a Funds borrowing restrictions.
For purposes of each of the Funds requirements under Rule 12d3-1 (where, for example, a Fund is prohibited from investing more than 5% of its total
assets in any one broker, dealer, underwriter or investment adviser (the securities-related issuer) and Section 5b-1 where, for example, a diversified Fund is prohibited from owning more than 5% of its total assets in any one issuer
with respect to 75% of a Funds total assets, both counterparty exposure and reference entity exposure will be reviewed where appropriate.
The
mark-to-market value will be used to measure the Funds counterparty exposure. With respect to reference entity exposure, the notional value of the swap will be used when protection is sold on the underlying reference entity.
The mark-to-market value will be used when protection is bought on the underlying reference entity.
Should the Fund acquire an interest in a swap that is traded on a centralized exchange, the Fund will not consider the counterparty to be an issuer for these
purposes if it is determined that counterparty risk has been eliminated through use of the centralized exchange. Further, the Fund will use the same approach described above for Section 5b-1 to satisfy the Funds Subchapter M quarter-end
requirements under the Internal Revenue Code. Exposure may be adjusted by appropriate offsets.
The swap market has grown substantially in recent years
with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. As a result, the swap market has become relatively liquid in comparison with the markets for other similar
instruments, which are traded in the over-the-counter market.
The Subadviser, under the supervision of the Board of Trustees, is responsible for
determining and monitoring the liquidity of Fund transactions in swap agreements.
Tax Credit Bonds (Build America Bonds). Build
America Bonds are taxable bonds issued by federal and state local governments that allow a new direct federal payment subsidy.
At the election of the
state and local governments, the Treasury Department will make a direct payment to the state or local governmental issuer in an amount equal to 35% of the interest payment on the Build America Bonds. As a result, state and local governments will
have lower net borrowing costs.
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This will also make Build America Bonds attractive to a broader group of investors that typically invest in
traditional state and local tax-exempt bonds, where interest rates have historically been 20% lower than taxable interest rates.
Taxable Municipal
Securities. Taxable municipal securities are municipal securities the interest on which is not exempt from federal income tax.
Taxable municipal
securities include private activity bonds that are issued by or on behalf of states or political subdivisions thereof to finance privately-owned or operated facilities for business and manufacturing, housing, sports, and pollution
control and to finance activities of and facilities for charitable institutions.
Private activity bonds are also used to finance public facilities such
as airports, mass transit systems, ports, parking lots, and low income housing.
The payment of the principal and interest on private activity bonds is
not backed by a pledge of tax revenues, and is dependent solely on the ability of the facilitys user to meet its financial obligations, and may be secured by a pledge of real and personal property so financed. Interest on these bonds may not
be exempt from federal income tax.
Tender Option Bonds. A tender option bond is a municipal obligation (generally held pursuant to a custodial
arrangement) having a relatively long maturity and bearing interest at a fixed rate substantially higher than prevailing short-term, tax-exempt rates.
The bond is typically issued in conjunction with the agreement of a third party, such as a bank, broker-dealer or other financial institution, pursuant to
which the institution grants the security holder the option, at periodic intervals, to tender its securities to the institution.
As consideration for
providing the option, the financial institution receives periodic fees equal to the difference between the bonds fixed coupon rate and the rate, as determined by a remarketing or similar agent that would cause the securities, coupled with the
tender option, to trade at par on the date of such determination.
Thus, after payment of this fee, the security holder effectively holds a demand
obligation that bears interest at the prevailing short-term, tax-exempt rate.
An institution will normally not be obligated to accept tendered bonds in
the event of certain defaults or a significant downgrading in the credit rating assigned to the issuer of the bond. The tender option will be taken into account in determining the maturity of the tender option bonds and a Funds average
portfolio maturity.
There is a risk that a Fund will not be considered the owner of a tender option bond for federal income tax purposes, and thus will
not be entitled to treat such interest as exempt from federal income tax. Certain tender option bonds may be illiquid or may become illiquid as a result of a credit rating downgrade, payment default or a disqualification from tax-exempt status.
Trust Preferred Securities. Trust preferred securities are convertible preferred shares issued by a trust where proceeds from the sale are used to
purchase convertible subordinated debt from the issuer. The convertible subordinated debt is the sole asset of the trust. The coupon from the issuer to the trust exactly mirrors the preferred dividend paid by the trust. Upon conversion by the
investors, the trust in turn converts the convertible debentures and passes through the shares to the investors.
U.S. Government Securities.
Examples of types of U.S. government obligations in which a Fund may invest include:
U.S. Treasury obligations and the obligations of U.S. government
agencies or U.S. government sponsored entities such as:
Central Bank for Cooperatives,
Export-Import Bank of the United States,
Fannie Mae,
Farmers Home
Administration,
Federal Farm Credit Banks,
Federal Home Loan Banks,
the
Federal Housing Administration,
Federal Intermediate Credit Banks,
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Federal Land Banks,
Freddie Mac,
General Services
Administration,
GNMA,
Maritime Administration,
Small
Business Administration,
Student Loan Marketing Association (SLMA),
and other similar agencies.
Whether backed by
the full faith and credit of the U.S. Treasury or not, U.S. government securities are not guaranteed against price movements due to fluctuating interest rates.
SLMA can issue debt as a U.S. government agency or as corporation. If the debt is issued as a corporation, it is not considered a U.S. government obligation.
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.
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FDIC-Backed Bonds. FDIC-Backed Bonds are senior unsecured debt obligations issued by banks, thrifts and some holding companies that participate in the FDICs Temporary Liquidity Guaranty Program
(TLGP). |
Under the TLGP, the FDIC guarantees, with the full faith and credit of the U.S. government, the payment
of principal and interest on senior unsecured debt issued by entities eligible to participate in the TLGP, which generally include FDIC-insured depository institutions, U.S. bank holding companies or financial holding companies and certain U.S.
savings and loan holding companies, in exchange for a fee to the FDIC.
This guarantee does not extend to shares of the Portfolio itself.
FDIC-guaranteed debt is still subject to interest rate and securities selection risk.
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U.S. Treasury Obligations. U.S. Treasury obligations consist of bills, notes and bonds issued by the U.S. Treasury and separately traded interest and principal component parts of such obligations that are
transferable through the federal book-entry system known as Separate Trading of Registered Interest and Principal of Securities (STRIPs) and Treasury Receipts (TRs). |
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Receipts. Receipts are interests in separately traded interest and principal component parts of U.S. government obligations that are issued by banks or brokerage firms and are created by depositing U.S.
government obligations into a special account at a custodian bank. |
The custodian holds the interest and principal payments
for the benefit of the registered owners of the certificates or receipts. The custodian arranges for the issuance of the certificates or receipts evidencing ownership and maintains the register. TRs and STRIPS are interests in accounts sponsored by
the U.S. Treasury. Receipts are sold as zero coupon securities.
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Treasury Inflation Protected Notes (TIPS). TIPS are securities issued by the U.S. Treasury that are designed to provide inflation protection to investors. |
TIPS are income-generating instruments whose interest and principal payments are adjusted for inflation. The inflation adjustment, which is
typically applied monthly to the principal of the bond, follows a designated inflation index, such as the consumer price index.
A fixed
coupon rate is applied to the inflation-adjusted principal so that as inflation rises, both the principal value and the interest payments increase. This can provide investors with a hedge against inflation, as it helps preserve the purchasing power
of an investment.
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Because of this inflation adjustment feature, inflation-protected bonds typically have lower
yields than conventional fixed-rate bonds.
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Zero Coupon Obligations. Zero coupon obligations are debt obligations that do not bear any interest, but instead are issued at a deep discount from face value or par. The value of a zero coupon obligation
increases over time to reflect the interest accumulated. These obligations will not result in the payment of interest until maturity, and will have greater price volatility than similar securities that are issued at face value or par and pay
interest periodically. |
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U.S. Government Zero Coupon Securities. STRIPS (Separate Trading of Registered Interest and Principal of Securities) and Receipts are sold as zero coupon securities, that is, fixed income securities that
have been stripped of their un-matured interest coupons. |
Zero coupon securities are sold at a (usually substantial) discount
and redeemed at face value at their maturity date without interim cash payments of interest or principal.
The amount of this discount is
accreted over the life of the security, and the accretion constitutes the income earned on the security for both accounting and tax purposes.
Because of these features, the market prices of zero coupon securities are generally more volatile than the market prices of securities that
have similar maturity but that pay interest periodically.
Zero coupon securities are likely to respond to a greater degree to interest
rate changes than are non-zero coupon securities with similar maturity and credit qualities. See Mortgage-Backed Securities.
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U.S. Government Agencies. Some obligations issued or guaranteed by agencies of the U.S. government are supported by the full faith and credit of the U.S. Treasury, others are supported by the right of the
issuer to borrow from the Treasury, while still others are supported only by the credit of the instrumentality. |
Guarantees
of principal by agencies or instrumentalities of the U.S. government may be a guarantee of payment at the maturity of the obligation so that in the event of a default prior to maturity there might not be a market and thus no means of realizing on
the obligation prior to maturity.
Guarantees as to the timely payment of principal and interest do not extend to the value or yield of
these securities or to the value of a Funds shares.
Variable and Floating Rate Instruments. Certain of the obligations purchased by a Fund
may carry variable or floating rates of interest, may involve a conditional or unconditional demand feature and may include variable amount master demand notes. Such instruments bear interest at rates that are not fixed, but which vary with changes
in specified market rates or indices.
The interest rates on these securities may be reset daily, weekly, quarterly or some other reset period, and may
have a floor or ceiling on interest rate changes.
There is a risk that the current interest rate on such obligations may not accurately reflect existing
market interest rates. A demand instrument with a demand notice exceeding seven days may be considered illiquid if there is no secondary market for such securities.
Variable Rate Master Demand Notes. Variable rate master demand notes permit the investment of fluctuating amounts at varying market rates of interest
pursuant to direct arrangements between a Fund, as lender, and a borrower.
Such notes provide that the interest rate on the amount outstanding varies on
a daily, weekly or monthly basis depending upon a stated short-term interest rate index.
Both the lender and the borrower have the right to reduce the
amount of outstanding indebtedness at any time. There is no secondary market for the notes and it is not generally contemplated that such instruments will be traded.
The quality of the note or the underlying credit must, in the opinion of the Subadviser, be equivalent to the ratings applicable to permitted investments for
the particular Fund. The Subadviser will monitor on an ongoing basis the earning power, cash flow and liquidity ratios of the issuers of such instruments and will similarly monitor the ability of an issuer of a demand instrument to pay principal and
interest on demand.
49
Variable rate master demand notes may or may not be backed by bank letters of credit.
Warrant. A Warrant is a financial instrument that gives the holder the right, but not the obligation, to purchase a specified amount of an asset at a
specified price during a specified period of time.
A warrant may give its holder the right to buy shares of stock, bonds, currencies, or commodities.
Index Warrants, a type of warrant, allow investors to take a direct position in a commodity, index, currency or economic variable. An example of an Index
Warrant is a GDP Warrant, which is a bond that allows investors to invest directly in a countrys economic growth.
A GDP Warrant creates long term
securities that would be indexed on the economic growth of a country, or rather an economic zone (for example Euroland). Those securities would have two main purposes: (i) to give those countries or other issuers another source of financing,
and a new financial management tool; and (ii) to give investors a hybrid asset which has some feature(s) of an equity security (variable return and/or capital, based on economic performances) while basically being a bond (it is a debt).
In the case of a GDP Warrant, the index would be the Gross Domestic Product (GDP). Investing in warrants can provide a greater potential for profit or loss
than an equivalent investment in the underlying security, and, thus, can be a speculative investment.
The value of a warrant may decline because of a
decline in the value of the underlying security, the passage of time, changes in interest rates or in the dividend or other policies of the company whose equity underlies the warrant or a change in the perception as to the future price of the
underlying security, or any combination thereof.
Warrants generally pay no dividends and confer no voting or other rights other than to purchase the
underlying security.
When-Issued Securities, Delayed Delivery and Forward Commitment Securities. When-Issued, Delayed Delivery and Forward
Commitment Securities are securities with settlement dates in excess of normal settlement periods, currently 3 business days.
Each Fund may purchase or
sell securities on a forward commitment, when-issued or delayed-delivery basis, which means delivery and payment take place in the future after the date of the commitment to purchase or sell the securities at a predetermined price and/or yield.
Typically, no interest accrues to the purchaser until the security is delivered.
When purchasing a security on a forward commitment, when-issued or
delayed-delivery basis, a Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value.
Because the Fund is not required to pay for these securities until the delivery date, these risks are in addition to the risks associated with the Funds
other investments.
If the Fund is fully or almost fully invested when forward commitment, when-issued or delayed-delivery purchases are outstanding, such
purchases may result in a form of leverage.
A Fund intends to engage in forward commitment, when-issued and delayed-delivery purchases, to increase its
portfolios financial exposure to the types of securities in which it invests. Leveraging the portfolio in this manner will increase the Funds exposure to changes in interest rates and will increase the volatility of its returns. A Fund
will segregate permissible liquid assets at least equal at all times to the amount of the Funds purchase commitments.
Securities purchased on a
forward commitment, when-issued or delayed-delivery basis are subject to changes in value (generally changing in the same way, i.e., appreciating when interest rates decline and depreciating when interest rates rise) based upon the
publics perception of the creditworthiness of the issuer and changes, real or anticipated, in the level of interest rates.
50
Securities purchased on a forward commitment, when-issued or delayed-delivery basis may expose a Fund to risks
because they may experience such fluctuations prior to their actual delivery.
Purchasing securities on a forward commitment, when-issued or
delayed-delivery basis can involve the additional risk that the yield available in the market when the delivery takes place actually may be higher than that obtained in the transaction itself.
Purchasing securities on a forward commitment, when-issued or delayed-delivery basis when a Fund is fully or almost fully invested may result in greater
potential fluctuation in the value of the Funds net assets and its net asset value per share.
To avoid any leveraging concerns, a Fund will
segregate or earmark liquid assets in an amount at least equal in value to its commitments to purchase when-issued and forward commitment securities for any securities with settlement dates in excess of normal settlement periods.
INVESTMENT LIMITATIONS
Except
with respect to a Funds fundamental policy relating to borrowing and non-fundamental policy relating to liquidity, if a percentage limitation stated in the fundamental and non-fundamental policies below is adhered to at the time of investment,
a later increase or decrease in percentage resulting from any change in value will not result in a violation of such restriction.
Fundamental Policies
Fundamental policies cannot be changed without the consent of the holders of a majority of each Funds outstanding shares. The term
majority of the outstanding shares means the vote of (i) 67% or more of the Funds shares present at a meeting, if more than 50% of the outstanding shares of the Fund are present or represented by proxy, or (ii) more than
50% of the Funds outstanding shares, whichever is less.
In addition to the 80% investment policy of each of the Seix Georgia Tax-Exempt Bond Fund,
Seix High Grade Municipal Bond Fund, Seix Investment Grade Tax-Exempt Bond Fund, Seix North Carolina Tax-Exempt Bond Fund, Seix Short-Term Municipal Bond Fund, and Seix Virginia Intermediate Municipal Bond Fund, the following investment limitations
are fundamental policies of all of the Funds.
No Fund may:
1. With respect to 75% of each Funds total assets (50% in the case of the Seix North Carolina Tax-Exempt Bond Fund), invest more than 5%
of the value of the total assets of a Fund in the securities of any one issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities, repurchase agreements involving such securities, and
securities issued by investment companies), or purchase the securities of any one issuer if such purchase would cause more than 10% of the voting securities of such issuer to be held by a Fund.
2. Borrow money in an amount exceeding 33 1/3% of the value of its total assets, provided that, for the purposes of this limitation, investment
strategies that either obligate a Fund to purchase securities or require a Fund to segregate assets are not considered to be borrowing. Asset coverage of at least 300% is required for all borrowing, except where the Fund has borrowed money for
temporary purposes (less than 60 days), and in an amount not exceeding 5% of its total assets.
3. Underwrite securities issued by
others, except to the extent that the Fund may be considered an underwriter within the meaning of the 1933 Act in the sale of portfolio securities.
4. Issue senior securities (as defined in the 1940 Act), except as permitted by rule, regulation or order of the SEC.
5. Purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or
instrumentalities and securities issued by investment companies) if, as a result, more than 25% of the Funds total assets would be invested in the securities of companies whose principal business activities
51
are in the same industry or group of industries, except that the Capital Innovations Global Resources and Infrastructure Fund will concentrate (that is, invest more than 25% of its total assets)
in each of the natural resources and infrastructure groups of industries.
No Allocation Strategy may invest more than 25% of its assets in
underlying RidgeWorth Funds that, as a matter of policy, concentrate their assets in any one industry. However, an Allocation Strategy may indirectly invest more than 25% of its total assets in one industry through its investments in the underlying
RidgeWorth Funds. Each Allocation Strategy may invest up to 100% of its assets in securities issued by investment companies.
6.
Purchase or sell real estate, unless acquired as a result of ownership of securities or other instruments (but this shall not prevent a Fund from investing in securities or other instruments either issued by companies that invest in real estate,
backed by real estate or securities of companies engaged in the real estate business).
7. Purchase or sell physical commodities, unless
acquired as a result of ownership of securities or other instruments.
8. Make loans, except that a Fund may: (i) purchase or hold
debt instruments in accordance with its investment objectives and policies; (ii) enter into repurchase agreements; and (iii) lend its portfolio securities.
Non-Fundamental Policies
The following investment
policies are non-fundamental policies of the Funds and may be changed by the Board without shareholder approval:
1. With respect to each
Fund that is subject to Rule 35d-1 under the 1940 Act, except the Seix Georgia Tax-Exempt Bond Fund, Seix High Grade Municipal Bond Fund, Seix Investment Grade Tax-Exempt Bond Fund, Seix North Carolina Tax-Exempt Bond Fund, Seix Short-Term Municipal
Bond Fund, and Seix Virginia Intermediate Municipal Bond Fund, any change to a Funds investment policy of investing at least 80% of such Funds net assets in a particular type or category of securities is subject to 60 days prior notice
to shareholders.
2. No Fund may purchase or hold illiquid securities (i.e., securities that cannot be disposed of for their
approximate carrying value in seven days or less (which term includes repurchase agreements and time deposits maturing in more than seven days) if, in the aggregate, more than 15% of its net assets would be invested in illiquid securities.
3. No Allocation Strategy currently intends to purchase securities on margin, except that an Allocation Strategy may obtain such short-term
credits as are necessary for the clearance of transactions.
4. No Allocation Strategy currently intends to sell securities short.
5. No Allocation Strategy currently intends to purchase or sell futures contracts or put or call options.
THE ADVISER
General.
RidgeWorth Investments serves as investment adviser to the Funds.
RidgeWorth Investments is the trade name of RidgeWorth Capital Management LLC, a
professional investment management firm registered with the SEC under the Investment Advisers Act of 1940, as amended (the Advisers Act).
The Adviser is responsible for making investment decisions for the Allocation Strategies and continuously reviews, supervises and administers each Allocation
Strategys investment program.
With respect to the other Funds in this SAI, the Adviser oversees the Subadvisers to ensure compliance with the
respective Funds investment policies and guidelines and monitors each Subadvisers adherence to its investment style.
52
The Board supervises the Adviser with respect to its processes and policies and procedures that are applicable to
the Advisers management of the Funds.
The principal business address of the Adviser is 3333 Piedmont Road, NE, Suite 1500, Atlanta, Georgia 30305.
The Adviser is indirectly owned in part by certain investment funds (the LY Funds) that are advised by an affiliate of Lightyear Capital LLC.
Advisory Agreement with the Trust. The Adviser serves as the investment adviser to each Fund pursuant to an agreement (the Advisory
Agreement) with the Trust.
After its initial term, the continuance of the Advisory Agreement must be specifically approved at least annually
(i) by the vote of the Board or by a vote of the shareholders of the Funds and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreements or interested persons of any party thereto, as defined
in the 1940 Act, cast in person at a meeting called for the purpose of voting on such approval.
The Advisory Agreement will terminate automatically in
the event of its assignment, and is terminable at any time without penalty by the Board or, with respect to any Fund, by a majority of the outstanding shares of that Fund, on not less than 30 days nor more than 60 days written notice to the Adviser,
or by the Adviser on 90 days written notice to the Trust.
The Advisory Agreement provides that the Adviser shall not be protected against any liability
to the Trust or its shareholders by reason of willful misfeasance, bad faith or gross negligence on its part in the performance of its duties or from reckless disregard of its obligations or duties thereunder.
The Advisory Agreement provides that if, for any fiscal year, the ratio of expenses of any Fund (including amounts payable to the Adviser but excluding
interest, taxes, brokerage commissions, and litigation and other extraordinary expenses) exceeds limitations established by certain states, the Adviser and/or the administrator will bear the amount of such excess.
The Adviser will not be required to bear expenses of the Trust to an extent which would result in a Funds inability to qualify as a RIC under provisions
of the Internal Revenue Code.
Advisory Fees Paid to the Adviser. For its services under the Advisory Agreement, the Adviser is entitled to a fee
at the specified annual rate of each Funds average daily net assets as listed in the table that follows. Each Fund allocates and pays advisory fees among its constituent classes based on the aggregate daily net asset values of each such class.
The advisory fees for the Funds are as shown in the following table.
|
|
|
|
|
Fund |
|
Fee |
|
Aggressive Growth Allocation Strategy |
|
|
0.10 |
% |
Capital Innovations Global Resources and Infrastructure Fund |
|
|
1.00 |
% |
Ceredex Large Cap Value Equity Fund |
|
|
0.70 |
% |
Ceredex Mid-Cap Value Equity Fund |
|
|
0.75 |
% |
Ceredex Small Cap Value Equity Fund |
|
|
0.85 |
% |
Conservative Allocation Strategy |
|
|
0.10 |
% |
Growth Allocation Strategy |
|
|
0.10 |
% |
Innovative Growth Stock Fund |
|
|
0.85 |
% |
International Equity Fund |
|
|
0.85 |
% |
Moderate Allocation Strategy |
|
|
0.10 |
% |
Seix Core Bond Fund |
|
|
0.25 |
% |
Seix Corporate Bond Fund |
|
|
0.40 |
% |
Seix Floating Rate High Income Fund |
|
|
0.45 |
% |
Seix Georgia Tax-Exempt Bond Fund |
|
|
0.50 |
% |
Seix High Grade Municipal Bond Fund |
|
|
0.50 |
% |
Seix High Income Fund |
|
|
0.55 |
% |
|
|
|
|
|
Fund |
|
Fee |
|
Seix High Yield Fund |
|
|
0.45 |
% |
Seix Investment Grade Tax-Exempt Bond Fund |
|
|
0.50 |
% |
Seix Limited Duration Fund |
|
|
0.10 |
% |
Seix North Carolina Tax-Exempt Bond Fund |
|
|
0.50 |
% |
Seix Short-Term Bond Fund |
|
|
0.40 |
% |
Seix Short-Term Municipal Bond Fund |
|
|
0.35 |
% |
Seix Total Return Bond Fund |
|
|
0.25 |
% |
Seix U.S. Government Securities Ultra-Short Bond Fund |
|
|
0.20 |
% |
Seix U.S. Mortgage Fund |
|
|
0.50 |
% |
Seix Ultra-Short Bond Fund |
|
|
0.22 |
% |
Seix Virginia Intermediate Municipal Bond Fund |
|
|
0.50 |
% |
Silvant Large Cap Growth Stock Fund |
|
|
0.70 |
% |
Silvant Small Cap Growth Stock Fund |
|
|
0.85 |
% |
53
The above fees are also subject to the following breakpoint discounts:
Equity and Fixed Income Funds:
First $500 million = none no discount from full fee
Next $500 million = 5% discount from full fee
Next $4 billion = 10% discount from full fee
Over $5 billion = 15% discount from full fee
As
discussed in the Prospectuses, the Adviser has contractually agreed to waive a portion of its fees or reimburse expenses, with respect to certain Funds, in order to limit Fund expenses.
For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Funds paid the following advisory fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid ($) |
|
|
Fees Waived ($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Aggressive Growth Allocation Strategy |
|
|
8,749 |
|
|
|
16,080 |
|
|
|
21,681 |
|
|
|
83,420 |
|
|
|
39,728 |
|
|
|
12,315 |
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
12,828 |
* |
|
|
131,221 |
** |
|
|
163,383 |
** |
|
|
157,164 |
*** |
|
|
246,563 |
** |
|
|
163,383 |
** |
Ceredex Large Cap Value Equity Fund |
|
|
14,465,035 |
|
|
|
15,325,869 |
|
|
|
12,906,498 |
|
|
|
2,457,755 |
|
|
|
|
|
|
|
|
|
Ceredex Mid-Cap Value Equity Fund |
|
|
26,903,880 |
|
|
|
28,240,095 |
|
|
|
22,901,598 |
|
|
|
239,140 |
|
|
|
|
|
|
|
|
|
Ceredex Small Cap Value Equity Fund |
|
|
8,848,043 |
|
|
|
12,407,608 |
|
|
|
13,731,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Conservative Allocation Strategy |
|
|
65,950 |
|
|
|
63,645 |
|
|
|
59,736 |
|
|
|
57,158 |
|
|
|
20,530 |
|
|
|
15,124 |
|
Growth Allocation Strategy |
|
|
58,074 |
|
|
|
65,048 |
|
|
|
65,235 |
|
|
|
92,983 |
|
|
|
|
|
|
|
|
|
Innovative Growth Stock Fund |
|
|
281,146 |
|
|
|
401,832 |
|
|
|
300,822 |
|
|
|
17,391 |
|
|
|
|
|
|
|
1,088 |
|
International Equity Fund |
|
|
228,606 |
|
|
|
234,835 |
|
|
|
597,604 |
|
|
|
94,494 |
|
|
|
3,428 |
|
|
|
17,209 |
|
Moderate Allocation Strategy |
|
|
95,865 |
|
|
|
132,261 |
|
|
|
162,493 |
|
|
|
48,623 |
|
|
|
|
|
|
|
|
|
Seix Core Bond Fund |
|
|
629,875 |
|
|
|
521,323 |
|
|
|
726,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix Corporate Bond Fund |
|
|
88,233 |
|
|
|
144,084 |
|
|
|
241,714 |
|
|
|
30,054 |
|
|
|
8,960 |
|
|
|
|
|
Seix Floating Rate High Income Fund |
|
|
23,465,997 |
|
|
|
30,524,990 |
|
|
|
31,631,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix Georgia Tax-Exempt Bond Fund |
|
|
635,725 |
|
|
|
640,018 |
|
|
|
675,650 |
|
|
|
32,454 |
|
|
|
309,297 |
|
|
|
|
|
Seix High Grade Municipal Bond Fund |
|
|
573,994 |
|
|
|
428,128 |
|
|
|
294,671 |
|
|
|
43,026 |
|
|
|
93 |
|
|
|
9,150 |
|
Seix High Income Fund |
|
|
4,029,645 |
|
|
|
4,913,079 |
|
|
|
4,783,322 |
|
|
|
|
|
|
|
2,545,806 |
|
|
|
|
|
Seix High Yield Fund |
|
|
2,862,692 |
|
|
|
3,935,731 |
|
|
|
7,071,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix Investment Grade Tax-Exempt Bond Fund |
|
|
3,238,901 |
|
|
|
3,313,851 |
|
|
|
3,869,508 |
|
|
|
230,521 |
|
|
|
|
|
|
|
|
|
Seix Limited Duration Fund |
|
|
6,647 |
|
|
|
6,650 |
|
|
|
7,186 |
|
|
|
7,767 |
|
|
|
|
|
|
|
|
|
Seix North Carolina Tax-Exempt Bond Fund |
|
|
167,104 |
|
|
|
183,654 |
|
|
|
229,364 |
|
|
|
27,322 |
|
|
|
|
|
|
|
|
|
Seix Short-Term Bond Fund |
|
|
215,055 |
|
|
|
193,656 |
|
|
|
246,437 |
|
|
|
43,104 |
|
|
|
2,672 |
|
|
|
|
|
Seix Short-Term Municipal Bond Fund |
|
|
149,091 |
|
|
|
142,012 |
|
|
|
81,848 |
|
|
|
46,670 |
|
|
|
|
|
|
|
21,563 |
|
Seix Total Return Bond Fund |
|
|
2,747,820 |
|
|
|
2,591,697 |
|
|
|
2,946,100 |
|
|
|
2,074 |
|
|
|
|
|
|
|
|
|
Seix U.S. Government Securities Ultra-Short Bond Fund |
|
|
3,029,253 |
|
|
|
3,341,968 |
|
|
|
4,058,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix U.S. Mortgage Fund |
|
|
114,410 |
|
|
|
54,958 |
|
|
|
68,760 |
|
|
|
44,867 |
|
|
|
49,470 |
|
|
|
51,363 |
|
Seix Ultra-Short Bond Fund |
|
|
248,510 |
|
|
|
315,772 |
|
|
|
281,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix Virginia Intermediate Municipal Bond Fund |
|
|
507,743 |
|
|
|
621,366 |
|
|
|
715,780 |
|
|
|
28,628 |
|
|
|
|
|
|
|
|
|
Silvant Large Cap Growth Stock Fund |
|
|
1,911,815 |
|
|
|
1,947,536 |
|
|
|
1,940,233 |
|
|
|
331,753 |
|
|
|
60,628 |
|
|
|
|
|
Silvant Small Cap Growth Stock Fund |
|
|
796,245 |
|
|
|
1,349,075 |
|
|
|
1,611,639 |
|
|
|
63,957 |
|
|
|
|
|
|
|
|
|
* |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), the Predecessor Fund paid advisory fees of $9,217. For the period February 20, 2016 to March 31, 2016, the Fund
paid advisory fees of $3,611. |
** |
For the Predecessor Funds fiscal years ended November 30, 2015 and November 30, 2014. |
*** |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), the Predecessor Funds adviser waived advisory fees of $79,017. For the period February 20, 2016 to
March 31, 2016, the Adviser waived advisory fees of $78,147. |
54
Fund Services Agreement. The Adviser provides certain services required by the Funds, including:
(i) review and approval of shareholder reports filed with the SEC,
(ii) oversight and management of the Trusts primary service providers,
(iii) due diligence reviews of the Trusts primary service providers,
(iv) coordination and negotiation of all contracts and related pricing relating to the Trusts primary service providers,
(v) coordination, performance of due diligence, and providing of information to the Independent Trustees relating to their review and selection
of prospective primary service providers to the Trust, including contract negotiations, and
(vi) the coordination of quarterly and special
board meetings.
As compensation for providing such services, each Fund pays an annual fee to the Adviser, representing a previously agreed upon
portion of the salaries, bonuses and benefits related to the primary employees responsible for delivering such services.
For the fiscal year ended
March 31, 2016, the Trust paid a Services Fee of $ $888,742 to the Adviser for these services.
Compliance Service Fees. The Adviser
provides services to the Trust to ensure compliance with applicable laws and regulations.
The Adviser has designated a dedicated compliance staff and,
prior to October 2010 and effective April 2011, an employee to serve as Chief Compliance Officer (CCO) to the Funds.
For the fiscal year
ended March 31, 2016, the Adviser received a fee totaling approximately $1,483,680 for these services.
Foreside Fund Officer Services, LLC (F/K/A
Foreside Compliance Services, LLC) (FCS) provides an Anti-Money Laundering Officer and Identity Theft Prevention Officer to the Trust under an AML Services Agreement.
For the fiscal year ended March 31, 2016, FCS received $594,937 for these services.
Foreside Management Services, LLC (FMS), an affiliate of the Distributor, provides Principal Financial Officer (PFO)/Treasurer support
services to the Trust under a PFO/Treasurer Support Services Agreement.
For the fiscal year ended March 31, 2016, FMS received $44,000 for these
services.
Neither FMS nor any of their officers or employees who serve as an officer of the Trust, has any role in determining the Funds
investment policies or which securities are to be purchased or sold by the Trust or its Funds. Certain officers or employees of FMS are also officers of the Trust.
Manager of Managers Arrangement. Pursuant to an exemptive order from the SEC and subject to certain conditions, including Board approval, the Adviser
may hire an unaffiliated subadviser for certain funds or materially amend an agreement with a Funds unaffiliated subadviser without obtaining shareholder approval.
Within 90 days of retaining a new subadviser, shareholders of the applicable Fund will receive notification of the change. This manager of managers
arrangement enables the Funds to operate with greater efficiency and without incurring the expense and delay associated with obtaining shareholder approval of subadvisory agreements. The arrangement does not permit investment advisory fees paid by a
Fund to be increased or change the Advisers obligations under the Advisory Agreement without shareholder approval. The Adviser has ultimate responsibility, subject to oversight by the Board, to oversee the subadvisers and recommend their
hiring, termination, and replacement.
55
THE SUBADVISERS
Each Subadviser is a professional investment management firm registered with the SEC under the Advisers Act. Each Subadviser, excluding Zevenbergen Capital
Investments LLC (ZCI), WCM Investment Management (WCM) and Capital Innovations, LLC (CI), is a wholly owned subsidiary of the Adviser. ZCI is a minority owned subsidiary of the Adviser.
CI serves as the subadviser to the Capital Innovations Global Resources and Infrastructure Fund pursuant to an Investment Subadvisory Agreement between
the Adviser and CI. CI is independent and privately owned with the controlling interests held by Michael D. Underhill and Susan L. Dambekaln. For its investment subadvisory services, CI is entitled to receive an annual fee paid by the Adviser based
on the Funds average daily net assets. CI will receive a portion of the investment advisory fee paid to the Adviser as follows: equal to 60% of the first $500 million of the Funds average daily net assets; 62% of the next $500 million of
the Funds average daily net assets; 63% of the next $4 billion of the Funds average daily net assets; and 65% in excess of $5 billion of the Funds average daily net assets.
For the fiscal years ended March 31, 2016, March 31, 2015 and March 31, 2014, CI received the following subadvisory fees:
|
|
|
|
|
|
|
|
|
|
|
Fees Paid ($) |
|
Fees Waived ($) |
2016 |
|
2015 |
|
2014 |
|
2016 |
|
2015 |
|
2014 |
5,104* |
|
41,991** |
|
52,283** |
|
2,167*** |
|
0** |
|
0** |
* |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), CI received $2,937 in subadvisory fees from the Predecessor Funds investment adviser. For the period
February 20, 2016 to March 31, 2016, CI received $2,167 in subadvisory fees from the Adviser. |
** |
For the Predecessor Funds fiscal year ended November 30, 2015 and November 30, 2014. |
*** |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), CI did not waive any of its subadvisory fees for the Predecessor Fund. For the period February 20, 2016 to
March 31, 2016, CI waived $2,167 of its subadvisory fees. |
Ceredex Value Advisors LLC (Ceredex) serves as the
subadviser to the:
Ceredex Large Cap Value Equity Fund,
Ceredex Mid-Cap Value Equity Fund and
Ceredex Small Cap Value Equity Fund,
pursuant
to an Investment Subadvisory Agreement between the Adviser and Ceredex. For its investment subadvisory services, Ceredex is entitled to receive an annual fee paid by the Adviser equal to 50% of the net advisory fee paid by each applicable Fund to
the Adviser.
For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, Ceredex received the following
subadvisory fees from the Adviser:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid ($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
Ceredex Large Cap Value Equity Fund |
|
|
7,232,517 |
|
|
|
7,662,934 |
|
|
|
6,453,249 |
|
Ceredex Mid-Cap Value Equity Fund |
|
|
13,451,940 |
|
|
|
14,120,048 |
|
|
|
11,450,799 |
|
Ceredex Small Cap Value Equity Fund |
|
|
4,424,021 |
|
|
|
6,203,804 |
|
|
|
6,865,932 |
|
Seix Investment Advisors LLC (Seix) serves as the subadviser to:
Seix Core Bond Fund,
Seix
Corporate Bond Fund,
Seix Georgia Tax-Exempt Bond Fund,
Seix High Grade Municipal Bond Fund,
Seix High Income Fund,
Seix
Investment Grade Tax-Exempt Bond Fund,
Seix Limited Duration Fund,
Seix U.S. Mortgage Fund,
Seix
North Carolina Tax-Exempt Bond Fund,
Seix Floating Rate High Income Fund,
56
Seix High Yield Fund,
Seix Short-Term Bond Fund,
Seix
Short-Term Municipal Bond Fund,
Seix Total Return Bond Fund,
Seix U.S. Government Securities Ultra-Short Bond Fund and
Seix Ultra-Short Bond Fund,
Seix
Virginia Intermediate Municipal Bond Fund,
pursuant to an Investment Subadvisory Agreement between the Adviser and Seix.
For its investment subadvisory services, Seix is entitled to receive an annual fee paid by the Adviser equal to 50% of the net advisory fee paid by each
applicable Fund to the Adviser.
For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, Seix received the
following subadvisory fees from the Adviser and for the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, waived the following fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid or Waived ($) |
|
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
Fund |
|
(Paid) |
|
|
(Waived) |
|
|
(Paid) |
|
|
(Waived) |
|
|
(Paid) |
|
|
(Waived) |
|
Seix Core Bond Fund |
|
|
314,938 |
|
|
|
|
|
|
|
269,551 |
|
|
|
|
|
|
|
435,785 |
|
|
|
|
|
Seix Corporate Bond Fund |
|
|
44,116 |
|
|
|
8,803 |
|
|
|
74,661 |
|
|
|
4,951 |
|
|
|
145,028 |
|
|
|
|
|
Seix Floating Rate High Income Fund |
|
|
11,732,998 |
|
|
|
|
|
|
|
15,873,900 |
|
|
|
|
|
|
|
18,978,771 |
|
|
|
|
|
Seix Georgia Tax-Exempt Bond Fund* |
|
|
317,862 |
|
|
|
|
|
|
|
309,297 |
|
|
|
|
|
|
|
270,260 |
|
|
|
|
|
Seix High Grade Municipal Bond Fund* |
|
|
286,997 |
|
|
|
|
|
|
|
208,811 |
|
|
|
37 |
|
|
|
117,869 |
|
|
|
3,660 |
|
Seix High Income Fund |
|
|
2,014,823 |
|
|
|
|
|
|
|
2,545,806 |
|
|
|
|
|
|
|
2,869,993 |
|
|
|
|
|
Seix High Yield Fund |
|
|
1,431,346 |
|
|
|
|
|
|
|
2,050,779 |
|
|
|
|
|
|
|
4,242,807 |
|
|
|
|
|
Seix Investment Grade Tax-Exempt Bond Fund* |
|
|
1,619,451 |
|
|
|
|
|
|
|
1,601,103 |
|
|
|
|
|
|
|
1,547,803 |
|
|
|
|
|
Seix Limited Duration Fund |
|
|
3,324 |
|
|
|
|
|
|
|
3,436 |
|
|
|
|
|
|
|
4,311 |
|
|
|
|
|
Seix North Carolina Tax-Exempt Bond Fund* |
|
|
83,552 |
|
|
|
|
|
|
|
88,625 |
|
|
|
|
|
|
|
91,746 |
|
|
|
|
|
Seix Short-Term Bond Fund* |
|
|
107,527 |
|
|
|
|
|
|
|
94,053 |
|
|
|
1,327 |
|
|
|
98,575 |
|
|
|
|
|
Seix Short-Term Municipal Bond Fund* |
|
|
74,545 |
|
|
|
6,581 |
|
|
|
68,843 |
|
|
|
|
|
|
|
32,739 |
|
|
|
8,625 |
|
Seix Total Return Bond Fund |
|
|
1,373,910 |
|
|
|
|
|
|
|
1,339,917 |
|
|
|
|
|
|
|
1,767,660 |
|
|
|
|
|
Seix U.S. Government Securities Ultra-Short Bond Fund* |
|
|
1,514,626 |
|
|
|
|
|
|
|
1,609,937 |
|
|
|
|
|
|
|
1,623,509 |
|
|
|
|
|
Seix U.S. Mortgage Fund |
|
|
57,205 |
|
|
|
8,922 |
|
|
|
28,326 |
|
|
|
25,578 |
|
|
|
41,256 |
|
|
|
30,818 |
|
Seix Ultra-Short Bond Fund* |
|
|
124,255 |
|
|
|
|
|
|
|
153,281 |
|
|
|
|
|
|
|
112,776 |
|
|
|
|
|
Seix Virginia Intermediate Municipal Bond Fund* |
|
|
253,872 |
|
|
|
|
|
|
|
299,926 |
|
|
|
|
|
|
|
286,312 |
|
|
|
|
|
* |
Amounts paid to a prior Subadvisor. Seix serves as Subadvisor to each Fund effective May 30, 2014. |
57
Silvant Capital Management LLC (Silvant) serves as the subadviser to the:
Silvant Large Cap Growth Stock Fund and
Silvant Small Cap Growth Stock Fund,
pursuant
to an Investment Subadvisory Agreement between the Adviser and Silvant. For its investment
subadvisory services, Silvant is entitled to receive an annual
fee paid by the Adviser equal to 50% of the net advisory fee paid by each applicable Fund to the Adviser.
For the fiscal years ended March 31,
2016, March 31, 2015 and March 31, 2014, Silvant received the following subadvisory fees from the Adviser:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid ($) |
|
Fund |
|
2016 |
|
|
2016 (waived) |
|
|
2015 |
|
|
2014 |
|
Silvant Large Cap Growth Stock Fund |
|
|
955,907 |
|
|
|
12,330 |
|
|
|
973,768 |
|
|
|
970,116 |
|
Silvant Small Cap Growth Stock Fund |
|
|
398,123 |
|
|
|
|
|
|
|
674,538 |
|
|
|
805,819 |
|
WCM serves as the subadviser to the International Equity Fund pursuant to an Investment Subadvisory Agreement
between the Adviser and WCM. WCM is 100% owned by its employees. Its two co-CEOs, Paul R. Black and Kurt R. Winrich, CFA, each own more than 25% of WCM. For its investment subadvisory services, WCM is entitled to receive an annual fee paid by the
Adviser equal to 60% of the first $500 million; 62% of the next $500 million; 63% of the next $4 billion; and 65% in excess of $5 billion of the net advisory fee paid by the Fund to the Adviser.
For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, WCM, received the following subadvisory fees from the
Adviser:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid ($) |
|
Fund |
|
2016 |
|
|
2016 (waived) |
|
|
2015 |
|
|
2014 |
|
International Equity Fund* |
|
|
128,123 |
|
|
|
1,626 |
|
|
|
117,418 |
|
|
|
298,802 |
|
* |
Amounts paid for services performed prior to September 1, 2015 were made to a previous subadviser. |
ZCI serves as the subadviser to the Innovative Growth Stock Fund pursuant to an Investment Subadvisory Agreement between the Adviser and ZCI. The
Adviser owns less than a 25% interest in ZCI and the remainder is owned by ZCIs employees. For its investment subadvisory services, ZCI is entitled to receive a fee paid by the Adviser at an annual rate of 0.44% based on the average daily net
assets of the Innovative Growth Stock Fund, which is calculated daily and paid quarterly by the Adviser.
For the fiscal years ended March 31,
2016, March 31, 2015, and March 31, 2014, ZCI received the following subadvisory fees from the Adviser:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid ($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
Innovative Growth Stock Fund |
|
|
145,535 |
|
|
|
208,007 |
|
|
|
155,720 |
|
As discussed in the Prospectuses, each Subadviser has contractually agreed to waive a portion of its fees or reimburse
expenses, with respect to certain Funds, in order to limit Fund expenses.
Investment Subadvisory Agreements. The Adviser and each Subadviser
have entered into separate investment subadvisory agreements (each an Investment Subadvisory Agreement) under which the Subadviser makes the investment decisions for and continuously reviews, supervises, and administers the investment
program of the respective Funds, subject to the supervision of, and policies established by, the Adviser and the Board.
58
After an initial two-year term, the continuance of each Investment Subadvisory Agreement must be specifically
approved at least annually by (i) the vote of the Trustees or a vote of the shareholders of the Fund and (ii) the vote of a majority of the Trustees who are not parties to the Investment Subadvisory Agreement or interested
persons of any party thereto, cast in person at a meeting called for the purpose of voting on such approval.
Each Investment Subadvisory Agreement
will terminate automatically in the event of its assignment and is terminable at any time without penalty by:
(i) the Trustees of the
Trust or, with respect to each Fund, by a majority of the outstanding shares of that Fund,
(ii) the Adviser at any time on not less than
30 days nor more than 60 days written notice to the Subadviser, or
(iii) the Subadviser on 90 days written notice to the Adviser.
Each Investment Subadvisory Agreement provides that the Subadviser shall not be protected against any liability by reason of willful misfeasance, bad faith,
or negligence on its part in the performance of its duties or from reckless disregard of its obligations or duties thereunder.
THE PORTFOLIO MANAGERS
Set forth below is information regarding the individuals who are primarily responsible for the day-to-day management of
the Funds (portfolio managers). All information is as of March 31, 2016, unless it is noted otherwise.
Management of Other
Accounts. The table below shows the number of other accounts managed by each portfolio manager and the approximate total assets in the accounts in each of the following categories: registered investment companies, other pooled investment
vehicles and other accounts.
For each category, the table also shows the number of accounts and the approximate total assets in the accounts with respect
to which the advisory fee is based on account performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets in Accounts (in millions) ($)
and Number of Accounts |
|
Other Accounts with Performance-Based Fees |
Portfolio
Manager |
|
Registered Investment Companies1 |
|
Other Pooled Investment Vehicles |
|
Other Accounts |
|
Number & Category |
|
Total Assets (in millions) ($) |
Seth Antiles |
|
None |
|
11.3/1 |
|
8,287/98 |
|
1 SMA |
|
292 |
Brett Barner |
|
1,317.9/1 |
|
None |
|
1,530/17 |
|
None |
|
None |
Sandeep Bhatia |
|
441.8/2 |
|
None |
|
1,135.9/33 |
|
1 SMA |
|
6 |
Chris Carter |
|
None |
|
None |
|
53.3/3 |
|
None |
|
None |
Carlos Catoya |
|
None |
|
11.3/1 |
|
8,287/98 |
|
1 SMA |
|
292 |
Brooke de Boutray |
|
5.09/2 |
|
None |
|
2,201.92/111 |
|
1 SMA |
|
582.65 |
Susan Dambekaln |
|
None |
|
83/5 |
|
55/14 |
|
None |
|
None |
Joseph Dennison |
|
5.09/2 |
|
None |
|
2,201.92/111 |
|
1 SMA |
|
582.65 |
James FitzPatrick |
|
None |
|
124.1/3 |
|
1,457.5/11 |
|
1 SMA/1Hedge Fund |
|
153.1 |
Vincent Flanagan |
|
None |
|
3,381.4/11 |
|
126.6/2 |
|
9 CLOs |
|
2,944 |
Alan Gayle |
|
50.3/4 |
|
None |
|
3.8/4 |
|
None |
|
None |
George Goudelias |
|
383.7/1 |
|
3,381.4/11 |
|
126.6/2 |
|
9 CLOs/1 Hedge Fund |
|
2,947.1 |
James Keegan |
|
None |
|
11.3/1 |
|
8,287/98 |
|
1 SMA |
|
292 |
Michael Kirkpatrick |
|
None |
|
124.1/3 |
|
1,457.5/11 |
|
1 SMA/1Hedge Fund |
|
153.1 |
Mills Riddick |
|
2,447.3/1 |
|
0.6/1 |
|
1,740.1/21 |
|
None |
|
None |
Michael Rieger |
|
None |
|
11.3/1 |
|
8,287/98 |
|
1 SMA |
|
292 |
Michael A. Sansoterra |
|
441.8/2 |
|
None |
|
1,135.9/33 |
|
1 SMA |
|
6 |
Ron Schwartz |
|
None |
|
None |
|
450.5/8 |
|
None |
|
None |
Dusty Self |
|
None |
|
None |
|
71.3/5 |
|
None |
|
None |
Perry Troisi |
|
None |
|
11.3/1 |
|
8,287/98 |
|
1 SMA |
|
292 |
Leslie Tubbs |
|
5.09/2 |
|
None |
|
2,201.92/111 |
|
1 SMA |
|
582.65 |
Michael Underhill |
|
None |
|
83/5 |
|
55/14 |
|
None |
|
None |
Don Wordell |
|
4,262/1 |
|
81.5/1 |
|
785.9/11 |
|
None |
|
None |
Jonathan Yozzo |
|
None |
|
11.3/1 |
|
8,287/98 |
|
1 SMA |
|
292 |
Anthony Zackery |
|
5.09/2 |
|
None |
|
2,201.92/111 |
|
1 SMA |
|
582.65 |
Nancy Zevenbergen |
|
5.09/2 |
|
None |
|
2,201.92/111 |
|
1 SMA |
|
582.65 |
1 |
Does not include the RidgeWorth Funds. |
CLO |
Collateralized Loan Obligation |
SMA |
Separately Managed Account |
59
Potential Conflicts of Interest in Managing Multiple Accounts.
Generally. A portfolio managers management of both a Fund and the other accounts listed in the table above at the same time may give rise to
potential conflicts of interest. If a Fund and the other accounts have identical investment objectives, the portfolio manager could favor one or more accounts over the Fund.
Another potential conflict may arise from the portfolio managers knowledge about the size, timing and possible market impact of Fund trades if the
portfolio manager used this information to the advantage of other accounts and to the disadvantage of the Fund.
In addition, aggregation of trades may
create the potential for unfairness to a Fund or another account if one account is favored over another in allocating the securities purchased or sold.
Adviser and Ceredex, Silvant and Seix. The Adviser and each Subadviser have established policies and procedures to ensure that the purchase and sale of
securities among all accounts it manages are allocated in a manner the Subadviser believes is fair and equitable.
CI. Actual or apparent conflicts
of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one fund or other account. When conflicts of interest arise between the Fund and other accounts managed by the portfolio manager, CI
will proceed in a manner that ensures that the Fund will not be treated less favorably. There may be instances in which similar portfolio transactions may be executed for the same security for numerous accounts managed by the portfolio managers. In
such instances, securities will be allocated in accordance with CIs trade allocation policy.
WCM. WCM has several accounts with
performance-based fees. Performance-based fees are based on a percentage of the capital appreciation of the assets in a fund or account. Because WCM manages accounts that are charged an asset-based fee and accounts that are charged a
performance-based fee, it can be deemed that there may be an incentive for WCM to favor accounts for which they receive a performance-based fee and/or to make investments that are riskier or more speculative than would be the case in the absence of
such a compensation framework. However, all accounts are managed to the same model and are subject to the same trade allocation policies and procedures, ensuring that no accounts are systematically favored/disfavored.
ZCI. ZCI currently provides investment advisory services to a client whereby ZCI is compensated (in part) by the investment performance of the
clients account (performance fee). ZCI also provides investment advisory services to certain accounts of, or related to, employees and/or their family members. ZCI has procedures in place to ensure that the accounts described above are not
shown preferential treatment over other accounts in the allocation of investments. ZCIs compliance staff conducts quarterly testing of these procedures to ensure their continued effectiveness.
To address and manage these potential conflicts of interest, ZCI has adopted compliance policies and procedures to allocate investment opportunities and to
ensure that each of its clients is treated on a fair and equitable basis. Such policies and procedures include, but are not limited to, investment and trade aggregation and allocation policies and oversight by ZCIs compliance team.
60
Portfolio Manager Compensation Structure.
Portfolio Managers of the Adviser and Ceredex, Silvant and Seix. Portfolio manager compensation generally consists of base salary, bonus, and various
employee benefits and may also include long-term stock awards, retention bonuses, or incentive guarantees. These components are tailored in an effort to retain high quality investment professionals and to align compensation with performance.
A portfolio managers base salary is determined by the individuals experience, responsibilities within the firm, performance in the role, and
market rate for the position.
Each portfolio managers bonus may be structured differently but generally incorporates an evaluation of the
Funds investment performance as well as other subjective factors. Investment performance may be evaluated directly against a peer group and/or benchmark, or indirectly by measuring overall business unit financial performance over a period of
time. Where applicable, investment performance is determined by comparing a Funds pre-tax total return to the returns of the Funds peer group and/or benchmark over multi-year periods. Where portfolio managers are responsible for multiple
Funds or other managed accounts, each product is weighted based on its size and relative strategic importance to the Adviser and/or Subadviser. Other subjective factors that may be considered in the calculation of incentive bonuses include:
adherence to compliance policies, risk management practices, sales/marketing, leadership, communications, corporate citizenship, and overall contribution to the firm. Bonuses are typically paid annually.
In addition, certain portfolio managers may participate in the Advisers equity plan designed to provide compensation opportunities linking a
participants compensation to the financial and operational performance of the Adviser. Retention bonuses and/or incentive guarantees for a fixed period may also be used when the Adviser and/or Subadviser deem it necessary to recruit or retain
the employee.
All full-time employees of the Adviser and Subadvisers, including the Funds portfolio managers, are provided a benefits package on
substantially similar terms. The percentage of each individuals compensation provided by these benefits is dependent upon length of employment, salary level, and several other factors.
Portfolio Managers of CI. Susan Dambekaln and Michael Underhill are compensated by CI with a base salary and a profit sharing plan. The portfolio
managers are not directly compensated for their work with respect to the Fund; however, each portfolio manager is a principal and equity owner of the Subadviser and therefore benefits indirectly from the revenue generated from the Investment
Subadvisory Agreement.
Portfolio Managers of WCM. WCMs compensation practices employ a multi-pronged approach and play an important role in
rewarding and retaining key professionals, whether investment (research), sales, or operations. To be clear, compensation arrangements are not determined on the basis of the number of accounts managed or the performance of specific funds. With that
latter aspect in mind, they note that they do have some accounts with performance-based feesfees based on a percentage of the capital appreciation of the assets in the portfolio. And since WCM manages some accounts that are charged an
asset-based fee, and other accounts that are charged a performance-based fee, a conflict of interest could exist in that there may be an incentive for WCM to favor accounts for which they receive a performance-based fee and/or to make investments
that are riskier or more speculative than would be the case in the absence of such a fee framework. However, they believe they effectively address this potential conflict of interest inasmuch as all accounts (using the same strategy as the Fund) are
managed to the same model and are subject to the same trade allocation policies and procedures, ensuring that no account or group of accounts are systematically advantaged/disadvantaged. Additional information is available in WCMs Form ADV
Part 2A.
Specifically, then, for investment (research) professionals, compensation breakdown includes:
|
|
|
Base Salaries: all investment professionals receive competitive base salaries reflective of their role and contribution to the investment (research) team. |
|
|
|
Bonuses: Additional compensation comes in the form of periodic (normally semi-annual) bonuses. WCM employs a
qualitative, discretionary bonus system to incentivize and reward our team members based primarily on their performance in contributing to team results. This springs from our belief (supported by various
|
61
|
academic studies) that small, cohesive, collaborative teams can and do provide better results than star systems or armies of analysts. And even though we subscribe to that
old aphorism, the whole can be greater than the sum of the parts, individual performance is not ignoredit simply plays a subordinate role to team success. These evaluations are made on a regular basis by the investment (research)
team leaders, utilizing a review system that begins with a return-on-time assessment for each investment (research) team member and is then supplemented, reviewed, and approved by the firms leadership team (i.e., board
of directors). |
|
|
|
Profit-Sharing: WCM does not utilize a cash profit-sharing plan, but we do include a profit-sharing component in the Employee Benefit Plan (see below). |
|
|
|
Employee Benefit Plan: All employees are eligible to participate in the WCM Employee Savings Plan |
|
|
|
(401(k)) after six full months of employment. Besides the normal employee pre-tax deferral, the 401(k) has two possible employer components: 1) discretionary employer match, and 2) discretionary employer
profit-sharing contribution. Currently, the only employer component being utilized is the profit sharing component, which is determined annually and contributes a substantial amount to each employees retirement account. There is no vesting
period for employer contributions. |
|
|
|
Equity Ownership: All employees, upon completing three years of full-time employment, are eligible to be offered (and purchase) shares, or equity ownership. (WCM is a California sub-chapter S corporation and has only
one class of stock.) Further, WCM groups our shareholders into two categories: Principal Owners (shareholders of more than the 3% of the outstanding stock), and Regular Owners (shareholders of less than 3%). All four of the portfolio managers for
the Fund fall into this Principal Owner category and together own over 70% of the firm. |
|
|
|
WCM categorizes its non-investment (non-research) personnel into two groups: Sales, and Operations. Compensation breakdown for these non-investment (non-research) personnel is identical in form and structure to that for
investment (research) personnel with two differences: |
|
1. |
Evaluations forming the basis for our qualitative, discretionary bonus system are made by the apropos team leaders, but are still supplemented, reviewed, and approved by the firms leadership team
(i.e., board of directors); |
|
2. |
For Sales personnel only, an additional component in compensation is an ongoing revenue share intended to incentivize both sales and client service. |
Portfolio Managers of ZCI. Nancy Zevenbergen, CFA, CIC, Brooke de Boutray, CFA, CIC, and Leslie Tubbs, CFA, CIC are the Portfolio Managers principally
responsible for the day-to-day management of the Funds portfolio. Joseph Dennison, CFA and Anthony Zackery, CFA are the Associate Portfolio Managers that support ZCIs Portfolio Managers with active recommendations on security selection
and portfolio construction through original research. ZCI compensates Portfolio Managers and Associate Portfolio Managers with salaries reflective of their individual experience and commensurate with industry standards and those of regional
competitors. In addition to salaries, portfolio managers receive additional compensation (either through annual incentive payments or as a result of ownership interests in ZCI) based on the firms collective effort to drive revenue and profit
growth through 1) working in the best interest of clients by delivering superior investment performance, 2) concentrating on stellar service to ensure client retention, and 3) effectively marketing to garner new clients.
Securities Ownership of Portfolio Managers. The table below shows the range of equity securities beneficially owned by each portfolio manager in the
Fund or Funds managed by the portfolio manager. The information is as of March 31, 2016.
|
|
|
|
|
Portfolio Manager |
|
RidgeWorth Fund(s) Managed |
|
Range of Securities
Owned ($) |
Seth Antiles |
|
Seix Limited Duration Fund |
|
None |
|
|
Seix U.S. Mortgage Fund |
|
None |
|
|
Seix Total Return Bond Fund |
|
None |
|
|
|
Brett Barner |
|
Ceredex Small Cap Value Equity Fund |
|
100,001-500,000 |
|
|
|
Sandeep Bhatia |
|
Silvant Large Cap Growth Stock Fund |
|
50,001-100,000 |
|
|
Silvant Small Cap Growth Stock Fund |
|
1-10,000 |
62
|
|
|
|
|
Portfolio Manager |
|
RidgeWorth Fund(s) Managed |
|
Range of Securities
Owned ($) |
Paul R. Black |
|
International Equity Fund |
|
None |
|
|
|
Chris Carter |
|
Seix Georgia Tax-Exempt Bond Fund |
|
1-10,000 |
|
|
Seix North Carolina Tax-Exempt Bond Fund |
|
1-10,000 |
|
|
Seix Virginia Intermediate Municipal Bond Fund |
|
1-10,000 |
|
|
|
Carlos Catoya |
|
Seix Core Bond Fund |
|
None |
|
|
Seix Corporate Bond Fund |
|
None |
|
|
Seix U.S. Mortgage Fund |
|
None |
|
|
Seix Total Return Bond Fund |
|
None |
|
|
Seix Limited Duration Fund |
|
None |
|
|
Seix Short-Term Bond Fund |
|
None |
|
|
Seix Ultra-Short Bond Fund |
|
None |
|
|
|
Susan Dambekaln |
|
Capital Innovations Global Resources and
Infrastructure Fund |
|
10,001-50,000 |
|
|
|
Brooke de Boutray |
|
Innovative Growth Stock Fund |
|
None |
|
|
|
Joseph Dennison |
|
Innovative Growth Stock Fund |
|
None |
|
|
|
James FitzPatrick |
|
Seix High Income Fund |
|
10,001 - 50,000 |
|
|
Seix High Yield Fund |
|
10,001 - 50,000 |
|
|
|
Vincent Flanagan |
|
Seix Floating Rate High Income Fund |
|
None |
|
|
|
Alan Gayle |
|
Aggressive Growth Allocation Strategy |
|
100,001-500,000 |
|
|
Conservative Allocation Strategy |
|
100,001-500,000 |
|
|
Growth Allocation Strategy |
|
100,001-500,000 |
|
|
Moderate Allocation Strategy |
|
100,001-500,000 |
|
|
|
George Goudelias |
|
Seix Floating Rate High Income Fund |
|
100,001-500,000 |
|
|
|
Peter J. Hunkel |
|
International Equity Fund |
|
None |
|
|
|
James Keegan |
|
Seix Core Bond Fund |
|
None |
|
|
Seix Corporate Bond Fund |
|
None |
|
|
Seix Limited Duration Fund |
|
None |
|
|
Seix Short-Term Bond Fund |
|
None |
|
|
Seix Total Return Bond Fund |
|
100,001 - 500,000 |
|
|
Seix U.S. Government Securities Ultra-Short Bond Fund |
|
None |
|
|
Seix U.S. Mortgage Fund |
|
None |
|
|
Seix Ultra-Short Bond Fund |
|
None |
|
|
|
Michael Kirkpatrick |
|
Seix High Income Fund |
|
50,001-100,000 |
|
|
Seix High Yield Fund |
|
50,001 - 100,000 |
|
|
|
Mills Riddick |
|
Ceredex Large Cap Value Equity Fund |
|
100,001-500,000 |
63
|
|
|
|
|
Portfolio Manager |
|
RidgeWorth Fund(s) Managed |
|
Range of Securities
Owned ($) |
Michael Rieger |
|
Seix Core Bond Fund |
|
None |
|
|
Seix Limited Duration Fund |
|
None |
|
|
Seix Short-Term Bond Fund |
|
None |
|
|
Seix U.S. Mortgage Fund |
|
None |
|
|
Seix U.S. Government Securities Ultra-Short Bond Fund |
|
None |
|
|
Seix Ultra-Short Bond Fund |
|
None |
|
|
Seix Total Return Bond Fund |
|
None |
|
|
|
Michael A. Sansoterra |
|
Silvant Large Cap Growth Stock Fund |
|
100,001 500,000 |
|
|
Silvant Small Cap Growth Stock Fund |
|
None |
|
|
|
Ron Schwartz |
|
Seix High Grade Municipal Bond Fund |
|
10,001 - 50,000 |
|
|
Seix Investment Grade Tax-Exempt Bond Fund |
|
10,001 - 50,000 |
|
|
Seix Short-Term Municipal Bond Fund |
|
10,001 - 50,000 |
|
|
|
Dusty Self |
|
Seix Short-Term Municipal Bond Fund |
|
10,001 - 50,000 |
|
|
|
Michael B. Trigg |
|
International Equity Fund |
|
None |
|
|
|
Perry Troisi |
|
Seix Core Bond Fund |
|
None |
|
|
Seix Corporate Bond Fund |
|
None |
|
|
Seix Limited Duration Fund |
|
None |
|
|
Seix Short-Term Bond Fund |
|
None |
|
|
Seix Total Return Bond Fund |
|
100,001 - 500,000 |
|
|
Seix U.S. Government Securities Ultra-Short Bond Fund |
|
None |
|
|
Seix U.S Mortgage Fund |
|
None |
|
|
Seix Ultra-Short Bond Fund |
|
None |
|
|
|
Leslie Tubbs |
|
Innovative Growth Stock Fund |
|
None |
|
|
|
Michael Underhill |
|
Capital Innovations Global Resources and
Infrastructure Fund |
|
10,001-50,000 |
|
|
|
Kurt R. Winrich |
|
International Equity Fund |
|
None |
|
|
|
Don Wordell |
|
Ceredex Mid-Cap Value Equity Fund |
|
100,001 - 500,000 |
|
|
|
Jonathan Yozzo |
|
Seix Core Bond Fund |
|
None |
|
|
Seix Corporate Bond Fund |
|
None |
|
|
Seix U.S. Mortgage Fund |
|
None |
|
|
Seix Total Return Bond Fund |
|
None |
|
|
Seix Limited Duration Fund |
|
None |
|
|
Seix Short-Term Bond Fund |
|
None |
|
|
Seix Ultra-Short Bond Fund |
|
None |
|
|
|
Anthony Zackery |
|
Innovative Growth Stock Fund |
|
None |
|
|
|
Nancy Zevenbergen |
|
Innovative Growth Stock Fund |
|
None |
THE ADMINISTRATOR
General. State Street Bank and Trust Company serves as administrator (the Administrator) of the Trust. The Administrator, a Massachusetts
trust company, has its principal business offices at One Lincoln Street, Boston, MA 02111. The Administrator provides administration services to other investment companies.
64
Administration Agreement with the Trust. The Trust and the Administrator have entered into an
Administration Agreement dated August 30, 2010. Under the Administration Agreement, the Administrator provides the Trust with administrative services, including day-to-day administration of matters necessary to each Funds operations,
maintenance of records and the books of the Trust, preparation of reports, assistance with compliance monitoring of the Funds activities, and certain supplemental services in connection with the Trusts obligations under the
Sarbanes-Oxley Act of 2002.
The Administration Agreement provides that it shall remain in effect until November 1, 2017, and shall continue in
effect for successive one-year periods, unless terminated by either party on not less than 90 days written notice to the other party.
Under the
Administration Agreement, the Administrator is entitled to receive an asset-based fee, which is calculated daily and paid monthly at an annual rate based on the average daily net assets of the Trust for administration services as follows:
0.011% on the first $25 billion of net assets,
0.0040% on the next $40 billion of net assets and
0.0025% on net assets thereafter.
There is a
minimum annual charge of $45,000 per fund.
Subject to a relationship waiver of $15,000, the following table shows administrative fees paid by the
Funds for the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees Paid ($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
Aggressive Growth Allocation Strategy |
|
|
881 |
|
|
|
1,653 |
|
|
|
2,142 |
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
9,783 |
* |
|
|
49,199 |
** |
|
|
56,817 |
** |
Ceredex Large Cap Value Equity Fund |
|
|
222,768 |
|
|
|
240,835 |
|
|
|
193,551 |
|
Ceredex Mid-Cap Value Equity Fund |
|
|
393,073 |
|
|
|
420,290 |
|
|
|
325,133 |
|
Ceredex Small Cap Value Equity Fund |
|
|
108,274 |
|
|
|
157,917 |
|
|
|
167,938 |
|
Conservative Allocation Strategy |
|
|
6,636 |
|
|
|
6,526 |
|
|
|
5,847 |
|
Growth Allocation Strategy |
|
|
5,849 |
|
|
|
6,672 |
|
|
|
6,425 |
|
Innovative Growth Stock Fund |
|
|
3,333 |
|
|
|
4,853 |
|
|
|
3,755 |
|
International Equity Fund |
|
|
2,643 |
|
|
|
2,679 |
|
|
|
7,582 |
|
Moderate Allocation Strategy |
|
|
9,666 |
|
|
|
13,573 |
|
|
|
15,968 |
|
Seix Core Bond Fund |
|
|
25,326 |
|
|
|
21,394 |
|
|
|
28,313 |
|
Seix Corporate Bond Fund |
|
|
2,224 |
|
|
|
3,698 |
|
|
|
5,907 |
|
Seix Floating Rate High Income Fund |
|
|
580,141 |
|
|
|
780,429 |
|
|
|
770,505 |
|
Seix Georgia Tax-Exempt Bond Fund |
|
|
12,800 |
|
|
|
13,130 |
|
|
|
13,274 |
|
Seix High Grade Municipal Bond Fund |
|
|
11,548 |
|
|
|
8,761 |
|
|
|
5,783 |
|
Seix High Income Fund |
|
|
75,040 |
|
|
|
93,854 |
|
|
|
87,126 |
|
Seix High Yield Fund |
|
|
64,797 |
|
|
|
92,143 |
|
|
|
163,746 |
|
Seix Investment Grade Tax-Exempt Bond Fund |
|
|
65,959 |
|
|
|
68,863 |
|
|
|
77,525 |
|
Seix Limited Duration Fund |
|
|
670 |
|
|
|
682 |
|
|
|
738 |
|
Seix North Carolina Tax-Exempt Bond Fund |
|
|
3,365 |
|
|
|
3,769 |
|
|
|
4,493 |
|
Seix Short-Term Bond Fund |
|
|
5,409 |
|
|
|
4,959 |
|
|
|
6,397 |
|
Seix Short-Term Municipal Bond Fund |
|
|
4,286 |
|
|
|
4,158 |
|
|
|
2,334 |
|
Seix Total Return Bond Fund |
|
|
114,491 |
|
|
|
109,621 |
|
|
|
119,837 |
|
Seix U.S. Government Securities Ultra-Short Bond Fund |
|
|
160,974 |
|
|
|
182,049 |
|
|
|
212,959 |
|
Seix U.S. Mortgage Fund |
|
|
2,757 |
|
|
|
1,126 |
|
|
|
1,429 |
|
Seix Ultra-Short Bond Fund |
|
|
11,371 |
|
|
|
14,709 |
|
|
|
12,580 |
|
Seix Virginia Intermediate Municipal Bond Fund |
|
|
10,236 |
|
|
|
12,751 |
|
|
|
14,092 |
|
Silvant Large Cap Growth Stock Fund |
|
|
27,498 |
|
|
|
28,549 |
|
|
|
28,199 |
|
Silvant Small Cap Growth Stock Fund |
|
|
9,462 |
|
|
|
16,298 |
|
|
|
19,065 |
|
* |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), the Predecessor Fund paid administrative fees of $9,747. For the period February 20, 2016 to March 31, 2016, the
Fund paid administrative fees of $36. |
65
** |
Administrative fees paid by the Predecessor Fund for the Predecessor Funds fiscal years ended November 30, 2015 and November 30, 2014. |
THE DISTRIBUTOR
The Trust and
RidgeWorth Distributors LLC (the Distributor) are parties to a Distribution Agreement whereby the Distributor acts as statutory underwriter for the Trusts shares. The Distributor is a wholly-owned subsidiary of Foreside Fund
Services, LLC and is not affiliated with the Adviser or the Trust.
The principal business address of the Distributor is Three Canal Plaza, Suite 100,
Portland, Maine 04101. Under the terms of the Distribution Agreement, the Distributor must use all reasonable efforts, consistent with its other business, in connection with the continuous offering of shares of the Trust.
In addition, each of A, C and R Shares of the respective Funds has a distribution and service plan (the A Shares Plan, C Shares Plan
and R Shares Plan, respectively).
Under the terms of the Distribution Agreement, the Trust is responsible for all compensation paid to
the Distributor for distribution services as authorized under each Funds distribution plan.
To the extent the Trust is not authorized to make
such payments or has insufficient funds under the distribution plan to pay the Distributor, the Adviser, pursuant to a Distribution Services Agreement with the Distributor, shall compensate the Distributor for any distribution-related services.
The continuance of a distribution agreement must be specifically approved at least annually (i) by the vote of the Trustees or by a vote of the
shareholders of the Funds and (ii) by the vote of a majority of the Trustees who are not parties to such distribution agreement or interested persons of any party thereto, as defined in the 1940 Act, cast in person at a meeting
called for the purpose of voting on such approval.
A distribution agreement will terminate automatically in the event of its assignment, and is
terminable at any time without penalty by the trustees, the Distributor, or, with respect to any fund, by a majority of the outstanding shares of that fund, upon 60 days written notice by either party. The Distributor has no obligation to sell any
specific quantity of Fund shares.
For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Distributor
received and reallowed sales loads on the sale of A Shares of each of the Funds, as shown in the following table (amounts designated as are $0 or have been rounded to $0):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Sales Charges
Payable to Distributor
($) |
|
|
Amount Reallowed by
Distributor1 ($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Aggressive Growth Allocation Strategy |
|
|
1,849 |
|
|
|
4,546 |
|
|
|
5,517 |
|
|
|
347 |
|
|
|
753 |
|
|
|
799 |
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
4,909 |
* |
|
|
3,440 |
** |
|
|
23,651 |
** |
|
|
909 |
*** |
|
|
442 |
**** |
|
|
3,476 |
**** |
Ceredex Large Cap Value Equity Fund |
|
|
9,858 |
|
|
|
138,999 |
|
|
|
87,268 |
|
|
|
1,209 |
|
|
|
20,837 |
|
|
|
10,977 |
|
Ceredex Mid-Cap Value Equity Fund |
|
|
35,321 |
|
|
|
191,948 |
|
|
|
234,857 |
|
|
|
4,702 |
|
|
|
27,087 |
|
|
|
33,189 |
|
Ceredex Small Cap Value Equity Fund |
|
|
5,576 |
|
|
|
4,124 |
|
|
|
11,651 |
|
|
|
932 |
|
|
|
623 |
|
|
|
1,770 |
|
Conservative Allocation Strategy |
|
|
13,439 |
|
|
|
22,115 |
|
|
|
11,551 |
|
|
|
2,562 |
|
|
|
3,987 |
|
|
|
2,055 |
|
Growth Allocation Strategy |
|
|
9,765 |
|
|
|
5,343 |
|
|
|
2,515 |
|
|
|
1,485 |
|
|
|
753 |
|
|
|
387 |
|
Innovative Growth Stock Fund |
|
|
11,696 |
|
|
|
73,402 |
|
|
|
119,631 |
|
|
|
1,668 |
|
|
|
11,878 |
|
|
|
16,455 |
|
International Equity Fund |
|
|
11,338 |
|
|
|
14,725 |
|
|
|
6,116 |
|
|
|
1,721 |
|
|
|
1,913 |
|
|
|
841 |
|
Moderate Allocation Strategy |
|
|
8,687 |
|
|
|
3,923 |
|
|
|
14,222 |
|
|
|
1,259 |
|
|
|
549 |
|
|
|
2,086 |
|
Seix Core Bond Fund |
|
|
3,235 |
|
|
|
152 |
|
|
|
277 |
|
|
|
538 |
|
|
|
24 |
|
|
|
59 |
|
Seix Corporate Bond Fund |
|
|
898 |
|
|
|
|
|
|
|
|
|
|
|
140 |
|
|
|
153 |
|
|
|
|
|
Seix Floating Rate High Income Fund |
|
|
86,229 |
|
|
|
46,427 |
|
|
|
281,970 |
|
|
|
8,303 |
|
|
|
4,184 |
|
|
|
26,993 |
|
Seix Georgia Tax-Exempt Bond Fund |
|
|
5,632 |
|
|
|
2,647 |
|
|
|
946 |
|
|
|
1,277 |
|
|
|
525 |
|
|
|
146 |
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Sales Charges
Payable to Distributor
($) |
|
|
Amount Reallowed by
Distributor1 ($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Seix High Grade Municipal Bond Fund |
|
|
22,709 |
|
|
|
69,721 |
|
|
|
34,226 |
|
|
|
3,718 |
|
|
|
11,205 |
|
|
|
6,367 |
|
Seix High Income Fund |
|
|
23,385 |
|
|
|
77,572 |
|
|
|
72,310 |
|
|
|
3,867 |
|
|
|
12,173 |
|
|
|
11,846 |
|
Seix High Yield Fund |
|
|
17,190 |
|
|
|
14,520 |
|
|
|
14,502 |
|
|
|
3,056 |
|
|
|
2,555 |
|
|
|
2,803 |
|
Seix Investment Grade Tax-Exempt Bond Fund |
|
|
23,868 |
|
|
|
43,710 |
|
|
|
5,981 |
|
|
|
4,289 |
|
|
|
6,979 |
|
|
|
983 |
|
Seix North Carolina Tax-Exempt Bond Fund |
|
|
371 |
|
|
|
455 |
|
|
|
|
|
|
|
59 |
|
|
|
71 |
|
|
|
|
|
Seix Short-Term Bond Fund |
|
|
1,318 |
|
|
|
133 |
|
|
|
4,575 |
|
|
|
147 |
|
|
|
15 |
|
|
|
640 |
|
Seix Total Return Bond Fund |
|
|
2,967 |
|
|
|
5,008 |
|
|
|
1,395 |
|
|
|
536 |
|
|
|
806 |
|
|
|
224 |
|
Seix U.S. Mortgage Fund |
|
|
4,959 |
|
|
|
180 |
|
|
|
180 |
|
|
|
90 |
|
|
|
|
|
|
|
20 |
|
Seix Virginia Intermediate Municipal Bond Fund |
|
|
2,297 |
|
|
|
2,406 |
|
|
|
4,701 |
|
|
|
374 |
|
|
|
382 |
|
|
|
793 |
|
Silvant Large Cap Growth Stock Fund |
|
|
31,904 |
|
|
|
18,371 |
|
|
|
21,586 |
|
|
|
4,379 |
|
|
|
2,603 |
|
|
|
3,161 |
|
Silvant Small Cap Growth Stock Fund |
|
|
747 |
|
|
|
19,463 |
|
|
|
5,350 |
|
|
|
99 |
|
|
|
2,574 |
|
|
|
632 |
|
1 |
Reflects amounts reallowed by the Distributor for allowable distribution-related expenditures and services. |
* |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), the Predecessor Funds distributor received sales loads of $0 on the sale of A Shares of the Predecessor Fund. For
the period February 20, 2016 to March 31, 2016, the Funds Distributor received sales loads of $4,000 on the sale of A Shares of the Fund. |
** |
For the Predecessor Funds fiscal years ended November 30, 2015 and November 30, 2014, the Predecessor Funds distributor received sales loads on the sale of A Shares of the Predecessor Fund.
|
*** |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), the Predecessor Funds distributor reallowed sales loads of $0 on the sale of A Shares of the Predecessor Fund. For
the period February 20, 2016 to March 31, 2016, the Funds Distributor reallowed sales loads of $909 on the sale of A Shares of the Fund. |
**** |
For the Predecessor Funds fiscal years ended November 30, 2015 and November 30, 2014, the Predecessor Funds distributor re-allowed sales loads on the sale of Class A shares of the Predecessor
Fund. |
Each of the Equity Funds and the Allocation Strategies (excluding the Conservative Allocation Strategy) pays the following amount
(reallowance) of front-end sales charge to investment consultants (Dealers) as a percentage of the offering price of A Shares:
|
|
|
|
|
|
|
|
|
|
|
Less than $50,000 |
|
More than $50,000 but less than $100,000 |
|
More than $100,000 but less than $250,000 |
|
More than $250,000 but less than $500,000 |
|
More than $500,000 but less than $1,000,000 |
|
$1,000,000 and over1 |
5.00% |
|
4.00% |
|
3.00% |
|
2.00% |
|
1.75% |
|
0.00% |
1 |
While investments of more than $1,000,000 are not subject to a front-end sales charge, dealers may receive commissions ranging from 0.25% to 0.75% on such purchases. Merrill Lynch Pierce Fenner & Smith, Inc.
(Merrill Lynch) receives an additional 0.25% of the front-end sales charge of A Shares of certain Funds. Dealer commissions on investments of over $1,000,000 are paid on a tiered basis as follows: |
|
|
|
Trade Amount |
|
Payout to Dealer |
$1,000,000 $2,999,999 |
|
0.75% |
$3,000,000 $49,999,999 |
|
0.50% |
$50,000,000 and above |
|
0.25% |
Each of the:
Seix Core
Bond Fund,
Seix Corporate Bond Fund,
Seix Georgia
Tax-Exempt Bond Fund
Seix High Grade Municipal Bond Fund,
Seix High Income Fund,
Seix High Yield Fund,
Seix Investment Grade Tax-Exempt Bond Fund,
Seix North Carolina
Tax-Exempt Bond Fund
67
Seix Total Return Bond Fund, and Seix Virginia Intermediate Municipal Bond Fund
pays the following amount (reallowance) of front-end sales charge to Dealers as a percentage of the offering price of A Shares:
|
|
|
|
|
|
|
|
|
|
|
Less than $50,000 |
|
More than $50,000 but less than $100,000 |
|
More than $100,000 but less than $250,000 |
|
More than $250,000 but less than $500,000 |
|
More than $500,000 but less than $1,000,000 |
|
$1,000,000 and over1 |
4.00% |
|
3.75% |
|
2.75% |
|
2.00% |
|
1.75% |
|
0.00% |
1 |
While investments of more than $1,000,000 are not subject to a front-end sales charge, dealers may receive commissions ranging from 0.25% to 0.50% on such purchases. Merrill Lynch receives an additional 0.25% of the
front-end sales charge of A Shares of certain Funds. Dealer commissions on investments of over $1,000,000 are paid on a tiered basis as follows: |
|
|
|
Trade Amount |
|
Payout to Dealer |
$1,000,000 $2,999,999 |
|
0.50% |
$3,000,000 $49,999,999 |
|
0.25% |
$50,000,000 and above |
|
0.25% |
Each of the:
Seix Floating Rate High Income Fund,
Seix Short-Term Bond Fund
Seix
Short-Term Municipal Bond Fund and
Seix U.S. Mortgage Fund,
pays the following amount (reallowance) of front-end sales charge to Dealers as a percentage of the offering price of A Shares:
|
|
|
|
|
|
|
|
|
|
|
Less than $50,000 |
|
More than $50,000 but less than $100,000 |
|
More than $100,000 but less than $250,000 |
|
More than $250,000 but than less $500,000 |
|
More than $500,000 but less than $1,000,000 |
|
$1,000,000 and over1 |
2.25% |
|
2.00% |
|
1.75% |
|
1.50% |
|
1.25% |
|
0.00% |
1 |
While investments of more than $1,000,000 are not subject to a front-end sales charge, dealers may receive commissions ranging from 0.25% to 0.50% on such purchases. Merrill Lynch receives an additional 0.25% of the
front-end sales charge of A Shares of certain Funds. Dealer commissions on investments of over $1,000,000 are paid on a tiered basis as follows: |
|
|
|
Trade Amount |
|
Payout to Dealer |
$1,000,000 $2,999,999 |
|
0.50% |
$3,000,000 $49,999,999 |
|
0.25% |
$50,000,000 and above |
|
0.25% |
For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Distributor
received and reallowed sales loads on the sale of C Shares of each of the Funds, as shown in the following table (amounts designated as are $0 or have been rounded to $0):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Sales Charges Payable
to Distributor ($) |
|
|
Amount Reallowed by
Distributor ($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Aggressive Growth Allocation Strategy |
|
|
811 |
|
|
|
743 |
|
|
|
316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
|
* |
|
|
|
** |
|
|
2,871 |
** |
|
|
|
* |
|
|
|
** |
|
|
2,871 |
** |
Ceredex Large Cap Value Equity Fund |
|
|
14,158 |
|
|
|
23,469 |
|
|
|
21,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ceredex Mid-Cap Value Equity Fund |
|
|
74,876 |
|
|
|
163,014 |
|
|
|
242,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ceredex Small Cap Value Equity Fund |
|
|
8,815 |
|
|
|
6,777 |
|
|
|
13,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Conservative Allocation Strategy |
|
|
44,820 |
|
|
|
35,033 |
|
|
|
45,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth Allocation Strategy |
|
|
227 |
|
|
|
1,889 |
|
|
|
1,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Sales Charges Payable
to Distributor ($) |
|
|
Amount Reallowed by
Distributor ($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Moderate Allocation Strategy |
|
|
2,532 |
|
|
|
3,369 |
|
|
|
7,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix Corporate Bond Fund |
|
|
1,213 |
|
|
|
404 |
|
|
|
477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix Floating Rate High Income Fund |
|
|
94,903 |
|
|
|
104,574 |
|
|
|
484,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix Short-Term Bond Fund |
|
|
369 |
|
|
|
499 |
|
|
|
747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix U.S. Mortgage Fund |
|
|
1,463 |
|
|
|
310 |
|
|
|
1,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Silvant Large Cap Growth Stock Fund |
|
|
9,538 |
|
|
|
3,628 |
|
|
|
2,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Silvant Small Cap Growth Stock Fund |
|
|
878 |
|
|
|
839 |
|
|
|
853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), the Predecessor Funds distributor received and re-allowed sales loads of $0 on the sale of C Shares of the
Predecessor Fund. For the period February 20, 2016 to March 31, 2016, the Funds Distributor received and re-allowed sales loads of $0 on the sale of C Shares of the Fund. |
** |
For the Predecessor Funds fiscal years ended November 30, 2015 and November 30, 2014, the Predecessor Funds distributor received and re-allowed sales loads on the sale of C Shares of the
Predecessor Fund (amounts designated as are $0 or have been rounded to $0). |
For the fiscal years ended March 31,
2016, March 31, 2015, and March 31, 2014, the Distributor did not receive and reallow any sales loads on the sale of R Shares of each of the Funds.
A Shares, C Shares and R Shares Distribution Plans
The
Distribution Agreement and the A Shares Plan adopted by the Trust provide that A Shares of the Funds will pay the Distributor fees for furnishing services related to (a) the distribution and sale of shares of each Fund and (b) the
shareholders servicing of A Shares of each Fund. The table below shows the maximum amount approved by the Board of Trustees as (i) aggregate fees for distribution and shareholder service activities and (ii) the maximum amount of the fee
allocated for shareholder servicing:
|
|
|
|
|
|
|
Fund |
|
Maximum A Shares Plan Distribution and Service Fee |
|
Current A Shares Plan Distribution and Service Fee1 |
|
Maximum Amount of A Shares Plan Distribution and Service Fee
Payable for Shareholder Services2 |
Aggressive Growth Allocation Strategy |
|
0.35% |
|
0.30% |
|
0.25% |
Capital Innovations Global Resources and Infrastructure Fund |
|
0.25% |
|
0.25% |
|
0.25% |
Ceredex Large Cap Value Equity Fund |
|
0.33% |
|
0.30% |
|
0.25% |
Ceredex Mid-Cap Value Equity Fund |
|
0.35% |
|
0.30% |
|
0.25% |
Ceredex Small Cap Value Equity Fund |
|
0.33% |
|
0.30% |
|
0.25% |
Conservative Allocation Strategy |
|
0.35% |
|
0.30% |
|
0.25% |
Growth Allocation Strategy |
|
0.35% |
|
0.30% |
|
0.25% |
Innovative Growth Stock Fund |
|
0.35% |
|
0.30% |
|
0.25% |
International Equity Fund |
|
0.33% |
|
0.30% |
|
0.25% |
Moderate Allocation Strategy |
|
0.35% |
|
0.30% |
|
0.25% |
Seix Core Bond Fund |
|
0.25% |
|
0.25% |
|
0.25% |
Seix Corporate Bond Fund |
|
0.35% |
|
0.30% |
|
0.25% |
Seix Floating Rate High Income Fund |
|
0.35% |
|
0.30% |
|
0.25% |
Seix Georgia Tax-Exempt Bond Fund |
|
0.18% |
|
0.15% |
|
0.15% |
Seix High Grade Municipal Bond Fund |
|
0.18% |
|
0.15% |
|
0.15% |
Seix High Income Fund |
|
0.30% |
|
0.30% |
|
0.25% |
Seix High Yield Fund |
|
0.25% |
|
0.25% |
|
0.25% |
Seix Investment Grade Tax-Exempt Bond Fund |
|
0.35% |
|
0.30% |
|
0.25% |
Seix North Carolina Tax-Exempt Bond Fund |
|
0.15% |
|
0.15% |
|
0.15% |
Seix Short-Term Bond Fund |
|
0.23% |
|
0.20% |
|
0.15% |
Seix Short-Term Municipal Bond Fund |
|
0.15% |
|
0.15% |
|
0.15% |
Seix Total Return Bond Fund |
|
0.25% |
|
0.25% |
|
0.25% |
Seix U.S. Mortgage Fund |
|
0.23% |
|
0.20% |
|
0.15% |
Seix Virginia Intermediate Municipal Bond Fund |
|
0.15% |
|
0.15% |
|
0.15% |
Silvant Large Cap Growth Stock Fund |
|
0.35% |
|
0.30% |
|
0.25% |
Silvant Small Cap Growth Stock Fund |
|
0.35% |
|
0.30% |
|
0.25% |
1 |
The Board has currently approved the implementation of only the amounts shown in the column above. Payments under the A Shares Plan may not exceed the amounts shown above unless the Board approves the implementation of
higher amounts. |
69
2 |
Up to the amounts specified may be used to provide compensation for personnel, ongoing servicing and/or maintenance of shareholder accounts with respect to the A Shares of the applicable Fund. |
In addition, the Distribution Agreement and the C Shares Plan adopted by the Trust provide that C Shares of each applicable Fund will pay the Distributor a
fee of up to 0.75% of the average daily net assets of that Fund. The Distribution Agreement and the R Shares Plan provide that R Shares will pay the Distributor a fee of up to 0.25% of the average daily net assets of that Fund. The Distributor can
use these fees to compensate broker-dealers and service providers that provide administrative and/or distribution services to each Fund. In addition, C Shares and R Shares are subject to a service fee of up to 0.25% of the average daily net assets
of the C Shares and R Shares of each applicable Fund. This service fee will be used for services provided and expenses incurred in maintaining shareholder accounts, responding to shareholder inquiries and providing information to C Shares or R
Shares shareholders or their customers who beneficially own C Shares or R Shares.
Services for which broker-dealers and service providers may be
compensated include establishing and maintaining customer accounts and records; aggregating and processing purchase and redemption requests from customers; placing net purchase and redemption orders; automatically investing customer account cash
balances; providing periodic statements to customers; arranging for wires; answering customer inquiries concerning their investments; assisting customers in changing dividend options, account designations, and addresses; performing sub-accounting
functions; processing dividend payments from the Trust on behalf of customers; and forwarding shareholder communications from the Trust (such as proxies, shareholder reports, and dividend distribution and tax notices) to these customers with respect
to investments in the Trust.
Certain state securities laws may require those financial institutions providing such distribution services to register as
dealers pursuant to state law. Although banking laws and regulations prohibit banks from distributing shares of open-end investment companies such as the Trust, according to an opinion issued to the staff of the SEC by the Office of the Comptroller
of the Currency, financial institutions are not prohibited from acting in other capacities for investment companies, such as providing shareholder services. Should future legislative, judicial, or administrative action prohibit or restrict the
activities of financial institutions in connection with providing shareholder services, the Trust may be required to alter materially or discontinue its arrangements with such financial institutions.
The Trust has adopted the A Shares Plan, C Shares Plan and R Shares Plan, in each case, in accordance with the provisions of Rule 12b-1 under the 1940
Act, which rule regulates circumstances under which an investment company may directly or indirectly bear expenses relating to the distribution of its shares.
Continuance of the A Shares Plan, C Shares Plan and the R Shares Plan must be approved annually by a majority of the Trustees and by a majority of the
disinterested Trustees.
Distribution related expenditures under the A Shares Plan, C Shares Plan and R Shares Plan may support the distribution of any
class or combination of classes of Shares of a Fund. The A Shares Plan, C Shares Plan and R Shares Plan require that quarterly written reports of amounts spent under the A Shares Plan, C Shares Plan and R Shares Plan, respectively, and the purposes
of such expenditures be furnished to and reviewed by the Trustees.
The A Shares Plan, C Shares Plan and R Shares Plan may not be amended to increase
materially the amount that may be spent thereunder without approval by a majority of the outstanding shares of the affected class of shares of the Trust. All material amendments of the Plans will require approval by a majority of the Trustees and of
the disinterested Trustees.
70
There is no sales charge on purchases of C Shares or R Shares, but C Shares are subject to a contingent
deferred sales charge if they are redeemed within one year of purchase. Pursuant to the Distribution Agreement, the C Shares Plan and R Shares Plan, the C Shares and R Shares are subject to an ongoing distribution and service fee calculated on
each Funds aggregate average daily net assets attributable to its C Shares or R Shares.
The following amounts paid to the Distributor by the Funds
under each Plan during the fiscal year ended March 31, 2016 were used as set forth below (no amounts were paid for Sales Personnel or Interest Carrying or Other Financing Charges):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
Advertising |
|
|
Printing and Mailing of Prospectuses to Other Than Current Shareholders |
|
|
Compensation to Underwriters |
|
|
Compensation to Dealers |
|
|
Compensation to Sales Personnel |
|
|
Interest Carrying or Other Financing Charges |
|
|
Other Marketing Expenses |
|
Aggressive Growth Allocation Strategy |
|
|
|
|
|
|
|
|
|
$ |
727 |
|
|
$ |
31,179 |
|
|
|
|
|
|
|
|
|
|
$ |
1,519 |
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,724* |
|
|
|
|
|
|
|
|
|
|
|
24 |
|
Ceredex Large Cap Value Equity Fund |
|
|
|
|
|
|
|
|
|
|
48,422 |
|
|
|
1,214,512 |
|
|
|
|
|
|
|
|
|
|
|
104,572 |
|
Ceredex Mid-Cap Value Equity Fund |
|
|
|
|
|
|
|
|
|
|
85,448 |
|
|
|
2,032,459 |
|
|
|
|
|
|
|
|
|
|
|
181,305 |
|
Ceredex Small Cap Value Equity Fund |
|
|
|
|
|
|
|
|
|
|
23,688 |
|
|
|
657,641 |
|
|
|
|
|
|
|
|
|
|
|
49,192 |
|
Conservative Allocation Strategy |
|
|
|
|
|
|
|
|
|
|
1,435 |
|
|
|
238,747 |
|
|
|
|
|
|
|
|
|
|
|
3,213 |
|
Growth Allocation Strategy Fund |
|
|
|
|
|
|
|
|
|
|
1,281 |
|
|
|
48,260 |
|
|
|
|
|
|
|
|
|
|
|
2,747 |
|
Innovative Growth Stock Fund |
|
|
|
|
|
|
|
|
|
|
194 |
|
|
|
17,832 |
|
|
|
|
|
|
|
|
|
|
|
405 |
|
International Equity Fund |
|
|
|
|
|
|
|
|
|
|
556 |
|
|
|
10,035 |
|
|
|
|
|
|
|
|
|
|
|
1,279 |
|
Moderate Allocation Strategy |
|
|
|
|
|
|
|
|
|
|
2,139 |
|
|
|
158,543 |
|
|
|
|
|
|
|
|
|
|
|
4,156 |
|
Seix Core Bond Fund |
|
|
|
|
|
|
|
|
|
|
5,415 |
|
|
|
39,233 |
|
|
|
|
|
|
|
|
|
|
|
13,286 |
|
Seix Corporate Bond Fund |
|
|
|
|
|
|
|
|
|
|
494 |
|
|
|
78,222 |
|
|
|
|
|
|
|
|
|
|
|
937 |
|
Seix Floating Rate High Income Fund |
|
|
|
|
|
|
|
|
|
|
127,250 |
|
|
|
968,464 |
|
|
|
|
|
|
|
|
|
|
|
272,886 |
|
Seix Georgia Tax-Exempt Bond Fund |
|
|
|
|
|
|
|
|
|
|
2,782 |
|
|
|
5,336 |
|
|
|
|
|
|
|
|
|
|
|
380 |
|
Seix High Grade Municipal Bond Fund |
|
|
|
|
|
|
|
|
|
|
2,493 |
|
|
|
22,382 |
|
|
|
|
|
|
|
|
|
|
|
5,635 |
|
Seix High Income Fund |
|
|
|
|
|
|
|
|
|
|
16,431 |
|
|
|
233,100 |
|
|
|
|
|
|
|
|
|
|
|
34,924 |
|
Seix High Yield Fund |
|
|
|
|
|
|
|
|
|
|
14,183 |
|
|
|
24,973 |
|
|
|
|
|
|
|
|
|
|
|
30,457 |
|
Seix Investment Grade Tax-Exempt Bond Fund |
|
|
|
|
|
|
|
|
|
|
14,287 |
|
|
|
69,631 |
|
|
|
|
|
|
|
|
|
|
|
31,666 |
|
Seix Limited Duration Fund |
|
|
|
|
|
|
|
|
|
|
145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
325 |
|
Seix North Carolina Tax-Exempt Bond Fund |
|
|
|
|
|
|
|
|
|
|
733 |
|
|
|
940 |
|
|
|
|
|
|
|
|
|
|
|
1,548 |
|
Seix Short-Term Bond Fund |
|
|
|
|
|
|
|
|
|
|
1,180 |
|
|
|
17,479 |
|
|
|
|
|
|
|
|
|
|
|
2,627 |
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
Advertising |
|
|
Printing and Mailing of Prospectuses to Other Than Current Shareholders |
|
|
Compensation to Underwriters |
|
|
Compensation to Dealers |
|
|
Compensation to Sales Personnel |
|
|
Interest Carrying or Other Financing Charges |
|
|
Other Marketing Expenses |
|
Seix Short-Term Municipal Bond Fund |
|
|
|
|
|
|
|
|
|
|
932 |
|
|
|
7,650 |
|
|
|
|
|
|
|
|
|
|
|
2,126 |
|
Seix Total Return Bond Fund |
|
|
|
|
|
|
|
|
|
|
24,766 |
|
|
|
381,532 |
|
|
|
|
|
|
|
|
|
|
|
55,561 |
|
Seix U.S. Government Securities Ultra-Short Bond Fund |
|
|
|
|
|
|
|
|
|
|
34,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
78,344 |
|
Seix U.S. Mortgage Fund |
|
|
|
|
|
|
|
|
|
|
574 |
|
|
|
55,878 |
|
|
|
|
|
|
|
|
|
|
|
1,616 |
|
Seix Ultra-Short Bond Fund |
|
|
|
|
|
|
|
|
|
|
2,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,134 |
|
Seix Virginia Intermediate Municipal Bond Fund |
|
|
|
|
|
|
|
|
|
|
2,265 |
|
|
|
7,223 |
|
|
|
|
|
|
|
|
|
|
|
4,663 |
|
Silvant Large Cap Growth Stock Fund |
|
|
|
|
|
|
|
|
|
|
5,983 |
|
|
|
597,083 |
|
|
|
|
|
|
|
|
|
|
|
12,961 |
|
Silvant Small Cap Growth Stock Fund |
|
|
|
|
|
|
|
|
|
|
2,124 |
|
|
|
74,835 |
|
|
|
|
|
|
|
|
|
|
|
3,476 |
|
* |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), the Predecessor Funds Distributor paid $1,605 as compensation to broker-dealers. For the period February 20,
2016 to March 31, 2016, the Funds Distributor paid $119 as compensation to broker-dealers. |
For the fiscal years ended
March 31, 2016, March 31, 2015, and March 31, 2014, the Funds paid the following amounts as compensation to broker-dealers pursuant to the A Shares Plan:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount Paid ($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
Aggressive Growth Allocation Strategy |
|
|
12,223 |
|
|
|
14,200 |
|
|
|
13,386 |
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
1,001* |
|
|
|
6,851** |
|
|
|
12,972** |
|
Ceredex Large Cap Value Equity Fund |
|
|
1,210,266 |
|
|
|
1,245,870 |
|
|
|
1,039,762 |
|
Ceredex Mid-Cap Value Equity Fund |
|
|
1,450,719 |
|
|
|
1,842,732 |
|
|
|
1,677,243 |
|
Ceredex Small Cap Value Equity Fund |
|
|
415,433 |
|
|
|
521,111 |
|
|
|
575,767 |
|
Conservative Allocation Strategy |
|
|
44,927 |
|
|
|
46,335 |
|
|
|
48,444 |
|
Growth Allocation Strategy |
|
|
23,641 |
|
|
|
26,888 |
|
|
|
28,019 |
|
Innovative Growth Stock Fund |
|
|
36,331 |
|
|
|
47,259 |
|
|
|
25,240 |
|
International Equity Fund |
|
|
11,734 |
|
|
|
13,714 |
|
|
|
13,796 |
|
Moderate Allocation Strategy |
|
|
124,378 |
|
|
|
55,047 |
|
|
|
58,502 |
|
Seix Core Bond Fund |
|
|
23,825 |
|
|
|
25,004 |
|
|
|
47,063 |
|
Seix Corporate Bond Fund |
|
|
1,806 |
|
|
|
2,574 |
|
|
|
5,365 |
|
Seix Floating Rate High Income Fund |
|
|
453,519 |
|
|
|
567,225 |
|
|
|
507,127 |
|
Seix Georgia Tax-Exempt Bond Fund |
|
|
5,303 |
|
|
|
5,771 |
|
|
|
6,444 |
|
Seix High Grade Municipal Bond Fund |
|
|
21,761 |
|
|
|
21,441 |
|
|
|
14,312 |
|
Seix High Income Fund |
|
|
164,836 |
|
|
|
296,655 |
|
|
|
433,147 |
|
Seix High Yield Fund |
|
|
19,352 |
|
|
|
79,183 |
|
|
|
152,046 |
|
Seix Investment Grade Tax-Exempt Bond Fund |
|
|
81,639 |
|
|
|
86,993 |
|
|
|
101,168 |
|
Seix North Carolina Tax-Exempt Bond Fund |
|
|
900 |
|
|
|
1,186 |
|
|
|
1,293 |
|
Seix Short-Term Bond Fund |
|
|
4,408 |
|
|
|
4,984 |
|
|
|
4,841 |
|
Seix Short-Term Municipal Bond Fund |
|
|
7,944 |
|
|
|
7,319 |
|
|
|
6,962 |
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount Paid ($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
Seix Total Return Bond Fund |
|
|
92,399 |
|
|
|
101,602 |
|
|
|
113,277 |
|
Seix Ultra-Short Bond Fund |
|
|
59,465 |
|
|
|
|
|
|
|
|
|
Seix U.S. Mortgage Fund |
|
|
11,629 |
|
|
|
6,235 |
|
|
|
3,935 |
|
Seix Virginia Intermediate Municipal Bond Fund |
|
|
82,342 |
|
|
|
9,035 |
|
|
|
14,159 |
|
Silvant Large Cap Growth Stock Fund |
|
|
192,678 |
|
|
|
193,702 |
|
|
|
186,052 |
|
Silvant Small Cap Growth Stock Fund |
|
|
24,387 |
|
|
|
29,364 |
|
|
|
32,956 |
|
* |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), the Predecessor Fund paid $941 as compensation to broker-dealers pursuant to the A Shares Plan. For the period
February 20, 2016 to March 31, 2016, the Fund paid $60 as compensation to broker-dealers pursuant to the A Shares Plan. |
** |
For the Predecessor Funds fiscal years ended November 30, 2015 and November 30, 2014. |
For the
fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Funds paid the following amounts as compensation to broker-dealers pursuant to the C Shares Plan.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount Paid ($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
Aggressive Growth Allocation Strategy |
|
|
6,799 |
|
|
|
7,162 |
|
|
|
6,614 |
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
723* |
|
|
|
|
|
|
|
|
|
Ceredex Large Cap Value Equity Fund |
|
|
199,395 |
|
|
|
207,474 |
|
|
|
179,763 |
|
Ceredex Mid-Cap Value Equity Fund |
|
|
772,054 |
|
|
|
834,790 |
|
|
|
701,326 |
|
Ceredex Small Cap Value Equity Fund |
|
|
302,685 |
|
|
|
354,678 |
|
|
|
370,288 |
|
Conservative Allocation Strategy |
|
|
188,510 |
|
|
|
175,008 |
|
|
|
160,782 |
|
Growth Allocation Strategy |
|
|
28,988 |
|
|
|
30,482 |
|
|
|
27,980 |
|
Moderate Allocation Strategy |
|
|
221,556 |
|
|
|
139,143 |
|
|
|
143,387 |
|
Seix Corporate Bond Fund |
|
|
85,089 |
|
|
|
98,721 |
|
|
|
119,908 |
|
Seix Floating Rate High Income Fund |
|
|
604,184 |
|
|
|
757,962 |
|
|
|
649,755 |
|
Seix Short-Term Bond Fund |
|
|
16,208 |
|
|
|
18,260 |
|
|
|
21,097 |
|
Seix U.S. Mortgage Fund |
|
|
50,842 |
|
|
|
43,802 |
|
|
|
52,954 |
|
Silvant Large Cap Growth Stock Fund |
|
|
440,942 |
|
|
|
358,729 |
|
|
|
332,102 |
|
Silvant Small Cap Growth Stock Fund |
|
|
55,337 |
|
|
|
64,204 |
|
|
|
72,232 |
|
* |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), the Predecessor Fund paid $664 as compensation to broker-dealers pursuant to the C Shares Plan. For the period
February 20, 2016 to March 31, 2016, the Fund paid $59 as compensation to broker-dealers pursuant to the C Shares Plan. |
For the
fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Funds paid the amounts shown below as compensation to broker-dealers pursuant to the R Shares Plan:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount Paid ($) |
|
Fund |
|
2016 |
|
2015 |
|
|
2014 |
|
Seix Core Bond Fund |
|
17,125 |
|
|
19,098 |
|
|
|
22,123 |
|
Seix High Income Fund |
|
87,348 |
|
|
108,772 |
|
|
|
112,160 |
|
Seix High Yield Fund |
|
3,202 |
|
|
5,316 |
|
|
|
8,718 |
|
Seix Total Return Bond Fund |
|
280,219 |
|
|
343,710 |
|
|
|
366,385 |
|
Other than any portion of the sales charges imposed on purchases, the following table shows the level of compensation
paid by the Distributor to broker-dealers selling A Shares, C Shares and R Shares.
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
Annual Payout 12b-1 Effective Immediately (A
Shares)1 |
|
|
Initial Payment - At Time Of Sale (C Shares) 2 |
|
|
Annual Payout 12b-1 Effective in the 13th Month (C Shares) 3 |
|
|
Annual Payout 12b-1 Effective Immediately (R Shares) |
|
Aggressive Growth Allocation Strategy |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Ceredex Large Cap Value Equity Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Ceredex Mid-Cap Value Equity Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Ceredex Small Cap Value Equity Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Conservative Allocation Strategy |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Growth Allocation Strategy |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Innovative Growth Stock Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
International Equity Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Moderate Allocation Strategy |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Seix Core Bond Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
0.50 |
% |
Seix Corporate Bond Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Seix Floating Rate High Income Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Seix Georgia Tax-Exempt Bond Fund |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Seix High Grade Municipal Bond Fund |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Seix High Income Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
0.50 |
% |
Seix High Yield Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
0.50 |
% |
Seix Investment Grade Tax-Exempt Bond Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Seix North Carolina Tax-Exempt Bond Fund |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Seix Short-Term Bond Fund |
|
|
0.15 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Seix Short-Term Municipal Bond Fund |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Seix Total Return Bond Fund |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
0.50 |
% |
Seix U.S. Mortgage Fund |
|
|
0.15 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Seix Virginia Intermediate Municipal Bond Fund |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Silvant Large Cap Growth Stock Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
Silvant Small Cap Growth Stock Fund |
|
|
0.25 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
|
|
1 |
Initial Front End Sales Charge for A Shares ranges from 5.75% maximum to 1.50% depending on Fund and breakpoints (outlined in prospectus). |
2 |
Merrill Lynch may receive an additional 0.25% payment at the time of sale related to C Shares of certain Funds. |
3 |
The C Shares Contingent Deferred Sales Charge (CDSC) will be waived for certain retirement plan providers (Intermediary) with whom the Trust has entered into an administrative arrangement under
which the Intermediary agrees to provide certain recordkeeping or administrative services. Under such arrangements, the Trust will not pay an upfront commission. Rather, the Trust shall pay (or cause to be paid) asset-based compensation to the
Intermediary of up to 1.00% annually of the average daily net assets of the plan assets invested in C Shares of the Funds (of which 0.25% consists of the Distribution Plan service fee). The CDSC may also be waived from time to time for certain
broker-dealers that waive payment of compensation due to them. Such broker-dealers may be eligible for an immediate 12b-1 payout. In addition, for certain dealers, purchases made prior to August 1, 2005 will receive a payout of 0.75%.
|
The Distributor uses fees it has received from both the distribution plan and from contingent deferred sales charges to make these
upfront payments to broker-dealers. If, for any reason, there are insufficient fees available to the Distributor from the distribution plan and the contingent deferred sales charges, to make these payments, the Adviser will provide the Distributor
prior to any such initial payment with funds that can, in turn, be used by the Distributor to make these upfront payments to broker-dealers.
Participation Payment Program and Other Payments. The Adviser, the Subadvisers and their affiliates may make payments to certain intermediaries for
participation payment programs or other marketing support, including, but not limited to, business planning assistance, educating dealer personnel about the Funds and shareholder financial planning needs, placement on the intermediarys
preferred or recommended fund company list, sponsorships, and access to sales meetings, sales representatives and management representatives of the dealer.
Participation payment programs generally refer to negotiated ongoing marketing support, rather than ad hoc marketing support payments. All of these
payments are made to intermediaries that are registered as holders of record or dealers of record for accounts in a Fund. These payments are generally based on one or more of the following factors: average
74
net assets of the Funds attributable to that intermediary, gross or net sales of the Funds attributable to that intermediary, reimbursement of ticket charges (fees that an intermediary firm
charges its representatives for effecting transactions in fund shares) or a negotiated lump sum payment.
The Adviser, the Subadvisers and their
affiliates compensate dealers differently depending upon, among other factors, the level and/or type of marketing support provided by the intermediary.
For the 12 months ended March 31, 2016, the following firms have received participation payment program payments:
AIG Advisor Group
Ameriprise Advisor Services, Inc.
Citigroup Global Markets, Inc.
Great-West Life &
Annuity Insurance Co.
Merrill Lynch Pierce Fenner & Smith, Inc.
Morgan Stanley Smith Barney, LLC
UBS Financial Services, Inc.
Shareholder Servicing Plans
A and I
Shares. The Trust has adopted a Shareholder Servicing Plan for the A Shares and I Shares of the Funds (the A Shares and I Shares Servicing Plans). Under the A Shares and I Shares Servicing Plans, the Funds may pay Intermediaries a
fee of up to 0.40% of the average daily net assets attributable to the A Shares and I Shares for the Equity Funds and Allocation Strategies (except for Conservative Allocation Strategy) and a fee of up to 0.20% for the Fixed Income Funds and
Conservative Allocation Strategy. Intermediaries may perform, or may compensate other service providers for performing, the following shareholder services (sometimes referred to as sub-transfer agency services), which may differ for each class and
for each Fund:
(i) establishing and maintaining accounts and records relating to shareholders;
(ii) processing dividend and distribution payments from a Fund on behalf of shareholders;
(iii) providing information periodically to shareholders showing their positions in shares and integrating such statements with those of other
transactions and balances in shareholders other accounts serviced by such intermediary;
(iv) arranging for bank wires;
(v) responding to shareholder inquiries relating to the services performed;
(vi) responding to routine inquiries from shareholders concerning their investment;
(vii) providing sub-accounting with respect to shares beneficially owned by shareholders, or the information to a Fund necessary for
sub-accounting;
(viii) if required by law, forwarding shareholder communications from a Fund (such as proxies, shareholder reports, annual
and semi-annual financial statements and dividend, distribution and tax notices) to shareholders;
(ix) assisting in processing purchase,
exchange and redemption requests from shareholders and in placing such orders with service contractors;
(x) assisting shareholders in
changing dividend options, account designations and addresses;
(xi) providing shareholders with a service that invests the assets of their
accounts in shares pursuant to specific or pre-authorized instructions; and
(xii) providing such other similar services as a Fund or its
shareholders may reasonably request to the extent the intermediary is permitted to do so under applicable statutes, rules and regulations.
75
For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Funds
made the following payments shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount Paid
($) (I Shares) |
|
|
|
|
|
|
|
|
Amount Paid
($) (A Shares) |
|
|
|
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Aggressive Growth Allocation Strategy |
|
|
14,412 |
|
|
|
82,329 |
|
|
|
62,783 |
|
|
|
1,921 |
|
|
|
11,954 |
|
|
|
3,886 |
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
419* |
|
|
|
8,315** |
|
|
|
6,463** |
|
|
|
233*** |
|
|
|
2,538** |
|
|
|
3,823** |
|
Ceredex Large Cap Value Equity Fund |
|
|
6,408,922 |
|
|
|
6,895,462 |
|
|
|
5,638,431 |
|
|
|
1,429,282 |
|
|
|
1,445,272 |
|
|
|
1,224,844 |
|
Ceredex Mid-Cap Value Equity Fund |
|
|
10,805,249 |
|
|
|
11,834,925 |
|
|
|
9,180,236 |
|
|
|
1,790,853 |
|
|
|
2,212,777 |
|
|
|
1,948,694 |
|
Ceredex Small Cap Value Equity Fund |
|
|
2,806,727 |
|
|
|
4,304,647 |
|
|
|
5,138,689 |
|
|
|
479,239 |
|
|
|
586,086 |
|
|
|
630,081 |
|
Conservative Allocation Strategy |
|
|
37,228 |
|
|
|
35,820 |
|
|
|
16,272 |
|
|
|
7,060 |
|
|
|
6,280 |
|
|
|
6,088 |
|
Growth Allocation Strategy |
|
|
182,902 |
|
|
|
207,801 |
|
|
|
208,026 |
|
|
|
4,280 |
|
|
|
7,329 |
|
|
|
8,388 |
|
Innovative Growth Stock Fund |
|
|
57,480 |
|
|
|
41,715 |
|
|
|
75,053 |
|
|
|
9,268 |
|
|
|
4,175 |
|
|
|
901 |
|
International Equity Fund |
|
|
30,427 |
|
|
|
29,371 |
|
|
|
27,149 |
|
|
|
406 |
|
|
|
486 |
|
|
|
|
|
Moderate Allocation Strategy |
|
|
221,556 |
|
|
|
293,056 |
|
|
|
423,721 |
|
|
|
14,803 |
|
|
|
24,965 |
|
|
|
21,578 |
|
Seix Core Bond Fund |
|
|
307,434 |
|
|
|
228,140 |
|
|
|
233,508 |
|
|
|
3,122 |
|
|
|
2,365 |
|
|
|
10,735 |
|
Seix Corporate Bond Fund |
|
|
7,246 |
|
|
|
6,139 |
|
|
|
9,807 |
|
|
|
108 |
|
|
|
156 |
|
|
|
139 |
|
Seix Floating Rate High Income Fund |
|
|
5,043,808 |
|
|
|
7,988,624 |
|
|
|
6,731,249 |
|
|
|
158,251 |
|
|
|
194,877 |
|
|
|
143,428 |
|
Seix Georgia Tax-Exempt Bond Fund |
|
|
116,445 |
|
|
|
87,960 |
|
|
|
2,415 |
|
|
|
439 |
|
|
|
344 |
|
|
|
111 |
|
Seix High Grade Municipal Bond Fund |
|
|
73,877 |
|
|
|
41,935 |
|
|
|
11,931 |
|
|
|
3,372 |
|
|
|
2,905 |
|
|
|
1,251 |
|
Seix High Income Fund |
|
|
1,022,325 |
|
|
|
1,172,015 |
|
|
|
1,051,955 |
|
|
|
52,467 |
|
|
|
63,915 |
|
|
|
69,156 |
|
Seix High Yield Fund |
|
|
493,838 |
|
|
|
303,892 |
|
|
|
188,269 |
|
|
|
3,541 |
|
|
|
15,200 |
|
|
|
12,543 |
|
Seix Investment Grade Tax-Exempt Bond Fund |
|
|
677,451 |
|
|
|
715,030 |
|
|
|
612,480 |
|
|
|
14,035 |
|
|
|
12,286 |
|
|
|
13,751 |
|
Seix Limited Duration Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix North Carolina Tax-Exempt Bond Fund |
|
|
29,309 |
|
|
|
24,255 |
|
|
|
569 |
|
|
|
107 |
|
|
|
106 |
|
|
|
87 |
|
Seix Short-Term Bond Fund |
|
|
50,067 |
|
|
|
42,692 |
|
|
|
9,112 |
|
|
|
748 |
|
|
|
764 |
|
|
|
1,052 |
|
Seix Short-Term Municipal Bond Fund |
|
|
33,019 |
|
|
|
33,485 |
|
|
|
13,746 |
|
|
|
1,727 |
|
|
|
3,290 |
|
|
|
772 |
|
Seix Total Return Bond Fund |
|
|
1,367,901 |
|
|
|
1,128,696 |
|
|
|
988,268 |
|
|
|
52,955 |
|
|
|
56,928 |
|
|
|
55,749 |
|
Seix U.S. Government Securities Ultra Short Bond Fund |
|
|
2,471,321 |
|
|
|
2,496,404 |
|
|
|
2,750,114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix U.S. Mortgage Fund |
|
|
21,919 |
|
|
|
4,049 |
|
|
|
4,757 |
|
|
|
5,991 |
|
|
|
2,785 |
|
|
|
507 |
|
Seix Ultra-Short Bond Fund |
|
|
59,465 |
|
|
|
68,676 |
|
|
|
16,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix Virginia Intermediate Municipal Bond Fund |
|
|
82,342 |
|
|
|
80,484 |
|
|
|
2,485 |
|
|
|
521 |
|
|
|
559 |
|
|
|
651 |
|
Silvant Large Cap Growth Stock Fund |
|
|
419,331 |
|
|
|
420,352 |
|
|
|
382,990 |
|
|
|
14,979 |
|
|
|
13,026 |
|
|
|
14,984 |
|
Silvant Small Cap Growth Stock Fund |
|
|
290,138 |
|
|
|
521,167 |
|
|
|
627,721 |
|
|
|
4,414 |
|
|
|
5,900 |
|
|
|
5,679 |
|
1 |
The amounts in the table above reflect a revision to the amounts reported in the 2013 Annual Report which contained a transposition error. The amounts as originally presented in the 2013 Annual Report were $204,602,
$471,479, $822,418 and $2,538,587 for the Seix High Income Fund Class A and Class I and the Seix Floating Rate High Income Fund Class A and Class I, respectively. |
* |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), the Predecessor Fund paid $312 for I Shares. For the period February 20, 2016 to March 31, 2016, the Fund paid
$107 for I Shares. |
** |
For the Predecessor Funds fiscal years ended November 30, 2015 and November 30, 2014. |
*** |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), the Predecessor Fund paid $171 for A Shares. For the period February 20, 2016 to March 31, 2016, the Fund paid
$62 for A Shares. |
R Shares. The Trust has adopted a Shareholder Servicing Plan for the R Shares of certain of the Funds (the R
Shares Servicing Plan). Under the R Shares Servicing Plan, the Funds may pay Intermediaries a fee of up to 0.25% of the average daily net assets attributable to the R Shares. Intermediaries may perform, or may compensate other service
providers for performing, the following shareholder services, which may differ for each Fund: (i) establishing and maintaining accounts and records relating to shareholders; (ii) processing dividend and distribution payments from a Fund on behalf of
shareholders; (iii) providing information periodically to shareholders showing their positions in
76
shares and integrating such statements with those of other transactions and balances in shareholders other accounts serviced by such intermediary; (iv) arranging for bank wires;
(v) responding to shareholder inquiries relating to the services performed; (vi) responding to routine inquiries from shareholders concerning their investment; (vii) providing sub-accounting with respect to shares beneficially owned
by shareholders, or the information to a Fund necessary for sub-accounting; (viii) if required by law, forwarding shareholder communications from a Fund (such as proxies, shareholder reports, annual and semi-annual financial statements and
dividend, distribution and tax notices) to shareholders; (iv) assisting in processing purchase, exchange and redemption requests from shareholders and in placing such orders with service contractors; (x) assisting shareholders in changing
dividend options, account designations and addresses; (xi) providing shareholders with a service that invests the assets of their accounts in shares pursuant to specific or pre-authorized instructions; and (xii) providing such other
similar services as a Fund or its shareholders may reasonably request to the extent the intermediary is permitted to do so under applicable statutes, rules and regulations.
For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Funds made the following payments shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount Paid ($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
Seix Core Bond Fund |
|
|
993 |
|
|
|
659 |
|
|
|
469 |
|
Seix High Income Fund |
|
|
16,453 |
|
|
|
19,119 |
|
|
|
16,383 |
|
Seix High Yield Fund |
|
|
|
|
|
|
9 |
|
|
|
|
|
Seix Total Return Bond Fund |
|
|
137,909 |
|
|
|
167,675 |
|
|
|
182,344 |
|
THE TRANSFER AGENT
Boston
Financial Data Services, Inc., located at 2000 Crown Colony Drive, Quincy, Massachusetts 02169, serves as the transfer agent and dividend paying agent to the Trust.
THE CUSTODIAN
State Street
Bank and Trust Company (State Street Bank), located at One Lincoln Street, Boston, MA 02111, serves as the fund accounting agent and custodian for the Trust pursuant to a Custodian Agreement dated August 30, 2010.
State Street Bank is responsible for the safekeeping of the assets of the Funds and the fund accounting agent is responsible for calculating the Funds
net asset values. State Street Bank is paid on the basis of net assets and transaction costs of the Funds.
State Street Bank also serves as the custodian
and fund accounting agent for the collateral reinvestment account in which collateral on behalf of the Funds securities lending program is maintained.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP, located at 101 Seaport Boulevard, Boston, Massachusetts 02210, serves as the Trusts independent registered public accounting
firm.
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP, located at 1111 Pennsylvania Avenue, NW, Washington, DC 20004, serves as legal counsel to the Trust.
TRUSTEES OF THE TRUST
Board Responsibilities. The management and affairs of the Trust and each of the Funds are supervised by the Board of Trustees of the Trust pursuant to
the laws of the Commonwealth of Massachusetts. The Board is responsible for overseeing each of the Funds.
77
The Trustees have approved contracts, as described above, under which certain companies provide essential
management services to the Trust.
Like most mutual funds, the day-to-day business of the Trust, including the management of risk, is performed by third
party service providers, such as the Adviser, Subadvisers, Distributor and Administrator.
The Trustees are responsible for overseeing the Trusts
service providers and, thus, have oversight responsibility with respect to risk management performed by those service providers.
Risk management seeks to
identify and address risks, i.e., events or circumstances that could have material adverse effects on the business, operations, shareholder services, investment performance or reputation of the Funds.
The Funds and their service providers employ a variety of processes, procedures and controls to identify those possible events or circumstances, to lessen the
probability of their occurrence and/or to mitigate the effects of such events or circumstances if they do occur.
Each service provider is responsible for
one or more discrete aspects of the Trusts business (e.g., the Adviser and Subadvisers, as applicable, are responsible for the day-to-day management of each Funds portfolio investments) and, consequently, for managing the risks
associated with that business. The Board has emphasized to the Funds service providers the importance of maintaining vigorous risk management.
The
Trustees role in risk oversight begins before the inception of a Fund, at which time certain of the Funds service providers present the Board with information concerning the investment objectives, strategies and risks of the Fund, as
well as proposed investment limitations for the Fund.
Additionally, the Adviser and Subadviser provide the Board with an overview of, among other things,
their investment philosophy, brokerage practices, and compliance infrastructure. Thereafter, the Board continues its oversight function as various personnel, including the Trusts CCO, personnel of the Adviser, Subadviser, and other service
providers such as the Funds independent accountants, make periodic reports to the Audit Committee or to the Board with respect to various aspects of risk management. The Board and the Audit Committee oversee efforts by management and service
providers to manage risks to which the Funds may be exposed.
The Board is responsible for overseeing the nature, extent and quality of the services
provided to the Funds by the Adviser and Subadvisers, and receives information about those services at its regular meetings. In addition, on an annual basis, in connection with its consideration of whether to renew the advisory agreements with the
Adviser and Subadvisers, the Board meets with the Adviser and Subadvisers to review the advisory services.
Among other things, the Board regularly
considers the Advisers and Subadvisers adherence to the Funds investment restrictions and compliance with various policies and procedures and with applicable securities regulations. The Board also reviews information about the
Funds investments, including, for example, reports on the Advisers and Subadvisers use of derivatives in managing the Funds, if any, as well as reports on the Funds investments in ETFs, if any.
The Trusts Chief Compliance Officer meets regularly with the Board to review and discuss compliance issues and Fund, Adviser and Subadviser risk
assessments. At least annually, the Trusts Chief Compliance Officer provides the Board with a report reviewing the adequacy and effectiveness of the Trusts written compliance policies and procedures and those of its service providers,
including the Adviser and Subadvisers as required by Rule 38a-1 under the 1940 Act.
The report addresses the operation of the policies and procedures of
the Trust and each service provider since the date of the last report; any material changes to the policies and procedures since the date of the last report; any recommendations for material changes to the policies and procedures; and any material
compliance matters since the date of the last report.
The Board receives reports from the Funds service providers regarding operational risks and
risks relating to the valuation and liquidity of portfolio securities. In addition, the Advisers Valuation Committee makes regular reports to the Board concerning the pricing of portfolio securities in each Fund with special emphasis on the
securities for which market quotations are not readily available.
78
Each year, the Trusts independent registered public accounting firm reviews with the Audit Committee its
audit of the Funds financial statements, focusing on major areas of risk encountered by the Funds and noting any significant deficiencies or material weaknesses in the Funds internal controls.
In connection with its oversight function, the Board oversees Fund managements implementation of disclosure controls and procedures, which are designed
to ensure that information required to be disclosed by the Trust in its periodic reports with the SEC are recorded, processed, summarized, and reported within the required time periods and are free of material misstatement.
The Board also oversees the Trusts internal controls over financial reporting, which comprise policies and procedures designed to provide reasonable
assurance regarding the reliability of the Trusts financial reporting and the preparation of the Trusts financial statements.
From the
Trustees review of these reports and discussions with the Adviser, Subadvisers, Funds President, Funds Chief Financial Officer, Chief Compliance Officer, independent registered public accounting firm and other service providers, the
Board and its Audit Committee learn in detail about the material risks of the Funds, thereby facilitating a dialogue about how management and service providers identify and mitigate those risks.
The Board recognizes that not all risks that may affect the Funds can be identified or quantified, that it may not be practical or cost-effective to eliminate
or mitigate certain risks, that it may be necessary to bear certain risks (such as investment-related risks) to achieve the Funds goals, and that the processes, procedures and controls employed to address certain risks may be limited in their
effectiveness.
Moreover, reports received by the Trustees as to risk management matters are typically summaries of the relevant information. Most of the
Funds investment management and business affairs are carried out by or through the Funds Adviser, Subadvisers, and other service providers, each of which has an independent interest in risk management but whose policies and the methods
by which one or more risk management functions are carried out may differ from the Funds and each others in the setting of priorities, the resources available, or the effectiveness of relevant controls.
As a result of the foregoing and other factors, the Boards ability to monitor and manage risk, as a practical matter, is subject to limitations.
Members of the Board. There are six members of the Board of Trustees, all of whom except Ashi Parikh are not interested persons of the
Trust, as that term is defined in the 1940 Act (Independent Trustees).
Dr. Sidney E. Harris serves as Chairman of the Board. In his
role as Chairman of the Board, Dr. Harris, among other things, presides over board meetings; presides over executive sessions of the Independent Trustees; oversees the development of agendas for board meetings; facilitates communication between
the Independent Trustees and management and among the Independent Trustees; serves as a key point person for dealings between the Independent Trustees and management; and has such other responsibilities as the Board or Independent Trustees determine
from time to time.
The Board has determined its leadership structure is appropriate given the specific characteristics and circumstances of the Trust,
including, among other things, the amount of assets under management in the Trust, the number of Funds (and classes of shares) overseen by the Board, the Trusts policies and procedures as well as those of its service providers, and the
experience and qualifications of its members.
The Board also believes that its leadership structure facilitates the orderly and efficient flow of
information to the Independent Trustees from fund management.
The Board of Trustees has two standing committees, the Audit Committee and Governance and
Nominating Committee, each of which are chaired by an Independent Trustee and composed entirely of Independent Trustees. In addition, the Board oversees the Funds Valuation Committee, whose actions are reported to the Board at least quarterly
and more frequently, if appropriate.
79
Set forth below are the names, age, position with the Trust, length of term of office, and the principal
occupations and other directorships held during at least the last five years of each of the persons currently serving as a Trustee of the Trust. Unless otherwise noted, the address of each Trustee is c/o RidgeWorth Investments, 3333 Piedmont Road,
Suite 1500, Atlanta, Georgia 30305.
|
|
|
|
|
|
|
|
|
|
|
Name
(month/year of
birth) |
|
Position Held with the Trust |
|
Term of Office
and Length of Time
Served |
|
Principal Occupation(s)
During the Past 5 Years |
|
Number of Portfolios in the RidgeWorth Complex Overseen by Trustees |
|
Other
Directorships Held By
Trustee During the Past
5 Years |
INDEPENDENT TRUSTEE |
|
|
|
|
|
|
|
|
|
|
Tim E. Bentsen (August 1953) |
|
Trustee |
|
Indefinite; since 2012 |
|
LecturerJ.M. Tull School of Accounting, Terry College of Business at University of Georgia (2013-Present); Retired. Audit Partner and Account Executive (1993-2012); Lead Area Managing Partner (2005-2009); Atlanta Office
Managing Partner (2003-2009), KPMG LLP. |
|
29 |
|
Synovus Financial Corp.; Krispy Kreme Doughnuts, Inc. |
|
|
|
|
|
|
Jeffrey M. Biggar (February 1950) |
|
Trustee |
|
Indefinite; since 2007 |
|
Director of Special Gifts for Hawken School (since May 2013); Managing Director, Little Mountain Group, LLC (an independent Registered Investment Advisor consulting firm) (2011-2013); Chief Operating Officer, Cedar Brook Financial
Partners LLC (2008-2010); Chief Executive Officer and Senior Managing Director, Sterling (National City Corp.) (2000-2006). |
|
29 |
|
Multi-Manager Master Portfolios LLC (3
portfolios; thru 2013) |
|
|
|
|
|
|
George C. Guynn (December 1942) |
|
Trustee |
|
Indefinite; since 2008 |
|
Retired. President and CEO, Federal Reserve Bank of Atlanta (1996-2006). |
|
29 |
|
SUSA Registered Fund, LLC; Oxford Industries; Acuity Brands, Inc. (thru 2014); Multi-Manager Master Portfolios LLC (3 portfolios; thru 2013); Genuine Parts Company (thru
2015) |
80
|
|
|
|
|
|
|
|
|
|
|
Name
(month/year of
birth) |
|
Position Held with the Trust |
|
Term of Office
and Length of Time
Served |
|
Principal Occupation(s)
During the Past 5 Years |
|
Number of Portfolios in the RidgeWorth Complex Overseen by Trustees |
|
Other
Directorships Held By
Trustee During the Past
5 Years |
INDEPENDENT TRUSTEE |
|
|
|
|
|
|
|
|
|
|
Sidney E. Harris (July 1949) |
|
Trustee |
|
Indefinite; since 2004 |
|
Professor and Dean Emeritus (since April 2015), Professor (1997-2014), Dean (1997-2004), J. Mack Robinson College of Business, Georgia State University. |
|
29 |
|
Total System Services, Inc.; Multi-Manager Master Portfolios LLC (3 portfolios; thru 2013). |
|
|
|
|
|
|
Connie D. McDaniel (April 1958) |
|
Trustee |
|
Indefinite; since 2005 |
|
Retired. Vice President, Chief of Internal Audit, Corporate Audit Department (2009-2013); Vice President Global Finance Transformation (2007-2009); Vice President and Controller (1999-2007), The Coca-Cola Company. |
|
29 |
|
Total System Services, Inc. |
|
|
|
INTERESTED TRUSTEE |
|
|
|
|
|
|
|
|
|
|
Ashi S. Parikh* (February 1966) |
|
Trustee |
|
Indefinite; since 2013 |
|
Chief Executive Officer and Chief Investment Officer, RidgeWorth Investments (2010-present); President and Chief Investment Officer (2008-2010). |
|
29 |
|
None |
* |
Mr. Parikh is an interested person of the Trust, as defined in the 1940 Act, because he is an employee of the Adviser. |
Individual Trustee Qualifications. The Board has concluded that each of the Trustees should serve on the Board because of his or her ability to review
and understand information about the Funds provided to them by management, to identify and request other information they may deem relevant to the performance of their duties, to question management and other service providers regarding material
factors bearing on the management and administration of the Funds, and to exercise their business judgment in a manner that serves the best interests of the Funds shareholders.
The Board has concluded that each of the Trustees should serve as a Trustee based on his or her own experience, qualifications, attributes and skills as
described below.
The Board has concluded that Mr. Bentsen should serve as Trustee because of his business, accounting and auditing experience, his
knowledge of the financial services industry and his leadership roles as a Lead Area Managing Partner and Office Managing Partner with KPMG LLP provide him with management and executive experience valuable to the Board in fulfilling its oversight
responsibilities.
The Board has concluded that Mr. Biggar should serve as Trustee because of the experience he gained in a variety of roles with
different financial and banking institutions, his knowledge of the financial services industry, and the experience he has gained serving as a Trustee of the Trust since 2007.
The Board has concluded that Mr. Guynn should serve as Trustee because of his experience as a former President and Chief Executive Officer of the Federal
Reserve Bank of Atlanta, his knowledge of the financial services industry, and the experience he has gained serving as a Trustee of the Trust since 2008.
The Board has concluded that Dr. Harris should serve as Trustee because of his background in business, his knowledge of the financial services industry,
and the experience he has gained serving as a Trustee of the Funds since 2004.
81
The Board has concluded that Ms. McDaniel should serve as Trustee because of her business, financial and
auditing experience, her knowledge of the financial services industry, and the experience she has gained serving as a Trustee of the Trust since 2005.
The Board has concluded that Mr. Parikh should serve as Trustee because of his experience as CEO and CIO of the Adviser and his knowledge of the
financial services industry generally and of mutual funds, including the Trust, specifically, all of which provides him with management and executive experience valuable to the Board in fulfilling its oversight responsibilities.
In its periodic assessment of the effectiveness of the Board, the Board considers the complementary individual skills and experience of the individual
Trustees in the broader context of the Boards overall composition so that the Board, as a body, possesses the appropriate (and appropriately diverse) skills and experience to oversee the business of the Funds.
Moreover, references to the qualifications, attributes and skills of Trustees are pursuant to requirements of the SEC, do not constitute holding out of the
Board or any Trustee as having any special expertise or experience, and shall not be deemed to impose any greater responsibility or liability on any such person or on the Board by reason thereof.
Board Committees. The Board has established the following committees:
Audit Committee. The Boards Audit Committee is composed exclusively of independent Trustees of the Trust.
The Audit Committee operates under a written charter approved by the Board and oversees the quality and objectivity of the Trusts financial statements
and the independent audit thereof, and to act as a liaison between the Trusts independent registered public accounting firm and the Board.
The
principal responsibilities of the Audit Committee include:
(i) recommending to the board which firm to engage as the Trusts
independent registered public accounting firm and whether to terminate this relationship;
(ii) reviewing the independent registered
public accounting firms compensation, the proposed scope and terms of its engagement, and the firms independence;
(iii)
pre-approving all audit and non-audit services provided by the Trusts independent registered public accounting firm to the Trust and certain other affiliated entities; developing policies and procedures that provide for the pre-approval of
some or all audit and non-audit services; and delegating its responsibility to pre-approve audit and non-audit services to one or more members of the Audit Committee;
(iv) serving as a channel of communication between the independent registered public accounting firm and the Trustees;
(v) reviewing the results of each external audit, including any qualifications in the independent registered public accounting firms
opinion, any related management letter, managements responses to recommendations made by the independent registered public accounting firm in connection with the audit;
(vi) reviewing the Trusts audited financial statements and considering any significant disputes between the Trusts management and
the independent registered public accounting firm that arose in connection with the preparation of those financial statements;
(vii)
reviewing and reporting to the Board with respect to any material accounting, tax, valuation, or record-keeping issues which may affect the Trust, its financial statements or the amount of its dividend;
(viii) considering, in consultation with the independent registered public accounting firm and the Trusts accounting agent, if any, the
independent registered public accounting firms report on material weakness if any, in the Trusts internal financial controls;
82
(ix) reviewing, in consultation with the Trusts independent registered public
accounting firm, changes regarding auditing and accounting principles and practices to be followed when preparing the Trusts financial statements, and reviewing alternative treatments of financial information within general accepted accounting
principles, and the ramifications of those treatments on the financial statements, which have been discussed with management; and
(x)
reviewing the procedures employed by the Trust in preparing published financial statements and related management commentaries; and
(xi)
other audit related matters.
Messrs. Bentsen, Biggar, Harris and Ms. McDaniel currently serve as members of the Audit Committee. The Audit
Committee meets periodically, as necessary, and met three times in the most recently completed fiscal year.
Governance and Nominating Committee.
The Boards Governance and Nominating Committee is composed exclusively of independent Trustees of the Trust.
The Governance and Nominating
Committee operates under a written charter approved by the Board.
The purposes of the Governance and Nominating Committee are:
(i) to evaluate the qualifications of candidates for the Board and to make recommendations to the Independent Trustees and the entire Board as
appropriate with respect to nominations for membership on the Board when necessary or considered advisable;
(ii) to review
periodically Board governance practices, procedures and operations and to recommend any appropriate changes to the Board;
(iii) to
review periodically the size and composition of the Board, as well as the desired qualifications and expertise of Board members, and to make recommendations to the Independent Trustees and the Board as to whether it may be appropriate to modify the
membership of the Board;
(iv) to review as necessary the committees established by the Board and to make recommendations to the
Board;
(v) to review periodically Trustee compensation and any other benefits and to recommend any appropriate changes to the Board;
(vi) to oversee the continuing education of the Trustees, including to periodically review and make recommendations regarding ongoing
Trustee education and orientation for new Trustees;
(vii) to develop, oversee and make recommendations regarding annual self-assessments
conducted for the Board and its Committees; and
(viii) to review as necessary any other similar matters relating to the governance of
the Trust at the request of any Trustee or on its own initiative.
While the Governance and Nominating Committee is solely responsible for the selection
and nomination of Trustees, the Committee may consider nominees recommended by shareholders.
A nomination submission must be sent in writing to the
Governance and Nominating Committee, addressed to the Secretary of the Trust, and must be accompanied by all information relating to the recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of
Trustees.
Nomination submissions must also be accompanied by a written consent of the individual to stand for election if nominated by the Board and to
serve if elected by the shareholders.
Additional information must be provided regarding the recommended nominee as reasonably requested by the Governance
and Nominating Committee.
83
Ms. McDaniel and Messrs. Bentsen, Biggar, Guynn and Harris currently serve as members of the Governance and
Nominating Committee.
The Governance and Nominating Committee meets periodically as necessary. The Governance and Nominating Committee met two times
during the most recently completed fiscal year.
Fund Shares Owned by Board Members. The following table shows the dollar amount range of each
Trustees beneficial ownership of shares of each of the Funds as of December 31, 2015. Dollar amount ranges disclosed are established by the SEC. Beneficial ownership is determined in accordance with Rule
16a-1(a)(2) under the Securities Exchange Act of 1934 (the 1934 Act).
|
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|
Trustee |
|
Dollar Range of Fund Shares |
|
|
Aggregate Dollar Range of Shares in All Investment Companies Overseen by Trustee in Family
of Investment Companies |
|
Tim E. Bentsen |
|
Seix High Grade Municipal Bond Fund |
|
|
$10,001-$50,000 |
|
|
|
Over $100,000 |
|
|
|
Seix High Income Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
Seix Investment Grade Tax-Exempt Bond Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
Silvant Large Cap Growth Stock Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
Ceredex Large Cap Value Equity Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
|
|
Jeffrey M. Biggar |
|
Innovative Growth Stock Fund |
|
|
$1-$10,000 |
|
|
|
$1-$10,000 |
|
|
|
International Equity Fund |
|
|
$1-$10,000 |
|
|
|
|
|
|
|
Ceredex Large Cap Value Equity Fund |
|
|
$1-$10,000 |
|
|
|
|
|
|
|
Ceredex Mid-Cap Value Equity Fund |
|
|
$1-$10,000 |
|
|
|
|
|
|
|
Ceredex Small Cap Value Equity Fund |
|
|
$1-$10,000 |
|
|
|
|
|
|
|
|
|
George C. Guynn |
|
Moderate Allocation Strategy |
|
|
$10,001-$50,000 |
|
|
|
$10,001-$50,000 |
|
|
|
Seix U.S. Government Securities Ultra-Short Bond Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
Seix Ultra-Short Bond Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
|
|
Sidney E. Harris |
|
Seix High Grade Municipal Bond Fund |
|
|
Over $100,000 |
|
|
|
Over $100,000 |
|
|
|
Seix High Income Fund |
|
|
$50,001-$100,000 |
|
|
|
|
|
|
|
Ceredex Mid-Cap Value Equity Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
Seix Floating Rate High Income Fund |
|
|
Over $100,000 |
|
|
|
|
|
|
|
Seix Ultra-Short Bond Fund |
|
|
$1-$10,000 |
|
|
|
|
|
|
|
|
|
Connie D. McDaniel |
|
Innovative Growth Stock Fund |
|
|
$10,001-$50,000 |
|
|
|
Over $100,000 |
|
|
|
Seix High Yield Fund |
|
|
$50,001-$100,000 |
|
|
|
|
|
|
|
Silvant Large Cap Growth Stock Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
Ceredex Large Cap Value Equity Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
Ceredex Mid-Cap Value Equity Fund |
|
|
$50,001-$100,000 |
|
|
|
|
|
|
|
Seix Floating Rate High Income Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
Ceredex Small Cap Value Equity Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
|
|
Ashi S. Parikh |
|
Aggressive Growth Allocation Strategy |
|
|
$10,001-$50,000 |
|
|
|
Over $100,000 |
|
|
|
Conservative Allocation Strategy |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
Seix Corporate Bond Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
Growth Allocation Strategy |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
International Equity Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
Silvant Large Cap Growth Stock Fund |
|
|
$50,001-$100,000 |
|
|
|
|
|
|
|
Ceredex Large Cap Value Equity Fund |
|
|
$50,001-$100,000 |
|
|
|
|
|
|
|
Ceredex Mid-Cap Value Equity Fund |
|
|
$50,001-$100,000 |
|
|
|
|
|
|
|
Moderate Allocation Strategy |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
Seix Floating Rate High Income Fund |
|
|
$50,001-$100,000 |
|
|
|
|
|
|
|
Seix High Grade Municipal Bond Fund |
|
|
$10,001-$50,000 |
|
|
|
|
|
|
|
Seix High Income Fund |
|
|
$50,001-$100,000 |
|
|
|
|
|
|
|
Seix Investment Grade Tax-Exempt Bond Fund |
|
|
$50,001-$100,000 |
|
|
|
|
|
|
|
Seix Total Return Bond Fund |
|
|
$50,001-$100,000 |
|
|
|
|
|
|
|
Silvant Small Cap Growth Stock Fund |
|
|
$50,001-$100,000 |
|
|
|
|
|
84
As of June 30, 2016, the Trustees and officers as a group owned less than 1% of the outstanding shares
of each class of each Fund.
Board Compensation. Effective January 1, 2016, each Independent Trustee (except for the Chair of the Board and
the Chairs of each Committee) is entitled to receive:
(i) an annual retainer fee of $96,700,
(ii) a quarterly meeting fee of $6,900, and
(iii) a special
interim meeting (being a meeting that occurs between regularly scheduled meetings with limited materials for review and a modest time commitment) fee of $4,000.
For the Chairs of each Committee, the annual retainer fee, quarterly meeting fee, and special interim meeting fee are $107,700, $6,900 and $4,000,
respectively.
For the Chair of the Board, the annual retainer fee, quarterly meeting fee, and special interim meeting fee are $121,000, $8,700 and
$5,000, respectively.
Each Trustee who is a member of the Audit Committee and/or Governance and Nominating Committee (except for the Chair of the
Committee), all of whom are Independent Trustees, receives a committee meeting fee of $3,500. The Chair of the Audit Committee receives an Audit Committee meeting fee of $6,500. The Chair of the Governance and Nominating Committee receives a
Governance and Nominating Committee meeting fee of $5,500.
Prior to January 1, 2016, each Independent Trustee (except for the Chair of the Board and
the Chairs of each Committee) is entitled to receive:
(i) an annual retainer fee of $92,900,
(ii) a quarterly meeting fee of $6,900, and
(iii) a special interim meeting (being a meeting that occurs between regularly scheduled meetings with limited materials for review and a
modest time commitment) fee of $4,000.
For the Chairs of each Committee, the annual retainer fee, quarterly meeting fee, and special interim meeting fee
are $103,500, $6,900 and $4,000, respectively.
85
For the Chair of the Board, the annual retainer fee, quarterly meeting fee, and special interim meeting fee are
$116,200, $8,700 and $5,000, respectively.
Each Trustee who is a member of the Audit Committee and/or Governance and Nominating Committee (except for the
Chair of the Committee), all of whom are Independent Trustees, receives a meeting fee of $3,500. The Chair of each Committee receives a meeting fee of $5,500.
The aggregate compensation paid to each Trustee is allocated on a pro rata basis among each Fund based on the relative net assets of each Fund. The Funds also
reimburse the Trustees for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings.
The table below shows
the compensation paid to the Trustees during the fiscal year ended March 31, 2016
|
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|
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|
|
|
Name of Trustee |
|
Aggregate Compensation from the Trust ($) |
|
|
Pension or Retirement Benefits Accrued as Part of Fund Expenses |
|
|
Estimated Annual Benefits Upon Retirement |
|
|
Total Compensation From the Trust ($) |
|
Tim E. Bentsen |
|
|
153,250 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
153,250 |
|
Jeffrey M. Biggar |
|
|
145,850 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
145,850 |
|
George C. Guynn |
|
|
135,350 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
135,350 |
|
Sidney E. Harris |
|
|
178,400 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
178,400 |
|
Warren Y. Jobe* |
|
|
25,875 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
25,875 |
|
Connie D.McDaniel |
|
|
165,550 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
165,550 |
|
Ashi S. Parikh** |
|
|
0 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
0 |
|
* |
Mr. Jobe ended his tenure as a Trustee effective May 12, 2015. |
** |
Mr. Parikh is an Interested Trustee and therefore does not receive any compensation from the Trust. |
TRUST OFFICERS
The
officers of the Trust, their business addresses, their ages, and their principal occupations for the last five years are set forth below. The officers of the Trust who are employees of the Administrator may also serve as officers to one or more
mutual funds for which the Administrator or its affiliates act as administrator or transfer agent. None of the officers receive compensation from the Trust for their services.
Officers of the Trust are elected annually by the Board and hold office until their respective successors are chosen and qualified, or in each case until he
or she sooner dies, resigns, is removed or becomes disqualified.
|
|
|
|
|
|
|
Name, Address and (month/year
of birth) |
|
Position(s) Held
with the Trust |
|
Term of Office
and Length of Time
Served |
|
Principal Occupation(s)
During the Past 5 Years |
Julia R. Short 3333 Piedmont Road, NE, Suite
1500, Atlanta, GA 30305 (November 1972) |
|
President and Chief Executive Officer |
|
One year; since 2007 |
|
Managing Director, Product Manager, RidgeWorth Investments (since 2004). |
|
|
|
|
James L. Love 3333 Piedmont Road, NE, Suite
1500, Atlanta, GA 30305 (December 1968) |
|
Chief Compliance Officer |
|
One year; since April 2016 |
|
Managing Director and Chief Compliance Officer, RidgeWorth Investments (since 2016); Chief Compliance Officer and Deputy General Counsel, U.S. Global Investors
(20072015). |
86
|
|
|
|
|
|
|
Name, Address and (month/year
of birth) |
|
Position(s) Held
with the Trust |
|
Term of Office
and Length of Time
Served |
|
Principal Occupation(s)
During the Past 5 Years |
Benjamin H. Lowe 3333 Piedmont Road, NE, Suite
1500, Atlanta, GA 30305 (March 1978) |
|
Treasurer and Chief Financial
Officer |
|
One year; since 2015 |
|
Director of Fund Administration, RidgeWorth Investments (since 2011); Fund Controller, ALPS Fund Services, Inc. (20052011). |
|
|
|
|
James Bacik State Street Bank and Trust Co.
1 Iron Street Boston, MA 02110
(May 1975) |
|
Assistant Treasurer |
|
One year; since 2010 |
|
Vice President, State Street Bank and Trust Company (since 2001).* |
|
|
|
|
Patrick J. Keniston Foreside Fund Officer
Services, LLC Three Canal Plaza, Suite 100
Portland, ME 04101 (January 1964) |
|
Anti-Money Laundering Officer and Identity Theft Prevention Officer |
|
One year; since 2013 |
|
Managing Director, Foreside Fund Officer Services, LLC (October 2008 present). |
|
|
|
|
Karen Jacoppo-Wood State Street Bank and Trust
Company 100 Summer Street Boston, MA 02111
(December 1966) |
|
Secretary and Chief Legal Officer |
|
One year; since 2014 |
|
Vice President and Managing Counsel, State Street Bank and Trust Company (since 2014); Vice President, RMR Advisors, Inc./RMR Funds (20072014).* |
|
|
|
|
Rebecca Gilding State Street Bank and Trust
Company 100 Summer Street Boston, MA 02111
(December 1979) |
|
Assistant Secretary |
|
One year; since May 2016 |
|
Vice President and Counsel, State Street Bank and Trust Company (Since 2016); Assistant Vice President and Associate Counsel, Brown Brothers Harriman and Co. (2013-2016); Assistant Vice President, Citi Fund Services, Inc.
(2005-2013). |
* |
During the period indicated the Officer has held various positions at State Street Bank and Trust Company and has provided his current title. |
PURCHASING AND REDEEMING SHARES
Purchases and redemptions of shares of the Equity Funds, Fixed Income Funds and Allocation Strategies may be made on any day the New York Stock Exchange
(NYSE) is open for business.
The Trust reserves the right to open the Fixed Income Funds when the principal bond markets are open for
business even if the NYSE is closed.
Shares of each Fund are offered and redeemed on a continuous basis.
The Funds have authorized one or more brokers to receive on its behalf purchase and redemption orders (Orders). Such brokers are authorized to
designate other intermediaries to receive Orders on the Funds behalf. The Fund will be deemed to have received an Order when an authorized broker, or if applicable, a brokers authorized designee, receives the Order. The Order will be
priced at the Funds NAV next computed after it is received by an authorized broker or the brokers authorized designee.
87
Currently, the NYSE is closed on the days the following holidays are observed: New Years Day,
Dr. Martin Luther King, Jr. Day, Presidents Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.
Currently, the Fed and the principal bond markets are closed on the same days that the NYSE is closed except for Good Friday. In addition, the Fed and the
principal bond markets are closed on the days that Columbus Day and Veterans Day are observed.
It is currently the Trusts policy to pay for all
redemptions in cash; however, the Trust retains the right to alter this policy to provide for redemptions in whole or in part by a distribution in-kind of readily marketable securities held by the Funds in lieu of cash.
Shareholders may incur brokerage charges on the sale of any such securities so received in payment of redemptions. A shareholder will at all times be entitled
to aggregate cash redemptions from all Funds of the Trust up to the lesser of $250,000 or 1% of the Trusts net assets during any 90-day period.
The
Board of Trustees has adopted procedures which permit the Trust to make in-kind redemptions to those shareholders of the Trust that are affiliated with the Trust solely by their ownership of a certain percentage of the Trusts investment
portfolios.
The Trust reserves the right to suspend the right of redemption and/or to postpone the date of payment upon redemption for any period during
which trading on the NYSE is restricted, or during the existence of an emergency (as determined by the SEC by rule or regulation) as a result of which disposal or valuation of a Funds portfolio securities is not reasonably practicable, or for
such other periods as the SEC has by order permitted.
The Trust reserves the right to postpone payment or redemption proceeds for up to seven days if the
redemption would harm existing shareholders. The Trust also reserves the right to suspend sales of shares of a Fund for any period during which the NYSE, the Adviser, the Administrator and/or State Street Bank are not open for business.
The Trust reserves the right to waive any minimum investment requirements or sales charges for immediate family members of the Trustees, Officers or employees
of the Adviser and its affiliates. Immediate Family means a spouse/domestic partner, mother, father, mother-in-law, father-in-law or children (including step children) age 21 years or under.
Currently, the front-end sales charge is waived on A Shares purchased by Trustees, Officers, employees of the Adviser, and its affiliates and their respective
immediate family members.
At the close of business on April 20, 2012, the following shareholders may no longer purchase shares of the Ceredex
Small Cap Value Equity Fund:
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|
|
Financial institutions and intermediaries that maintain omnibus account arrangements with the Ceredex Small Cap Value Equity Fund may not purchase shares of the Ceredex Small Cap Value Equity Fund for their clients who
do not own shares of the Ceredex Small Cap Value Equity Fund at the close of business on April 20, 2012. It is the financial institutions and intermediaries responsibility to enforce this requirement. |
|
|
|
If a shareholders account in the Fund is closed after April 20, 2012, additional investments in the Ceredex Small Cap Value Equity Fund will not be accepted, unless the investor meets one of the criteria
below. |
The Ceredex Small Cap Value Equity Fund will, however, permit the following purchases of its shares after April 20, 2012:
|
|
|
Qualified or non-qualified retirement plans (for example, 401(k), profit sharing, pension and defined benefit, and deferred compensation plans) invested in the Ceredex Small Cap Value Equity Fund as of April 20,
2012 may continue to open new plan participant accounts within such plans. |
88
|
|
|
Investments by or through an investment manager, broker-dealer or bank utilizing a model-driven program that has established existing accounts in the Ceredex Small Cap Value Equity Fund by the close of business on
April 20, 2012. |
|
|
|
Investors who signed a Letter of Intent and Mutual Fund Programs that sign a Letter of Understanding with the Ceredex Small Cap Value Equity Fund by April 20, 2012 may continue to purchase shares of the Fund after
that date. |
|
|
|
Investments by other series of RidgeWorth Funds that are (or may in the future be) permitted to invest in the Ceredex Small Cap Value Equity Fund. |
Rights of Accumulation. In calculating the appropriate sales charge rate, rights of accumulation allow you to add the market value (at the close of
business on the day of the current purchase) of your existing holdings in any class of shares to the amount of A shares you are currently purchasing.
The
Funds will combine the value of your current purchases with the current market value of any shares previously purchased for:
|
|
|
your individual account(s), |
|
|
|
your spouses/domestic partners account(s), |
|
|
|
joint account(s) with your spouse/domestic partner, and |
|
|
|
your minor childrens trust or custodial accounts. |
A fiduciary purchasing shares for the same fiduciary
account, trust or estate may also use this right of accumulation.
To be entitled to a reduced sales charge based on shares already owned, you must let
the Funds know at the time you make the purchase for which you are seeking the reduction that you qualify for such a reduction.
You may be required to
provide the Funds with your account number(s), account name(s), and copies of the account statements, and if applicable, the account number(s), account name(s), and copies of the account statements, for your spouse/domestic partner and/or children
(and provide the childrens ages).
A financial institution may require documentation or other information in order to verify your eligibility for a
reduced sales charge. The Funds may amend or terminate this right of accumulation at any time.
Letter of Intent. A Letter of Intent allows you to
purchase A Shares over a 13-month period and receive the same sales charge as if you had purchased all the shares at the same time.
Reinvested dividends
or capital gain distributions do not apply toward these combined purchases.
To be entitled to a reduced sales charge based on shares you intend to
purchase over the 13-month period, you must send the Funds a Letter of Intent. In calculating the total amount of purchases, you may include in your Letter purchases made up to 90 days before the date of the Letter. The 13-month period begins on the
date of the first purchase, including those purchases made in the 90-day period before the date of the Letter. Please note that the purchase price of these prior purchases will not be adjusted.
If you do not complete the total intended purchase at the end of the 13-month period, the Funds transfer agent will redeem the necessary portion of the
escrowed shares to make up the difference between the reduced rate sales charge (based on the amount you intended to purchase) and the sales charge that would normally apply (based on the actual amount you purchased).
You are not legally bound by the terms of your Letter of Intent to purchase the amount of shares stated in the Letter. The Letter does, however, authorize the
Funds to hold in escrow the following amounts for the following Funds, of the total amount you intend to purchase:
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5.75% for the following Funds: Aggressive Growth Allocation Strategy, Capital Innovations Global Resources and Infrastructure Fund, Growth Allocation Strategy, Innovative Growth Stock Fund, International Equity Fund,
Silvant Large Cap Growth Stock Fund, Ceredex Large Cap Value Equity Fund, Ceredex Mid-Cap Value Equity Fund, Moderate Allocation Strategy, Silvant Small Cap Growth Stock Fund, and Ceredex Small Cap Value Equity Fund; |
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4.75% for the following Funds: Conservative Allocation Strategy, Seix Core Bond Fund, Seix Corporate Bond Fund, Seix Georgia Tax-Exempt Bond Fund, Seix High Grade Municipal Bond Fund, Seix High Income Fund, Seix
Investment Grade Tax-Exempt Bond Fund, Seix North Carolina Tax-Exempt Bond Fund, Seix High Yield Fund, Seix Total Return Bond Fund, and Seix Virginia Intermediate Municipal Bond Fund; and |
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2.50% for the following Funds: Seix Floating Rate High Income Fund, Seix Short-Term Bond Fund, Seix Short-Term Municipal Bond Fund and Seix U.S. Mortgage Fund. |
DETERMINATION OF NET ASSET VALUE
General Policy. Each of the Funds adheres to Section 2(a)(41), and Rule 2a-4 thereunder, of the 1940 Act with respect to the valuation of portfolio
securities. In general, securities for which market quotations are readily available are valued at current market value, and all other securities are valued at fair value as determined in good faith by the Board. In complying with the 1940 Act, the
Trust relies on guidance provided by the SEC and by the SEC staff in various interpretive letters and other guidance.
Equity Securities.
Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except securities traded on NASDAQ), including securities traded over the counter, are valued at the official closing
price or the last quoted sale price on the principal exchange or market (foreign or domestic) on which they are traded on valuation date (or at approximately 4:00 p.m., Eastern Time if a securitys principal exchange is normally open at that
time).
If there is no official closing price and there is no such reported sale on the valuation date, the security is valued at the most recent quoted
bid price, or if such prices are not available, the security will be valued at fair value as determined in good faith by the Board. For securities traded on NASDAQ, the NASDAQ Official Closing Price is used.
Money Market Securities and other Debt Securities. If available, money market securities and other debt securities are priced based upon valuations
provided by recognized independent, third-party pricing agents.
Such values generally reflect the last reported sales price if the security is actively
traded.
The third-party pricing agents may also value debt securities by employing methodologies that utilize actual market transactions, broker-supplied
valuations, or other methodologies designed to identify the market value for such securities.
Such methodologies generally consider such factors as
security prices, yields, maturities, call features, ratings and developments relating to specific securities in arriving at valuations.
Money market
securities and other debt securities with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. If such prices are not available, the security will be valued at fair value as determined in
good faith by the Board.
The prices for foreign securities are reported in local currency and converted to U.S. dollars at the exchange rate of such
currencies against the U.S. dollar, as of the close of regular trading on the NYSE (usually 4:00 p.m. Eastern Time) as provided by an independent pricing service approved by the Board.
Use of Third-Party Pricing Agents. Pursuant to contracts with the Trusts Administrator, prices for most securities held by the Funds are provided
daily by third-party independent pricing agents that are approved by the Board. The valuations provided by third-party independent pricing agents are reviewed daily by the Administrator. If a security price cannot be obtained from an independent
pricing service, the Trusts accounting agent will seek to obtain a bid price from at least one independent broker.
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Investments in other investment companies are valued at their respective daily net asset values.
Amortized Cost Method of Valuation. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter (absent
unusual circumstances) assuming a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuations in general market rates of interest on the value of the instrument.
While this method provides certainty in valuation, it may result in periods during which a securitys value, as determined by this method, is higher or
lower than the price a Fund would receive if it sold the instrument.
During periods of declining interest rates, the daily yield of a Fund may tend to be
higher than a like computation made by a company with identical investments utilizing a method of valuation based upon market prices and estimates of market prices for all of its portfolio securities.
Thus, if the use of amortized cost by a Fund resulted in a lower aggregate portfolio value on a particular day, a prospective investor in a Fund would be able
to obtain a somewhat higher yield than would result from investment in a company utilizing solely market values, and existing investors in a Fund would experience a lower yield. The converse would apply in a period of rising interest rates.
TAXES
The following is a
summary of certain federal income tax considerations generally affecting the Funds and their investors.
No attempt is made to present a comprehensive
explanation of the federal tax treatment of a Fund or its investors, and the discussion here and in the Trusts prospectuses is not intended as a substitute for careful tax planning.
U.S. Federal Income Tax. This discussion of federal income tax considerations is based on the Internal Revenue Code and the regulations issued
thereunder, in effect on the date of this SAI.
New legislation, as well as administrative changes or court decisions may change the conclusions expressed
herein, and may have a retroactive effect with respect to the transactions contemplated herein.
In order to qualify for treatment as a RIC under the
Internal Revenue Code, each Fund must distribute annually to its shareholders at least the sum of 90% of its net tax-exempt interest income plus 90% of its investment company taxable income (generally, net investment income plus the excess, if any,
of net short-term capital gain) computed without regard to the dividends-paid deduction (the Distribution Requirement) and also must meet several additional requirements.
Among these requirements are the following:
(i) at least 90% of a Funds gross income each taxable year must be derived from dividends, interest, payments with respect to securities
loans, and gains from the sale or other disposition of stock or securities or foreign currencies, or other income derived with respect to its business of investing in such stock, securities or currencies, and net income derived from interests in
qualified publicly traded partnerships (QPTPs), which generally include MLPs (the 90% Income Test),
(ii) at
the close of each quarter of a Funds taxable year, at least 50% of the value of its total assets must be represented by cash and cash items, U.S. government securities, securities of other RICs and other securities, with such other securities
limited, in respect to any one issuer, to an amount that does not exceed 5% of the value of a Funds assets and that does not represent more than 10% of the outstanding voting securities of such issuer; and
(iii) at the close of each quarter of a Funds taxable year, not more than 25% of the value of the Funds assets may be invested in
the securities (other than U.S. government securities or the securities of other RICs) of any one issuer, the securities (other than securities of other RICs) of two or more issuers engaged in the same or similar businesses if the Fund owns at least
20% of the voting power of such issuers, or the securities of one or more QPTPs.
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Notwithstanding the Distribution Requirement described above, which only requires a Fund to distribute at least
the sum of 90% of its net tax-exempt interest income plus 90% of its investment company taxable income (computed without regard to the dividends-paid deduction) and does not require any minimum distribution of net capital gains (the excess of net
long-term capital gains over net short-term capital loss), a Fund will be subject to a nondeductible 4% excise tax to the extent it fails to distribute by the end of any calendar year at least the sum of 98% of its ordinary income for that year and
98.2% of its capital gain net income for the one-year period ending on October 31 of that year (and any retained amount from that prior calendar year on which the Fund paid no federal income tax). The Funds intend to make sufficient
distributions prior to the end of each calendar year to avoid liability for the U.S. federal excise tax applicable to RICs but can make no assurances that distributions will be sufficient to avoid this tax.
If a Fund meets the Distribution Requirement, but chooses to retain some portion of its taxable income or gains, it generally will be subject to U.S. federal
income tax at regular corporate rates on the amount retained.
A Fund may designate certain amounts retained as undistributed net capital gain in a notice
to its shareholders, who
(i) will be required to include in income for U.S. federal income tax purposes, as long-term capital gain, their
proportionate shares of the undistributed amount so designated,
(ii) will be entitled to credit their proportionate shares of the income
tax paid by the Fund on that undistributed amount against their federal income tax liabilities and to claim refunds to the extent such credits exceed their liabilities and
(iii) will be entitled to increase their tax basis, for federal income tax purposes, in their shares by an amount equal to the excess of the
amount of undistributed net capital gain included in their respective income over their respective income tax credits.
For purposes of the 90% Income
Test, the character of income earned by certain entities in which a Fund invests that are not treated as corporations for U.S. federal income tax purposes (e.g., partnerships other than certain publicly traded partnerships or trusts that have
not elected to be classified as corporations under the check-the-box regulations) will generally pass through to the Fund. Consequently, in order to qualify as a RIC, each Fund may be required to limit its equity investments in such
entities that earn fee income, rental income, or other nonqualifying income.
If a Fund fails to satisfy the 90% Income Test or diversification
requirements in any taxable year, the Fund may be eligible for relief provisions if the failures are due to reasonable cause and not willful neglect and if a penalty tax is paid with respect to each failure to satisfy the applicable requirements.
Additionally, relief is provided for certain de minimis failures of the diversification requirements where the Fund corrects the failure within a specified period. If a Fund fails to maintain qualification for treatment as a RIC for a tax year, and
the relief provisions are not available, that Fund will be subject to U.S. federal income tax on its taxable income and gains at corporate rates, without any deduction for distributions paid to shareholders, and distributions to shareholders
(including any dividends attributable to tax-exempt interest income or net capital gains) will be taxed as ordinary income to the extent of that Funds current and accumulated earnings and profits. In such case, the dividends-received deduction
generally will be available for eligible corporate shareholders (subject to certain limitations) and the lower tax rates applicable to qualified dividend income may be available to individual shareholders. The Allocation Strategies, as shareholders
of other Funds and ETFs (collectively, Underlying Funds), would not necessarily incur any income tax liability on distributions from an Underlying Fund that fails to qualify for treatment as a RIC, provided the Allocation Strategies
continue to qualify as RICs and distribute substantially all of their net investment income and net capital gains to their shareholders in accordance with the timing requirements imposed by the Internal Revenue Code. However, the failure of an
Underlying Fund to maintain its RIC status may adversely affect the ability of any Allocation Strategy that invests in the Underlying Fund to maintain its RIC status. To requalify for treatment as a RIC in a subsequent taxable year, a Fund that
loses its RIC status would be required to satisfy the RIC qualification requirements for that year and to distribute any earnings and profits from any years in which the Fund failed to qualify for tax treatment as a RIC. If a
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Fund failed to qualify as a RIC for a period greater than two taxable years, it would generally be required to pay a Fund-level tax on certain net built-in gains recognized with respect to
certain of its assets upon a disposition of such assets within ten years of qualifying as a RIC in a subsequent year. The Board reserves the right not to maintain qualification of a Fund as a RIC if it determines such course of action to be
beneficial to shareholders.
An Allocation Strategy will not be able to offset gains distributed by any Underlying Fund in which it invests against losses
incurred by another Underlying Fund in which it invests because the Underlying Funds cannot distribute losses. An Allocation Strategys redemptions of shares in Underlying Funds, including those resulting from changes in the allocation among
Underlying Funds, could cause the Allocation Strategy to recognize taxable gains or losses. A portion of any such gains may be short-term capital gains that would be distributable as ordinary income to shareholders of the Allocation Strategy.
Further, certain losses on redemptions of shares in the Underlying Funds may be disallowed or deferred.
Any loss realized by an Allocation Strategy
on a disposition of an Underlying Funds shares held for six months or less will be disallowed to the extent of any exempt-interest dividends received by the Allocation Strategy on those shares and, to the extent not disallowed, will be treated
as a long-term capital loss to the extent of any amounts treated as distributions to the Allocation Strategy of net long-term capital gain with respect to such shares (including any amounts credited to the Allocation Strategy as undistributed
capital gains). An Allocation Strategys long-term capital losses may offset its long-term capital gains, which might otherwise be eligible for reduced U.S. federal income tax rates for individual and certain other non-corporate shareholders.
Short-term capital gains earned by an Underlying Fund will be treated as ordinary dividends when distributed to an Allocation Strategy and therefore may not be offset by any short-term capital losses incurred by the Allocation Strategy. An
Allocation Strategys short-term capital losses may offset its long-term capital gains, which might otherwise be eligible for the reduced U.S. federal income tax rates for individual and certain other non-corporate shareholders. As a result of
these factors, the use of the fund-of-funds structure by the Allocation Strategies could adversely affect the amount, timing and character of distributions to Allocation Strategy shareholders. Distributions by a Fund may be taxable to shareholders
regardless of whether they are received in cash or additional shares. A Fund may derive capital gains and losses in connection with sales or other dispositions of its portfolio securities. Distributions of net short-term capital gains are generally
taxable to shareholders as ordinary income. Distributions from any net capital gains are taxable to non-corporate shareholders as long-term capital gains regardless of how long they have held their shares in the Fund. Long-term capital gains are
generally taxed to non-corporate shareholders at rates of up to 20%. Other dividends, other than exempt-interest dividends (as described below), are taxable either as ordinary income or as qualified dividend income, which is taxable to
non-corporate shareholders at U.S. federal income tax rates of up to 20%. Qualified dividend income is, in general, dividend income from taxable domestic corporations and certain foreign corporations (i.e., certain foreign corporations
incorporated in a possession of the United States or in certain countries with a comprehensive tax treaty with the United States, or certain other foreign corporations if the stock with respect to which the dividends are paid is readily tradable on
an established securities market in the United States). In general, a Fund may report its distributions to shareholders as qualified dividend income to the extent it receives qualified dividend income from its investments. An Allocation
Strategys qualified dividend income will generally include qualified dividend income the Allocation Strategy receives from Underlying Funds that received such income as qualified dividend income and reported it as such. If 95% or more of a
Funds gross income (calculated without taking into account net capital gains derived from sales or other dispositions of stock or securities) consists of qualified dividend income, the Fund may report all distributions of such income as
qualified dividend income.
In order for some portion of the dividends received by a Fund shareholder to be qualified dividend income, the distributing
Fund must meet holding period and other requirements with respect to the dividend paying stocks in its portfolio, and the shareholder must meet holding period and other requirements with respect to the Funds shares. In the case of an
Allocation Strategy, the Underlying Fund from which the Allocation Strategy received the qualified dividend income must also meet holding period and other requirements with respect to the dividend paying stocks in its portfolio. A Funds
participation in loans of securities may affect the amount, timing and character of distributions to shareholders. If a Fund participates in a securities lending transaction and receives a payment in lieu of dividends with respect to securities on
loan in a securities lending transaction, such income generally will not constitute qualified dividend income and thus will not be eligible for taxation at the rates applicable to qualified dividend income. In addition, such income will also not be
qualifying dividends eligible for the dividends-received deduction for corporate investors. Withholding taxes accrued on dividends during the period that any security was not directly held by a Fund will not qualify as a foreign tax paid by a Fund
and therefore cannot be passed through to shareholders.
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Distributions from a Fund and gain realized on the sale or exchange of Fund shares are generally taken into
account for purposes of the 3.8% U.S. federal Medicare contribution tax on all or a portion of the net investment income of individuals with income exceeding certain threshold amounts ($250,000 if married and filing jointly or if
considered a surviving spouse for federal income tax purposes, $125,000 if married filing separately, and $200,000 in other cases). This 3.8% tax also applies to all or a portion of the undistributed net investment income of certain
shareholders that are estates and trusts. Net investment income for this purpose does not include exempt-interest dividends (described below).
At the time of an investors purchase of a Funds shares, a portion of the purchase price may be attributable to realized or unrealized appreciation
in that Funds investments or to undistributed capital gains of the Fund. Consequently, subsequent distributions by that Fund with respect to these shares from such appreciation or gains may be taxable to such investor even if the net asset
value of the investors shares is, as a result of the distributions, reduced below the investors cost for such shares and the distributions economically represent a return of a portion of the investment. Shareholders who have not held
Fund shares for a full year should be aware that a Fund may report and distribute, as ordinary dividends or capital gain dividends, a percentage of income that is not equal to the percentage of the Funds ordinary income or net capital gains,
respectively, actually earned during the shareholders period of investment in the Fund.
Although dividends generally will be treated as distributed
when paid, any dividend declared by a Fund in October, November or December and payable to shareholders of record in such a month that is paid during the following January will be treated for U.S. federal income tax purposes as received by
shareholders on December 31 of the calendar year in which it was declared. In addition, certain other distributions made after the close of a taxable year of a Fund may be spilled back and treated for certain purposes as paid by the
Fund during such taxable year. In such case, shareholders generally will be treated as having received such dividends in the taxable year in which the distributions were actually made. For purposes of calculating the amount of a RICs
undistributed income and gain subject to the 4% excise tax described above, such spilled back dividends are treated as paid by the RIC when they are actually paid.
Each Fund in which you invest will inform you shortly after the close of each calendar year of the amount of your ordinary income dividends, exempt-interest
dividends, qualified dividend income, and capital gain distributions.
If a Funds distributions for a taxable year exceed its earnings and
profits, all or a portion of the distributions made for that taxable year may be re-characterized as a return of capital or as capital gain to shareholders. A return of capital distribution by a Fund will generally not be taxable, but will reduce
each shareholders cost basis in its shares in the Fund but not below zero and result in a higher capital gain or lower capital loss when the shares on which the distribution was received are sold. After a shareholders basis has been
reduced to zero, distributions to that shareholder in excess of that shareholders share of the Funds current and accumulated earnings and profits will be treated as gains from the sale of Fund shares.
If a shareholder that is a tax-exempt investor (e.g., a pension plan, individual retirement account, 401(k) plan, similar tax-advantaged plan,
charitable organization, etc.) incurs debt to finance the acquisition of its shares, a portion of the income received by that shareholder with respect to its shares will constitute unrelated business taxable income (UBTI). A tax-exempt
investor is generally subject to federal income tax to the extent that its UBTI for a taxable year exceeds its annual $1,000 exclusion.
Sale,
Redemption or Exchange of Fund Shares
Sales and redemptions of Fund shares are generally taxable transactions for U.S. federal, state and local income
tax purposes. The Funds will treat any conversion between classes of shares of the same Fund as a tax-free event. By contrast, the Funds will treat an exchange between classes of shares of different Funds as a taxable event. Please consult your tax
advisor regarding specific questions about federal, state and local income taxes.
In general, if Fund shares are sold or redeemed, the shareholder will
recognize gain or loss equal to the difference between the amount realized on the sale and the shareholders adjusted basis in the shares. Any gain or loss recognized on a sale or redemption of shares of a Fund by a shareholder who holds his or
her shares as a capital asset will generally be treated as long-term capital gain or loss if the shares have been held for more than one year, and short-term capital gain or loss if held for a year or less. If shares held for six months or less are
sold or redeemed for a loss, two special rules apply. First, if a shareholder sells shares that have been held for six months or less, any loss recognized will be
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treated as long-term capital loss to the extent of any amounts treated as long-term capital gain distributions (including any amounts credited to the shareholder as undistributed capital gain).
Second, any loss recognized by a shareholder upon the sale or redemption of shares held for six months or less may be disallowed to the extent of any exempt-interest dividends received by the shareholder with respect to such shares. Losses on sales
of shares in a Tax-Exempt Fixed Income Fund generally will not be disallowed under the second rule, but a loss on a sale of shares in an Allocation Strategy may be disallowed if the Allocation Strategy distributes exempt-interest dividends. Any loss
disallowed under these rules will be added to your tax basis in the new shares you buy.
Upon a redemption of a Funds shares, the Fund is
generally required to report the gross proceeds paid in the redemption. Upon a redemption of a Funds shares purchased on or after January 1, 2012, the Fund (or its administrative agent) is required to report to the Internal Revenue
Service (IRS) and furnish to the shareholder cost basis information and indicate whether these shares had a short-term or long-term holding period. For purposes of calculating and reporting basis, shares acquired prior to January 1,
2012 and shares acquired on or after January 1, 2012 will generally be treated as held in separate accounts. If a shareholder has a different basis for different shares of a Fund acquired on or after January 1, 2012, in the same account
(e.g., if a shareholder purchased Fund shares in the same account at different times for different prices), the Fund will calculate the basis of the shares sold using its default method unless the shareholder has properly elected to use a
different method. Each Fund will permit Fund shareholders to elect from among several IRS-accepted cost basis methods, including the average basis method. In the absence of an election, each Fund will use the average basis method as the default cost
basis method. The cost basis method elected by a Fund shareholder (or the cost basis method applied by default) for a sale of Fund shares may not be changed after the settlement date of each such sale of Fund shares. If an election to use a method
other than the average basis method is not made on or prior to the date of the shareholders first redemption or exchange of the applicable Funds shares, the shares in the account at the time of the election will retain their bases as
determined under the average basis method after the redemption or exchange. Fund shareholders should consult with their tax advisors prior to redeeming shares to determine the best IRS-accepted cost basis method for their tax situation and to obtain
more information about how the cost basis reporting rules apply to them.
Losses on redemptions or other dispositions of shares may be disallowed under
wash sale rules in the event of other investments in the same Fund (including those made pursuant to reinvestment of dividends and/or capital gain distributions) within a period of 61 days beginning 30 days before and ending 30 days
after a redemption or other disposition of Fund shares. Thus, an investor generally cannot claim a loss if it sells a security and then repurchases that security within 30 days. In such a case, the disallowed portion of any loss generally would be
included in the U.S. federal tax basis of the shares acquired in the other investments.
Under Treasury regulations, if a shareholder recognizes a loss
with respect to Fund shares of $2 million or more for an individual shareholder, or $10 million or more for a corporate shareholder, in any single taxable year (or certain greater amounts over a combination of years), the shareholder must file with
the IRS a disclosure statement on IRS Form 8886. A shareholder who fails to make the required disclosure to the IRS may be subject to adverse tax consequences, including substantial penalties. The fact that a loss is reportable under these
regulations does not affect the legal determination of whether or not the taxpayers treatment of the loss is proper. Shareholders should consult with their tax advisors to determine the applicability of these regulations in light of their
individual circumstances.
In certain cases, a Fund will be required to withhold, at the applicable backup withholding rate, an amount from
any distributions (including exempt-interest dividends) and any proceeds of redemptions, exchanges, or repurchases of Fund shares to shareholders, and to remit such amount to the IRS if the shareholder:
(i) has failed to provide a correct taxpayer identification number,
(ii) is subject to backup withholding by the IRS,
(iii) has failed to provide the Fund with certain certifications that are required by the IRS, or
(iv) has failed to certify that he or she is a U.S. person (including a U.S. resident alien).
The backup withholding rate is 28%.
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Tax-Exempt Fixed Income Funds
If, at the close of each quarter of its taxable year, a Fund qualifies as a RIC and at least 50% of the value of the Funds total assets consists of
obligations the interest on which is excludable from gross income under section 103(a) of the Internal Revenue Code (e.g., bonds issued by U.S. states and municipalities), such Fund may pay exempt-interest dividends to its
shareholders.
That part of such Funds net investment income which is attributable to interest from tax-exempt obligations and which is distributed
to shareholders will be reported by the Fund as an exempt-interest dividend under the Internal Revenue Code. Exempt-interest dividends are excluded from a shareholders gross income under the Internal Revenue Code but are
nevertheless required to be reported on the shareholders U.S. federal income tax return. The percentage of income reported as exempt-interest dividends for a month may differ from the percentage of distributions consisting of tax-exempt
interest during that month.
An Allocation Strategy may be eligible to report distributions as exempt-interest dividends even if tax-exempt obligations do
not comprise at least 50% of its assets.
As noted in their prospectuses, the Tax-Exempt Fixed Income Funds intend to pay exempt-interest dividends.
Exempt-interest dividends are excludable from a shareholders gross income for regular federal income tax purposes, but may nevertheless be subject to the alternative minimum tax (the AMT) imposed by Section 55 of the Internal
Revenue Code. The AMT may be imposed on exempt-interest dividends in two circumstances. First, exempt-interest dividends derived from certain private activity bonds issued after August 7, 1986, will generally be an item of tax
preference and therefore potentially subject to the AMT for both corporate and non-corporate taxpayers. Second, in the case of exempt-interest dividends received by corporate shareholders, all exempt-interest dividends, regardless of when the bonds
from which they are derived were issued or whether they are derived from private activity bonds, will generally be included in the corporations adjusted current earnings, as defined in Section 56(g) of the Internal Revenue
Code, in calculating the corporations alternative minimum taxable income for purposes of determining the AMT. Bonds issued in 2009 or 2010 generally will not be treated as private activity bonds, and interest earned on such bonds (and
exempt-interest dividends attributable to such interest) generally will not be treated as a tax preference item and generally will not result in or increase a corporate shareholders liability for the AMT.
Distributions of exempt-interest dividends by Tax-Exempt Fixed Income Funds (or any Allocation Strategy that distributes exempt-interest dividends) may have
other U.S. federal income tax consequences to shareholders. For example, interest on indebtedness incurred by shareholders to purchase or carry shares of such a Fund will not be deductible for federal income tax purposes to the extent that the Fund
distributes exempt-interest dividends during the taxable year. The deduction otherwise allowable to property and casualty insurance companies for losses incurred will be reduced by an amount equal to a portion of exempt-interest
dividends received or accrued during any taxable year. Certain foreign corporations engaged in a trade or business in the U.S. will be subject to a branch profits tax on their dividend equivalent amount for the taxable year,
which will include exempt-interest dividends. Certain Subchapter S corporations may also be subject to taxes on their passive investment income, which could include exempt-interest dividends. Shareholders receiving Social Security or
certain railroad retirement benefits may be subject to U.S. federal income tax on a portion of such benefits as a result of receiving exempt-interest dividends paid by a Fund.
A Fund that distributes exempt-interest dividends may not be an appropriate investment for persons (including corporations and other business entities) who
are substantial users (or persons related to such users) of facilities financed by industrial development or private activity bonds. A substantial user is defined generally to include certain persons who regularly use in a
trade or business a facility financed from the proceeds of industrial development bonds or private activity bonds. Such entities or persons should consult their tax advisor before purchasing shares of such a Fund.
Issuers of tax-exempt bonds (or the beneficiary of such bonds) may have made certain representations or covenants in connection with the issuance of such
bonds to satisfy certain requirements of the Internal Revenue Code that must be satisfied subsequent to the issuance of such bonds. Investors should be aware that exempt-interest dividends derived from such bonds may become subject to federal income
taxation retroactively to the date of issuance of the bonds to which such dividends are attributable thereof if such representations are determined to have been inaccurate or if the issuer of such bonds (or the beneficiary of such bonds) fails to
comply with such covenants.
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The Funds will make annual reports to shareholders of the U.S. federal income tax status of all distributions.
U.S. Tax Treatment of Foreign Shareholders.
Generally, nonresident aliens, foreign corporations and other foreign investors are subject to a 30% withholding tax on dividends paid by a U.S. corporation,
although the rate may be reduced for an investor that is a qualified resident of a foreign country with an applicable tax treaty with the United States. Distributions of net capital gain and exempt-interest dividends are generally exempt from this
30% withholding tax. The 30% withholding tax also generally will not apply to dividends that a Fund reports as (a) interest-related dividends, to the extent such dividends are derived from the Funds qualified net interest
income, or (b) short-term capital gain dividends, to the extent such dividends are derived from the Funds qualified short-term gain. Qualified net interest income is a Funds net income derived from U.S.
source interest and original issue discount, subject to certain exceptions and limitations. Qualified short-term gain generally means the excess of the net short-term capital gain of a Fund for its taxable year over its net long-term
capital loss, if any.
If a foreign investor conducts a trade or business in the United States and the investment in a Fund is effectively connected
with that trade or business or a foreign individual investor is present in the United States for 183 days or more in a calendar year, then the foreign investors income from the Fund will generally be subject to U.S. federal income tax at
graduated rates in a manner similar to the income of a U.S. citizen or resident.
Unless certain non-U.S. entities that hold Fund shares comply with
IRS requirements that will generally require them to report information regarding U.S. persons investing in, or holding accounts with, such entities, a 30% withholding tax may apply to Fund distributions other than exempt-interest dividends payable
to such entities after June 30, 2014 (or, in certain cases, after later dates) and redemptions and certain capital gain dividends payable to such entities after December 31, 2018. A non-U.S. shareholder may be exempt from the withholding
described in this paragraph under an applicable intergovernmental agreement between the U.S. and a foreign government, provided that the shareholder and the applicable foreign government comply with the terms of such agreement.
All foreign investors should consult their own tax advisors regarding the tax consequences in their country of residence of an investment in a Fund.
Taxation of Certain Investments
Each Fund may invest in
complex securities. These investments may be subject to numerous special and complex tax rules. These rules could affect whether gains and losses recognized by a Fund are treated as ordinary income or losses or capital gains or losses, accelerate
the recognition of income to a Fund, and/or defer a Funds ability to recognize losses. In turn, these rules may affect the amount, timing or character of the income distributed to shareholders by a Fund.
With respect to investments in STRIPs, TRs, and other zero coupon securities which are sold at original issue discount and thus do not make periodic cash
interest payments, a Fund will be required to include as part of its current income the imputed interest on such obligations even though the Fund has not received any interest payments on such obligations during that period. Because each Fund
distributes substantially all of its net investment income to its shareholders, a Fund may have to sell securities, or borrow cash, to distribute such imputed income. Such sales may happen at a time when the Adviser would not otherwise have chosen
to sell such securities and will generally result in taxable gain or loss.
In addition, in the case of any shares of a passive foreign
investment company in which a Fund invests, the Fund may be liable for corporate-level tax on any ultimate gain or distributions on the shares if the Fund fails to make an election to recognize income annually during the period of its
ownership of the shares.
A Funds transactions in foreign currencies and forward foreign currency contracts will be subject to special provisions of
the Internal Revenue Code that, among other things, may affect the character of gains and losses realized by the Fund (e.g., may affect whether gains or losses are ordinary or capital), accelerate recognition of income to the
97
Fund and defer losses. These rules could therefore affect the character, amount and timing of distributions to shareholders. These provisions also may require the Funds to mark-to-market certain
types of positions in their portfolios (i.e., treat them as if they were closed out) which may cause the Funds to recognize income without receiving cash with which to make distributions in amounts necessary to satisfy the requirements for
avoiding income and excise taxes. Each of the Funds intends to monitor its transactions, intends to make appropriate tax elections, and intends to make appropriate entries in its books and records when it acquires any foreign currency or forward
foreign currency contract in order to mitigate the effect of these rules so as to prevent its disqualification as a RIC and minimize the imposition of income and excise taxes.
Capital Innovations Global Resources and Infrastructure Fund
The Funds ability to invest in MLPs is limited by the Funds intent to qualify as a RIC. In order to qualify as a RIC, the Fund generally may not
invest more than 25% of the value of its total assets in securities of QPTPs (which generally include MLPs). The Fund intends to satisfy the requirements for qualification as a RIC and to limit its investments in MLPs accordingly. In certain cases,
the status of an investment as an investment in a QPTP is not clear.
When the Fund invests in the equity securities of an MLP or any other entity that is
treated as a partnership for U.S. federal income tax purposes, the Fund will be treated as a partner in the entity for tax purposes. Accordingly, in calculating the Funds taxable income, it will be required to take into account its allocable
share of the income, gains, losses, deductions, and credits recognized by each such entity, regardless of whether the entity distributes cash to the Fund. Distributions from such an entity to the Fund are not generally taxable unless the cash amount
(or, in certain cases, the fair market value of marketable securities) distributed to the Fund exceeds the Funds adjusted tax basis in its interest in the entity. In general, the Funds allocable share of such an entitys net income
will increase the Funds adjusted tax basis in its interest in the entity, and distributions to the Fund from such an entity and the Funds allocable share of the entitys net losses will decrease the Funds adjusted basis in its
interest in the entity, but not below zero. The Fund may receive cash distributions from such an entity in excess of the net amount of taxable income the Fund is allocated from its investment in the entity. In other circumstances, the net amount of
taxable income the Fund is allocated from its investment in such an entity may exceed cash distributions received from the entity. Thus, the Funds investments in such an entity may lead the Fund to make distributions in excess of its earnings
and profits, or the Fund may be required to sell investments, including when not otherwise advantageous to do so, in order to satisfy the distribution requirements applicable to RICs in connection with income allocated to the Fund from such an
entity.
Depreciation or other cost recovery deductions passed through to the Fund in a given year from an investment in an MLP or another entity treated
as a partnership for U.S. federal income tax purposes will generally reduce the Funds taxable income, but those deductions may be recaptured in the Funds income in one or more subsequent years upon either (i) the Funds sale of
an interest in the MLP or other entity or (ii) the sale or other disposition of property held by the MLP or other entity. When recognized and distributed by the Fund, recapture income will generally be taxable to shareholders at the time of the
distribution at ordinary income tax rates, even though the shareholders at that time might not have held shares in the Fund at the time the deductions were taken by the Fund, and even though those shareholders will not have corresponding economic
gain on their shares at the time of the recapture. In order to distribute recapture income or to fund redemption requests, the Fund may need to liquidate investments, which may lead to additional recapture income.
Net Capital Loss Carryforwards. The Funds utilize the provisions of the federal income tax laws that provide for the carryforward of capital losses
from prior years, offsetting such losses against any future realized capital gains. A Fund is permitted to carry forward a net capital loss from any taxable year that began on or before December 22, 2010 to offset its capital gains, if any, for
up to eight years following the year of the loss. Net capital losses recognized in taxable years beginning after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses.
Carryforwards of losses from taxable years that began after December 22, 2010 must be fully utilized before a Fund may utilize carryforwards of losses from taxable years that began on or before December 22, 2010. Under certain
circumstances, a Fund may elect to treat certain losses as though they were incurred on the first day of the taxable year immediately following the taxable year in which they were actually incurred.
As of March 31, 2016, the accumulated short-term and long-term capital loss carryforwards for the Equity Funds from taxable years beginning after
December 22, 2010 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
Short-Term ($) |
|
|
Long-Term ($) |
|
|
Total ($) |
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
661,695 |
|
|
|
166,419 |
|
|
|
828,114 |
|
98
As of March 31, 2016, the accumulated capital loss carryforwards and expiration dates for the Equity
Funds from taxable years beginning on or before December 22, 2010 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expires |
|
Fund |
|
2017 ($) |
|
|
2018 ($) |
|
|
Total ($) |
|
Innovative Growth Stock Fund 1 |
|
|
1,372,837 |
|
|
|
|
|
|
|
1,372,837 |
|
International Equity Fund2 |
|
|
|
|
|
|
1,649,094 |
|
|
|
1,649,094 |
|
Silvant Large Cap Growth Stock Fund3 |
|
|
1,639,873 |
|
|
|
|
|
|
|
1,639,873 |
|
1 |
Of the $1,600,850 of remaining capital loss carryforwards acquired on April 27, 2012, in the merger with the RidgeWorth Emerging Growth Stock Fund and subject to limitations as a result of this acquisition,
$228,013 was utilized. The remaining $1,372,837 will expire in 2017 if not used. |
2 |
Of the $2,473,641 of remaining capital loss carryforwards subject to limitations due to an ownership change on May 22, 2013, $824,547 was utilized, and the remaining $1,649,094, will expire in 2018 if not used.
|
3 |
Of the $3,279,747 of remaining capital loss carryforwards acquired on March 1, 2013, in the merger with the RidgeWorth Large Cap Core Growth Stock Fund and subject to limitations as a result of this acquisition,
$1,639,874 was utilized, and the remaining $1,639,873, will expire in 2017 if not used. |
As of March 31, 2016, the deferred short-term
and long-term capital losses incurred after October 31, 2015 for the Equity Funds were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
Short-Term ($) |
|
|
Long-Term ($) |
|
|
Total ($) |
|
Ceredex Large Cap Value Equity Fund |
|
|
76,570,240 |
|
|
|
(27,321,809 |
) |
|
|
49,248,431 |
|
Ceredex Mid-Cap Value Equity Fund |
|
|
57,488,324 |
|
|
|
(14,768,945 |
) |
|
|
42,719,379 |
|
Ceredex Small Cap Value Equity Fund |
|
|
9,263,579 |
|
|
|
13,603,290 |
|
|
|
22,866,869 |
|
As of March 31, 2016, the accumulated short-term and long-term capital loss carryforwards for the Fixed Income
Funds from taxable years beginning after December 22, 2010 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
Short-Term ($) |
|
|
Long-Term ($) |
|
|
Total ($) |
|
Seix Corporate Bond Fund |
|
|
156,102 |
|
|
|
|
|
|
|
156,102 |
|
Seix Floating Rate High Income Fund |
|
|
40,806,533 |
|
|
|
146,126,939 |
|
|
|
186,933,472 |
|
Seix High Income Fund |
|
|
29,363,462 |
|
|
|
49,630,019 |
|
|
|
78,993,481 |
|
Seix High Yield Fund |
|
|
24,340,402 |
|
|
|
39,107,629 |
|
|
|
63,448,031 |
|
Seix U.S. Government Securities Ultra-Short Bond Fund |
|
|
10,992,974 |
|
|
|
2,278,292 |
|
|
|
13,271,466 |
|
Seix Ultra-Short Bond Fund |
|
|
237,470 |
|
|
|
231,205 |
|
|
|
468,675 |
|
As of March 31, 2016, the accumulated capital loss carryforwards and expiration dates for the Fixed Income Funds
from taxable years beginning on or before December 22, 2010 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expires |
|
|
|
|
Fund |
|
2017 ($) |
|
|
2018 ($) |
|
|
2019 ($) |
|
|
Total ($) |
|
Seix Floating Rate High Income Fund |
|
|
25,038,485 |
|
|
|
|
|
|
|
|
|
|
|
25,038,485 |
|
Seix Limited Duration Fund1 |
|
|
|
|
|
|
827,086 |
|
|
|
|
|
|
|
827,086 |
|
Seix Short-Term Bond Fund |
|
|
|
|
|
|
1,200,277 |
|
|
|
|
|
|
|
1,200,277 |
|
Seix U.S. Government Securities Ultra-Short Bond Fund |
|
|
|
|
|
|
|
|
|
|
8,408,484 |
|
|
|
8,408,484 |
|
Seix U.S. Mortgage Fund2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Seix Ultra-Short Bond Fund |
|
|
202,726 |
|
|
|
1,362,740 |
|
|
|
451,224 |
|
|
|
2,016,690 |
|
1 |
Of the $829,060 of capital loss carryforwards subject to limitations due to an ownership change on June 30, 2013, $1,974 was utilized, and the remaining $827,086, will expire in 2018 if not used. |
2 |
Of the $695,758 of capital loss carryforwards subject to limitations due to an ownership change on January 31, 2014, $74,055 was utilized, and the remaining $621,703, expired unused. |
99
As of March 31, 2016, the deferred short-term and long-term capital losses incurred after
October 31, 2015 for the Fixed Income Funds were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
Short-Term ($) |
|
|
Long-Term ($) |
|
|
Total ($) |
|
Seix Corporate Bond Fund |
|
|
137,223 |
|
|
|
26,771 |
|
|
|
163,994 |
|
Seix Limited Duration Fund |
|
|
|
|
|
|
608 |
|
|
|
608 |
|
Seix Short-Term Bond Fund |
|
|
7,996 |
|
|
|
10,637 |
|
|
|
18,633 |
|
Seix U.S. Mortgage Fund |
|
|
49,293 |
|
|
|
(24,722 |
) |
|
|
24,571 |
|
State Taxes. A Fund is not liable for any income or franchise tax in Massachusetts if it qualifies as a RIC
for U.S. federal income tax purposes. Distributions by the Funds to investors and the ownership of shares may be subject to state and local taxes.
Subject to certain limitations, dividends that are attributable to interest earned on direct obligations of the U.S. government may be, in some states, exempt
from certain state and local taxes. Investments in GNMA and Fannie Mae securities, bankers acceptances, commercial paper and repurchase agreements collateralized by U.S. government securities do not generally qualify for this exemption from
state and local taxes. The rules on exclusion of this income may be different for corporations.
Shareholders are urged to consult their tax advisors
regarding state and local taxes affecting an investment in shares of a Fund.
Foreign Taxes. Dividends and interest received by a Fund may be
subject to income, withholding or other taxes imposed by foreign countries and U.S. possessions that would reduce the yield on the Funds stock or securities.
Tax conventions between certain countries and the United States may reduce or eliminate these taxes. Foreign countries generally do not impose taxes on
capital gains with respect to investments by foreign investors. If a Fund meets the Distribution Requirement, and if more than 50% of the value of the Funds total assets at the close of its taxable year consists of stocks or securities of
foreign corporations, the Fund will be eligible to, and intends to, file an election with the IRS that may enable shareholders, in effect, to receive either the benefit of a foreign tax credit, or a tax deduction, with respect to foreign and U.S.
possessions income taxes paid by the Fund, subject to certain limitations. The electing Fund will treat those taxes as dividends paid to its shareholders. Each such shareholder will be required to include a proportionate share of those taxes in
gross income as income received from a foreign source and must treat the amount so included as if the shareholder had paid the foreign tax directly. The shareholder may then either deduct the taxes deemed paid by him or her in computing his or her
taxable income or, alternatively, take these taxes into account in calculating any foreign tax credit the shareholder may be entitled to use against such shareholders U.S. federal income tax.
Shareholders who do not itemize deductions for U.S. federal income tax purposes will not, however, be able to deduct their pro rata portion of such foreign
taxes, although such shareholders will be required to include their shares of such taxes in gross income if the applicable Fund makes the election described above. No deduction for such taxes will be permitted to individuals in computing their
alternative minimum tax liability. If the Fund makes the election, it will report annually to its shareholders the respective amounts per share of the Funds income from sources within, and taxes paid to, foreign countries and U.S. possessions.
An Allocation Strategy may be able to make this election even though stocks and securities of foreign corporations do not comprise more than 50% of the value of its assets. An electing Allocation Strategys shareholders will effectively receive
the benefit of a foreign tax credit or a tax deduction with respect to foreign and U.S. possessions income taxes paid by Underlying Funds in which the Allocation Strategy invests.
FUND TRANSACTIONS
Brokerage
Transactions. The Trust has no obligation to deal with any dealer or group of dealers in the execution of transactions in portfolio securities. Subject to policies established by the Board, the Adviser or Subadviser is responsible for placing
the orders to execute transactions for a Fund.
In placing orders, it is the policy of the Trust to seek to obtain the best net results taking into
account such factors as price (including the applicable dealer spread), the size, type and difficulty of the transaction involved, the firms general execution and operational facilities, and the firms risk in positioning the securities
involved.
100
Where possible, the Adviser or the Subadviser will deal directly with the dealers who make a market in the
securities involved except in those circumstances where better prices and execution are available elsewhere. Such dealers usually are acting as principal for their own account.
On occasion, securities may be purchased directly from the issuer.
While the Adviser or the Subadviser generally seeks reasonably competitive spreads or commissions, the Trust will not necessarily be paying the lowest spread
or commission available due to reasons described herein.
The money market securities in which the Funds invest are traded primarily in the OTC market.
Money market and debt securities are generally traded on a net basis and do not normally involve either brokerage commissions or transfer taxes.
Certain
Funds may also enter into financial futures and option contracts, which normally involve brokerage commissions. The cost of executing fixed income portfolio securities transactions of the Trust will primarily consist of dealer spreads and
underwriting commissions.
For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Funds paid the
following aggregate brokerage commissions on portfolio transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Dollar Amount of
Brokerage Commissions Paid
($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
Aggressive Growth Allocation Strategy |
|
|
2,161 |
|
|
|
1,587 |
|
|
|
1,060 |
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
4,657* |
|
|
|
3,670** |
|
|
|
4,041** |
|
Ceredex Large Cap Value Equity Fund |
|
|
1,658,482 |
|
|
|
1,758,550 |
|
|
|
1,808,184 |
|
Ceredex Mid-Cap Value Equity Fund |
|
|
5,129,261 |
|
|
|
4,591,960 |
|
|
|
4,895,206 |
|
Ceredex Small Cap Value Equity Fund |
|
|
817,249 |
|
|
|
764,449 |
|
|
|
1,263,695 |
|
Conservative Allocation Strategy |
|
|
7,951 |
|
|
|
1,760 |
|
|
|
2,028 |
|
Growth Allocation Fund |
|
|
10,488 |
|
|
|
2,821 |
|
|
|
2,505 |
|
Innovative Growth Stock Fund |
|
|
26,842 |
|
|
|
30,478 |
|
|
|
33,002 |
|
International Equity Fund |
|
|
90,444 |
|
|
|
36,694 |
|
|
|
129,234 |
|
Moderate Allocation Strategy |
|
|
15,387 |
|
|
|
4,834 |
|
|
|
5,704 |
|
Seix Core Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Corporate Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Floating Rate High Income Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Georgia Tax-Exempt Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix High Grade Municipal Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix High Income Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix High Yield Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Investment Grade Tax-Exempt Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Limited Duration Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix North Carolina Tax-Exempt Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Short-Term Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Short-Term Municipal Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Total Return Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix U.S. Government Securities Ultra-Short Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
27,873 |
|
Seix U.S. Mortgage Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Ultra-Short Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
2,070 |
|
Seix Virginia Intermediate Municipal Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Silvant Large Cap Growth Stock Fund |
|
|
30,465 |
|
|
|
48,881 |
|
|
|
81,360 |
|
Silvant Small Cap Growth Stock Fund |
|
|
179,882 |
|
|
|
135,651 |
|
|
|
344,975 |
|
* |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), the Predecessor Fund paid $4,126 in aggregate brokerage commissions on portfolio transactions. For the period
February 20, 2016 to March 31, 2016, the Fund paid $531 in aggregate brokerage commissions on portfolio transactions. |
** |
For the Predecessor Funds fiscal years ended November 30, 2015 and November 30, 2014. |
101
Brokerage Selection. The Trust does not expect to use one particular broker or dealer, and when one or
more brokers is believed capable of providing the best combination of price and execution, a Funds Adviser or Subadviser may select a broker based upon brokerage or research services provided to the Adviser or Subadviser.
The Adviser or Subadviser may pay a higher commission than otherwise obtainable from other brokers in return for such services only if a good faith
determination is made that the commission is reasonable in relation to the services provided.
Section 28(e) of the 1934 Act permits the Adviser or
Subadviser, under certain circumstances, to cause each Fund to pay a broker or dealer a commission for effecting a transaction in excess of the amount of commission another broker or dealer would have charged for effecting the transaction in
recognition of the value of brokerage and research services provided by the broker or dealer.
In addition to agency transactions, the Adviser or
Subadviser may receive brokerage and research services in connection with certain riskless principal transactions, in accordance with applicable SEC guidance.
Brokerage and research services include:
(i)
furnishing advice as to the value of securities, the advisability of investing in, purchasing or selling securities, and the availability of securities or purchasers or sellers of securities;
(ii) furnishing analyses and reports concerning issuers, industries, securities, economic factors and trends, portfolio strategy, and the
performance of accounts; and
(iii) effecting securities transactions and performing functions incidental thereto (such as clearance,
settlement, and custody).
In the case of research services, the Adviser or Subadviser believes that access to independent investment research is
beneficial to their investment decision-making processes and, therefore, to each Fund.
To the extent research services may be a factor in selecting
brokers, such services may be in written form or through direct contact with individuals and may include information as to particular companies and securities as well as market, economic, or institutional areas and information, which assists in the
valuation and pricing of investments.
Examples of research-oriented services for which the Adviser or Subadviser might utilize Fund commissions include
research reports and other information on the economy, industries, sectors, groups of securities, individual companies, statistical information, political developments, technical market action, pricing and appraisal services, credit analysis, risk
measurement analysis, performance and other analysis.
The Adviser or Subadviser may use research services furnished by brokers in servicing all client
accounts and not all services may necessarily be used in connection with the account that paid commissions to the broker providing such services. Information so received by the Adviser or Subadviser will be in addition to and not in lieu of the
services required to be performed by the Funds Adviser or Subadviser under the Advisory or Subadvisory Agreement. Any advisory or other fees paid to the Adviser or Subadviser are not reduced as a result of the receipt of research services.
In some cases the Adviser or Subadviser may receive a service from a broker that has both a research and a non-research use. When
this occurs, the Adviser or Subadviser makes a good faith allocation, under all the circumstances, between the research and non-research uses of the service.
The percentage of the service that is used for research purposes may be paid for with client commissions, while the Adviser or Subadviser will use its own
funds to pay for the percentage of the service that is used for non-research purposes.
In making this good faith allocation, the Adviser or Subadviser
faces a potential conflict of interest, but the Adviser or Subadviser believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates the anticipated use of such services to their research and non-research
uses.
102
From time to time, the Funds may purchase new issues of securities for clients in a fixed price offering. In
these situations, the seller may be a member of the selling group that will, in addition to selling securities, provide the Adviser or Subadviser with research services.
FINRA (the Financial Industry Regulatory Authority) has adopted rules expressly permitting these types of arrangements under certain circumstances. Generally,
the seller will provide research credits in these situations at a rate that is higher than that which is available for typical secondary market transactions. These arrangements may not fall within the safe harbor of Section 28(e) of
the 1934 Act.
For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Funds paid the following
commissions on brokerage transactions directed to brokers pursuant to an agreement or understanding whereby the broker provides research or other brokerage services to the Adviser or Subadviser:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Dollar Amount of
Brokerage Commissions for
Research Services ($) |
|
|
Total Dollar Amount of Transactions
Involving Brokerage Commissions
For Research Services ($) |
|
Fund |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Aggressive Growth Allocation Strategy |
|
|
|
|
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
0 |
|
|
|
0 |
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
0* |
|
|
|
0** |
|
|
|
0** |
|
|
|
0* |
|
|
|
0** |
|
|
|
0** |
|
Ceredex Large Cap Value Equity Fund |
|
|
0 |
|
|
|
1,571,778 |
|
|
|
1,592,512 |
|
|
|
0 |
|
|
|
2,972,949,935 |
|
|
|
2,786,254,764 |
|
Ceredex Mid-Cap Value Equity Fund |
|
|
0 |
|
|
|
3,753,523 |
|
|
|
3,908,312 |
|
|
|
0 |
|
|
|
6,282,077,688 |
|
|
|
5,943,135,892 |
|
Ceredex Small Cap Value Equity Fund |
|
|
0 |
|
|
|
715,550 |
|
|
|
1,109,546 |
|
|
|
0 |
|
|
|
747,795,985 |
|
|
|
1,194,632,864 |
|
Conservative Allocation Strategy |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Growth Allocation Strategy |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Innovative Growth Stock Fund |
|
|
25,754 |
|
|
|
27,994 |
|
|
|
31,139 |
|
|
|
37,673,122 |
|
|
|
51,427,904 |
|
|
|
56,435,356 |
|
International Equity Fund |
|
|
0 |
|
|
|
36,563 |
|
|
|
129,276 |
|
|
|
0 |
|
|
|
27,486,023 |
|
|
|
317,157,678 |
|
Moderate Allocation Strategy |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Core Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Corporate Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Floating Rate High Income Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Georgia Tax-Exempt Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix High Grade Municipal Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix High Income Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix High Yield Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Investment Grade Tax-Exempt Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Limited Duration Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix North Carolina Tax-Exempt Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Short-Term Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Short-Term Municipal Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Total Return Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix U.S. Government Securities Ultra-Short Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix U.S. Mortgage Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Ultra-Short Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Seix Virginia Intermediate Municipal Bond Fund |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Silvant Large Cap Growth Stock Fund |
|
|
0 |
|
|
|
46,897 |
|
|
|
73,680 |
|
|
|
0 |
|
|
|
116,479,302 |
|
|
|
143,151,145 |
|
Silvant Small Cap Growth Stock Fund |
|
|
0 |
|
|
|
125,663 |
|
|
|
317,444 |
|
|
|
0 |
|
|
|
144,777,333 |
|
|
|
332,891,973 |
|
* |
For the period December 1, 2015 to February 19, 2016 (the date of the Reorganization), the Predecessor Fund paid $0 in brokerage commissions for research services. For the period February 20, 2016 to
March 31, 2016, the Fund paid $0 in brokerage commissions for research services. |
** |
For the Predecessor Funds fiscal years ended November 30, 2015 and November 30, 2014. |
Brokerage with Fund Affiliates. A Fund may execute brokerage or other agency transactions through registered broker-dealer affiliates of the Fund, the
Adviser, the Subadviser or the Distributor for a commission in conformity with the 1940 Act, the 1934 Act and rules promulgated by the SEC.
Under
the 1940 Act, affiliated broker-dealers are permitted to receive and retain compensation for effecting portfolio transactions for the Fund if written procedures are in effect expressly permitting the affiliate to receive and retain such
compensation.
103
These rules further require that commissions paid to the affiliate by the Fund for exchange transactions not
exceed usual and customary brokerage commissions. The rules define usual and customary commissions to include amounts which are reasonable and fair compared to the commission, fee or other remuneration received
or to be received by other brokers in connection with comparable transactions involving similar securities being purchased or sold on a securities exchange during a comparable period of time.
For those transactions not occurring on an exchange, the rules generally require that no more than two percent be charged if the sale is effected in
connection with a secondary distribution or more than one percent of the purchase or sale price if the sale is effected otherwise. The Trustees, including those who are not interested persons of the Fund, as defined in the 1940 Act, have
adopted procedures for evaluating the reasonableness of commissions paid to affiliates and review these procedures periodically.
For the fiscal years
ended March 31, 2016, March 31, 2015, and March 31, 2014, the Funds did not pay any brokerage commissions on portfolio transactions effected by affiliated brokers.
The following table shows the value of the aggregate holdings of securities by issuers of the Funds regular brokers or dealers (as
defined in the 1940 Act) as of March 31, 2016:
|
|
|
|
|
Fund |
|
Dollar Amount of Securities Held
as of March 31, 2016 ($) |
|
Silvant Large Cap Growth Stock Fund |
|
|
|
|
State Street Bank & Trust Co. |
|
|
331,142 |
|
Morgan Stanley |
|
|
3,051,095 |
|
|
|
Ceredex Large Cap Value Equity Fund |
|
|
|
|
JPMorgan Chase & Co. |
|
|
57,161,394 |
|
Citigroup, Inc. |
|
|
34,516,813 |
|
State Street Bank & Trust Co. |
|
|
95,041,854 |
|
Morgan Stanley |
|
|
42,893,200 |
|
Wells Fargo & Company |
|
|
74,058,262 |
|
|
|
Ceredex Mid-Cap Value Equity Fund |
|
|
|
|
State Street Bank & Trust Co. |
|
|
90,734,440 |
|
BB&T Corp. |
|
|
34,600,800 |
|
|
|
Silvant Small Cap Growth Stock Fund |
|
|
|
|
State Street Bank and Trust Company |
|
|
333,280 |
|
Evercore Partners |
|
|
501,251 |
|
|
|
Ceredex Small Cap Value Equity Fund |
|
|
|
|
State Street Bank and Trust Company |
|
|
1,252.55 |
|
Evercore Partners |
|
|
19,857,510 |
|
Oppenheimer Holdings Inc. |
|
|
235,280 |
|
|
|
Aggressive Growth Allocation Strategy |
|
|
|
|
State Street Bank and Trust Company |
|
|
271,087 |
|
|
|
Growth Allocation Strategy |
|
|
|
|
State Street Bank and Trust Company |
|
|
1,646,538 |
|
|
|
Moderate Allocation Strategy |
|
|
|
|
State Street Bank and Trust Company |
|
|
2,950,327 |
|
104
|
|
|
|
|
Fund |
|
Dollar Amount of Securities Held
as of March 31, 2016 ($) |
|
Conservative Allocation Strategy |
|
|
|
|
State Street Bank and Trust Company |
|
|
1,686,970 |
|
|
|
Seix Core Bond Fund |
|
|
|
|
Citigroup, Inc. |
|
|
1,054,890 |
|
Goldman Sachs |
|
|
1,127,214 |
|
Bank of America Corp. |
|
|
1,606,332 |
|
U.S. Bancorp |
|
|
1,071,356 |
|
JPMorgan Chase & Co. |
|
|
829,510 |
|
Morgan Stanley |
|
|
1,931,589 |
|
Wells Fargo |
|
|
948,973 |
|
Lloyds Bank |
|
|
600,124 |
|
Credit Suisse Group |
|
|
872,856 |
|
|
|
Seix Corporate Bond Fund |
|
|
|
|
U.S. Bancorp |
|
|
319,315 |
|
Morgan Stanley |
|
|
393,281 |
|
JPMorgan Chase & Co. |
|
|
225,772 |
|
Wells Fargo |
|
|
247,223 |
|
Goldman Sachs |
|
|
189,970 |
|
TD Securities |
|
|
374,363 |
|
Bank of America Corp. |
|
|
212,219 |
|
|
|
Seix Short-Term Bond Fund |
|
|
|
|
JPMorgan Chase & Co. |
|
|
587,300 |
|
Citigroup, Inc. |
|
|
541,222 |
|
Credit Suisse Group |
|
|
842,602 |
|
Lloyds Bank |
|
|
541,749 |
|
Goldman Sachs |
|
|
839,682 |
|
Wells Fargo |
|
|
741,312 |
|
|
|
Seix Total Return Bond Fund |
|
|
|
|
JPMorgan Chase & Co. |
|
|
3,771,599 |
|
Morgan Stanley |
|
|
10,198,738 |
|
U.S. Bancorp |
|
|
4,981,362 |
|
Bank of America Corp. |
|
|
2,060,378 |
|
Wells Fargo |
|
|
3,935,412 |
|
Goldman Sachs |
|
|
2,986,696 |
|
Credit Suisse Group |
|
|
3,350,096 |
|
Lloyds Bank |
|
|
2,240,461 |
|
|
|
Seix Ultra-Short Bond Fund |
|
|
|
|
JPMorgan Chase & Co. |
|
|
1,210,385 |
|
Bank of America Corp. |
|
|
1,437,897 |
|
Goldman Sachs |
|
|
1,876,684 |
|
Wells Fargo |
|
|
861,525 |
|
Lloyds Bank |
|
|
1,397,772 |
|
105
PORTFOLIO TURNOVER RATE
Portfolio turnover rate is defined under SEC rules as the value of the securities purchased or securities sold, excluding all securities whose maturities at
the time of acquisition were one-year or less, divided by the average monthly value of such securities owned during the year.
Based on this definition,
instruments with remaining maturities of less than one-year are excluded from the calculation of the portfolio turnover rate.
Instruments excluded from
the calculation of portfolio turnover generally would include the futures contracts and option contracts in which the Funds invest since such contracts generally have remaining maturities of less than one-year.
The Funds may at times hold investments in other short-term instruments such as money market instruments and repurchase agreements, which are excluded for
purposes of computing portfolio turnover.
Each Funds portfolio turnover rate for the fiscal years ended March 31, 2016 and 2015 is shown
in the table below. Variations in turnover rate may be due to market conditions, fluctuating volume of shareholder purchases and redemptions or changes in the Advisers investment outlook.
|
|
|
|
|
|
|
|
|
|
|
Turnover Rate (%) |
|
Fund |
|
2016 |
|
|
2015 |
|
Aggressive Growth Allocation Strategy |
|
|
43 |
|
|
|
36 |
|
Capital Innovations Global Resources and Infrastructure Fund |
|
|
23 |
|
|
|
19 |
* |
Ceredex Large Cap Value Equity Fund |
|
|
66 |
|
|
|
73 |
|
Ceredex Mid-Cap Value Equity Fund |
|
|
98 |
|
|
|
94 |
|
Ceredex Small Cap Value Equity Fund1 |
|
|
36 |
|
|
|
10 |
|
Conservative Allocation Strategy2 |
|
|
40 |
|
|
|
17 |
|
Growth Allocation Strategy |
|
|
29 |
|
|
|
23 |
|
Innovative Growth Stock Fund |
|
|
59 |
|
|
|
42 |
|
International Equity Fund3 |
|
|
114 |
|
|
|
41 |
|
Moderate Allocation Strategy |
|
|
26 |
|
|
|
18 |
|
Seix Core Bond Fund |
|
|
232 |
|
|
|
168 |
|
Seix Corporate Bond Fund |
|
|
84 |
|
|
|
90 |
|
Seix Floating Rate High Income Fund |
|
|
33 |
|
|
|
29 |
|
Seix Georgia Tax-Exempt Bond Fund |
|
|
41 |
|
|
|
55 |
|
Seix High Grade Municipal Bond Fund |
|
|
171 |
|
|
|
228 |
|
Seix High Income Fund |
|
|
77 |
|
|
|
86 |
|
Seix High Yield Fund |
|
|
76 |
|
|
|
72 |
|
Seix Investment Grade Tax-Exempt Bond Fund |
|
|
139 |
|
|
|
144 |
|
Seix Limited Duration Fund |
|
|
50 |
|
|
|
45 |
|
Seix North Carolina Tax-Exempt Bond Fund |
|
|
42 |
|
|
|
51 |
|
Seix Short-Term Bond Fund4 |
|
|
87 |
|
|
|
199 |
|
Seix Short-Term Municipal Bond Fund |
|
|
82 |
|
|
|
148 |
|
Seix Total Return Bond Fund |
|
|
181 |
|
|
|
173 |
|
Seix U.S. Government Securities Ultra-Short Bond |
|
|
52 |
|
|
|
34 |
|
Seix U.S. Mortgage Fund |
|
|
233 |
|
|
|
165 |
|
Seix Ultra-Short Bond Fund |
|
|
59 |
|
|
|
54 |
|
Seix Virginia Intermediate Municipal Bond Fund |
|
|
48 |
|
|
|
59 |
|
Silvant Large Cap Growth Stock Fund |
|
|
10 |
|
|
|
13 |
|
Silvant Small Cap Growth Stock Fund5 |
|
|
73 |
|
|
|
31 |
|
1 |
The increase in portfolio turnover in the Fund was attributable to exceptionally low 2015 turnover, and 2016 returning to more normal levels given increased market volatility, particularly in energy and other commodity
prices; rapid swings in interest rates assumptions; and currency fluctuations. |
2 |
The increase in portfolio turnover in the Fund was attributable to a large redemption, trimming high yield to reduce credit risk, cutting international exposure to limit volatility, and adjusting investment grade
exposure. |
106
3 |
The increase in portfolio turnover in the Fund was attributable to the change in Subadviser on September 1, 2015 and related portfolio changes. |
4 |
The decrease in portfolio turnover in the Fund was attributable to the transition of the portfolio management team contributing to higher turnover in 2015, and 2016 returning to a more normal rate. |
5 |
The increase in portfolio turnover in the Fund was attributable to portfolio reconstruction and reweighting of higher conviction constituents along with change in portfolio manager in May 2015. |
* |
For the Predecessor Funds fiscal year ended November 30, 2015. |
PORTFOLIO HOLDINGS
The Board
has approved a policy and procedures that govern the timing and circumstances regarding the disclosure of Fund portfolio holdings information to shareholders and third parties.
These policies and procedures are designed to ensure that disclosure of information regarding the Funds portfolio securities is in the best interests of
Fund shareholders, and include procedures to address conflicts between the interests of the Funds shareholders, on the one hand, and those of the Funds investment adviser, principal underwriter or any affiliated person of the Funds, its
investment adviser, or its principal underwriter, on the other.
Pursuant to such procedures, the Board has authorized the Advisers CCO to authorize
the release of the Funds portfolio holdings, as necessary, in conformity with the foregoing principles and as further described below.
Pursuant to
applicable law, each Fund is required to disclose its complete portfolio holdings quarterly, within 60 days of the end of each fiscal quarter (currently, each March 31, June 30, September 30, and December 31).
Each Fund discloses a complete schedule of investments in each Semi-Annual Report and Annual Report to Fund shareholders or, following the first and third
fiscal quarters, in quarterly holdings reports filed with the SEC on Form N-Q. Semi-Annual and Annual Reports are distributed to Fund shareholders.
Quarterly holdings reports filed with the SEC on Form N-Q are not distributed to Fund shareholders, but are available, free of charge, on the EDGAR database
on the SECs website at www.sec.gov and may be reviewed and copied at the SECs public reference room. Information on the operation and terms of usage of the SEC public reference room is by calling 1-800-SEC-0330. The Funds Annual
Reports and Semi-Annual Reports are available, free of charge, on the Trusts website at www.ridgeworth.com.
The Trusts website will provide
portfolio holdings for each Fund on the 15th day of each month (or on the next business day should the 15th be other than a business day) as of the end of the most recent month. Information will remain available until updated.
Portfolio holdings for previous month-ends are available for each series of the Trust. To request this historical information without charge, call
1-888-784-3863, or write to the Trust at RidgeWorth Funds, P.O. Box 8053, Boston, MA 02266-8053.
In addition to information provided to shareholders and
the general public, from time to time, rating and ranking organizations, such as S&P and Morningstar, Inc., may request complete portfolio holdings information in connection with rating the Funds.
In most cases, the Trusts Administrator provides portfolio holdings information to ratings agencies. Institutional investors, financial planners,
pension plan sponsors and/or their consultants may request a complete list of portfolio holdings in order to assess the risks of a Funds portfolio, along with related performance attribution statistics.
The Trust believes that these third parties, which include affiliated persons, have legitimate objectives in requesting such portfolio holdings information.
The Trust may also disclose the portfolio holdings to broker-dealers in order to allow the Funds to potentially sell portfolio securities.
107
The Trusts policies and procedures provide that the Advisers CCO may authorize disclosure of
portfolio holdings information to such parties at differing times and/or with different lag times to such third parties provided that the recipient is by contractual agreement (i) required to maintain the confidentiality of the information and
(ii) prohibited from using the information to facilitate or assist in any securities transactions.
The Trust requires any third party receiving
non-public holdings information to enter into a confidentiality agreement with the Adviser. The confidentiality agreement provides, among other things, that non-public portfolio holdings information will be kept secret and confidential and that such
information will be used solely for the purpose of analysis and evaluation of the Funds.
Specifically, the confidentiality agreement prohibits anyone in
possession of non-public portfolio holdings information from purchasing or selling securities for their own benefit based on such information, or from disclosing such information to other persons, except for those who are actually engaged in, and
need to know, such information to perform the analysis or evaluation of the Funds.
In addition, the Trusts service providers, such as the
custodian, securities lending agent, administrator and transfer agent, may receive portfolio holdings information in connection with their services to the Funds.
Financial printers, proxy voting service providers and pricing vendors may receive portfolio holdings information, as necessary, in connection with their
services to the Funds.
The Funds operations are dependent on the services performed by these service providers. Persons employed by these service
providers are not required to sign and return a confidentiality agreement if, in the course of normal business, the holdings information of the Funds is disclosed, based on the assumption that such persons generally are bound by confidentiality
under their respective service agreements.
Likewise, certain temporary insiders, such as legal counsel and accountants, will not be asked to
sign a confidentiality agreement, based on the assumption that they are subject to professional duties of confidentiality.
No compensation or other
consideration is paid to or received by any party in connection with the disclosure of portfolio holdings information, including the Funds, the Adviser and its affiliates or recipient of the Funds portfolio holdings information.
DESCRIPTION OF SHARES
The
Trusts Agreement and Declaration of Trust (Declaration of Trust) authorizes the issuance of an unlimited number of shares of the Funds, each of which represents an equal proportionate interest in that Fund with each other share.
Shares are entitled upon liquidation to a pro rata share in the net assets of the Funds. Shareholders have no preemptive rights.
The Declaration of Trust provides that the Trustees of the Trust may create additional series of shares. All consideration received by the Trust for shares of
any additional series and all assets in which such consideration is invested would belong to that series and would be subject to the liabilities related thereto. Share certificates representing shares will not be issued.
VOTING RIGHTS
Each share held
entitles the shareholder of record to one vote for each dollar invested. In other words, each shareholder of record is entitled to one vote for each full share held on the record date for any shareholder meeting.
Each Fund will vote separately on matters relating solely to it.
108
As a Massachusetts business trust, the Trust is not required, and does not intend, to hold annual meetings of
shareholders.
Shareholder approval will be sought, however, for certain changes in the operation of the Trust and for the election of Trustees under
certain circumstances.
Under the Declaration of Trust, the Trustees have the power to liquidate one or more Funds without shareholder approval. While the
Trustees have no present intention of exercising this power, they may do so if a Fund fails to reach or maintain a viable size or for some other extraordinary reason.
In addition, a Trustee may be removed by the remaining Trustees or by shareholders at a special meeting called upon written request of shareholders owning at
least 10% of the outstanding shares of the Trust. In the event that such a meeting is requested, the Trust will provide appropriate assistance and information to the shareholders requesting the meeting.
SHAREHOLDER LIABILITY
The
Trust is an entity of the type commonly known as a Massachusetts business trust. Under Massachusetts law, shareholders of such a trust could, under certain circumstances, be held personally liable as partners for the obligations of the
trust. Even if, however, the Trust were held to be a partnership, the possibility of the shareholders incurring financial loss for that reason appears remote because the Trusts Declaration of Trust contains an express disclaimer of
shareholder liability for obligations of the Trust and requires that notice of such disclaimer be given in each agreement, obligation or instrument entered into or executed by or on behalf of the Trust or the Trustees, and because the Declaration of
Trust provides for indemnification out of the Trust property for any investor held personally liable for the obligations of the Trust.
LIMITATION OF TRUSTEES LIABILITY
The Declaration of Trust provides that a Trustee shall be liable only for his own willful defaults and, if
reasonable care has been exercised in the selection of officers, agents, employees or investment advisers, shall not be liable for any neglect or wrongdoing of any such person.
The Declaration of Trust also provides that the Trust will indemnify its Trustees and officers against liabilities and expenses incurred in connection with
actual or threatened litigation in which they may be involved because of their offices with the Trust unless it is determined in the manner provided in the Declaration of Trust that they have not acted in good faith in the reasonable belief that
their actions were in the best interests of the Trust.
However, nothing in the Declaration of Trust shall protect or indemnify a Trustee against any
liability for his willful misfeasance, bad faith, gross negligence or reckless disregard of his duties.
Nothing contained in this section attempts to
disclaim a Trustees individual liability in any manner inconsistent with the U.S. federal securities laws.
CODES OF
ETHICS
The Board has adopted a Code of Ethics pursuant to Rule 17j-1 under the 1940 Act.
In addition, the Adviser and the Subadvisers have each adopted Codes of Ethics pursuant to Rule 17j-1.
These Codes of Ethics apply to the personal investing activities of trustees, officers and certain employees (access persons). Rule 17j-1 and the
Codes of Ethics are designed to prevent unlawful practices in connection with the purchase or sale of securities by access persons.
The Code of Ethics
adopted by each of these entities governs the manner and extent to which certain persons associated with that entity may invest in securities for their own accounts, including securities that may be purchased or held by the Trust.
109
Under each Code of Ethics, access persons are permitted to engage in personal securities transactions, but are
required to report their personal securities transactions for monitoring purposes.
In addition, certain access persons of the Adviser and the
Subadvisers are generally prohibited from acquiring beneficial ownership of securities offered in connection with initial public offerings.
Certain
access persons of the Adviser and Subadvisers are required to obtain approval before investing in limited offerings. Copies of these Codes of Ethics are on file with the SEC and are available to the public.
PROXY VOTING
The Board has
delegated the responsibility for decisions regarding proxy voting for securities held by the Funds to the Adviser. The Adviser will vote such proxies in accordance with its proxy policies and procedures, summaries of which are included in Appendix B
to this SAI.
Information regarding how the Funds voted proxies during the most recent twelve-month period ended June 30 has been filed with
the SEC on Form N-PX. The Funds proxy voting record, along with the Funds full proxy voting policies and procedures, is available on the Funds website at www.ridgeworth.com, without charge upon request by calling 1-888-784-3863, or
by writing to the Funds at RidgeWorth Funds, P.O. Box 8053, Boston, MA 02266-8053. The Funds proxy voting record is also available on the SECs website at www.sec.gov.
FINANCIAL STATEMENTS
The
financial statements for the Trusts fiscal year ended March 31, 2016, including notes thereto and the reports of PricewaterhouseCoopers LLP thereon, are incorporated into this SAI by reference from the 2016 Annual Report to Shareholders.
Copies of the Annual Report will be provided without charge upon request. The financial statements for the Predecessor Funds fiscal year ended November 30, 2015, including notes thereto and the reports of the Predecessor Funds
independent registered public accounting firm thereon, are incorporated into this SAI by reference from the Predecessor Funds 2015 Annual Report to Shareholders.
5% AND 25% SHAREHOLDERS
As
of June 30, 2016, the following persons were the only persons who were record owners (or to the knowledge of the Trust, beneficial owners) of 5% or more of the shares of the respective Funds. The nature of ownership for each position listed is
Record unless otherwise indicated. The Trust believes that most of the shares of the Funds were held for the record owners fiduciary, agency or custodial customers. An asterisk (*) indicates a beneficial owner.
110
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH AGGRESSIVE GROWTH ALLOCATION STRATEGY A
GREAT-WEST TRUST COMPANY LLC TTEE F
EMPLOYEE BENEFITS CLIENTS 401K
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
5.32% |
|
|
RIDGEWORTH AGGRESSIVE GROWTH ALLOCATION STRATEGY A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
84.70% |
|
|
RIDGEWORTH AGGRESSIVE GROWTH ALLOCATION STRATEGY C
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
72.61% |
|
|
RIDGEWORTH AGGRESSIVE GROWTH ALLOCATION STRATEGY C
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
10.46% |
|
|
RIDGEWORTH AGGRESSIVE GROWTH ALLOCATION STRATEGY C
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMER
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL ###-##-#### |
|
7.76% |
|
|
RIDGEWORTH AGGRESSIVE GROWTH ALLOCATION STRATEGY- I
STATE STREET BANK & TRUST
CUST FOR THE IRA
110 CARROLL CIR
FREDERICKSBURG VA 22405-3113 |
|
6.96% |
|
|
RIDGEWORTH AGGRESSIVE GROWTH ALLOCATION STRATEGY- I
MATRIX AS AGENT FBO
EPLAN GROUP TRUST
PO BOX 52129
PHOENIX AZ 85072-2129 |
|
7.57% |
111
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH AGGRESSIVE GROWTH ALLOCATION STRATEGY- I
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
50.79% |
|
|
RIDGEWORTH AGGRESSIVE GROWTH ALLOCATION STRATEGY- I
GREAT-WEST TRUST COMPANY LLC FBO
C/O MUTUAL FUND TRADING
8515 E ORCHARD RD
GREENWOOD VILLAGE CO 80111-5002 |
|
6.32% |
|
|
RIDGEWORTH AGGRESSIVE GROWTH ALLOCATION STRATEGY- I
NATIONWIDE TRUST COMPANY FSB
C/O IPO PORTFOLIO ACCOUNTING
PO BOX 182029
COLUMBUS OH 43218-2029 |
|
10.17% |
|
|
RIDGEWORTH AGGRESSIVE GROWTH ALLOCATION STRATEGY- I
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMER
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
6.92% |
|
|
RIDGEWORTH INNOVATIVE GROWTH STOCK FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
20.41% |
|
|
RIDGEWORTH INNOVATIVE GROWTH STOCK FUND A
FIRST CLEARING LLC
EXCLUSIVE BENEFIT OF CUSTOMER
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
9.41% |
112
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH INNOVATIVE GROWTH STOCK FUND A
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
19.18% |
|
|
RIDGEWORTH INNOVATIVE GROWTH STOCK FUND I
BAND & CO
C/O US BANK NA
PO BOX 1787
MILWAUKEE WI 53201-1787 |
|
21.08% |
|
|
RIDGEWORTH INNOVATIVE GROWTH STOCK FUND - I
FIRST CLEARING LLC
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
10.37% |
|
|
RIDGEWORTH INNOVATIVE GROWTH STOCK FUND - I
NATIONWIDE TRUST COMPANY FSB
C/O IPO PORTFOLIO ACCOUNTING
PO BOX 182029
COLUMBUS OH 43218-2029 |
|
13.97% |
|
|
RIDGEWORTH INNOVATIVE GROWTH STOCK FUND - I
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
14.12% |
|
|
RIDGEWORTH INNOVATIVE GROWTH STOCK FUND - I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
10.43% |
|
|
RIDGEWORTH INNOVATIVE GROWTH STOCK FUND - I
CHARLES SCHWAB & CO INC
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
7.07% |
113
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY A
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
6.94% |
|
|
RIDGEWORTH CAPITAL INNOVATIONS GLOBAL RESOURCES AND
INFRASTRUCTURE FUND A
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
33.22% |
|
|
RIDGEWORTH CAPITAL INNOVATIONS GLOBAL RESOURCES AND
INFRASTRUCTURE FUND A
CHARLES SCHWAB & CO INC
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
52.98% |
|
|
RIDGEWORTH CAPITAL INNOVATIONS GLOBAL RESOURCES AND
INFRASTRUCTURE FUND A
UBS WM USA
ATTN DEPT MANAGER
100 HARBOR BLVD 5TH FLOOR
WEEHAWKEN NJ 07086-6761 |
|
9.54% |
|
|
RIDGEWORTH CAPITAL INNOVATIONS GLOBAL RESOURCES AND
INFRASTRUCTURE FUND C
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
32.62% |
|
|
RIDGEWORTH CAPITAL INNOVATIONS GLOBAL RESOURCES AND
INFRASTRUCTURE FUND C
RAYMOND JAMES ASSOC INC
11 PHEASANT HILL RD
HOPKINTON MA 01748-2640 |
|
43.53% |
114
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH CAPITAL INNOVATIONS GLOBAL RESOURCES AND
INFRASTRUCTURE FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
19.10% |
|
|
RIDGEWORTH CAPITAL INNOVATIONS GLOBAL RESOURCES AND
INFRASTRUCTURE FUND I
CHARLES SCHWAB & CO INC
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
6.26% |
|
|
RIDGEWORTH CAPITAL INNOVATIONS GLOBAL RESOURCES AND
INFRASTRUCTURE FUND I
UBS WM USA
ATTN DEPT MANAGER
100 HARBOR BLVD 5TH FL
WEEHAWKEN NJ 07086-6761 |
|
72.44% |
|
|
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY A
GREAT-WEST TRUST COMPANY LLC TTEE F
EMPLOYEE BENEFITS CLIENTS
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
12.72% |
|
|
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
20.35% |
|
|
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY A
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
28.87% |
115
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY A
LPL FINANCIAL
4707 EXECUTIVE DR
SAN DIEGO CA 92121-3091 |
|
9.61% |
|
|
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY A
FIRST CLEARING LLC
SPECIAL CUSTODY ACCT FEBO
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
10.20% |
|
|
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY A
CHARLES SCHWAB & CO INC
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
5.60% |
|
|
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY C
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMER
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
8.70% |
|
|
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY C
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
11.98% |
|
|
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY C
LPL FINANCIAL
4707 EXECUTIVE DR
SAN DIEGO CA 92121-3091 |
|
5.56% |
116
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY C
RAYMOND JAMES
OMNIBUS FOR MUTUAL FUNDS
ATTN COURTNEY WALLER
880 CARILLON PKWY
ST PETERSBURG FL 33716-1100 |
|
22.02% |
|
|
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY C
FIRST CLEARING LLC
SPECIAL CUSTODY ACCT FEBO
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
27.80% |
|
|
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY I
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOME
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
18.16% |
|
|
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY I
FIRST CLEARING LLC
SPECIAL CUSTODY ACCT FEBO
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
15.17% |
|
|
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY I
TD AMERITRADE INC
FBO OUR CUSTOMERS
PO BOX 2226
OMAHA NE 68103-2226 |
|
32.61% |
|
|
RIDGEWORTH CONSERVATIVE ALLOCATION STRATEGY I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
8.09% |
117
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX CORE BOND FUND A
NATIONWIDE TRUST COMPANY FSB
C/O IPO PORTFOLIO ACCOUNTING
PO BOX 182029
COLUMBUS OH 43218-2029 |
|
11.44% |
|
|
RIDGEWORTH SEIX CORE BOND FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
23.09% |
|
|
RIDGEWORTH SEIX CORE BOND FUND A
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
16.93% |
|
|
RIDGEWORTH SEIX CORE BOND FUND I
VRSCO
HAMILTON HEALTHCARE 403B
2929 ALLEN PARKWAY A6-20
HOUSTON TX 77019-7117 |
|
6.37% |
|
|
RIDGEWORTH SEIX CORE BOND FUND I
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
45.10% |
|
|
RIDGEWORTH SEIX CORE BOND FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
8.11% |
118
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX CORE BOND FUND I
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMER
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
5.54% |
|
|
RIDGEWORTH SEIX CORE BOND FUND I
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
14.00% |
|
|
RIDGEWORTH SEIX CORE BOND FUND IS
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
97.49% |
|
|
RIDGEWORTH SEIX CORE BOND FUND R
LOAN COLLATERAL ACCOUNT
ORLANDO ORANGE CO CONVENTION
6277 SEA HARBOR DR STE 400
ORLANDO FL 32821-8028 |
|
12.34% |
|
|
RIDGEWORTH SEIX CORE BOND FUND R
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
51.11% |
|
|
RIDGEWORTH SEIX CORE BOND FUND R
GREAT-WEST TRUST COMPANY LLC TTEEF
EMPLOYEE BENEFITS
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
11.85% |
119
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX CORE BOND FUND R
LPL FINANCIAL
4707 EXECUTIVE DR
SAN DIEGO CA 92121-3091 |
|
6.54% |
|
|
RIDGEWORTH SEIX CORPORATE BOND FUND A
STATE STREET BANK & TRUST
CUST FOR THE IRA OF RICHARD J MAUSER
5536 SAGO PALM DR
ORLANDO FL 32819-7157 |
|
13.53% |
|
|
RIDGEWORTH SEIX CORPORATE BOND FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
45.64% |
|
|
RIDGEWORTH SEIX CORPORATE BOND FUND A
LPL FINANCIAL
4707 EXECUTIVE DR
SAN DIEGO CA 92121-3091 |
|
14.12% |
|
|
RIDGEWORTH SEIX CORPORATE BOND FUND A
FOLIOFN INVESTMENTS INC
8180 GREENSBORO DRIVE 8TH FLOOR
MCLEAN VA 22102-3888 |
|
7.45% |
|
|
RIDGEWORTH SEIX CORPORATE BOND FUND C
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
84.83% |
|
|
RIDGEWORTH SEIX CORPORATE BOND FUND I
NABANK & CO
PO BOX 2180
TULSA OK 74101-2180 |
|
24.92% |
120
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX CORPORATE BOND FUND I
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
30.51% |
|
|
RIDGEWORTH SEIX CORPORATE BOND FUND I
STATE STREET BANK & TRUST
FBO RIDGEWORTH CONSERVATIVE
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
9.64% |
|
|
RIDGEWORTH SEIX CORPORATE BOND FUND I
STATE STREET BANK & TRUST
FBO RIDGEWORTH MODERATE
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
6.14% |
|
|
RIDGEWORTH SEIX CORPORATE BOND FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
6.11% |
|
|
RIDGEWORTH SEIX CORPORATE BOND FUND I
NATIONWIDE TRUST COMPANY FSB
C/O IPO PORTFOLIO ACCOUNTING
PO BOX 182029
COLUMBUS OH 43218-2029 |
|
9.60% |
|
|
RIDGEWORTH SEIX GEORGIA TAX-EXEMPT BOND FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
65.74% |
121
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX GEORGIA TAX-EXEMPT BOND FUND A
CHARLES SCHWAB CO INC
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
13.58% |
|
|
RIDGEWORTH SEIX GEORGIA TAX-EXEMPT BOND FUND A
RAYMOND JAMES
ATTN COURTNEY WALLER
800 CARILLON PKWY
ST PETERSBURG FL 33716-1100 |
|
5.04% |
|
|
RIDGEWORTH SEIX GEORGIA TAX-EXEMPT BOND FUND I
NATIONAL FINANCIAL SERVICES LLC
FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
9.27% |
|
|
RIDGEWORTH SEIX GEORGIA TAX-EXEMPT BOND FUND I
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
86.36% |
|
|
RIDGEWORTH GROWTH ALLOCATION STRATEGY A
NATIONAL FINANCIAL SERVICES LLC
FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
89.92% |
|
|
RIDGEWORTH GROWTH ALLOCATION STRATEGY C
NATIONAL FINANCIAL SERVICES LLC
FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
76.02% |
122
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH GROWTH ALLOCATION STRATEGY C
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMERS
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
5.71% |
|
|
RIDGEWORTH GROWTH ALLOCATION STRATEGY C
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
5.49% |
|
|
RIDGEWORTH GROWTH ALLOCATION STRATEGY C
FIRST CLEARING LLC
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
8.89% |
|
|
RIDGEWORTH GROWTH ALLOCATION STRATEGY I
GREAT-WEST TRUST COMPANY LLC TTEE F
EMPLOYEE BENEFITS CLIENTS
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
11.77% |
|
|
RIDGEWORTH GROWTH ALLOCATION STRATEGY I
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
75.29% |
|
|
RIDGEWORTH SEIX HIGH GRADE MUNICIPAL BOND FUND A
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
11.43% |
123
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX HIGH GRADE MUNICIPAL BOND FUND A
FIRST CLEARING LLC
FOR THE EXCLUSIVE BENEFIT OF CUSTOMER
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
21.00% |
|
|
RIDGEWORTH SEIX HIGH GRADE MUNICIPAL BOND FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
17.03% |
|
|
RIDGEWORTH SEIX HIGH GRADE MUNICIPAL BOND FUND A
UBS WM USA
ATTN DEPARTMENT MANAGER
1000 HARBOR BLVD 5TH FL
JERSEY CITY NJ 07310 |
|
8.61% |
|
|
RIDGEWORTH SEIX HIGH GRADE MUNICIPAL BOND FUND I
SEI PRIVATE TRUST COMPANY
C/O SUNTRUST BANK
ATTN MUTUAL FUNDS ADMINISTRATOR
ONE FREEDOM VALLEY DRIVE
OAKS PA 19456-9989 |
|
10.11% |
|
|
RIDGEWORTH SEIX HIGH GRADE MUNICIPAL BOND FUND I
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMERS
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
11.71% |
|
|
RIDGEWORTH SEIX HIGH GRADE MUNICIPAL BOND FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
11.04% |
124
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX HIGH GRADE MUNICIPAL BOND FUND I
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
24.71% |
|
|
RIDGEWORTH SEIX HIGH GRADE MUNICIPAL BOND FUND I
UBS WM USA
ATTN DEPARTMENT MANAGER
1000 HARBOR BLVD 5TH FL
JERSEY CITY NJ 07310 |
|
11.37% |
|
|
RIDGEWORTH SEIX HIGH GRADE MUNICIPAL BOND FUND I
FIRST CLEARING LLC
SPECIAL CUSTODY ACCT FEBO
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
8.78% |
|
|
RIDGEWORTH SEIX HIGH GRADE MUNICIPAL BOND FUND I
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
7.68% |
|
|
RIDGEWORTH SEIX HIGH GRADE MUNICIPAL BOND FUND I
TD AMERITRADE INC
FBO OUR CUSTOMERS
PO BOX 2226
OMAHA NE 68103-2226 |
|
5.55% |
|
|
RIDGEWORTH SEIX HIGH INCOME FUND A
AMERICAN UNITED LIFE INSURANCE
ATTN SEPARATE ACCOUNTS
PO BOX 368
INDIANAPOLIS IN 46206-0368 |
|
11.87% |
125
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX HIGH INCOME FUND A
AMERICAN UNITED LIFE INSURANCE
ATTN SEPARATE ACCOUNTS
PO BOX 368
INDIANAPOLIS IN 46206-0368 |
|
8.23% |
|
|
RIDGEWORTH SEIX HIGH INCOME FUND A
UBS WM USA
ATTN DEPARTMENT MANAGER
1000 HARBOR BLVD 5TH FLOOR
JERSEY CITY NJ 07310 |
|
9.56% |
|
|
RIDGEWORTH SEIX HIGH INCOME FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
11.93% |
|
|
RIDGEWORTH SEIX HIGH INCOME FUND A
NATIONWIDE TRUST COMPANY FSB
C/O IPO PORTFOLIO ACCOUNTING
PO BOX 182029
COLUMBUS OH 43218-2029 |
|
7.61% |
|
|
RIDGEWORTH SEIX HIGH INCOME FUND I
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
69.71% |
|
|
RIDGEWORTH SEIX HIGH INCOME FUND I
UBS WM USA
OMNI ACCOUNT M/F
ATTN DEPARTMENT MANAGER
1000 HARBOR BLVD 5TH FL
JERSEY CITY NJ 07310 |
|
6.24% |
126
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX HIGH INCOME FUND IS
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
94.13% |
|
|
RIDGEWORTH SEIX HIGH INCOME FUND R
VOYA RETIREMENT INSURANCE AND
ONE ORANGE WAY
WINDSOR CT 06095-4773 |
|
14.61% |
|
|
RIDGEWORTH SEIX HIGH INCOME FUND R
TD AMERITRADE INC
FBO OUR CUSTOMERS
PO BOX 2226
OMAHA NE 68103-2226 |
|
5.19% |
|
|
RIDGEWORTH SEIX HIGH INCOME FUND R
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
46.78% |
|
|
RIDGEWORTH INTERNATIONAL EQUITY FUND A
ANTHONY R GRAY*
452 SYLVAN DR
WINTER PARK FL 32789-3975 |
|
12.46% |
|
|
RIDGEWORTH INTERNATIONAL EQUITY FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
55.87% |
|
|
RIDGEWORTH INTERNATIONAL EQUITY FUND A
FIRST CLEARING LLC
EXCLUSIVE BENEFIT OF CUSTOMER
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
7.39% |
127
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH INTERNATIONAL EQUITY FUND I
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
6.29% |
|
|
RIDGEWORTH INTERNATIONAL EQUITY FUND I
CHARLES SCHWAB AND CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
11.11% |
|
|
RIDGEWORTH INTERNATIONAL EQUITY FUND I
FIRST CLEARING LLC
EXCLUSIVE BENEFIT OF CUSTOMER
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
23.60% |
|
|
RIDGEWORTH INTERNATIONAL EQUITY FUND I
UBS WM USA
ATTN DEPARTMENT MANAGERS
1000 HARBOR BLVD 5TH FL
JERSEY CITY NJ 07310 |
|
26.13% |
|
|
RIDGEWORTH INTERNATIONAL EQUITY FUND I
RAYMOND JAMES
ATTN COURTNEY WALLER
880 CARILLON PKWY
ST PETERSBURG FL 33716-1100 |
|
8.96% |
|
|
RIDGEWORTH INTERNATIONAL EQUITY FUND I
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMER
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
17.14% |
128
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH INTERNATIONAL EQUITY FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH CONSERVATIVE
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
23.81% |
|
|
RIDGEWORTH INTERNATIONAL EQUITY FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH MODERATE
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
35.45% |
|
|
RIDGEWORTH INTERNATIONAL EQUITY FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH GROWTH
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
6.35% |
|
|
RIDGEWORTH INTERNATIONAL EQUITY FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH GROWTH
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
34.39% |
|
|
RIDGEWORTH SEIX INVESTMENT GRADE TAX-EXEMPT BOND FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
30.11% |
|
|
RIDGEWORTH SEIX INVESTMENT GRADE TAX-EXEMPT BOND FUND A
MORGAN STANLEY SMITH BARNEY LLC
HARBORSIDE FINANCIAL CENTER
PLAZA 2 3RD FLOOR
JERSEY CITY NJ 07311 |
|
8.28% |
129
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX INVESTMENT GRADE TAX-EXEMPT BOND FUND A
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
14.54% |
|
|
RIDGEWORTH SEIX INVESTMENT GRADE TAX-EXEMPT BOND FUND A
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMERS
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
11.07% |
|
|
RIDGEWORTH SEIX INVESTMENT GRADE TAX-EXEMPT BOND FUND A
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
7.19% |
|
|
RIDGEWORTH SEIX INVESTMENT GRADE TAX-EXEMPT BOND FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
18.03% |
|
|
RIDGEWORTH SEIX INVESTMENT GRADE TAX-EXEMPT BOND FUND I
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
53.34% |
|
|
RIDGEWORTH SEIX INVESTMENT GRADE TAX-EXEMPT BOND FUND I
RAYMOND JAMES
OMNIBUS FOR MUTUAL FUNDS
ATTN COURTNEY WALLER
880 CARILLON PKWY
ST PETERSBURG FL 33716-1100 |
|
6.69% |
130
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SILVANT LARGE CAP GROWTH STOCK FUND A
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMER
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
10.98% |
|
|
RIDGEWORTH SILVANT LARGE CAP GROWTH STOCK FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
43.97% |
|
|
RIDGEWORTH SILVANT LARGE CAP GROWTH STOCK FUND C
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
86.91% |
|
|
RIDGEWORTH SILVANT LARGE CAP GROWTH STOCK FUND I
THE NORTHERN TRUST COMPANY AS
TRUSTEE FBO APOLLO - DV
PO BOX 92994
CHICAGO IL 60675-2994 |
|
53.66% |
|
|
RIDGEWORTH SILVANT LARGE CAP GROWTH STOCK FUND I
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
12.89% |
|
|
RIDGEWORTH SILVANT LARGE CAP GROWTH STOCK FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
7.76% |
131
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SILVANT LARGE CAP GROWTH STOCK FUND I
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
13.71% |
|
|
RIDGEWORTH SILVANT LARGE CAP GROWTH STOCK FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH CONSERVATIVE
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
23.43% |
|
|
RIDGEWORTH SILVANT LARGE CAP GROWTH STOCK FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH MODERATE
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
34.86% |
|
|
RIDGEWORTH SILVANT LARGE CAP GROWTH STOCK FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH AGGRESSIVE GROWTH
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
6.16% |
|
|
RIDGEWORTH SILVANT LARGE CAP GROWTH STOCK FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH GROWTH
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
33.67% |
|
|
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND A
MASSACHUSETTS MUTUAL LIFE INSURANCE
1295 STATE STREET MIP M200-INVST
SPRINGFIELD MA 01111-0001 |
|
5.11% |
132
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND A
HARTFORD LIFE INSURANCE CO
SEPARATE ACCOUNT
PO BOX 2999
HARTFORD CT 06104-2999 |
|
17.43% |
|
|
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
10.46% |
|
|
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND A
VOYA RETIREMENT INSURANCE AND ANNUITY
COMPANY ONE ORANGE WAY
WINDSOR CT 06095-4773 |
|
29.11% |
|
|
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND A
AMERICAN UNITED LIFE INSURANCE
ATTN SEPARATE ACCOUNTS
PO BOX 368
INDIANAPOLIS IN 46206-0368 |
|
10.95% |
|
|
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND C
MERRILL LYNCH PIERCE FENNER & SMITH
FOR THE SOLE BENEFIT OF ITS CUSTOMER
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
12.68% |
|
|
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND C
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
57.85% |
133
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND C
FIRST CLEARING LLC
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
5.25% |
|
|
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND C
RAYMOND JAMES
ATTN COURTNEY WALLER
800 CARILLON PKWY
ST PETERSBURG FL 33716-1100 |
|
5.34% |
|
|
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
29.15% |
|
|
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND I
CHARLES SCHWAB AND CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
11.32% |
|
|
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND I
GREAT-WEST TRUST COMPANY LLC TTEE F
EMPLOYEE BENEFITS CLIENTS 401K
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
7.79% |
|
|
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND IS
TAYNIK & CO
C/O STATE STREET BANK & TRUST
1200 CROWN COLONY DRIVE
QUINCY MA 02169-0938 |
|
8.03% |
134
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND IS
THE NORTHERN TRUST COMPANY
AS TRUSTEE FBO GENUINE PARTS-DV
PO BOX 92994
CHICAGO IL 60675-2994 |
|
12.20% |
|
|
RIDGEWORTH CEREDEX LARGE CAP VALUE EQUITY FUND IS
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
58.83% |
|
|
RIDGEWORTH SEIX LIMITED DURATION FUND I
SEIX ADVISORS AS MANAGER
FOR OHIO TUITION TRUST AUTHORITY
1 MAYNARD DR STE 3200
PARK RIDGE NJ 07656-1878 |
|
100.00% |
|
|
RIDGEWORTH SEIX U.S. MORTGAGE FUND A
RELIANCE TRUST CO TTEE
ADP ACCESS LARGE MARKET 401K
1100 ABERNATHY RD
ATLANTA GA 30328-5620 |
|
11.66% |
|
|
RIDGEWORTH SEIX U.S. MORTGAGE FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
17.99% |
|
|
RIDGEWORTH SEIX U.S. MORTGAGE FUND A
LPL FINANCIAL
ATTN MUTUAL FUND TRADING
4707 EXECUTIVE DR
SAN DIEGO CA 92121-3091 |
|
50.72% |
135
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX U.S. MORTGAGE FUND A
RBC CAPITAL MARKETS LLC
LIBRARY GENERAL FUND
1099 LONE PINE RD
BLOOMFIELD HLS MI 48302-2410 |
|
11.26% |
|
|
RIDGEWORTH SEIX U.S. MORTGAGE FUND C
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
73.74% |
|
|
RIDGEWORTH SEIX U.S. MORTGAGE FUND C
RAYMOND JAMES
OMNIBUS FOR MUTUAL FUNDS
HOUSE ACCT FIRM 92500015
ATTN COURTNEY WALLER
880 CARILLON PKWY
ST PETERSBURG FL 33716-1100 |
|
13.08% |
|
|
RIDGEWORTH SEIX U.S. MORTGAGE FUND I
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
67.57% |
|
|
RIDGEWORTH SEIX U.S. MORTGAGE FUND I
RAYMOND JAMES
OMNIBUS FOR MUTUAL FUNDS
HOUSE ACCT FIRM 92500015
ATTN COURTNEY WALLER
880 CARILLON PKWY
ST PETERSBURG FL 33716-1100 |
|
16.02% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND A
HARTFORD LIFE INSURANCE CO
SEPARATE ACCOUNT
PO BOX 2999
HARTFORD CT 06104-2999 |
|
17.84% |
136
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND A
VOYA RETIREMENT INSURANCE AND ANNUITY
COMPANY ONE ORANGE WAY
WINDSOR CT 06095-4773 |
|
11.64% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND A
VRSCO
STATE UNIV SYSTEM OF FLORIDA 403B
2929 ALLEN PKWY STE A6-20
HOUSTON TX 77019-7717 |
|
6.09% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
6.90% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND A
GREAT-WEST LIFE & ANNUITY INS CO
DEFAULT 2T2--8515E
8515 E ORCHARD RD # 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
16.54% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND C
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
12.24% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND C
MERRILL LYNCH PIERCE FENNER & SMITH
FOR THE SOLE BENEFIT OF ITS CUSTOMERS
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
18.55% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND C
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
7.90% |
137
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND C
FIRST CLEARING LLC
SPECIAL CUSTODY ACCT FEBO
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
11.29% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND C
RAYMOND JAMES
OMNIBUS FOR MUTUAL FUNDS
ATTN COURTNEY WALLER
880 CARILLON PKWY
ST PETERSBURG FL 33716-1100 |
|
18.48% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND C
CHARLES SCHWAB AND CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94104-4151 |
|
9.64% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
41.92% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND I
FIRST CLEARING LLC
SPECIAL CUSTODY ACCT FEBO
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
14.36% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND IS
ASSOCIATED TRUST COMPANY FBO
ASSOCIATED BANC-CORP P/S & RET
PO BOX 22037
GREEN BAY WI 54305-2037 |
|
6.90% |
138
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND IS
JOHN HANCOCK TRUST COMPANY LLC
690 CANTON ST STE 100
WESTWOOD MA 02090-2324 |
|
11.01% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND IS
ASSOCIATED TRUST COMPANY
PO BOX 22037
GREEN BAY WI 54305-2037 |
|
13.40% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND IS
ASSOCIATED TRUST COMPANY FBO
ASSOCIATED BANC-CORP P/S & RET
PO BOX 22037
GREEN BAY WI 54305-2037 |
|
5.03% |
|
|
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND IS
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
30.91% |
|
|
RIDGEWORTH MODERATE ALLOCATION STRATEGY A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
59.84% |
|
|
RIDGEWORTH MODERATE ALLOCATION STRATEGY A
GREAT-WEST TRUST COMPANY LLC TTEE F
EMPLOYEE BENEFITS CLIENTS 401K
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
18.88% |
|
|
RIDGEWORTH MODERATE ALLOCATION STRATEGY A
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
5.06% |
139
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH MODERATE ALLOCATION STRATEGY C
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
79.07% |
|
|
RIDGEWORTH MODERATE ALLOCATION STRATEGY C
FIRST CLEARING LLC
EXCLUSIVE BENEFIT OF CUSTOMER
2801 MARKET ST
ST LOUIS MO 63103-2523 |
|
6.43% |
|
|
RIDGEWORTH MODERATE ALLOCATION STRATEGY I
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
65.38% |
|
|
RIDGEWORTH MODERATE ALLOCATION STRATEGY I
GREAT-WEST TRUST COMPANY LLC TTEE F
EMPLOYEE BENEFITS CLIENTS
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
8.49% |
|
|
RIDGEWORTH MODERATE ALLOCATION STRATEGY I
GREAT-WEST TRUST COMPANY LLC TTEE F
EMPLOYEE BENEFITS CLIENTS
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
6.06% |
|
|
RIDGEWORTH MODERATE ALLOCATION STRATEGY I
GREAT-WEST TRUST CO LLC FBO
C/O MUTUAL FUND TRADING
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
5.76% |
140
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX NORTH CAROLINA TAX-EXEMPT BOND FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
22.12% |
|
|
RIDGEWORTH SEIX NORTH CAROLINA TAX-EXEMPT BOND FUND A
KIMBERLY D PICKELSIMER
PO BOX 786
BREVARD NC 28712-0786 |
|
37.17% |
|
|
RIDGEWORTH SEIX NORTH CAROLINA TAX-EXEMPT BOND FUND A
NANCY PICKELSIMER & LISA PICKELSIMER
TTEES U/W JOSEPH PICKELSIMER
PO BOX 786
BREVARD NC 28712-0786 |
|
37.17% |
|
|
RIDGEWORTH SEIX NORTH CAROLINA TAX-EXEMPT BOND FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
20.64% |
|
|
RIDGEWORTH SEIX NORTH CAROLINA TAX-EXEMPT BOND FUND I
CHARLES SCHWAB & CO INC
ATTEN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
67.03% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
30.91% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND A
LPL FINANCIAL
A/C 1000-0005
4707 EXECUTIVE DR
SAN DIEGO CA 92150-9046 |
|
34.27% |
141
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND A
CHARLES SCHWAB & CO INC
ATTEN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
5.48% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND C
FIRST CLEARING LLC
SPECIAL CUSTODY ACCT FEBO
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
7.18% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND C
RAYMOND JAMES
OMNIBUS FOR MUTUAL FUNDS
ATTN COURTNEY WALLER
880 CARILLON PKWY
ST PETERSBURG FL 33716-1100 |
|
8.57% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND C
MORGAN STANLEY SMITH BARNEY LLC
HARBORSIDE FINANCIAL CENTER
PLAZA 2 3RD FLOOR
JERSEY CITY NJ 07311 |
|
10.98% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND C
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMERS
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
17.00% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND C
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
6.72% |
142
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND C
UBS WM USA
OMNI ACCOUNT M/F
ATTN DEPARTMENT MANAGER
1000 HARBOR BLVD 5TH FL
JERSEY CITY NJ 07310 |
|
7.91% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND C
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN STREET
SAN FRANCISCO CA 94104-4151 |
|
8.09% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND C
LPL FINANCIAL
A/C 1000-0005
4707 EXECUTIVE DRIVE
SAN DIEGO CA 92121-3091 |
|
27.81% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
16.41% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND I
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN STREET
SAN FRANCISCO CA 94104-4151 |
|
37.95% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND I
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
8.67% |
143
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND I
LPL FINANCIAL
OMNIBUS CUSTOMER ACCOUNT
ATTN MUTUAL FUND TRADING
4707 EXECUTIVE DR
SAN DIEGO CA 92121-3091 |
|
9.27% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND IS
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
6.13% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND IS
CHARLES SCHWAB & CO INC
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
8.63% |
|
|
RIDGEWORTH SEIX HIGH YIELD FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
17.61% |
|
|
RIDGEWORTH SEIX HIGH YIELD FUND A
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
16.40% |
|
|
RIDGEWORTH SEIX HIGH YIELD FUND A
FIRST CLEARING LLC
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
18.79% |
144
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX HIGH YIELD FUND A
UBS WM USA
ATTN DEPARTMENT MANAGER
1000 HARBOR BLVD 5TH FL
JERSEY CITY NJ 07310 |
|
17.32% |
|
|
RIDGEWORTH SEIX HIGH YIELD FUND A
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMERS
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
5.03% |
|
|
RIDGEWORTH SEIX HIGH YIELD FUND A
TD AMERITRADE INC
FBO OUR CUSTOMERS
PO BOX 2226
OMAHA NE 68103-2226 |
|
5.88% |
|
|
RIDGEWORTH SEIX HIGH YIELD FUND I
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMERS
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
5.07% |
|
|
RIDGEWORTH SEIX HIGH YIELD FUND I
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS DEPT
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
39.24% |
|
|
RIDGEWORTH SEIX HIGH YIELD FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
5.36% |
|
|
RIDGEWORTH SEIX HIGH YIELD FUND R
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
94.17% |
145
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX SHORT-TERM BOND FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
26.42% |
|
|
RIDGEWORTH SEIX SHORT-TERM BOND FUND A
NATIONWIDE TRUST COMPANY FSB
C/O IPO PORTFOLIO ACCOUNTING
PO BOX 182029
COLUMBUS OH 43218-2029 |
|
21.06% |
|
|
RIDGEWORTH SEIX SHORT-TERM BOND FUND A
UBS WM USA
OMNI ACCOUNT M/F
ATTN DEPARTMENT MANAGER
1000 HARBOR BLVD 5TH FL
JERSEY CITY NJ 07310 |
|
40.27% |
|
|
RIDGEWORTH SEIX SHORT-TERM BOND FUND C
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
54.16% |
|
|
RIDGEWORTH SEIX SHORT-TERM BOND FUND C
LPL FINANCIAL
A/C 1000-0005
4707 EXECUTIVE DR
SAN DIEGO CA 92121-3091 |
|
6.69% |
|
|
RIDGEWORTH SEIX SHORT-TERM BOND FUND C
UBS WM USA
OMNI ACCOUNT M/F
ATTN DEPARTMENT MANAGER
1000 HARBOR BLVD 5TH FL
JERSEY CITY NJ 07310 |
|
6.80% |
146
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX SHORT-TERM BOND FUND C
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOME
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
10.06% |
|
|
RIDGEWORTH SEIX SHORT-TERM BOND FUND C
CHARLES SCHWAB AND CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94104-4151 |
|
10.29% |
|
|
RIDGEWORTH SEIX SHORT-TERM BOND FUND C
FIRST CLEARING LLC
EXCLUSIVE BENEFIT OF CUSTOMER
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
9.03% |
|
|
RIDGEWORTH SEIX SHORT-TERM BOND FUND I
SEI PRIVATE TRUST COMPANY
C/O SUNTRUST BANK
ATTN MUTUAL FUNDS ADMINISTRATOR
ONE FREEDOM VALLEY DRIVE
OAKS PA 19456-9989 |
|
7.18% |
|
|
RIDGEWORTH SEIX SHORT-TERM BOND FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
38.47% |
|
|
RIDGEWORTH SEIX SHORT-TERM BOND FUND I
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
7.49% |
147
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX SHORT-TERM BOND FUND I
CHARLES SCHWAB AND CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94104-4151 |
|
33.10% |
|
|
RIDGEWORTH SEIX SHORT-TERM MUNICIPAL BOND FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
34.67% |
|
|
RIDGEWORTH SEIX SHORT-TERM MUNICIPAL BOND FUND A
PERSHING LLC
1 PERSHING
PLZ JERSEY CITY NJ 07303-2052 |
|
10.42% |
|
|
RIDGEWORTH SEIX SHORT-TERM MUNICIPAL BOND FUND A
ROBERT W BAIRD & CO INC.
A/C 8255-1169
777 EAST WISCONSIN AVENUE
MILWAUKEE WI 53202-5391 |
|
38.22% |
|
|
RIDGEWORTH SEIX SHORT-TERM MUNICIPAL BOND FUND A
TD AMERITRADE INC
FBO OUR CUSTOMERS
PO BOX 2226
OMAHA NE 68103-2226 |
|
11.58% |
|
|
RIDGEWORTH SEIX SHORT-TERM MUNICIPAL BOND FUND I
CHARLES SCHWAB AND CO INC
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
16.80% |
148
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX SHORT-TERM MUNICIPAL BOND FUND I
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOME
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
6.86% |
|
|
RIDGEWORTH SEIX SHORT-TERM MUNICIPAL BOND FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
11.20% |
|
|
RIDGEWORTH SEIX SHORT-TERM MUNICIPAL BOND FUND I
STRAFE & CO
FBO JOHN LEGERE
PO BOX 6924
NEWARK DE 19714-6924 |
|
7.58% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
32.98% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND A
CHARLES SCHWAB AND CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN STREET
SAN FRANCISCO CA 94104-4151 |
|
5.63% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND A
NATIONWIDE TRUST COMPANY FSB
C/O IPO PORTFOLIO ACCOUNTING
PO BOX 182029
COLUMBUS OH 43218-2029 |
|
5.18% |
149
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND A
RAYMOND JAMES
OMNIBUS FOR MUTUAL FUNDS
HOUSE ACCT FIRM 92500015
ATTN COURTNEY WALLER
880 CARILLON PKWY
ST PETERSBURG FL 33716-1100 |
|
7.74% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND C
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
76.28% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND I
GREAT WEST LIFE & ANNUITY COMPANY
C/O FASCORP RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VLG CO 80111-5002 |
|
8.59% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND I
GREAT WEST TRUST COMPANY LLC TTEEF
EMPLOYEE BENEFITS CLIENTS 401K
8515 E ORCHARD RD 2T2
GREENWOOD VLG CO 80111-5002 |
|
7.21% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND I
GREAT WEST LIFE & ANNUITY
8515 E ORCHARD RD 2T2
GREENWOOD VLG CO 80111-5002 |
|
21.38% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND I
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
18.83% |
150
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND I
WELLS FARGO BANK NA
FBO MONTEREY COUNTY DEFERRED
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
6.81% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND I
GREAT-WEST TRUST COMPANY LLC TTEE/C
FBO; GREAT WEST IRA ADVANTAGE
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
5.74% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND I
CHARLES SCHWAB & CO INC
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
6.53% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH CONSERVATIVE
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
16.16% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH CONSERVATIVE
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
15.71% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH MODERATE
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
23.46% |
151
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH GROWTH
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
22.53% |
|
|
RIDGEWORTH SILVANT SMALL CAP GROWTH STOCK FUND IS
NATIONAL FINANCIAL SERVICES LLC
FOR EXCLUSIVE BENEFIT OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
34.10% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
5.49% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND A
HARTFORD LIFE INSURANCE CO
SEPARATE ACCOUNT
PO BOX 2999
HARTFORD CT 06104-2999 |
|
54.69% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND A
UMB BANK NA
FBO FIDUCIARY FOR VARIOUS RETIRMENT PROGRAMS
ONE SECURITY BENEFIT PLACE
TOPEKA KS 66636-1000 |
|
9.89% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND C
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
33.13% |
152
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND C
FIRST CLEARING LLC
SPECIAL CUSTODY ACCT FEBO
2801 MARKET ST
SAINT LOUIS MO 63103-2523 |
|
8.75% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND C
RAYMOND JAMES
OMNIBUS FOR MUTUAL FUNDS
HOUSE ACCT FIRM 92500015
ATTN COURTNEY WALLER
880 CARILLON PKWY
ST PETERSBURG FL 33716-1100 |
|
9.66% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND C
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMERS
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
5.37% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND C
CHARLES SCHWAB AND CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94104-4151 |
|
7.50% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND C
LPL FINANCIAL
A/C 1000-0005
4707 EXECUTIVE DR
SAN DIEGO CA 92121-3091 |
|
6.26% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND I
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
7.35% |
153
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
16.89% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND I
STATE STREET BANK 10/01/02
STATE OF MICHIGAN 401K
PO BOX 5501
BOSTON MA 02206-5501 |
|
10.72% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND I
CHARLES SCHWAB AND CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN STREET
SAN FRANCISCO CA 94104-4151 |
|
22.49% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND I
EDWARD D JONES & CO
FOR THE BENEFIT OF CUSTOMERS
12555 MANCHESTER RD
SAINT LOUIS MO 63131-3729 |
|
11.15% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND I
SUNTRUST BANK AND VARIOUS BENEFIT
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
7.43% |
|
|
RIDGEWORTH CEREDEX SMALL CAP VALUE EQUITY FUND I
NATIONAL FINANCIAL SERVICES LLC
FPR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
20.58% |
154
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX TOTAL RETURN BOND FUND A
TAYNIK & CO
C/O STATE STREET BANK & TRUST
1200 CROWN COLONY DRIVE
QUINCY MA 02169-0938 |
|
10.34% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND A
MERRILL LYNCH PIERCE FENNER &
SMITH FOR THE SOLE BENEFIT OF ITS CUSTOMERS
4800 DEER LAKE DRIVE EAST
JACKSONVILLE FL 32246-6484 |
|
9.30% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND A
HARTFORD LIFE INSURANCE CO
SEPARATE ACCOUNT
PO BOX 2999
HARTFORD CT 06104-2999 |
|
25.28% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND A
DCGT AS TTEE AND OR CUST
FBO PLIC VARIOUS RETIREMENT PLANS
OMNIBUS
ATTN NPIO TRADE DESK
711 HIGH STREET
DES MOINES IA 50392-0001 |
|
24.75% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
7.43% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
7.60% |
155
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX TOTAL RETURN BOND FUND I
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
45.13% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND I
EDWARD D JONES & CO
FOR THE BENEFIT OF CUSTOMERS
12555 MANCHESTER RD
SAINT LOUIS MO 63131-3729 |
|
9.95% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND I
MAC & CO A/C 695932
ATTN MUTUAL FUND OPS
PO BOX 3198
PITTSBURG PA 15230 |
|
5.51% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND I
UBS WM USA
OMNI ACCOUNT M/F
ATTN DEPARTMENT MANAGER
100 HARBOR BLVD 5TH FL
JERSEY CITY NJ 07310 |
|
7.53% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH CONSERVATIVE
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
33.42% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH MODERATE
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
21.26% |
156
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX TOTAL RETURN BOND FUND IS
STATE STREET BANK & TRUST
FBO RIDGEWORTH GROWTH
ALLOCATION STRATEGY
2 AVE DE LAFAYETTE LCC5W
BOSTON MA 02111 |
|
8.61% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND IS
SEI PRIVATE TRUST COMPANY
C/O SUNTRUST BANK ID866
ATTN MUTUAL FUND ADMIN
ONE FREEDOM VALLEY DRIVE
OAKS PA 19456-9989 |
|
21.50% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND IS
SEI PRIVATE TRUST COMPANY
C/O SUNTRUST BANK ID866
ATTN MUTUAL FUND ADMIN
ONE FREEDOM VALLEY DRIVE
OAKS PA 19456-9989 |
|
8.96% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND IS
NATIONWIDE TRUST COMPANY FSB
FBO PARTICIPATING RETIREMENT PLANS
C/O IPO PORTFOLIO ACCOUNTING
P.O BOX 182029
COLUMBUS OH 43218-2029 |
|
5.36% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND R
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
13.09% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND R
HARTFORD LIFE INSURANCE CO
SEPARATE ACCOUNT
PO BOX 2999
HARTFORD CT 06104-2999 |
|
21.25% |
157
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX TOTAL RETURN BOND FUND R
VOYA RETIREMENT INSURANCE AND ANNUITY
COMPANY ONE ORANGE WAY
WINDSOR CT 06095-4773 |
|
58.21% |
|
|
RIDGEWORTH SEIX U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND I
BAND & CO C/O US BANK NA
1555 N RIVERCENTER DR STE 302
MILWAUKEE WI 53212-3958 |
|
5.94% |
|
|
RIDGEWORTH SEIX U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND I
PIEDMONT HLEATHCARE INC
1800 HOWELL MILL RD NW STE 850
ATLANTA GA 30318-0923 |
|
5.23% |
|
|
RIDGEWORTH SEIX U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND I
NABANK & CO
PO BOX 2180
TULSA OK 74101-2180 |
|
5.83% |
|
|
RIDGEWORTH SEIX U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
6.50% |
|
|
RIDGEWORTH SEIX U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND I
CHARLES SCHWAB AND CO INC
SPECIAL CUSTODY A/C FBO CUSTOMERS
ATTN MUTUAL FUNDS
101 MONTGOMERY ST
SAN FRANCISCO CA 94104-4151 |
|
62.44% |
|
|
RIDGEWORTH SEIX ULTRA-SHORT BOND FUND I
PERSHING LLC
1 PERSHING PLZ
JERSEY CITY NJ 07399-0002 |
|
10.28% |
158
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX ULTRA-SHORT BOND FUND I
UBS WM USA
OMNI ACCOUNT M/F
ATTN DEPT MANAGERS
1000 HARBOR BLVD 5TH FL
JERSEY CITY NJ 07310 |
|
5.81% |
|
|
RIDGEWORTH SEIX ULTRA-SHORT BOND FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
36.45% |
|
|
RIDGEWORTH SEIX ULTRA-SHORT BOND FUND I
CHARLES SCHWAB AND CO INC
SPECIAL CUSTODY A/C FBO CUSTOMERS
ATTN MUTUAL FUNDS
101 MONTGOMERY ST
SAN FRANCISCO CA 94104-4151 |
|
20.81% |
|
|
RIDGEWORTH SEIX VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND A
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
68.29% |
|
|
RIDGEWORTH SEIX VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND I
SEI PRIVATE TRUST COMPANY
C/O SUNTRUST BANK
ATTN MUTUAL FUNDS ADMINISTRATOR
ONE FREEDOM VALLEY DRIVE
OAKS PA 19456-9989 |
|
5.73% |
|
|
RIDGEWORTH SEIX VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND I
SEI PRIVATE TRUST COMPANY
C/O SUNTRUST BANK
ATTN MUTUAL FUNDS ADMINISTRATOR
ONE FREEDOM VALLEY DRIVE
OAKS PA 19456-9989 |
|
17.90% |
159
|
|
|
Fund/Class |
|
Percent of the Class Total Assets Held by the Shareholder |
RIDGEWORTH SEIX VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND I
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
12.51% |
As of June 30, 2016, the following entities held of record more than 25% of the outstanding shares of a Fund.
Persons holding more than 25% of the outstanding shares of a Fund may be deemed to have control (as that term is defined in the Investment Company Act) of the applicable Fund and may be able to affect or determine the outcome of matters
presented for a vote of the shareholders of the applicable Fund.
|
|
|
Fund |
|
Percentage of Ownership |
RIDGEWORTH AGGRESSIVE GROWTH ALLOCATION STRATEGY
NATIONAL FINANCIAL SERVICES
FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
43.66% |
|
|
RIDGEWORTH CAPITAL INNOVATIONS GLOBAL RESOURCES AND INFRASTUCTURE FUND
UBS WM USA
ATTN DEPT MANAGER
1000 HARBOR BLVD 5TH FL
WEEHAWKEN NJ 07086-6761 |
|
44.71% |
|
|
RIDGEWORTH SEIX CORE BOND FUND
CHARLES SCHWAB AND CO INC
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
42.58% |
|
|
RIDGEWORTH SEIX CORPORATE BOND FUND
NATIONAL FINANCIAL SERVICES LLC
FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
34.79% |
160
|
|
|
Fund |
|
Percentage of Ownership |
RIDGEWORTH SEIX GEORGIA TAX-EXEMPT BOND FUND
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
83.61% |
|
|
RIDGEWORTH GROWTH ALLOCATION STRATEGY
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
59.27% |
|
|
RIDGEWORTH SEIX HIGH INCOME FUND
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
60.29% |
|
|
RIDGEWORTH SEIX HIGH YIELD FUND
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
38.84% |
|
|
RIDGEWORTH SEIX INVESTMENT GRADE TAX-EXEMPT BOND FUND
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
51.42% |
|
|
RIDGEWORTH SEIX LIMITED DURATION FUND
SEIX ADVISORS AS MANAGER
FOR OHIO TUITION TRUST AUTHORITY
1 MAYNARD DR STE 3200
PARK RIDGE NJ 07656-1878 |
|
100.00% |
|
|
RIDGEWORTH SEIX U.S MORTGAGE FUND
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
44.77% |
161
|
|
|
Fund |
|
Percentage of Ownership |
RIDGEWORTH CEREDEX MID-CAP VALUE EQUITY FUND
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
33.58% |
|
|
RIDGEWORTH MODERATE ALLOCATION STRATEGY
SUNTRUST BANK AND VARIOUS BENEFIT P
C/O FASCORE RECORDKEEPER
8515 E ORCHARD RD 2T2
GREENWOOD VILLAGE CO 80111-5002 |
|
39.71% |
|
|
RIDGEWORTH SEIX NORTH CAROLINA TAX-EXEMPT BOND FUND
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
61.32% |
|
|
RIDGEWORTH SEIX FLOATING RATE HIGH INCOME FUND
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
26.09% |
|
|
RIDGEWORTH SEIX SHORT-TERM BOND FUND
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
35.66% |
|
|
RIDGEWORTH SEIX SHORT-TERM BOND FUND
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
29.00% |
|
|
RIDGEWORTH SEIX TOTAL RETURN BOND FUND
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
38.84% |
162
|
|
|
Fund |
|
Percentage of Ownership |
RIDGEWORTH SEIX U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND
CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FBO CUSTOMERS
ATTN MUTUAL FUNDS
211 MAIN ST
SAN FRANCISCO CA 94105-1905 |
|
62.44% |
|
|
RIDGEWORTH SEIX ULTRA-SHORT BOND FUND
NATIONAL FINANCIAL SERVICES LLC
ATTN MUTUAL FUNDS DEPT
499 WASHINGTON BLVD FL 4
JERSEY CITY NJ 07310-2010 |
|
36.45% |
|
|
RIDGEWORTH SEIX VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
SEI PRIVATE TRUST COMPANY
C/O SUNTRUST BANK
ATTN MUTUAL FUNDS ADMINISTRATOR
ONE FREEDOM VALLEY DRIVE
OAKS PA 19456-9989 |
|
49.45% |
163
APPENDIX A
INVESTMENT RATINGS
A rating is generally assigned
to a fixed income security at the time of issuance by a credit rating agency designated as a nationally recognized statistical rating organization (NRSRO) by the SEC. While NRSROs may from time to time revise such ratings, they undertake
no obligation to do so, and the ratings given to securities at issuance do not necessarily represent ratings which would be given to these securities on a particular subsequent date.
Fixed income securities which are unrated expose the investor to risks with respect to capacity to pay interest or repay principal which are similar to the
risks of lower-rated speculative bonds. Evaluation of these securities is dependent on the investment advisers judgment, analysis and experience in the evaluation of such securities. Investors should note that the assignment of a rating to a
security by an NRSRO may not reflect the effect of recent developments on the issuers ability to make interest and principal payments or on the likelihood of default.
The descriptions below relate to general long-term and short-term obligations of an issuer.
Standard & Poors (S&P)
Short-Term Municipal Obligations
SP-1: Strong
capacity to pay principal and interest. An issue determined to possess a very strong capacity to pay debt service is given a plus sign (+) designation.
SP-2: Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and economic changes over the term of the
notes.
SP-3: Speculative capacity to pay principal and interest.
Variable Rate Demand Notes and Tender Option Bonds
S&P assigns dual ratings to all debt issues that have a put option or demand feature as part of their structure. The first rating addresses the
likelihood of repayment of principal and interest as due, and the second rating addresses only the demand feature. The long-term rating symbols are used for bonds to denote the long-term maturity and the short-term rating symbols for the put option
(for example, AAA/A-1+). With U.S. municipal short-term demand debt, note rating symbols are used with the short-term issue credit rating symbols (for example, SP-1+/A-1+).
Short-Term Obligations
A-1: A short-term
obligation rated A-1 is rated in the highest category by S&P. The obligors capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+).
This indicates that the obligors capacity to meet its financial commitment on these obligations is extremely strong.
A-2: A short-term
obligation rated A-2 is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligors capacity to meet its financial
commitment on the obligation is satisfactory.
A-3: A short-term obligation rated A-3 exhibits adequate protection parameters. However,
adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.
B: A short-term obligation rated B is regarded as having significant speculative characteristics. Ratings of B-1,
B-2, and B-3 may be assigned to indicate finer distinctions within the B category. The obligor currently has the capacity to meet its financial commitment on the obligation; however, it faces major ongoing
uncertainties which could lead to the obligors inadequate capacity to meet its financial commitment on the obligation.
B-1: A short-term
obligation rated B-1 is regarded as having significant speculative characteristics, but the obligor has a relatively stronger capacity to meet its financial commitments over the short-term compared to other speculative-grade obligors.
A-1
B-2: A short-term obligation rated B-2 is regarded as having significant speculative
characteristics, and the obligor has an average speculative-grade capacity to meet its financial commitments over the short-term compared to other speculative-grade obligors.
B-3: A short-term obligation rated B-3 is regarded as having significant speculative characteristics, and the obligor has a relatively
weaker capacity to meet its financial commitments over the short-term compared to other speculative-grade obligors.
C: A short-term obligation
rated C is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation.
D: A short-term obligation rated D is in payment default. The D rating category is used when payments on an obligation,
including a regulatory capital instrument, are not made on the date due even if the applicable grace period has not expired, unless S& P believes that such payments will be made during such grace period. The D rating also will be
used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized.
SPUR (Underlying
Rating): This is a rating of a stand-alone capacity of an issue to pay debt service on a credit-enhanced debt issue, without giving effect to the enhancement that applies to it. These ratings are published only at the request of the debt
issuer/obligor with the designation SPUR to distinguish them from the credit-enhanced rating that applies to the debt issue. S&P maintains surveillance of an issue with a published SPUR.
Long-Term Obligations
AAA: An obligation rated
AAA has the highest rating assigned by S&P. The obligors capacity to meet its financial commitment on the obligation is extremely strong.
AA: An obligation rated AA differs from the highest-rated obligations only to a small degree. The obligors capacity to meet its
financial commitment on the obligation is very strong.
A: An obligation rated A is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligors capacity to meet its financial commitment on the obligation is still strong.
BBB: An obligation rated BBB exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are
more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.
BB, B, CCC, CC, and C: Obligations
rated BB, B, CCC, CC, and C are regarded as having significant speculative characteristics. BB indicates the least degree of speculation and C the highest. While
such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions.
BB: An obligation rated BB is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or
exposure to adverse business, financial, or economic conditions which could lead to the obligors inadequate capacity to meet its financial commitment on the obligation.
B: An obligation rated B is more vulnerable to nonpayment than obligations rated BB, but the obligor currently has the capacity
to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligors capacity or willingness to meet its financial commitment on the obligation.
CCC: An obligation rated CCC is currently vulnerable to nonpayment, and is dependent upon favorable business, financial, and economic
conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.
CC: An obligation rated CC is currently highly vulnerable to nonpayment.
C: A C rating is assigned to obligations that are currently highly vulnerable to nonpayment, obligations that have payment arrearages
allowed by the terms of the documents, or obligations of an issuer that is the subject of a bankruptcy petition or similar action which have not experienced a payment default. Among others, the C rating may be assigned to subordinated
debt, preferred stock or other obligations on which cash payments have been suspended in accordance with the instruments terms or when preferred stock is the subject of a distressed exchange offer, whereby some or all of the issue is either
repurchased for an amount of cash or replaced by other instruments having a total value that is less than par.
A-2
D: An obligation rated D is in payment default. The D rating category is used when
payments on an obligation, including a regulatory capital instrument, are not made on the date due even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period. The
D rating also will be used upon the filing of a bankruptcy petition or the taking of similar action if payments on an obligation are jeopardized. An obligations rating is lowered to D upon completion of a distressed
exchange offer, whereby some or all of the issue is either repurchased for an amount of cash or replaced by other instruments having a total value that is less than par.
Plus (+) or minus (-): The ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign to
show relative standing within the major rating categories.
NR: This indicates that no rating has been requested, that there is insufficient
information on which to base a rating, or that S&P does not rate a particular obligation as a matter of policy.
Moodys Investors Service,
Inc.
U.S. Municipal Short-Term Debt and Demand Obligations
There are three rating categories for short-term municipal obligations that are considered investment grade. These ratings are designated as Municipal
Investment Grade (MIG) and are divided into three levels MIG 1 through MIG 3. In addition, those short-term obligations that are of speculative quality are designated SG, or speculative grade. MIG ratings expire at the maturity of the
obligation.
MIG 1: Denotes superior credit quality. Excellent protection is afforded by established cash flows, highly reliable liquidity support,
or demonstrated broad-based access to the market for refinancing.
MIG 2: Denotes strong credit quality. Margins of protection are ample, although
not as large as in the preceding group.
MIG 3: Denotes acceptable credit quality. Liquidity and cash-flow protection may be narrow, and market
access for refinancing is likely to be less well-established.
SG: Denotes speculative-grade credit quality. Debt instruments in this category may
lack sufficient margins of protection.
Variable Rate Demand Obligations (VRDOs)
In the case of VRDOs, a two-component rating is assigned; a long or short-term debt rating and a demand obligation rating. The first element represents
Moodys evaluation of the degree of risk associated with scheduled principal and interest payments. The second element represents Moodys evaluation of the degree of risk associated with the ability to receive purchase price upon demand
(demand feature), using a variation of the MIG rating scale, the Variable Municipal Investment Grade or VMIG rating.
When either the long- or
short-term aspect of a VRDO is not rated, that piece is designated NR, e.g., Aaa/NR or NR/VMIG 1.
VMIG rating expirations are a function of each
issues specific structural or credit features.
VMIG 1: Denotes superior credit quality. Excellent protection is afforded by the superior
short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand.
VMIG 2: Denotes strong credit quality. Good protection is afforded by the strong short-term credit strength of the liquidity provider and structural
and legal protections that ensure the timely payment of purchase price upon demand.
VMIG 3: Denotes acceptable credit quality. Adequate protection
is afforded by the satisfactory short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand.
SG: Denotes speculative-grade credit quality. Demand features rated in this category may be supported by a liquidity provider that does not have an
investment grade short-term rating or may lack the structural and/or legal protections necessary to ensure the timely payment of purchase price upon demand.
A-3
Variable Rate Demand Notes and Tender Option Bonds
Short-term ratings on issues with demand features are differentiated by the use of the VMIG symbol to reflect such characteristics as payment upon periodic
demand rather than fixed maturity dates and payment relying on external liquidity. In this case, two ratings are usually assigned, (for example, Aaa/VMIG-1); the first representing an evaluation of the degree of risk associated with scheduled
principal and interest payments, and the second representing an evaluation of the degree of risk associated with the demand feature. The VMIG rating can be assigned a 1 or 2 designation using the same definitions described above for the MIG rating.
Commercial Paper (CP)
P-1: Issuers (or
supporting institutions) rated Prime-1 have a superior ability to repay short-term debt obligations.
P-2: Issuers (or supporting institutions)
rated Prime-2 have a strong ability to repay short-term debt obligations.
P-3: Issuers (or supporting institutions) rated Prime-3 have an
acceptable ability to repay short-term obligations.
NP: Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime
rating categories.
Long-Term Obligations
Moodys long-term obligation ratings are opinions of the relative credit risk of financial obligations with an original maturity of one year or more. They
address the possibility that a financial obligation will not be honored as promised. Such ratings use Moodys Global Scale and reflect both the likelihood of default and any financial loss suffered in the event of default.
Aaa: Obligations rated Aaa are judged to be of the highest quality, with minimal credit risk.
Aa: Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.
A: Obligations rated A are considered upper-medium grade and are subject to low credit risk.
Baa: Obligations rated Baa are subject to moderate credit risk. They are considered medium grade and as such may possess certain speculative
characteristics.
Ba: Obligations rated Ba are judged to have speculative elements and are subject to substantial credit risk.
B: Obligations rated B are considered speculative and are subject to high credit risk.
Caa: Obligations rated Caa are judged to be of poor standing and are subject to very high credit risk.
Ca: Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.
C: Obligations rated C are the lowest rated class and are typically in default, with little prospect for recovery of principal or interest.
Note: Moodys appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the
obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.
Fitch Ratings
Short-Term Debt Obligations
F1: Highest short-term credit quality - Indicates the strongest intrinsic capacity for timely payment of financial commitments; may have an added
+ to denote any exceptionally strong credit feature.
A-4
F2: Good short-term credit quality - Good intrinsic capacity for timely payment of financial commitments.
F3: Fair short-term credit quality - The intrinsic capacity for timely payment of financial commitments is adequate.
B: Speculative short-term credit quality - Minimal capacity for timely payment of financial commitments, plus heightened vulnerability to near term
adverse changes in financial and economic conditions.
C: High short-term default risk - Default is a real possibility.
A-5
RD: Restricted default - Indicates an entity that has defaulted on one or more of its financial
commitments, although it continues to meet other financial obligations. Applicable to entity ratings only.
D: Default - Indicates a broad-based
default event for an entity, or the default of a short-term obligation.
Long-Term Debt Obligations
AAA: Highest credit quality - AAA ratings denote the lowest expectation of default risk. They are assigned only in cases of exceptionally
strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.
AA: Very high
credit quality - AA ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.
A: High credit quality - A ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered
strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.
BBB: Good
credit quality - BBB ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair
this capacity.
BB: Speculative - BB ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse
changes in business or economic conditions over time; however, business or financial flexibility exists which supports the servicing of financial commitments.
B: Highly speculative - B ratings indicate that material default risk is present, but a limited margin of safety remains. Financial
commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.
CCC: Substantial credit risk - Default is a real possibility.
CC: Very high levels of credit risk - Default of some kind appears probable.
C: Exceptionally high levels of credit risk- Default is imminent or inevitable, or the issuer is in standstill. Conditions that are indicative of a
C category rating for an issuer include:
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the issuer has entered into a grace or cure period following non-payment of a material financial obligation; |
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the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment default on a material financial obligation; or |
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Fitch Ratings otherwise believes a condition of RD or D to be imminent or inevitable, including through the formal announcement of a coercive debt exchange. |
RD: Restricted default - RD ratings indicate an issuer that in Fitch Ratings opinion has experienced an uncured payment default on a
bond, loan or other material financial obligation but which has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not otherwise ceased business. This would include:
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the selective payment default on a specific class or currency of debt; |
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the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a bank loan, capital markets security or other material financial obligation;
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the extension of multiple waivers or forbearance periods upon a payment default on one or more material financial obligations, either in series or in parallel; or |
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execution of a coercive debt exchange on one or more material financial obligations. |
D: Default -
D ratings indicate an issuer that in Fitch Ratings opinion has entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, or which has otherwise ceased business.
Default ratings are not assigned prospectively to entities or their obligations; within this context, non-payment on an instrument that contains a deferral
feature or grace period will generally not be considered a default until after the expiration of the deferral or grace period, unless a default is otherwise driven by bankruptcy or other similar circumstance, or by a coercive debt exchange.
A-6
Imminent default typically refers to the occasion where a payment default has been intimated by the
issuer, and is all but inevitable. This may, for example, be where an issuer has missed a scheduled payment, but (as is typical) has a grace period during which it may cure the payment default. Another alternative would be where an issuer has
formally announced a coercive debt exchange, but the date of the exchange still lies several days or weeks in the immediate future.
In all cases, the
assignment of a default rating reflects the agencys opinion as to the most appropriate rating category consistent with the rest of its universe of ratings, and may differ from the definition of default under the terms of an issuers
financial obligations or local commercial practice.
Note:
The modifiers + or - may be appended to a rating to denote relative status within major rating categories. Such suffixes are not
added to the AAA Long-Term IDR category, or to Long-Term IDR categories below B.
A-7
APPENDIX B
RIDGEWORTH CAPITAL MANAGEMENT LLC PROXY DISCLOSURE TO THE RIDGEWORTH FUNDS SHAREHOLDERS
Dear Shareholders:
Under SEC Rule 206(4)-6, investment
advisers have fiduciary obligations to their clients if the advisers have authority to vote their clients proxies. Under our standard contractual agreements, RidgeWorth Capital Management LLC. (RidgeWorth or the Firm)
is authorized to vote proxies on behalf of discretionary accounts and on behalf of the RidgeWorth Funds.
The rule requires an investment adviser that
exercises voting authority over client proxies to adopt policies and procedures reasonably designed to ensure that the adviser: 1) votes proxies in the best interests of clients, 2) discloses information about those policies and procedures, 3)
discloses how clients may obtain information regarding individual security proxy votes cast on their behalf, and 4) maintains appropriate records relating to actual proxy voting.
The Firm has a Proxy Committee (Committee) that is responsible for establishing policies and procedures reasonably designed to enable the Firm to
ethically and effectively discharge its fiduciary obligation to vote all applicable proxies on behalf of all discretionary client accounts and funds, and ensure compliance with all of the requirements. Annually (or more often as needed), the
Committee will review, reaffirm and/or amend guidelines, strategies and proxy policies for all domestic and international client accounts, funds and product lines.
The Firm contracted with Glass Lewis & Co. (Glass Lewis) due to its excellent research tools, advanced technical capabilities and the
large scale system support required to accommodate an adviser of our size. Glass Lewis will act as The Firms agent to provide certain administrative, clerical, functional recordkeeping, and support services related to the Firms proxy
voting processes/procedures, which include, but are not limited to:
1. The collection of proxy material from our clients custodians.
2. The facilitation of proxy voting, reconciliation, and disclosure, in accordance with the Firms proxy policies and the
Committees direction.
3. Recordkeeping and voting record retention.
The Firm has engaged Glass Lewis to assist with physical proxy voting matters, while the Firm retains the obligation to vote its clients proxies, to
review all issues, and to actively review all information prior to determining each vote placed on behalf of its clients. The Firm will continue to utilize all available resources to make well-informed and qualified proxy vote decisions.
As reflected in the Firms proxy guidelines, the Committee will vote proxies in a manner deemed to be in the best economic interest of its clients, as a
whole, as shareholders and beneficiaries of those actions.
The Committee recognizes that each proxy vote must be evaluated on its own merits. Factors
such as a companys organizational structure, executive and operational management, Board of Directors structure, corporate culture and governance process, and the impact of economic, environmental and social implications remain key elements in
all voting decisions. The Committee believes that it is in the best interest of shareholders to abstain from voting in countries that participate in share blocking, as share blocking limits the trading ability of the portfolio manager.
B-1
The Committee will consider client-specific preferences and/or develop and apply criteria unique to its client
base and product lines, where appropriate. As needed, the Firm will communicate this information to Glass Lewis so those clients proxies will be voted accordingly. The Committee has reviewed Glass Lewis capabilities as agent for the
administrative services above and is confident in its abilities to provide these services effectively. The Committee will monitor such capability on an ongoing basis.
B-2
An Independent, Objective Approach to Proxy Issues
In the absence of express contractual provisions to the contrary, the Committee will vote proxies for all of the Firms discretionary investment
management clients.
The Firm maintains its own proxy guidelines for U.S. domestic and global proxy voting issues, as well as guidelines applicable to
Taft Hartley plans and relationships. ERISA accounts will be voted in accordance with the Firms U.S. Domestic Proxy Guidelines, as such guidelines include ERISA-specific guidelines and requirements. Guidelines are available as
described below.
The Firm provides and maintains the following standard proxy voting guidelines:
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RidgeWorth U.S. Domestic Proxy Guidelines (applied to both ERISA- and Non-ERISA-related accounts and funds) |
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RidgeWorth Taft Hartley Proxy Guidelines |
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RidgeWorth Global/International Proxy Guidelines |
Under the Firms Global/International Proxy Guidelines,
the Committee generally votes in a manner similar to that recommended by Glass Lewis for an accounts international holdings including, to the extent permitted by law, international holdings in ERISA accounts. In this regard, the Committee has
reviewed and will monitor Glass Lewis capabilities and conflict policies with respect to international securities proxy vote recommendations.
Exceptions to Policy
The Firms proxy policies, as
outlined herein, generally will not be applied where the Firm has further delegated discretionary investment management and the authority to vote shares to a properly appointed subadvisor, such as may be the case in some managed separate accounts,
wrap programs and funds.
In those situations, proxy votes cast by the subadvisor may be governed by the subadvisors proxy voting policies and
procedures. However, currently all subadvisors to the RidgeWorth Funds have either adopted the same proxy guidelines as RidgeWorth or RidgeWorth votes the proxies on behalf of the subadvised funds.
Conflicts of Interest
Due to its diversified client
base, numerous product lines, and affiliations, the Committee may determine a potential conflict exists in connection with a proxy vote based on the SEC guidelines. The Committee has outlined the following situations where a conflict of interest,
deemed material for proxy purposes, exists:
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Common stock of public corporate issuers with which either the Firm or its affiliates or Lightyear Capital LLC or its affiliates, have a significant, ongoing, non-investment management relationship. |
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An issuer with a director, officer or employee who presently serves as an independent director on the board of RidgeWorth Holdings LLC or Lightyear Capital LLC or its affiliates. |
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An issuer having substantial and numerous banking, investment, or other financial relationships with the Firm or its affiliates |
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A director or senior officer of the Firm or its affiliates or Lightyear Capital LLC serving on the board of a publicly held company. |
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A direct common stock ownership position of five percent (5%) or greater, held by the Firm or its affiliates. |
For these situations, the Committee has determined that the most fair and reasonable procedure to be followed in order to properly address all conflict
concerns is to retain an independent fiduciary to vote the ballot items coded within the Firms proxy guidelines as case by case.
B-3
Additional conflicts of interests would be evaluated by the Committee on an individual basis. Although the Firm
does its best to alleviate or diffuse known conflicts, there is no guarantee that all situations have been or will be mitigated through proxy policy incorporation.
Securities Lending Program
The Firm manages
assets for several clients (including the RidgeWorth Funds) that engage in securities lending programs. In a typical securities lending program, clients or funds lend securities from their accounts/portfolios to approved broker-dealers
against cash collateral. On behalf of clients and the RidgeWorth Funds, the Firm seeks to balance the economic benefits of continuing to participate in an open securities lending transaction against the inability to vote proxies. On behalf of
clients and the RidgeWorth Funds, the Firm will call loaned securities back to vote proxies, or to otherwise obtain rights to vote or consent with respect to a material event affecting securities on loan when the adviser believes it is necessary to
vote.
Additional Information
RidgeWorth clients:
The Firm follows different
voting recommendations for different categories of clients such that votes cast on behalf of some clients may oppose votes cast on behalf of other clients. Extended summaries of the RidgeWorth Capital Management LLC U.S. Domestic Proxy
Guidelines (applies to ERISA and non-ERISA accounts and funds,) Taft Hartley Proxy Guidelines (which votes per the general guidelines put forth by the AFL-CIO), Global/International Proxy Guidelines, and voting records are
available to clients upon request. (Complete copies are quite voluminous but are also available.) For this information, or to obtain information about specific voting issues, please write to RidgeWorth Capital Management LLC, Attn: Proxy Voting
Committee Administrator, 3333 Piedmont Road NE, Suite 1500, Atlanta, GA 30305, or contact us by telephone at 877-984-7321 or via e-mail at: pmp.operations@ridgeworth.com.
RidgeWorth Funds shareholders:
Although another
investment adviser may subadvise some or all of these funds, all proxy votes are conducted by the Funds adviser, RidgeWorth, as the RidgeWorth Funds board has delegated voting authority to RidgeWorth and accordingly has adopted
RidgeWorths proxy voting policies.
Shareholders of the RidgeWorth Funds may access fund-related proxy voting information by calling 1-888-784-3863
or by visiting www.ridgeworth.com.
B-4
RidgeWorth Capital Management LLC International Proxy Voting Guidelines
February 8, 2012
Following is a concise summary
of general policies for voting global proxies. In addition, RidgeWorth has country - and market-specific policies, which are not captured below.
Board of Directors
Boards are put in place to represent shareholders and protect their interests. RidgeWorth seeks boards with a proven record of protecting shareholders and
delivering value over the medium - and long-term. In our view, boards working to protect and enhance the best interests of shareholders typically include some independent directors (the percentage will vary by local market practice and regulations),
boast a record of positive performance, have directors with diverse backgrounds, and appoint directors with a breadth and depth of experience.
Board
Composition
When companies disclose sufficient relevant information, we look at each individual on the board and examine his or her relationships with
the company, the companys executives and with other board members. The purpose of this inquiry is to determine whether pre-existing personal, familial or financial relationships are likely to impact the decisions of that board member. Where
the company does not disclose the names and backgrounds of director nominees with sufficient time in advance of the shareholder meeting to evaluate their independence and performance, we will consider recommending abstaining on the directors
election.
We vote in favor of governance structures that will drive positive performance and enhance shareholder value. The most crucial test of a
boards commitment to the company and to its shareholders is the performance of the board and its members. The performance of directors in their capacity as board members and as executives of the company, when applicable, and in their roles at
other companies where they serve is critical to this evaluation.
We believe a director is independent if he or she has no material financial, familial or
other current relationships with the company, its executives or other board members except for service on the board and standard fees paid for that service. Relationships that have existed within the three-five years prior to the inquiry are usually
considered to be current for purposes of this test.
In our view, a director is affiliated if he or she has a material financial, familial or
other relationship with the company or its executives, but is not an employee of the company. This includes directors whose employers have a material financial relationship with the Company. This also includes a director who owns or controls 10-20%
or more of the companys voting stock.
We define an inside director as one who simultaneously serves as a director and as an employee of the
company. This category may include a chairman of the board who acts as an employee of the company or is paid as an employee of the company.
Although we
typically vote for the election of directors, we will recommend voting against directors for the following reasons:
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A director who attends less than 75% of the board and applicable committee meetings. |
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A director who is also the CEO of a company where a serious restatement has occurred after the CEO certified the pre-restatement financial statements. |
We also feel that the following conflicts of interest may hinder a directors performance and will therefore recommend voting against a:
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CFO who presently sits on the board. |
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Director who presently sits on an excessive number of boards. |
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Director, or a director whose immediate family member, provides material professional services to the company at any time during the past five years. |
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Director, or a director whose immediate family member, engages in airplane, real estate or other similar deals, including perquisite type grants from the company. |
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Director with an interlocking directorship. |
B-5
Slate Elections
In some countries, companies elect their board members as a slate, whereby shareholders are unable to vote on the election of each individual director, but
rather are limited to voting for or against the board as a whole. If significant issues exist concerning one or more of the nominees or in markets where directors are generally elected individually, we will recommend voting against the entire slate
of directors.
Board Committee Composition
We
believe that independent directors should serve on a companys audit, compensation, nominating and governance committees. We will support boards with such a structure and encourage change where this is not the case.
Review of Risk Management Controls
We believe companies,
particularly financial firms, should have a dedicated risk committee, or a committee of the board charged with risk oversight, as well as a chief risk officer who reports directly to that committee, not to the CEO or another executive. In cases
where a company has disclosed a sizable loss or writedown, and where a reasonable analysis indicates that the companys board-level risk committee should be held accountable for poor oversight, we would recommend that shareholders vote against
such committee members on that basis. In addition, in cases where a company maintains a significant level of financial risk exposure but fails to disclose any explicit form of board-level risk oversight (committee or otherwise), we will consider
recommending to vote against the chairman of the board on that basis.
Classified Boards
RidgeWorth favors the repeal of staggered boards in favor of the annual election of directors. We believe that staggered boards are less accountable to
shareholders than annually elected boards. Furthermore, we feel that the annual election of directors encourages board members to focus on protecting the interests of shareholders.
Accounts and Reports
Many countries require companies to submit the annual financial statements, director reports and independent auditors reports to shareholders at a
general meeting. Shareholder approval of such a proposal does not discharge the board or management. We will usually recommend voting in favor of these proposals except when there are concerns about the integrity of the statements/reports. However,
should the audited financial statements, auditors report and/or annual report not be published at the writing of our report, we will recommend that shareholders abstain from voting on this proposal.
Income Allocation (Distribution of Dividend)
In
many countries, companies must submit the allocation of income for shareholder approval. We will generally recommend voting for such a proposal. However, we will give particular scrutiny to cases where the companys dividend payout ratio is
exceptionally low or excessively high relative to its peers and the company has not provided a satisfactory explanation.
Appointment of Auditors
and Authority to Set Fees
We believe that role of the auditor is crucial in protecting shareholder value. Like directors, auditors should be free
from conflicts of interest and should assiduously avoid situations that require them to make choices between their own interests and the interests of the shareholders.
We generally support managements recommendation regarding the selection of an auditor and support granting the board the authority to fix auditor fees
except in cases where we believe the independence of an incumbent auditor or the integrity of the audit has been compromised.
However, we recommend
voting against ratification of the auditor and/or authorizing the board to set auditor fees for the following reasons:
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When audit fees added to audit-related fees total less than one-half of total fees. |
B-6
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When there have been any recent restatements or late filings by the company where the auditor bears some responsibility for the restatement or late filing (e.g., a restatement due to a reporting error).
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When the company has aggressive accounting policies. |
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When the company has poor disclosure or lack of transparency in financial statements. |
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When there are other relationships or issues of concern with the auditor that might suggest a conflict between the interest of the auditor and the interests of shareholders. |
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When the company is changing auditors as a result of a disagreement between the company and the auditor on a matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures.
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Compensation Report/Compensation Policy
We closely review companies remuneration practices and disclosure as outlined in company filings to evaluate management-submitted advisory compensation
report and policy vote proposals. In evaluating these proposals, which can be binding or non-binding depending on the country, we examine how well the company has disclosed information pertinent to its compensation programs, the extent to which
overall compensation is tied to performance, the performance metrics selected by the company and the levels of remuneration in comparison to company performance and that of its peers.
We will usually recommend voting against approval of the compensation report or policy when the following occur:
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Gross disconnect between pay and performance; |
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Performance goals and metrics are inappropriate or insufficiently challenging; |
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Lack of disclosure regarding performance metrics and goals as well as the extent to which the performance metrics, targets and goals are implemented to enhance company performance and encourage prudent risk-taking;
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Excessive discretion afforded to or exercised by management or the compensation committee to deviate from defined performance metrics and goals in making awards; |
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Ex gratia or other non-contractual payments have been made and the reasons for making the payments have not been fully explained or the explanation is unconvincing; |
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Guaranteed bonuses are established; |
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There is no clawback policy; or |
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Egregious or excessive bonuses, equity awards or severance payments. |
Long Term Incentive Plans
RidgeWorth recognizes the value of equity-based incentive programs. When used appropriately, they can provide a vehicle for linking an
employees pay to a companys performance, thereby aligning their interests with those of shareholders. Tying a portion of an employees compensation to the performance of the Company provides an incentive to maximize share value. In
addition, equity-based compensation is an effective way to attract, retain and motivate key employees.
In order to allow for meaningful shareholder
review, we believe that incentive programs should generally include: (i) specific and appropriate performance goals; (ii) a maximum award pool; and (iii) a maximum award amount per employee. In addition, the payments made should be
reasonable relative to the performance of the business and total compensation to those covered by the plan should be in line with compensation paid by the Companys peers.
Performance-Based Equity Compensation
RidgeWorth believes in performance-based equity compensation plans for senior executives. We feel that executives should be compensated with
equity when their performance and that of the company warrants such rewards. While we do not believe that equity-based compensation plans for all employees need to be based on overall company performance, we do support such limitations for grants to
senior executives (although even some equity-based compensation of senior executives without performance criteria is acceptable, such as in the case of moderate incentive grants made in an initial offer of employment).
Boards often argue that such a proposal would hinder them in
attracting talent. We believe that boards can develop a consistent, reliable approach, as boards of many companies have, that would still attract executives who believe in their ability to guide the company to achieve its targets. We generally
recommend that shareholders vote in favor of performance-based option requirements. There should be no retesting of performance conditions for all share - and option - based incentive schemes. We will generally recommend that shareholders vote
against performance-based equity compensation plans that allow for re-testing.
B-7
Director Compensation
RidgeWorth believes that non-employee directors should receive appropriate types and levels of compensation for the time and effort they spend serving on the
board and its committees. Director fees should be reasonable in order to retain and attract qualified individuals. In particular, we support compensation plans that include non performance-based equity awards, which help to align the interests of
outside directors with those of shareholders.
RidgeWorth compares the costs of these plans to the plans of peer companies with similar market
capitalizations in the same country to help inform its judgment on this issue.
Retirement Benefits for Directors
We will typically recommend voting against proposals to grant retirement benefits to non-executive directors. Such extended payments can impair
the objectivity and independence of these board members. Directors should receive adequate compensation for their board service through initial and annual fees.
Limits on Executive Compensation
As a general
rule, RidgeWorth believes that shareholders should not be involved in setting executive compensation. Such matters should be left to the boards compensation committee. We view the election of directors, and specifically those who sit on the
compensation committee, as the appropriate mechanism for shareholders to express their disapproval or support of board policy on this issue. Further, we believe that companies whose pay-for-performance is in line with their peers should be granted
the flexibility to compensate their executives in a manner that drives growth and profit.
However, RidgeWorth favors performance-based compensation as an
effective means of motivating executives to act in the best interests of shareholders. Performance-based compensation may be limited if a chief executives pay is capped at a low level rather than flexibly tied to the performance of the
company.
Amendments to the Articles of Association
We will evaluate proposed amendments to a companys articles of association on a case-by-case basis. We are opposed to the practice of bundling several
amendments under a single proposal because it prevents shareholders from evaluating each amendment on its own merits. In such cases, we will analyze each change individually and will recommend voting for the proposal only when we believe that the
amendments on balance are in the best interests of shareholders.
Anti-Takeover Measures
Poison Pills (Shareholder Rights Plans)
RidgeWorth
believes that poison pill plans generally are not in the best interests of shareholders. Specifically, they can reduce management accountability by substantially limiting opportunities for corporate takeovers. Rights plans can thus prevent
shareholders from receiving a buy-out premium for their stock.
We believe that boards should be given wide latitude in directing the activities of the
company and charting the companys course. However, on an issue such as this where the link between the financial interests of shareholders and their right to consider and accept buyout offers is so substantial, we believe that shareholders
should be allowed to vote on whether or not they support such a plans implementation.
In certain limited circumstances, we will support a limited
poison pill to accomplish a particular objective, such as the closing of an important merger, or a pill that contains what we believe to be a reasonable qualifying offer clause.
B-8
Supermajority Vote Requirements
RidgeWorth favors a simple majority voting structure. Supermajority vote requirements act as impediments to shareholder action on ballot items that are
critical to our interests. One key example is in the takeover context where supermajority vote requirements can strongly limit shareholders input in making decisions on such crucial matters as selling the business.
Increase in Authorized Shares
RidgeWorth believes
that having adequate capital stock available for issuance is important to the operation of a company. We will generally support proposals when a company could reasonably use the requested shares for financing, stock splits and stock dividends. While
we think that having adequate shares to allow management to make quick decisions and effectively operate the business is critical, we prefer that, for significant transactions, management come to shareholders to justify their use of additional
shares rather than providing a blank check in the form of large pools of unallocated shares available for any purpose.
In general, we will support
proposals to increase authorized shares up to 100% of the number of shares currently authorized unless, after the increase the company would be left with less than 30% of its authorized shares outstanding.
Issuance of Shares
Issuing additional shares can
dilute existing holders in some circumstances. Further, the availability of additional shares, where the board has discretion to implement a poison pill, can often serve as a deterrent to interested suitors. Accordingly, where we find that the
company has not disclosed a detailed plan for use of the proposed shares, or where the number of shares requested are excessive, we typically recommend against the issuance. In the case of a private placement, we will also consider whether the
company is offering a discount to its share price.
In general, we will support proposals to issue shares (with pre-emption rights) when the requested
increase is the lesser of (i) the unissued ordinary share capital; or (ii) a sum equal to one-third of the issued ordinary share capital. This authority should not exceed five years. In some countries, if the proposal contains a figure
greater than one-third, the company should explain the nature of the additional amounts.
We will also generally support proposals to suspend pre-emption
rights for a maximum of 5-20% of the issued ordinary share capital of the company, depending on the country in which the company is located. This authority should not exceed five years, or less for some countries.
Repurchase of Shares
We will recommend voting in
favor of a proposal to repurchase shares when the plan includes the following provisions: (i) a maximum number of shares which may be purchased (typically not more than 15% of the issued share capital); and (ii) a maximum price which may
be paid for each share (as a percentage of the market price).
V. |
ENVIRONMENTAL AND SOCIAL RISK |
We believe companies should actively evaluate risks to long-term
shareholder value stemming from exposure to environmental and social risks and should incorporate this information into their overall business risk profile. In addition, we believe companies should consider their exposure to changes in
environmental or social regulation with respect to their operations as well as related legal and reputational risks. Companies should disclose to shareholders both the nature and magnitude of such risks as well as steps they have taken or will take
to mitigate those risks.
When we identify situations where shareholder value is at risk, we may recommend voting in favor of a reasonable and
well-targeted shareholder proposal if we believe supporting the proposal will promote disclosure of and/or mitigate significant risk exposure. In limited cases where a company has failed to adequately mitigate risks stemming from environmental or
social practices, we will recommend shareholders vote against: (i) ratification of board and/or management acts; (ii) approving a companys accounts and reports and/or; (iii) directors (in egregious cases).
B-9
DOMESTIC PROXY VOTING POLICY
UPDATED 5/21/2015 RIDGEWORTH CAPITAL MANAGEMENT LLC.
APPLIED TO ERISA AND NON-ERISA
ACCOUNTS AND FUNDS
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Ballot Item / Proposal
[F=For, A=Against, W=Withhold, C=Case by Case, ABS=Abstain] |
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Vote |
1.0. |
|
Operational Items |
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Adjourn Meeting |
|
To provide management with the authority to adjourn an annual or special meeting, except in cases where it does not benefit shareholders |
|
F |
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1.1. |
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Operational Items |
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Amend Quorum Requirements |
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To reduce quorum requirements for shareholder meetings below a majority of the shares outstanding |
|
A |
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1.2. |
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Operational Items |
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Amend Minor Bylaws |
|
To make housekeeping changes (updates or corrections) to bylaw or charter, except in cases where there is an adverse effect on shareholder value |
|
F |
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1.3. |
|
Operational Items |
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Change Company Name |
|
To change the corporate name |
|
F |
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1.4. |
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Operational Items |
|
Date, Time, or Location of Annual Meeting |
|
Management proposals to change the date/time/location of the annual meeting |
|
F |
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1.5. |
|
Operational Items |
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Date, Time, or Location of Annual Meeting |
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Shareholder proposals To change the date/time/location of the annual meeting |
|
A |
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1.6. |
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Operational Items |
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Auditors |
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To ratify auditors (except as described below) |
|
F |
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1.6.a |
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Operational Items |
|
Auditors |
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To ratify auditors if significant material restatement, the auditors contract contains certain provisions that require the company to use alternative dispute resolution, the audit contract has limited liability clauses or any
other situation is identified that may impair the auditors ability to perform an independent audit (this can include: audit fees too low or too high, the auditor performs other work than the audit such as tax-shelter work, etc.). |
|
C |
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1.7. |
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Operational Items |
|
Auditors |
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Shareholder proposals asking companies to prohibit their auditors from engaging in non-audit services |
|
A |
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1.8. |
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Operational Items |
|
Auditors |
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Shareholder proposals to require audit firm rotation |
|
A |
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1.9. |
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Operational Items |
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Transact Other Business |
|
To approve other business when it appears as voting item |
|
A |
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1.10. |
|
Operational Items |
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Exclusive Forum Provision |
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To limit a shareholders choice of legal venue |
|
C |
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2.0. |
|
Board of Directors |
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Voting on Director Nominees in Uncontested Elections |
|
Director nominees are evaluated taking into consideration independence, performance, experience, and corporate governance. |
|
C |
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2.1. |
|
Board of Directors |
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Age Limits |
|
To limit the tenure of outside directors either through term limits or mandatory retirement ages. |
|
A |
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2.2. |
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Board of Directors |
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Board Size |
|
To fix the board size or designate a range for the board size |
|
F |
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2.3. |
|
Board of Directors |
|
Board Size |
|
To give management the ability to alter the size of the board outside of a specified range without shareholder approval |
|
A |
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2.4. |
|
Board of Directors |
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Classification/ Declassification of the Board |
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Management and shareholder proposals to classify the board |
|
C |
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|
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2.5. |
|
Board of Directors |
|
Classification/ Declassification of the Board |
|
Management and shareholder proposals to repeal classified boards and to elect all directors annually. |
|
F |
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2.6. |
|
Board of Directors |
|
Cumulative Voting |
|
To eliminate cumulative voting. |
|
F |
B-10
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2.7. |
|
Board of Directors |
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Cumulative Voting |
|
To restore or permit cumulative voting when a company has some form of majority voting in place, has not adopted anti takeover protections and has been responsive to shareholders. |
|
A |
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2.8. |
|
Board of Directors |
|
Cumulative Voting |
|
To restore or permit cumulative voting when a company does not have any form of majority voting in place |
|
F |
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2.9. |
|
Board of Directors |
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Director and Officer Indemnification and Liability Protection |
|
Proposals on director and officer indemnification and liability protection not particularly described below. |
|
C |
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2.10. |
|
Board of Directors |
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Director and Officer Indemnification and Liability Protection |
|
To eliminate entirely directors and officers liability for monetary damages for violating the duty of care. |
|
A |
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2.11. |
|
Board of Directors |
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Director and Officer Indemnification and Liability Protection |
|
To expand coverage beyond just legal expenses to acts, such as negligence, that are more serious violations of fiduciary obligation than mere carelessness |
|
A |
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2.12. |
|
Board of Directors |
|
Director and Officer Indemnification and Liability Protection |
|
To expand coverage in cases when a directors or officers legal defense was unsuccessful if: (1) the director was found to have acted in good faith and in a manner that he reasonably believed was in the best interests of
the company, and (2) only if the directors legal expenses would be covered. |
|
F |
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2.13. |
|
Board of Directors |
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Establish/ Amend Nominee Qualifications |
|
To establish or amend director qualifications |
|
A |
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2.14. |
|
Board of Directors |
|
Establish/ Amend Nominee Qualifications |
|
Shareholder proposals requiring two candidates per board seat |
|
A |
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2.15. |
|
Board of Directors |
|
Filling Vacancies/ Removal of Directors |
|
To provide that directors may be removed only for cause. |
|
A |
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2.16. |
|
Board of Directors |
|
Filling Vacancies/ Removal of Directors |
|
To restore shareholder ability to remove directors with or without cause. |
|
F |
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2.17. |
|
Board of Directors |
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Filling Vacancies/ Removal of Directors |
|
To provide that only continuing directors may elect replacements to fill board vacancies. |
|
A |
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2.18. |
|
Board of Directors |
|
Filling Vacancies/ Removal of Directors |
|
To permit shareholders to elect directors to fill board vacancies. |
|
F |
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2.19. |
|
Board of Directors |
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Independent Chairman (Separate Chairman/
CEO) |
|
To recommend that the positions of chairman and CEO be combined. |
|
C |
|
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|
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2.20. |
|
Board of Directors |
|
Independent Chairman (Separate Chairman/
CEO) |
|
To recommend that the positions of chairman and CEO be separate and distinct positions held by 2 different individuals. |
|
A |
B-11
|
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2.21. |
|
Board of Directors |
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Majority of Independent Directors/ Establishment of Committees |
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Shareholder proposals to require that a majority or more of directors be independent |
|
F |
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2.22. |
|
Board of Directors |
|
Majority of Independent Directors/ Establishment of Committees |
|
Shareholder proposals asking that board audit, compensation, and/or nominating committees be composed exclusively of independent directors |
|
F |
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2.23. |
|
Board of Directors |
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Proxy Access |
|
Shareholder proposals asking for proxy access |
|
C |
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2.24. |
|
Board of Directors |
|
Stock Ownership Requirements |
|
Shareholder proposals that mandate a minimum amount of stock that directors must own in order to qualify as a director or to remain on the board |
|
A |
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|
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2.25. |
|
Board of Directors |
|
Stock Ownership Requirements |
|
Shareholder proposals asking that the company adopt a holding or retention period for its executives (for holding stock after the vesting or exercise of equity awards) |
|
A |
|
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|
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2.26. |
|
Board of Directors |
|
Term Limits |
|
Shareholder or management proposals to limit the tenure of outside directors |
|
A |
|
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|
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2.30. |
|
Board of Directors |
|
Majority Voting Standard |
|
Shareholder proposals requesting a majority voting standard on election of directors |
|
F |
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|
|
|
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3.0. |
|
Proxy Contests |
|
Voting for Director Nominees in Contested Elections |
|
Votes in a contested election of directors |
|
C |
|
|
|
|
|
3.1.a |
|
Proxy Contests |
|
Reimbursing Proxy Solicitation Expenses |
|
To reimburse proxy solicitation expenses if dissident wins |
|
F |
|
|
|
|
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3.1.b |
|
Proxy Contests |
|
Reimbursing Proxy Solicitation Expenses |
|
To reimburse proxy solicitation expenses (unless described above) |
|
A |
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|
|
|
|
3.2. |
|
Proxy Contests |
|
Confidential Voting |
|
Shareholder proposals requesting that corporations adopt confidential voting, use independent vote tabulators and use independent inspectors of election |
|
A |
|
|
|
|
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3.3. |
|
Proxy Contests |
|
Confidential Voting |
|
Management proposals to adopt confidential voting. |
|
A |
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|
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|
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4.0. |
|
Antitakeover Defenses and Voting Related Issues |
|
Advance Notice Requirements for Shareholder Proposals/Nominations |
|
Advance notice proposals |
|
F |
B-12
|
|
|
|
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|
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4.1. |
|
Antitakeover Defenses and Voting Related Issues |
|
Amend Bylaws without Shareholder Consent |
|
Proposals giving the board exclusive authority to amend the bylaws |
|
F |
|
|
|
|
|
4.2. |
|
Antitakeover Defenses and Voting Related Issues |
|
Amend Bylaws without Shareholder Consent |
|
Proposals giving the board the ability to amend the bylaws in addition to shareholders |
|
F |
|
|
|
|
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4.3. |
|
Antitakeover Defenses and Voting Related Issues |
|
Poison Pills |
|
Shareholder proposals that ask a company to submit its poison pill for shareholder ratification |
|
C |
|
|
|
|
|
4.4. |
|
Antitakeover Defenses and Voting Related Issues |
|
Poison Pills |
|
Shareholder proposals asking that any future pill be put to a shareholder vote |
|
F |
|
|
|
|
|
4.5.a |
|
Antitakeover Defenses and Voting Related Issues |
|
Poison Pills |
|
Management proposals to ratify a poison pill |
|
C |
|
|
|
|
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4.6. |
|
Antitakeover Defenses and Voting Related Issues |
|
Shareholder Ability to Act by Written Consent |
|
To restrict or prohibit shareholder ability to take action by written consent |
|
A |
|
|
|
|
|
4.7. |
|
Antitakeover Defenses and Voting Related Issues |
|
Shareholder Ability to Act by Written Consent |
|
To allow or make easier shareholder action by written consent |
|
F |
|
|
|
|
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4.8. |
|
Antitakeover Defenses and Voting Related Issues |
|
Shareholder Ability to Call Special Meetings |
|
To restrict or prohibit shareholder ability to call special meetings. |
|
A |
|
|
|
|
|
4.9. |
|
Antitakeover Defenses and Voting Related Issues |
|
Shareholder Ability to Call Special Meetings |
|
To remove restrictions on the right of shareholders to act independently of management. |
|
F |
B-13
|
|
|
|
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4.10. |
|
Antitakeover Defenses and Voting Related Issues |
|
Supermajority Vote Requirements |
|
To require a supermajority shareholder vote pertaining to issues other than election of directors. |
|
A |
|
|
|
|
|
4.11. |
|
Antitakeover Defenses and Voting Related Issues |
|
Supermajority Vote Requirements |
|
To lower supermajority vote requirements pertaining to issues other than election of directors. |
|
F |
|
|
|
|
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5.0. |
|
Mergers and Corporate Restructurings |
|
Appraisal Rights |
|
To restore, or provide shareholders with, rights of appraisal. |
|
A |
|
|
|
|
|
5.1. |
|
Mergers and Corporate Restructurings |
|
Asset Purchases |
|
On asset purchase proposals |
|
C |
|
|
|
|
|
5.2. |
|
Mergers and Corporate Restructurings |
|
Asset Sales |
|
Asset sales |
|
C |
|
|
|
|
|
5.3. |
|
Mergers and Corporate Restructurings |
|
Bundled Proposals |
|
Bundled or conditioned proxy proposals |
|
C |
|
|
|
|
|
5.4. |
|
Mergers and Corporate Restructurings |
|
Conversion of Securities |
|
Proposals regarding conversion of securities, absent penalties or likely bankruptcy. |
|
C |
|
|
|
|
|
5.5. |
|
Mergers and Corporate Restructurings |
|
Conversion of Securities |
|
Proposals regarding conversion of securities, if it is expected that the company will be subject to onerous penalties or will be forced to file for bankruptcy if the transaction is not approved. |
|
F |
|
|
|
|
|
5.6. |
|
Mergers and Corporate Restructurings |
|
Corporate Reorganization |
|
Proposals to increase common and/or preferred shares and to issue shares as part of a debt restructuring plan, absent likely bankruptcy. |
|
C |
|
|
|
|
|
5.7. |
|
Mergers and Corporate Restructurings |
|
Corporate Reorganization |
|
Proposals to increase common and/or preferred shares and to issue shares as part of a debt restructuring plan where bankruptcy is likely if the transaction is not approved |
|
F |
|
|
|
|
|
5.8. |
|
Mergers and Corporate Restructurings |
|
Formation of Holding Company |
|
To form a holding company |
|
C |
|
|
|
|
|
5.9. |
|
Mergers and Corporate Restructurings |
|
Going Private Transactions (LBOs and Minority Squeeze outs) |
|
To make the company private rather than public |
|
C |
|
|
|
|
|
5.10. |
|
Mergers and Corporate Restructurings |
|
Joint Ventures |
|
To form joint ventures |
|
C |
|
|
|
|
|
5.11. |
|
Mergers and Corporate Restructurings |
|
Liquidations |
|
To liquidate when bankruptcy is not likely |
|
C |
B-14
|
|
|
|
|
|
|
|
|
5.12. |
|
Mergers and Corporate Restructurings |
|
Liquidations |
|
To liquidate when bankruptcy is likely |
|
F |
|
|
|
|
|
5.13. |
|
Mergers and Corporate Restructurings |
|
Mergers and Acquisitions/ Issuance of Shares to Facilitate Merger or Acquisition |
|
To merge with or acquire another company |
|
C |
|
|
|
|
|
5.14. |
|
Mergers and Corporate Restructurings |
|
Private Placements/ Warrants/ Convertible Debentures |
|
To issue a private placement security when bankruptcy is not likely |
|
C |
|
|
|
|
|
5.15. |
|
Mergers and Corporate Restructurings |
|
Private Placements/ Warrants/ Convertible Debentures |
|
To issue a private placement security when bankruptcy is likely |
|
F |
|
|
|
|
|
5.16. |
|
Mergers and Corporate Restructurings |
|
Spin-offs |
|
To spin off a unit or line of business |
|
C |
|
|
|
|
|
5.17. |
|
Mergers and Corporate Restructurings |
|
Value Maximization Proposals |
|
To maximize shareholder value by hiring a financial advisor to explore strategic alternatives, selling the company or liquidating the company and distributing the proceeds to shareholders. |
|
C |
|
|
|
|
|
6.0. |
|
State of Incorporation |
|
Control Share Acquisition Provisions |
|
To opt out of control share acquisition statutes |
|
F |
|
|
|
|
|
6.1. |
|
State of Incorporation |
|
Control Share Acquisition Provisions |
|
To amend the charter to include control share acquisition provisions. |
|
A |
|
|
|
|
|
6.2. |
|
State of Incorporation |
|
Control Share Acquisition Provisions |
|
To restore voting rights to the control shares. |
|
F |
|
|
|
|
|
6.3. |
|
State of Incorporation |
|
Control Share Cash out Provisions |
|
To opt out of control share cash out statutes. |
|
F |
|
|
|
|
|
6.4. |
|
State of Incorporation |
|
Disgorgement Provisions |
|
To opt out of state disgorgement provisions. |
|
F |
|
|
|
|
|
6.5. |
|
State of Incorporation |
|
Fair Price Provisions |
|
To adopt fair price provisions |
|
C |
|
|
|
|
|
6.6. |
|
State of Incorporation |
|
Fair Price Provisions |
|
To adopt fair price provisions with shareholder vote requirements greater than a majority of disinterested shares. |
|
A |
|
|
|
|
|
6.7. |
|
State of Incorporation |
|
Freeze Out |
|
proposals to opt out of state freeze out provisions |
|
F |
|
|
|
|
|
6.8. |
|
State of Incorporation |
|
Greenmail |
|
To adopt anti greenmail charter of bylaw amendments
Or otherwise restrict a companys ability to make greenmail payments. |
|
F |
|
|
|
|
|
6.9. |
|
State of Incorporation |
|
Greenmail |
|
To adopt anti greenmail proposals when they are bundled with other charter or bylaw amendments. |
|
F |
|
|
|
|
|
6.10. |
|
State of Incorporation |
|
Reincorporation Proposals |
|
To change a companys state of incorporation |
|
C |
|
|
|
|
|
6.11. |
|
State of Incorporation |
|
Stakeholder Provisions |
|
To consider non-shareholder constituencies or other non-financial effects when evaluating a merger or business combination. |
|
A |
B-15
|
|
|
|
|
|
|
|
|
6.12. |
|
State of Incorporation |
|
State Anti takeover Statutes |
|
To opt in or out of state takeover statutes (including control share acquisition statutes, control share cash-out statutes, freeze out provisions, fair price provisions, stakeholder laws, poison pill endorsements, severance pay and
labor contract provisions, anti greenmail provisions, and disgorgement provisions). |
|
C |
|
|
|
|
|
7. 0. |
|
Capital Structure |
|
Adjustments to Par Value of Common Stock |
|
Management proposals to reduce or eliminate the par value of common stock. |
|
F |
|
|
|
|
|
7.1. |
|
Capital Structure |
|
Common Stock Authorization |
|
To increase the number of shares of common stock authorized for issuance |
|
C |
|
|
|
|
|
7.2. |
|
Capital Structure |
|
Common Stock Authorization |
|
To increase the number of authorized shares of the class of stock that has superior voting rights. |
|
C |
|
|
|
|
|
7.3. |
|
Capital Structure |
|
Common Stock Authorization |
|
To approve increases beyond the allowable increase when a companys shares are in danger of being de-listed or if a companys ability to continue to operate as a going concern is uncertain |
|
F |
|
|
|
|
|
7.4. |
|
Capital Structure |
|
Dual-class Stock |
|
Proposals to create a new class of common stock with superior voting rights |
|
A |
|
|
|
|
|
7.5. |
|
Capital Structure |
|
Dual-class Stock |
|
To create a new class of nonvoting or sub-voting common stock if:
It is intended for financing purposes with minimal or no dilution to
current shareholders
It is not designed to preserve the voting power of an insider or
significant shareholder |
|
F |
|
|
|
|
|
7.6. |
|
Capital Structure |
|
Issue Stock for Use with Rights Plan |
|
To increase authorized common stock for the explicit purpose of implementing a shareholder rights plan (poison pill). |
|
A |
|
|
|
|
|
7.7. |
|
Capital Structure |
|
Preemptive Rights |
|
Shareholder proposals that seek preemptive rights |
|
C |
|
|
|
|
|
7.8. |
|
Capital Structure |
|
Preferred Stock |
|
To authorizing the creation of new classes of preferred stock with unspecified voting, conversion, dividend distribution, and other rights (blank check preferred stock). |
|
A |
|
|
|
|
|
7.9. |
|
Capital Structure |
|
Preferred Stock |
|
To create declawed blank check preferred stock (stock that cannot be used as a takeover defense). |
|
F |
|
|
|
|
|
7.10. |
|
Capital Structure |
|
Preferred Stock |
|
To authorize preferred stock in cases where the company specifies the voting, dividend, conversion, and other rights of such stock and the terms of the preferred stock appear reasonable |
|
F |
|
|
|
|
|
7.11. |
|
Capital Structure |
|
Preferred Stock |
|
To increase the number of blank check preferred stock authorized for issuance when no shares have been issued or reserved for a specific purpose. |
|
A |
|
|
|
|
|
7.12. |
|
Capital Structure |
|
Preferred Stock |
|
To increase the number of blank check preferred shares |
|
A |
|
|
|
|
|
7.13. |
|
Capital Structure |
|
Recapitalization |
|
Recapitalizations (reclassifications of securities) |
|
C |
|
|
|
|
|
7.14. |
|
Capital Structure |
|
Reverse Stock Splits |
|
Management proposals to implement a reverse stock split when the number of authorized shares will be proportionately reduced |
|
F |
|
|
|
|
|
7.15. |
|
Capital Structure |
|
Reverse Stock Splits |
|
Management proposals to implement a reverse stock split to avoid delisting. |
|
F |
|
|
|
|
|
7.16. |
|
Capital Structure |
|
Reverse Stock Splits |
|
To implement a reverse stock splits that do not proportionately reduce the number of shares authorized or considered going dark transactions. |
|
C |
|
|
|
|
|
7.17. |
|
Capital Structure |
|
Share Repurchase Programs |
|
Management proposals to institute open-market share repurchase plans in which all shareholders may participate on equal terms |
|
F |
|
|
|
|
|
7.17.a |
|
Capital Structure |
|
Share Repurchase Programs |
|
Management proposals to institute open-market share repurchase plans in which derivatives may be utilized |
|
C |
|
|
|
|
|
7.18. |
|
Capital Structure |
|
Stock Distributions: Splits and Dividends |
|
Management proposals to increase the common share authorization for a stock split or share dividend, provided that the increase in authorized shares would not result in an excessive number of shares available for issuance |
|
F |
|
|
|
|
|
7.19. |
|
Capital Structure |
|
Tracking Stock |
|
To authorize the creation of tracking stock |
|
C |
|
|
|
|
|
7.20. |
|
Capital Structure |
|
Business Development Companies |
|
To approve BDC to see shares of common stock at a price below Net Asset Value |
|
C |
B-16
|
|
|
|
|
|
|
|
|
7.21. |
|
Capital Structure |
|
Real Estate Investment Trusts |
|
To approve preferred stock issuance at REITs |
|
C |
|
|
|
|
|
8.0. |
|
Executive and Director Compensation |
|
Executive Compensation |
|
Executive compensation plans or plan amendments. |
|
C |
|
|
|
|
|
8.1. |
|
Executive and Director Compensation |
|
Director Compensation |
|
Plans for director compensation |
|
C |
|
|
|
|
|
8.5. |
|
Executive and Director Compensation |
|
Employee Stock Purchase Plans |
|
Employee stock purchase plans . |
|
C |
|
|
|
|
|
8.6. |
|
Executive and Director Compensation |
|
Shareholder Proposals Regarding Executive and Director Pay |
|
Shareholder proposals seeking additional disclosure of executive and director pay information, |
|
A |
|
|
|
|
|
8.7. |
|
Executive and Director Compensation |
|
Shareholder Proposals Regarding Executive and Director Pay |
|
Shareholder proposals seeking to set absolute levels on compensation or otherwise dictate the amount or form of compensation. |
|
A |
|
|
|
|
|
8.8. |
|
Executive and Director Compensation |
|
Shareholder Proposals Regarding Executive and Director Pay |
|
Shareholder proposals requiring director fees be paid in stock only |
|
A |
|
|
|
|
|
8.9. |
|
Executive and Director Compensation |
|
Shareholder Proposals Regarding Executive and Director Pay |
|
Shareholder proposals to put option re-pricings to a shareholder vote |
|
F |
|
|
|
|
|
8.10. |
|
Executive and Director Compensation |
|
Shareholder Proposals Regarding Executive and Director Pay |
|
For all other shareholder proposals regarding executive and director pay |
|
C |
|
|
|
|
|
8.11 |
|
Executive and Director Compensation |
|
Performance-Based Stock Options |
|
Shareholder proposals advocating the use of performance-based stock options (indexed, premium-priced, and performance-vested options). |
|
C |
|
|
|
|
|
8.26. |
|
Executive and Director Compensation |
|
Golden Parachutes and Executive Severance Agreements |
|
Shareholder proposals to require golden parachutes or executive severance agreements to be submitted for shareholder ratification |
|
C |
|
|
|
|
|
8.27. |
|
Executive and Director Compensation |
|
Golden Parachutes and Executive Severance Agreements |
|
Proposals to ratify or cancel golden parachutes. |
|
C |
|
|
|
|
|
8.28. |
|
Executive and Director Compensation |
|
Pension Plan Income Accounting |
|
Shareholder proposals to exclude pension plan income in the calculation of earnings used in determining executive bonuses/compensation |
|
F |
|
|
|
|
|
8.29. |
|
Executive and Director Compensation |
|
Supplemental Executive Retirement Plans (SERPs) |
|
Shareholder proposals requesting to put extraordinary benefits contained in SERP agreements to a shareholder vote |
|
A |
|
|
|
|
|
8.31. |
|
Executive and Director Compensation |
|
Equity Based Compensation Plans |
|
Management proposals for equity plans |
|
C |
B-17
|
|
|
|
|
|
|
|
|
8.32 |
|
Executive and Director Compensation |
|
Transferable Stock Options |
|
Management and shareholder proposals for new on-going Transferable Stock option plans if the total cost of the companys equity plans is less than the companys allowable cap. |
|
F |
|
|
|
|
|
9.0. |
|
Social and Environmental Issues |
|
CONSUMER ISSUES AND PUBLIC SAFETY: Animal Rights |
|
To phase out the use of animals in product testing |
|
A |
|
|
|
|
|
9.1. |
|
Social and Environmental Issues |
|
CONSUMER ISSUES AND PUBLIC SAFETY: Animal Rights |
|
Report on animal welfare |
|
A |
|
|
|
|
|
9.2. |
|
Social and Environmental Issues |
|
CONSUMER ISSUES AND PUBLIC SAFETY: Animal Rights |
|
Adopt animal welfare policy |
|
A |
|
|
|
|
|
9.3. |
|
Social and Environmental Issues |
|
CONSUMER ISSUES AND PUBLIC SAFETY: Drug
Pricing |
|
To implement price restraints on pharmaceutical products |
|
A |
|
|
|
|
|
9.4. |
|
Social and Environmental Issues |
|
CONSUMER ISSUES AND PUBLIC SAFETY: Drug
Reimportation |
|
Proposals requesting that companies report on the financial and legal impact of their policies regarding prescription drug reimportation or proposals requesting that companies adopt specific policies to encourage or constrain
prescription drug reimportation |
|
A |
|
|
|
|
|
9.5. |
|
Social and Environmental Issues |
|
CONSUMER ISSUES AND PUBLIC SAFETY: Genetically
Modified Foods |
|
To voluntarily label genetically engineered (GE) ingredients in their products or alternatively to provide interim labeling and eventually eliminate GE ingredients due to the costs and feasibility of labeling and/or phasing out the
use of GE ingredients. |
|
A |
|
|
|
|
|
9.6. |
|
Social and Environmental Issues |
|
Genetically Modified Foods |
|
A report on the feasibility of labeling products containing GE ingredients |
|
A |
|
|
|
|
|
9.7. |
|
Social and Environmental Issues |
|
Genetically Modified Foods |
|
A report on the financial, legal, and environmental impact of continued use of GE ingredients/seeds |
|
A |
|
|
|
|
|
9.8. |
|
Social and Environmental Issues |
|
Genetically Modified Foods |
|
Report on the health and environmental effects of genetically modified organisms (GMOs) |
|
A |
|
|
|
|
|
9.9. |
|
Social and Environmental Issues |
|
Genetically Modified Foods |
|
To completely phase out GE ingredients from the companys products or proposals asking for reports outlining the steps necessary to eliminate GE ingredients from the companys products. Such resolutions presuppose that
there are proven health risks to GE ingredients |
|
A |
|
|
|
|
|
9.10. |
|
Social and Environmental Issues |
|
CONSUMER ISSUES AND PUBLIC SAFETY:
Handguns |
|
Reports on a companys policies aimed at curtailing gun violence in the United States |
|
A |
|
|
|
|
|
9.11. |
|
Social and Environmental Issues |
|
CONSUMER ISSUES AND PUBLIC SAFETY:
HIV/AIDS |
|
Reports outlining the impact of the health pandemic (HIV/AIDS, malaria and tuberculosis) on the companys Sub-Saharan operations |
|
A |
|
|
|
|
|
9.12. |
|
Social and Environmental Issues |
|
HIV/AIDS |
|
To establish, implement, and report on a standard of response to the HIV/AIDS, tuberculosis and malaria health pandemic in Africa and other developing countries |
|
A |
|
|
|
|
|
9.13. |
|
Social and Environmental Issues |
|
CONSUMER ISSUES AND PUBLIC SAFETY: Predatory
Lending |
|
Reports on the companys procedures for preventing predatory lending, including the establishment of a board committee for oversight, |
|
A |
B-18
|
|
|
|
|
|
|
|
|
9.14. |
|
Social and Environmental Issues |
|
CONSUMER ISSUES AND PUBLIC SAFETY: Tobacco |
|
Proposals seeking stronger product warnings |
|
A |
|
|
|
|
|
9.15. |
|
Social and Environmental Issues |
|
Tobacco |
|
Proposals asking that the companys operating facilities be smoke-free |
|
A |
|
|
|
|
|
9.16. |
|
Social and Environmental Issues |
|
Tobacco |
|
Proposals dealing with product placement in stores or advertising to youth. |
|
A |
|
|
|
|
|
9.17. |
|
Social and Environmental Issues |
|
Tobacco |
|
Proposals asking the company to cease production of tobacco-related products or cease selling products to tobacco companies. |
|
A |
|
|
|
|
|
9.18. |
|
Social and Environmental Issues |
|
Tobacco |
|
Proposals to spin-off tobacco-related businesses: |
|
A |
|
|
|
|
|
9.19. |
|
Social and Environmental Issues |
|
Tobacco |
|
Proposals prohibiting investment in tobacco equities. |
|
A |
|
|
|
|
|
9.20. |
|
Social and Environmental Issues |
|
CONSUMER ISSUES AND PUBLIC SAFETY: Toxic
Chemicals |
|
Proposals requesting that a company discloses its policies related to toxic chemicals, proposals requesting that companies evaluate and disclose the potential financial and legal risks associated with utilizing certain chemicals, or
proposals requiring that a company reformulate its products within a certain timeframe. |
|
A |
|
|
|
|
|
9.21. |
|
Social and Environmental Issues |
|
ENVIRONMENT AND ENERGY: Arctic National
Wildlife Refuge |
|
Requests for reports outlining potential environmental damage from drilling in the Arctic National Wildlife Refuge (ANWR) |
|
A |
|
|
|
|
|
9.22. |
|
Social and Environmental Issues |
|
ENVIRONMENT AND ENERGY: CERES
Principles |
|
Proposals to adopt the CERES Principles |
|
A |
|
|
|
|
|
9.23. |
|
Social and Environmental Issues |
|
ENVIRONMENT AND ENERGY: Environmental-Economic
Risk Report |
|
Proposals requests reports assessing economic risks of environmental pollution or climate change or reports outlining potential environmental damage from operations in protected regions, including wildlife refuges. |
|
A |
|
|
|
|
|
9.24. |
|
Social and Environmental Issues |
|
Environmental Reports |
|
Proposals for reports disclosing the companys environmental policies. |
|
A |
|
|
|
|
|
9.25. |
|
Social and Environmental Issues |
|
Nuclear Safety |
|
Proposals requesting that companies report on risks associated with their nuclear reactor designs and/or the production and interim storage of irradiated fuel rods |
|
A |
|
|
|
|
|
9.26. |
|
Social and Environmental Issues |
|
ENVIRONMENT AND ENERGY: Global Warming |
|
Proposals to make reports on the level of greenhouse gas emissions from the companys operations and products. |
|
A |
|
|
|
|
|
9.27. |
|
Social and Environmental Issues |
|
ENVIRONMENT AND ENERGY: Recycling |
|
Proposals to adopt a comprehensive recycling strategy |
|
A |
|
|
|
|
|
9.28. |
|
Social and Environmental Issues |
|
ENVIRONMENT AND ENERGY: Renewable
Energy |
|
Proposals to invest in renewable energy sources. |
|
A |
|
|
|
|
|
9.29. |
|
Social and Environmental Issues |
|
Renewable Energy |
|
Requests for reports on the feasibility of developing renewable energy sources |
|
A |
|
|
|
|
|
9.30. |
|
Social and Environmental Issues |
|
ENVIRONMENT AND ENERGY: Sustainability
Report |
|
Proposals to make report on its policies and practices related to social, environmental, and economic sustainability |
|
A |
B-19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.31. |
|
Social and Environmental Issues |
|
ENVIRONMENT AND ENERGY: Efficiency
Report |
|
Report on energy efficiency |
|
A |
|
|
|
|
|
9.32. |
|
Social and Environmental Issues |
|
ENVIRONMENT AND ENERGY: Kyoto Protocol |
|
Proposals requesting that companies outline their preparations to comply with standards established by Kyoto Protocol signatory markets |
|
A |
|
|
|
|
|
9.33. |
|
Social and Environmental Issues |
|
LAND USE |
|
Proposals that request the disclosure of detailed information on a companys policies related to land use or development |
|
A |
|
|
|
|
|
9.34. |
|
Social and Environmental Issues |
|
CAFOs |
|
Proposals requesting that companies report to shareholders on the risks and liabilities associated with concentrated animal feeding operations (CAFOs) |
|
A |
|
|
|
|
|
9.35. |
|
Social and Environmental Issues |
|
GENERAL CORPORATE ISSUES: Charitable/ Political
Contributions |
|
Proposals to affirm political nonpartisanship in the workplace |
|
A |
|
|
|
|
|
9.36. |
|
Social and Environmental Issues |
|
Charitable/ Political Contributions |
|
Proposals to report or publish in newspapers the companys political and/or charitable contributions |
|
A |
|
|
|
|
|
9.37. |
|
Social and Environmental Issues |
|
Charitable/ Political Contributions |
|
Proposals to prohibit the company from making political contributions |
|
A |
|
|
|
|
|
9.38. |
|
Social and Environmental Issues |
|
Charitable/ Political Contributions |
|
Proposals to restrict the company from making charitable contributions |
|
A |
|
|
|
|
|
9.39. |
|
Social and Environmental Issues |
|
Charitable/ Political Contributions |
|
Proposals to publish a list of company executives, directors, consultants, legal counsels, lobbyists, or investment bankers that have prior government service and whether such service had a bearing on the business of the
company |
|
A |
|
|
|
|
|
9.40. |
|
Social and Environmental Issues |
|
Charitable/ Political Contributions |
|
Proposals seeking greater disclosure of lobbying expenses and political contributions and expenditures |
|
C |
|
|
|
|
|
9.41. |
|
Social and Environmental Issues |
|
GENERAL CORPORATE ISSUES: Link Executive
Compensation to Social Performance |
|
Proposals to review ways of linking executive compensation to social factors |
|
A |
|
|
|
|
|
9.42. |
|
Social and Environmental Issues |
|
LABOR STANDARDS AND HUMAN RIGHTS: China
Principles |
|
Proposals to implement the China Principles. |
|
A |
|
|
|
|
|
9.43. |
|
Social and Environmental Issues |
|
LABOR STANDARDS AND HUMAN RIGHTS:
Country-specific human rights reports |
|
Proposals to make reports detailing the companys operations in a particular country and steps to protect human rights |
|
A |
|
|
|
|
|
9.44. |
|
Social and Environmental Issues |
|
LABOR STANDARDS AND HUMAN RIGHTS: International
Codes of Conduct/Vendor Standards |
|
Proposals to implement certain human rights standards at company facilities or those of its suppliers and to commit to outside, independent monitoring |
|
A |
B-20
|
|
|
|
|
|
|
|
|
9.45. |
|
Social and Environmental Issues |
|
LABOR STANDARDS AND HUMAN RIGHTS: MacBride
Principles |
|
Proposals to endorse or increase activity on the MacBride Principles. |
|
A |
|
|
|
|
|
9.46. |
|
Social and Environmental Issues |
|
MILITARY BUSINESS: Foreign Military Sales/Offsets |
|
Proposals to make reports on foreign military sales or offsets. |
|
A |
|
|
|
|
|
9.47. |
|
Social and Environmental Issues |
|
MILITARY BUSINESS: Landmines and Cluster Bombs |
|
Proposals asking the company to renounce future involvement in antipersonnel landmine production |
|
A |
|
|
|
|
|
9.48. |
|
Social and Environmental Issues |
|
MILITARY BUSINESS: Nuclear Weapons |
|
Proposals asking the company to cease production of nuclear weapons components and delivery systems, including disengaging from current and proposed contracts |
|
A |
|
|
|
|
|
9.49. |
|
Social and Environmental Issues |
|
MILITARY BUSINESS: Operations in Nations Sponsoring Terrorism (Iran) |
|
Proposals asking the company to appoint a board committee review and report outlining the companys financial and reputational risks from its operations in Iran, |
|
A |
|
|
|
|
|
9.50. |
|
Social and Environmental Issues |
|
MILITARY BUSINESS: Spaced-Based Weaponization |
|
Proposals asking the company to make reports on a companys involvement in spaced-based weaponization |
|
A |
|
|
|
|
|
9.51. |
|
Social and Environmental Issues |
|
WORKPLACE DIVERSITY: Board Diversity |
|
Requests for reports on the companys efforts to diversify the board |
|
A |
|
|
|
|
|
9.52. |
|
Social and Environmental Issues |
|
WORKPLACE DIVERSITY: Board Diversity |
|
Proposals asking the company to increase the representation of women and minorities on the board |
|
C |
|
|
|
|
|
9.53. |
|
Social and Environmental Issues |
|
WORKPLACE DIVERSITY: Equal Employment Opportunity (EEO) |
|
Proposals to increase regulatory oversight of EEO programs |
|
A |
|
|
|
|
|
9.54. |
|
Social and Environmental Issues |
|
WORKPLACE DIVERSITY: Glass Ceiling |
|
To increase regulatory oversight of EEO programs and Glass Ceiling proposals |
|
A |
|
|
|
|
|
9.55. |
|
Social and Environmental Issues |
|
WORKPLACE DIVERSITY: Sexual Orientation |
|
Exclude reference to sexual orientation from the EEO statement |
|
A |
|
|
|
|
|
9.56. |
|
Social and Environmental Issues |
|
WORKPLACE DIVERSITY: Sexual Orientation |
|
Proposals to amend a companys EEO statement in order to prohibit discrimination based on sexual orientation |
|
F |
|
|
|
|
|
9.57. |
|
Social and Environmental Issues |
|
Sexual Orientation |
|
Proposals to extend company benefits to or eliminate benefits from domestic partners |
|
A |
|
|
|
|
|
9.57 |
|
Social and Environmental Issues |
|
Outsourcing |
|
Proposals asking for companies to report on the risks associated with outsourcing or offshoring. |
|
A |
|
|
|
|
|
9.58 |
|
Social and Environmental Issues |
|
Community Impact Assessment |
|
Proposals asking for reports outlining the potential community impact of company operations in specific regions. |
|
A |
|
|
|
|
|
9.59 |
|
Social and Environmental Issues |
|
Internet Privacy and Censorship |
|
Proposals requesting the disclosure and implementation of Internet privacy and censorship policies and procedures. |
|
C |
|
|
|
|
|
9.60 |
|
Social and Environmental Issues |
|
Adoption of Health Care Reform Principles |
|
Proposals to adopt the implementation of national health care reform principles at the company level. |
|
A |
|
|
|
|
|
10.0. |
|
Mutual Fund Proxies |
|
Election of Directors |
|
Director nominees who are not described below |
|
F |
B-21
|
|
|
|
|
|
|
|
|
10.1. |
|
Mutual Fund Proxies |
|
Election of Directors |
|
Ignore a shareholder proposal that is approved by a majority of the votes cast for two consecutive years |
|
W |
|
|
|
|
|
10.2. |
|
Mutual Fund Proxies |
|
Convert Closed-end Fund to Open-end Fund |
|
Conversion Proposals |
|
C |
|
|
|
|
|
10.3. |
|
Mutual Fund Proxies |
|
Proxy Contests |
|
Proxy Contests |
|
C |
|
|
|
|
|
10.4. |
|
Mutual Fund Proxies |
|
Investment Advisory Agreements |
|
Investment Advisory Agreements |
|
F |
|
|
|
|
|
10.5. |
|
Mutual Fund Proxies |
|
Approve New Classes or Series of Shares |
|
The establishment of new classes or series of shares. |
|
F |
|
|
|
|
|
10.6. |
|
Mutual Fund Proxies |
|
Change Fundamental Restriction to Nonfundamental Restriction |
|
Proposals to change a funds fundamental restriction to a non fundamental restriction |
|
C |
|
|
|
|
|
10.7. |
|
Mutual Fund Proxies |
|
Change Fundamental Investment Objective to Nonfundamental |
|
Proposals to change a funds fundamental investment objective to a non fundamental investment objective |
|
C |
|
|
|
|
|
10.8. |
|
Mutual Fund Proxies |
|
Name Change Proposals |
|
Name change proposals. |
|
F |
|
|
|
|
|
10.9. |
|
Mutual Fund Proxies |
|
Change in Funds Sub classification |
|
To change a funds sub-classification |
|
F |
|
|
|
|
|
10.10. |
|
Mutual Fund Proxies |
|
Disposition of Assets/Termination/Liquidation |
|
To dispose of assets, liquidate or terminate the fund |
|
F |
|
|
|
|
|
10.11. |
|
Mutual Fund Proxies |
|
Changes to the Charter Document |
|
To make changes to the charter document |
|
C |
|
|
|
|
|
10.12. |
|
Mutual Fund Proxies |
|
Changes to the Charter Document |
|
Removal shareholder approval requirement to reorganize or terminate the trust or any of its series |
|
F |
|
|
|
|
|
10.13. |
|
Mutual Fund Proxies |
|
Changes to the Charter Document |
|
Removal of shareholder approval requirement for amendments to the new declaration of trust |
|
F |
|
|
|
|
|
10.14. |
|
Mutual Fund Proxies |
|
Changes to the Charter Document |
|
Removal of shareholder approval requirement to amend the funds management contract, allowing the contract to be modified by the investment manager and the trust management, as permitted by the 1940 Act |
|
F |
|
|
|
|
|
10.15. |
|
Mutual Fund Proxies |
|
Changes to the Charter Document |
|
Allow the trustees to impose other fees in addition to sales charges on investment in a fund, such as deferred sales charges and redemption fees that may be imposed upon redemption of a funds shares |
|
F |
|
|
|
|
|
10.16. |
|
Mutual Fund Proxies |
|
Changes to the Charter Document |
|
Removal of shareholder approval requirement to engage in and terminate Sub-advisory arrangements |
|
F |
|
|
|
|
|
10.17. |
|
Mutual Fund Proxies |
|
Changes to the Charter Document |
|
Removal of shareholder approval requirement to change the domicile of the fund |
|
F |
|
|
|
|
|
10.18. |
|
Mutual Fund Proxies |
|
Change the Funds Domicile |
|
Funds Reincorporation |
|
C |
|
|
|
|
|
10.19. |
|
Mutual Fund Proxies |
|
Authorize the Board to Hire and Terminate Subadvisors Without
Shareholder Approval |
|
Proposals authorizing the board to hire/terminate sub-advisors without shareholder approval. |
|
F |
|
|
|
|
|
10.20. |
|
Mutual Fund Proxies |
|
Distribution Agreements |
|
Distribution agreements |
|
F |
B-22
|
|
|
|
|
|
|
|
|
10.21. |
|
Mutual Fund Proxies |
|
Master-Feeder Structure |
|
Establishment of a master-feeder structure. |
|
F |
|
|
|
|
|
10.22. |
|
Mutual Fund Proxies |
|
Mergers |
|
Mergers and Acquisitions |
|
C |
|
|
|
|
|
10.23. |
|
Mutual Fund Proxies |
|
Shareholder Proposals to Establish Director Ownership Requirement |
|
To mandate a specific minimum amount of stock that directors must own in order to qualify as a director or to remain on the board |
|
A |
|
|
|
|
|
10.24.a |
|
Mutual Fund Proxies |
|
Shareholder Proposals to Reimburse Proxy Solicitation Expenses |
|
To reimburse proxy solicitation expenses if dissident wins |
|
F |
|
|
|
|
|
10.24.b |
|
Mutual Fund Proxies |
|
Shareholder Proposals to Reimburse Proxy Solicitation Expenses |
|
To reimburse proxy solicitation expenses (except as described above) |
|
A |
|
|
|
|
|
10.25. |
|
Mutual Fund Proxies |
|
Shareholder Proposals to Terminate Investment Advisor |
|
To terminate the investment advisor |
|
C |
B-23
APPENDIX C
MSCI INDEX DISCLOSURE
THIS FUND
IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY MSCI INC. (MSCI), ANY OF ITS AFFILIATES, ANY OF ITS INFORMATION PROVIDERS OR ANY OTHER THIRD PARTY INVOLVED IN, OR RELATED TO, COMPILING, COMPUTING OR CREATING ANY MSCI INDEX
(COLLECTIVELY, THE MSCI PARTIES). THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES ARE SERVICE MARK(S) OF MSCI OR ITS AFFILIATES AND HAVE BEEN LICENSED FOR USE FOR CERTAIN PURPOSES BY
[LICENSEE]. NONE OF THE MSCI PARTIES MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, TO THE ISSUER OR OWNERS OF THIS FUND OR ANY OTHER PERSON OR ENTITY REGARDING THE ADVISBILITY OF INVESTING IN FUNDS GENERALLY OR IN THIS FUND PARTICULARLY
OR THE ABILITY OF ANY MSCI INDEX TO TRACK CORRESPONDING STOCK MARKET PERFORMANCE. MSCI OR ITS AFFILIATES ARE THE LICENSORS OF CERTAIN TRADEMARKS, SERVICE MARKS AND TRADE NAMES AND OF THE MSCI INDEXES WHICH ARE DETERMINED, COMPOSED AND CALCULATED BY
MSCI WITHOUT REGARD TO THIS FUND OR THE ISSUER OR OWNERS OF THIS FUND OR ANY OTHER PERSON OR ENTITY. NONE OF THE MSCI PARTIES HAS ANY OBLIGATION TO TAKE THE NEEDS OF THE ISSUER OR OWNERS OF THIS FUND OR ANY OTHER PERSON OR ENTITY INTO CONSIDERATION
IN DETERMINING, COMPOSING OR CALCULATING THE MSCI INDEXES. NONE OF THE MSCI PARTIES IS RESPONSIBLE FOR OR HAS PARTICIPATED IN THE DETERMINATION OF THE TIMING OF, PRICES AT, OR QUANTITIES OF THIS FUND TO BE ISSUED OR IN THE DETERMINATION OR
CALCULATION OF THE EQUATION BY OR THE CONSIDERATION INTO WHICH THIS FUND IS REDEEMABLE. FURTHER, NONE OF THE MSCI PARTIES HAS ANY OBLIGATION OR LIABILITY TO THE ISSUER OR OWNERS OF THIS FUND OR ANY OTHER PERSON OR ENTITY IN CONNECTION WITH THE
ADMINISTRATION, MARKETING OR OFFERING OF THIS FUND.
ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE MSCI
INDEXES FROM SOURCES THAT MSCI CONSIDERS RELIABLE, NONE OF THE MSCI PARTIES WARRANTS OR GUARANTEES THE ORIGINALITY, ACCURACY AND/OR THE COMPLETENESS OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES MAKES ANY WARRANTY, EXPRESS
OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ISSUER OF THE FUND, OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY, FROM THE USE OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES SHALL HAVE ANY LIABILITY FOR ANY ERRORS,
OMISSIONS OR INTERRUPTIONS OF OR IN CONNECTION WITH ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. FURTHER, NONE OF THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, AND THE MSCI PARTIES HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO EACH MSCI INDEX AND ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT,
SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
C-1
RidgeWorth Funds (Registrant)
Part C: Other Information
Item 28.
Exhibits:
|
|
|
(a)(1) |
|
Agreement and Declaration of Trust, dated January 15, 1992, is incorporated herein by reference to Exhibit 1 of Post-Effective Amendment No. 15, filed July 31, 1996. |
|
|
(a)(2) |
|
Amendment, dated March 31, 2008, to Agreement and Declaration of Trust, dated January 15, 1992, is incorporated herein by reference to Exhibit (a)(2) of Post-Effective Amendment No. 74, filed May 16, 2008. |
|
|
(a)(3) |
|
Amendment, dated July 17, 2014, to Agreement and Declaration of Trust, dated January 15, 1992, is incorporated herein by reference to Exhibit (a)(3) of Post-Effective Amendment No. 93, filed July 30, 2014. |
|
|
(b)(1) |
|
Amended and Restated By-Laws, dated August 15, 2000, are incorporated herein by reference to Exhibit (b) of Post-Effective Amendment No. 37, filed September 21, 2000. |
|
|
(b)(2) |
|
Amendment No. 1, effective March 31, 2008, to Amended and Restated By-Laws, dated August 15, 2000, is incorporated herein by reference to Exhibit (b)(2) of Post-Effective Amendment No. 75, filed May 30, 2008. |
|
|
(c) |
|
Not applicable. |
|
|
(d)(1) |
|
Investment Advisory Agreement, dated May 30, 2014, between the Registrant and RidgeWorth Capital Management LLC (RidgeWorth Investments) is incorporated herein by reference to Exhibit (d)(1) of Post-Effective
Amendment No. 93, filed July 30, 2014. |
|
|
(d)(1)(i) |
|
Amended Schedule A, dated August 31, 2015, to the Investment Advisory Agreement, dated May 30, 2014, between the Registrant and RidgeWorth Investments is incorporated herein by reference to Exhibit (d)(1)(i) of Post-Effective
Amendment No. 104, filed February 5, 2016. |
|
|
(d)(2) |
|
Investment Subadvisory Agreement, dated May 30, 2014, between RidgeWorth Investments and Zevenbergen Capital Investments, LLC (Zevenbergen) is incorporated herein by reference to Exhibit (d)(2) of Post-Effective
Amendment No. 93, filed July 30, 2014. |
|
|
(d)(3) |
|
Investment Subadvisory Agreement, dated May 30, 2014, between RidgeWorth Investments and Ceredex Value Advisors LLC (Ceredex) is incorporated herein by reference to Exhibit (d)(3) of Post-Effective Amendment No. 93,
filed July 30, 2014. |
|
|
(d)(4) |
|
Investment Subadvisory Agreement, dated May 30, 2014, between RidgeWorth Investments and Seix Investment Advisors LLC (Seix) is incorporated herein by reference to Exhibit (d)(5) of Post-Effective Amendment No. 93, filed
July 30, 2014. |
|
|
(d)(4)(i) |
|
Amended Schedule A, dated August 1, 2015, to the Investment Subadvisory Agreement, dated May 30, 2014, between RidgeWorth Investments and Seix is incorporated herein by reference to Exhibit (d)(5)(i) of Post-Effective Amendment No.
99, filed July 29, 2015. |
|
|
(d)(5) |
|
Investment Subadvisory Agreement, dated May 30, 2014, between RidgeWorth Investments and Silvant Capital Management LLC (Silvant) is incorporated herein by reference to Exhibit (d)(6) of Post-Effective Amendment No. 93,
filed July 30, 2014. |
|
|
|
|
|
(d)(5)(i) |
|
Amended Schedule A, dated January 30, 2015, to the Investment Subadvisory Agreement, dated May 30, 2014, between the RidgeWorth Investments and Silvant is incorporated herein by reference to Exhibit (d)(6)(i) of Post-Effective
Amendment No. 95, filed January 30, 2015. |
|
|
(d)(6) |
|
Investment Subadvisory Agreement, dated September 1, 2015, between RidgeWorth Investments and WCM Investment Management (WCM) is incorporated herein by reference to Exhibit (d)(6) of Post-Effective Amendment No. 104,
filed February 5, 2016. |
|
|
(d)(7) |
|
Investment Subadvisory Agreement, dated February 19, 2016, between RidgeWorth Investments and Capital Innovations, LLC (Capital Innovations) is filed herewith. |
|
|
(d)(8) |
|
Expense Limitation Agreement, dated August 1, 2016, by and between the Registrant, RidgeWorth Investments, Capital Innovations, Ceredex, Silvant, Seix, WCM and Zevenbergen is filed herewith. |
|
|
(e)(1) |
|
Distribution Agreement, dated March 31, 2009, between the Registrant and RidgeWorth Distributors LLC (RidgeWorth Distributors) is incorporated herein by reference to Exhibit (e) of Post-Effective Amendment No. 80, filed
July 29, 2009. |
|
|
(e)(2) |
|
First Amendment, dated August 1, 2009, to the Distribution Agreement, dated March 31, 2009, between the Registrant and RidgeWorth Distributors is incorporated herein by reference to Exhibit (e)(2) of Post-Effective Amendment No. 81,
filed May 28, 2010. |
|
|
(e)(3) |
|
Second Amendment, dated July 19, 2010, to the Distribution Agreement, dated March 31, 2009, between the Registrant and RidgeWorth Distributors is incorporated herein by reference to Exhibit (e)(3) of Post-Effective Amendment No. 83,
filed May 27, 2011. |
|
|
(e)(4) |
|
Third Amendment, dated April 27, 2012, to the Distribution Agreement, dated March 31, 2009, between the Registrant and RidgeWorth Distributors is incorporated herein by reference to Exhibit (e)(4) of Post-Effective Amendment No. 89,
filed May 24, 2013. |
|
|
(e)(5) |
|
Fourth Amendment, dated January 30, 2015, to the Distribution Agreement, dated March 31, 2009, between the Registrant and RidgeWorth Distributors is incorporated herein by reference to Exhibit (e)(5) of Post-Effective Amendment No.
95, filed January 30, 2015. |
|
|
(e)(6) |
|
Fifth Amendment, dated February 17, 2016, to the Distribution Agreement, dated March 31, 2009, between the Registrant and RidgeWorth Distributors is filed herewith. |
|
|
(e)(7) |
|
Sixth Amendment, dated August 1, 2016, to the Distribution Agreement, dated March 31, 2009, between the Registrant and RidgeWorth Distributors is filed herewith. |
|
|
(f) |
|
Not applicable. |
|
|
(g)(1) |
|
Master Custodian Agreement, dated August 30, 2010, between the Registrant and State Street Bank and Trust Company (State Street) is incorporated herein by reference to Exhibit (g)(3) of Post-Effective Amendment No. 83,
filed May 27, 2011. |
|
|
(g)(1)(i) |
|
Form of Notice to the Master Custodian Agreement, dated August 30, 2010, between the Registrant and State Street is incorporated herein by reference to Exhibit (g)(1)(i) of Post-Effective Amendment No. 95, filed January 30,
2015. |
|
|
(g)(1)(ii) |
|
Notice to the Master Custodian Agreement, dated August 30, 2010, between the Registrant and State Street is filed herewith. |
2
|
|
|
|
|
(h)(1) |
|
Administration Agreement, dated August 30, 2010, between the Registrant and State Street is incorporated herein by reference to Exhibit (h)(1) of Post-Effective Amendment No. 83, filed May 27, 2011. |
|
|
(h)(1)(i) |
|
Form of Notice to the Administration Agreement, dated August 30, 2010, between the Registrant and State Street is incorporated herein by reference to Exhibit (h)(1)(i) of Post-Effective Amendment No. 95, filed January 30,
2015. |
|
|
(h)(1)(ii) |
|
Notice to the Administration Agreement, dated August 30, 2010, between the Registrant and State Street is filed herewith. |
|
|
(h)(2) |
|
Shareholder Servicing Plan, dated November 20, 2008, relating to R Shares, is incorporated herein by reference to Exhibit (h)(12) of Post-Effective Amendment No. 77, filed December 15, 2008. |
|
|
(h)(2)(i) |
|
Amended Schedule A, dated August 1, 2015, to the Shareholder Servicing Plan, dated November 20, 2008, relating to R Shares, is incorporated herein by reference to Exhibit (h)(2)(i) of Post-Effective Amendment No. 99, filed July 29,
2015. |
|
|
(h)(3) |
|
Shareholder Servicing Plan, dated May 23, 2013, relating to A Shares and I Shares, is incorporated herein by reference to Exhibit (h)(3) of Post-Effective Amendment No. 89, filed May 24, 2013. |
|
|
(h)(3)(i) |
|
Amended Schedule A, dated August 1, 2015, to the Shareholder Servicing Plan, dated May 23, 2013, relating to A Shares and I Shares, is incorporated herein by reference to Exhibit (h)(3)(i) of Post-Effective Amendment No. 104, filed
February 5, 2016. |
|
|
(h)(4) |
|
Securities Lending Management Agreement, dated March 11, 2015, between the Registrant and State Street is incorporated herein by reference to Exhibit (h)(4) of Post-Effective Amendment No. 104, filed February 5, 2016. |
|
|
(h)(5) |
|
Shareholder Service Fee Allocation Agreement, dated August 1, 2009, between the Registrant and RidgeWorth Investments is incorporated herein by reference to Exhibit (h)(22) of Post-Effective Amendment No. 81, filed May 28,
2010. |
|
|
(h)(6) |
|
Fund Services Agreement, dated May 30, 2014, between the Registrant and RidgeWorth Investments, is incorporated herein by reference to Exhibit (h)(6) of Post-Effective Amendment No. 93, filed July 30, 2014. |
|
|
(h)(7) |
|
Transfer Agency and Service Agreement, dated August 20, 2010, between the Registrant and Boston Financial Data Services, Inc. (BFDS) is incorporated herein by reference to Exhibit (h)(11) of Post-Effective Amendment No.
84, filed July 29, 2011. |
|
|
(h)(7)(i) |
|
Amendment, dated December 1, 2011, to the Transfer Agency and Service Agreement, dated August 20, 2010, between the Registrant and BFDS is incorporated herein by reference to Exhibit (h)(7)(i) of Post-Effective Amendment No. 87,
filed July 27, 2012. |
|
|
(h)(7)(ii) |
|
Amendment, dated April 26, 2013, to the Transfer Agency and Service Agreement, dated August 20, 2010, between the Registrant and BFDS is incorporated herein by reference to Exhibit (h)(7)(ii) of Post-Effective Amendment No. 93,
filed July 30, 2014. |
|
|
(h)(7)(iii) |
|
Amendment, dated April 29, 2014, to the Transfer Agency and Service Agreement, dated August 20, 2010, between the Registrant and BFDS is incorporated herein by reference to Exhibit (h)(7)(iii) of Post-Effective Amendment No. 93,
filed July 30, 2014. |
|
|
(h)(7)(iv) |
|
Amendment, dated March 15, 2016, to the Transfer Agency and Service Agreement, dated August 20, 2010, between the Registrant and BFDS is filed herewith. |
3
|
|
|
|
|
(i) |
|
Opinion and Consent of Counsel is filed herewith. |
|
|
(j) |
|
Consent of Independent Registered Accountant is filed herewith. |
|
|
(k) |
|
Not applicable. |
|
|
(l) |
|
Not applicable. |
|
|
(m)(1) |
|
Distribution and Service Plan, dated May 17, 2005, as amended March 31, 2008, relating to A Shares, is incorporated herein by reference to Exhibit (m)(1) of Post-Effective Amendment No. 81, filed May 28, 2010. |
|
|
(m)(1)(i) |
|
Amended Schedule A, dated August 1, 2015, to the Distribution and Service Plan, dated May 17, 2005, as amended March 31, 2008, relating to A Shares, is incorporated herein by reference to Exhibit (m)(1)(i) of Post-Effective
Amendment No. 104, filed February 5, 2016. |
|
|
(m)(2) |
|
Distribution and Service Plan, dated May 17, 2005, as amended November 30, 2010, relating to C Shares, is incorporated herein by reference to Exhibit (m)(2) of Post-Effective Amendment No. 87, filed July 27, 2012. |
|
|
(m)(3) |
|
Distribution and Service Plan, dated May 14, 2009, relating to R Shares, is incorporated herein by reference to Exhibit (m)(5) of Post-Effective Amendment No. 79, filed May 29, 2009. |
|
|
(n) |
|
Rule 18f-3 Multiple Class Plan, as amended May 26, 2016, is filed herewith. |
|
|
(o) |
|
Not applicable. |
|
|
(p)(1) |
|
Registrants Code of Ethics, as amended February 27, 2013, is incorporated herein by reference to Exhibit (p)(1) of Post-Effective Amendment No. 99, filed July 29, 2015. |
|
|
(p)(2) |
|
Code of Ethics for RidgeWorth Investments, Ceredex, Silvant and Seix, as amended July 21, 2016, is filed herewith. |
|
|
(p)(3) |
|
Code of Ethics for Zevenbergen, as amended December 31, 2014, is incorporated herein by reference to Exhibit (p)(3) of Post-Effective Amendment No. 99, filed July 29, 2015. |
|
|
(p)(4) |
|
Code of Ethics for WCM is incorporated herein by reference to Exhibit (p)(4) of Post-Effective Amendment No. 104, filed February 5, 2016. |
|
|
(p)(5) |
|
Code of Ethics for Capital Innovations is incorporated herein by reference to Exhibit (p)(5) of Post-Effective Amendment No. 104, filed February 5, 2016. |
|
|
(p)(6) |
|
Code of Ethics for RidgeWorth Distributors is incorporated herein by reference to Exhibit (p)(5) of Post-Effective Amendment No. 83, filed May 27, 2011. |
|
|
(q)(1) |
|
Power of Attorney, dated November 18, 2014, for each of Tim E. Bentsen, Jeffrey M. Biggar, Sidney E. Harris, Connie D. McDaniel, George C. Guynn, and Ashi Parikh, is incorporated herein by reference to Exhibit (q)(1) of
Post-Effective Amendment No. 98, filed May 29, 2015. |
ITEM 29. Persons Controlled by or under Common Control with Registrant:
See the prospectus and Statement of Additional Information regarding the Registrants control relationships.
4
ITEM 30. Indemnification:
Indemnification of Registrants principal underwriter against certain losses is provided for in Section 1.12 of the Distribution Agreement filed as
Exhibit (e)(1) to the Registrants Registration Statement.
In addition, Article VIII of the Agreement and Declaration of Trust filed as Exhibit
(a)(1) to the Registrants Registration Statement provides that, subject to the exceptions and limitations contained in Article VIII, every person who is, or has been, a Trustee or officer of the Trust shall be indemnified by the Registrant to
the fullest extent permitted by law against liability and against all expenses reasonably incurred or paid by him in connection with any claim, action, suit or proceeding in which he becomes involved as a party or otherwise by virtue of his being or
having been a Trustee or officer and against amounts paid or incurred by him in the settlement thereof. No indemnification shall be provided hereunder to a Trustee or Officer who shall have been adjudicated by a court or body before which the
proceeding was brought (i) to be liable to the Registrant or its shareholders by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his office or (ii) not to have acted in good
faith in the reasonable belief that his action was in the best interest of the Registrant.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933, as amended (the Act) may be permitted to trustees, directors, officers and controlling persons of the Registrant by the Registrant pursuant to the Declaration of Trust or otherwise, the Registrant is aware that in
the opinion of the U.S. Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and, therefore, is unenforceable. In the event that a claim for indemnification against such liabilities (other than
the payment by the Registrant of expenses incurred or paid by trustees, directors, officers or controlling persons of the Registrant in connection with the successful defense of any act, suit or proceeding) is asserted by such trustees, directors,
officers or controlling persons in connection with the shares being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issues.
ITEM 31. Business and Other Connections of the Investment Adviser:
The information required by this item is contained in the Form ADVs of the following entities and is incorporated herein by reference:
|
|
|
|
|
Investment Adviser |
|
|
File No. |
|
RidgeWorth Capital Management LLC |
|
|
801-23163 |
|
|
|
Subadvisers |
|
|
File No. |
|
Capital Innovations, LLC |
|
|
801-72322 |
|
Ceredex Value Advisors LLC |
|
|
801-68739 |
|
Seix Investment Advisors LLC |
|
|
801-68743 |
|
Silvant Capital Management LLC |
|
|
801-68741 |
|
WCM Investment Management |
|
|
801-11916 |
|
Zevenbergen Capital Investments LLC |
|
|
801-62477 |
|
ITEM 32. Principal Underwriters:
Item 32(a) |
RidgeWorth Distributors LLC serves as principal underwriter for the following investment company registered under the Investment Company Act of 1940, as amended: |
RidgeWorth Funds
Item 32(b) |
The following are Officers and Manager of RidgeWorth Distributors LLC. The main business address of RidgeWorth Distributors LLC is Three Canal Plaza, Suite 100, Portland, Maine 04101. |
5
|
|
|
|
|
|
|
Name |
|
Address |
|
Position with Underwriter |
|
Position with Registrant |
Richard J. Berthy |
|
Three Canal Plaza, Suite 100, Portland, ME 04101 |
|
President, Treasurer and Manager |
|
None |
Mark A. Fairbanks |
|
Three Canal Plaza, Suite 100, Portland, ME 04101 |
|
Vice President |
|
None |
Jennifer K. DiValerio |
|
Three Canal Plaza, Suite 100, Portland, ME 04101 |
|
Vice President |
|
None |
Jennifer E. Hoopes |
|
Three Canal Plaza, Suite 100, Portland, ME 04101 |
|
Secretary |
|
None |
Nanette K. Chern |
|
Three Canal Plaza, Suite 100, Portland, ME 04101 |
|
Vice President and Chief Compliance Officer |
|
None |
Item 32(c) |
Not applicable. |
ITEM 33. Location of Accounts and Records:
Books or other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940, and the rules promulgated thereunder, are
maintained as follows:
|
(a) |
With respect to Rules 31a-1(a); 31a-1(b)(1); (2)(a) and (b); (3); (6); (8); (12); and 31a-1(d), the required books and records are maintained at the offices of Registrants custodians: |
State Street Bank and Trust Company
One Lincoln Street
Boston, MA
02111
|
(b) |
With respect to Rules 31a-1(a); 31a-1(b)(1),(4); (2)(C) and (D); (4); (5); (6); (8); (9); (10); (11); and 31a-1(f), the required books and records are maintained at the offices of Registrants administrator:
|
State Street Bank and Trust Company
One Lincoln Street
Boston, MA
02111
|
(c) |
With respect to Rules 31a-1(b)(5), (6), (9) and (10) and 31a-1(f), the required books and records are maintained at the principal offices of the Registrants adviser and subadvisers: |
RidgeWorth Capital Management LLC
3333 Piedmont Road, Suite 1500
Atlanta, GA 30305
(records
relating to its function as adviser)
Capital Innovations, LLC
325 Forest Grove Drive, Suite 100
Pewaukee, WI 53072
(records
relating to its function as subadviser)
Ceredex Value Advisers LLC
301 East Pine, Suite 500
Orlando, FL 32801
(records
relating to its function as subadviser)
Seix Investment Advisors LLC
One Maynard Drive, Suite 3200
Park Ridge, NJ 07458
(records
relating to its function as subadviser)
6
Silvant Capital Management LLC
3333 Piedmont Road, Suite 1500
Atlanta, GA 30305
(records
relating to its function as subadviser)
WCM Investment Management
281 Brooks Street
Laguna Beach,
CA 92651
(records relating to its function as subadviser)
Zevenbergen Capital Investments LLC
601 Union Street, Suite 4600
Seattle, WA 98101
(records
relating to its function as subadviser)
|
(d) |
RidgeWorth Distributors LLC |
Three Canal Plaza, Suite 100
Portland, ME 04101
(records
relating to its function as distributor)
ITEM 34. Management Services:
None.
ITEM 35. Undertakings:
None.
7
NOTICE
A copy of the Agreement and Declaration of Trust, as amended, for the Registrant is on file with the Secretary of State of the Commonwealth of Massachusetts
and notice is hereby given that this Registration Statement has been executed on behalf of the Registrant by an officer of the Registrant as an officer and by its trustees as trustees and not individually and the obligations of or arising out of
this Registration Statement are not binding upon any of the trustees, officers, or shareholders individually but are binding only upon the assets and property of the Registrant.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that this registration statement
meets all of the requirements for effectiveness of Rule 485(b) under the Securities Act of 1933 and has duly caused this registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Atlanta, and State of
Georgia, on the 28th day of July 2016.
|
|
|
By: |
|
/s/ Julia R. Short |
|
|
Julia R. Short |
|
|
President and Chief Executive Officer |
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed below by the
following persons in the capacities and on the date indicated.
|
|
|
|
|
Signature |
|
Title |
|
Date |
/s/ Jeffrey M. Biggar* |
|
Trustee |
|
July 28, 2016 |
Jeffrey M. Biggar |
|
|
|
|
|
|
|
/s/ George C. Guynn* |
|
Trustee |
|
July 28, 2016 |
George C. Guynn |
|
|
|
|
|
|
|
/s/ Sidney E. Harris* |
|
Trustee |
|
July 28, 2016 |
Sidney E. Harris |
|
|
|
|
|
|
|
/s/ Connie D. McDaniel* |
|
Trustee |
|
July 28, 2016 |
Connie D. McDaniel |
|
|
|
|
|
|
|
/s/ Tim E. Bentsen* |
|
Trustee |
|
July 28, 2016 |
Tim E. Bentsen |
|
|
|
|
|
|
|
/s/ Ashi Parikh* |
|
Trustee |
|
July 28, 2016 |
Ashi Parikh |
|
|
|
|
|
|
|
/s/ Julia R. Short |
|
President and Chief Executive Officer |
|
July 28, 2016 |
Julia R. Short |
|
|
|
|
|
|
|
/s/ Benjamin H. Lowe |
|
Treasurer and Chief Financial Officer |
|
July 28, 2016 |
Benjamin H. Lowe |
|
|
|
|
|
|
*By: |
|
/s/ Karen Jacoppo-Wood |
|
|
Karen Jacoppo-Wood |
* Pursuant to Powers of Attorney
EXHIBIT INDEX
|
|
|
Exhibit No. |
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Document |
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(d)(7) |
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Investment Subadvisory Agreement, dated February 19, 2016, between RidgeWorth Investments and Capital Innovations |
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(d)(8) |
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Expense Limitation Agreement, dated August 1, 2016, by and between the Registrant, RidgeWorth Investments, Capital Innovations, Ceredex, Silvant, Seix, WCM and Zevenbergen |
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(e)(6) |
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Fifth Amendment, dated February 17, 2016, to the Distribution Agreement, dated March 31, 2009, between the Registrant and RidgeWorth Distributors |
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(e)(7) |
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Sixth Amendment, dated August 1, 2016, to the Distribution Agreement, dated March 31, 2009, between the Registrant and RidgeWorth Distributors |
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(g)(1)(ii) |
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Notice to the Master Custodian Agreement, dated August 30, 2010 between the Registrant and State Street |
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(h)(1)(ii) |
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Notice to the Administration Agreement, dated August 30, 2010, between the Registrant and State Street |
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(h)(7)(iv) |
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Amendment, dated March 16, 2016, to the Transfer Agency and Service Agreement, dated August 20, 2010, between the Registrant and BFDS |
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(i) |
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Opinion and Consent of Counsel |
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(j) |
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Consent of Independent Registered Accountant |
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(n) |
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Rule 18f-3 Multiple Class Plan, as amended May 26, 2016 |
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(p)(2) |
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Code of Ethics for RidgeWorth Investments, Ceredex, Silvant and Seix, as amended July 21, 2016 |