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.
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.