497K 1 v407619_497k.htm SUMMARY PROSPECTUS

 

 

 

 

 

Summary
Prospectus

 

May 1, 2015

 

 

 

     
Select Value Fund
Share Class – Ticker
Investor – HRSVX
Institutional – HNSVX

 

 

 

 

Before you invest, you may want to review the Fund’s Prospectus, which contains more information about the Fund and its risks. You can find the Fund’s Prospectus and other information about the Fund, including the Statement of Additional Information, online at heartlandfunds.com/Prospectuses.htm. You can also get this information at no cost by calling 1-800-432-7856. The Fund’s current Prospectus and Statement of Additional Information, both dated May 1, 2015, are incorporated by reference into this Summary Prospectus.

 

 
 

 

 

INVESTMENT GOAL

 

The Select Value Fund seeks long-term capital appreciation.

 

FEES AND EXPENSES OF THE SELECT VALUE FUND

 

This table describes the fees and expenses that you may pay if you buy and hold Investor or Institutional Class Shares of the Select Value Fund.

 

Shareholder Fees

(fees paid directly from your investment)

 

 Investor
Class
Shares		 Institutional
Class   Shares
Maximum Sales Charge (Load) Imposed on Purchases None None
Maximum Deferred Sales Charge (Load) None None
Maximum Sales Charge (Load) Imposed on Reinvested Distributions None None
Redemption Fee (as a percentage of the net asset value of any shares that are redeemed or exchanged within 10 days after they were purchased) 2% 2%
Exchange Fee None None

 

 

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment)

 

 Investor
Class
Shares		 Institutional
Class    Shares
Management Fees 0.75% 0.75%
Distribution (12b-1) Fees 0.25 None
Other Expenses 0.20 0.13
Total Annual Fund Operating Expenses 1.20 0.88

 

Example. This Example is intended to help you compare the cost of investing in the Select Value 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 and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

 

  One
Year		 Three
Years		 Five  
Years		 Ten   
Years
Investor Class Shares $122 $381 $659 $1,453
Institutional Class Shares              90            281            487 1,083

 

Portfolio Turnover

 

The Select Value Fund pays transaction costs, such as commissions, 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 of the SELECT VALUE FUND

 

The Select Value Fund invests primarily in a concentrated number (generally 40 to 60) of common stocks of all sizes, selected on a value basis and whose current market prices, in Heartland Advisors, Inc.’s (“Heartland Advisors”) judgment, are undervalued relative to their intrinsic value. They normally have market capitalizations in excess of $500 million at the time of purchase. The median market capitalization of the Fund is expected to fluctuate over time depending on Heartland Advisors’ perceptions of relative valuations, future prospects, and market conditions.

 

The Fund utilizes Heartland Advisors’ disciplined and time-tested 10 Principles of Value InvestingTM framework to identify securities with the potential for appreciation and a potential margin of safety to limit downside risk. The 10 Principles of Value Investing™ are: catalyst for recognition, low price in relation to earnings, low price in relation to cash flow, low price in relation to book value, financial soundness, positive earnings dynamics, sound business strategy, capable management and insider ownership, value of the company, and positive technical analysis.

 

Principal Risks of Investing in the Select Value Fund

 

The Select Value Fund is designed for investors who seek long-term capital appreciation from a diversified, actively managed portfolio of stocks of all sizes. It is constructed as a core value holding for investors who can accept the volatility and other investment risks of the broad-based equity markets, but want to manage these risks by investing in companies believed to be undervalued relative to their intrinsic value.

 

The principal risk of investing in the Select Value Fund is that its share price and investment return will fluctuate, and you could lose money. Additional principal investment risks of the Fund include:

 

-Management Risk. The ability of the Fund to meet its investment objective is directly related to Heartland Advisors’ investment strategies for the Fund.

 

-General Market Risk. The market value of a security may move up or down, sometimes rapidly and unpredictably. These fluctuations may cause a security to be worth less than the price originally paid for it, or less than it was worth at an earlier time.

 

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-Equity Market Risk. Common stocks are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change.

 

-Value-Style Investing Risk. Value stocks can perform differently from the market as a whole and from other types of stocks. Value investments are subject to the risk that their intrinsic value may not be recognized by the broad market.

 

-SMALLER COMPANY SECURITIES risk. Equity securities of the smaller companies in which the Fund may invest generally involve a higher degree of risk than investments in the broad-based equity markets. The security prices of smaller companies generally are more volatile than those of larger companies, they generally will have less market liquidity, and they may be more likely to be adversely affected by poor economic or market conditions.

 

-Limited Portfolio Risk. As the Fund invests in a limited number of stocks, a change in the value of any single holding may have a more pronounced effect on the Fund’s net asset value (“NAV”) and performance than would be the case if it held more positions. This generally will increase the volatility of the Fund’s NAV and investment return.

 

An investment in the Fund is not a deposit of a bank, nor insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency. It is not designed to be a complete investment program, and while you may make money, you can also lose money. The Fund’s share price will fluctuate.

  

Past Performance

 

The following tables show historical performance of the Select Value Fund and provide some indication of the risks of investing in the Fund. Table I shows how the total returns before taxes for the Fund’s Investor Class Shares have varied from year to year for the past 10 years. Table II shows how the Fund’s average annual total returns compare to those of a securities market index. Performance information for the Institutional Class Shares prior to May 1, 2008 is based on the performance of the Investor Class. Past performance (before and after taxes) does not guarantee future results. Recent performance information for the Fund is available on the Fund’s website at heartlandfunds.com or by calling 1-800-432-7856.

 

TABLE I

Select Value Fund - Investor Class Shares - Year-by-Year Total Returns

 

 

 

Best Quarter: Worst Quarter:
3rd Quarter of 2009….21.79% 4th Quarter of 2008 . . . .-23.59%

 

TABLE II

Select Value Fund - Average Annual Total Returns [for the periods ended 12/31/14]

  One
Year
Five
Years
Ten
Years		 Lifetime
(since 10-11-1996)
INVESTOR CLASS SHARES:        
Return Before Taxes 4.07% 11.79% 8.65% 10.71%
Return After Taxes on Distributions 1.37 10.25 7.57 9.73
Return After Taxes on Distributions and Sale of Fund Shares 4.56 9.43 7.10 9.06
Institutional CLASS SHARES:        
Return Before Taxes 4.40 12.14 8.89 10.84
Russell 3000® Value Index
(reflects no deduction for fees, expenses or taxes)		 12.70 15.34 7.26 9.06

 

After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. In addition, after-tax returns are shown only for Investor Class Shares, and after-tax returns for the Institutional Class Shares will vary. The differences in before-tax returns and after-tax returns on distributions and sale of Fund shares are due to adjustments incorporated into the after-tax returns for qualified taxable dividend income and qualifying foreign tax credits.

 

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Investment Advisor

 

Heartland Advisors serves as the investment advisor to the Select Value Fund.

 

Portfolio Managers

 

The Select Value Fund is managed by a team of investment professionals, which consists of William (“Will”) R. Nasgovitz, David C. Fondrie, and Colin P. McWey.

 

Mr. Will Nasgovitz has served as a Portfolio Manager of the Select Value Fund since May 2006. Mr. Will Nasgovitz is the Chief Executive Officer and a Director of Heartland Advisors and Chief Executive Officer of Heartland Group, Inc. (“Heartland Funds”).

 

Mr. Fondrie has served as a Portfolio Manager of the Select Value Fund since March 2004. Mr. Fondrie is a Senior Vice President of Heartland Advisors.

 

Mr. McWey has served as a Portfolio Manager of the Select Value Fund since February 2015. Mr. McWey is a Vice President of Heartland Advisors.

 

Purchase and sale of Fund shares

 

The Fund imposes minimum purchase requirements for initial investments in its shares. The table below shows the initial minimum purchase requirements that apply if you purchase Investor Class Shares directly from the Fund.

  Regular
Account(1)		 IRA
Account		 Coverdell
Education
Savings Account (“ESA”)
Select  Value Fund $1,000 $500 $500
(1)Regular Accounts include joint accounts, individual accounts, custodial accounts, trust accounts, and corporate accounts. The minimum initial investment is waived when an account is established with an automatic investment plan.

 

The minimum purchase requirement for an initial investment in Institutional Class Shares, including for IRAs, is $500,000. This minimum may be waived for accounts held in qualified retirement or profit-sharing plans opened through a third party service provider or recordkeeper.

 

Subsequent purchases of Investor Class and Institutional Class Shares, other than through reinvestment of distributions or an automatic investment plan, must be for a minimum of $100.

 

Investors generally may meet the minimum investment amount by aggregating multiple accounts with common ownership or discretionary control within a single Fund. The Fund may waive or lower its investment minimums for any reason. Different minimums may apply to accounts opened through third parties.

 

You may redeem your shares in any of the following ways:

 

By Mail

Please mail your redemption instructions to Heartland Funds at the appropriate address below.

 

via U.S. Postal Service
Heartland Funds
PO Box 177             
Denver, CO 80201-0177		 via Express Courier
Heartland Funds
c/o ALPS Fund Services, Inc.
1290 Broadway, Suite 1100
Denver, CO 80203

By Telephone

Call a Heartland Funds representative toll-free at 1-800-432-7856 to request your redemption (certain redemption requests for IRA or Coverdell ESA accounts must be in writing.

 

By Internet

You may redeem shares by accessing your account online at heartlandfunds.com.

 

By Systematic Withdrawal

Call a Heartland Funds representative toll-free at 1-800-432-7856 to request an Account Maintenance Form to add a systematic withdrawal plan to your account.

 

Tax information

 

The Fund intends to make distributions, which may be subject to federal, state, and local taxes as ordinary income or long-term capital gains, or a combination of the two.

 

Payments to broker-dealers and other financial intermediaries

 

If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund, Heartland Advisors, the Fund’s distributor, or any of their respective affiliates may pay the intermediary for the sale of the Fund’s shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial advisor to recommend the Fund over another investment. Ask your individual financial advisor or visit your financial intermediary’s website for more information.

 

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Distributed by ALPS Distributors, Inc.

789 North Water Street, Milwaukee, WI 53202

heartlandfunds.com 1-800-432-7856

 

 

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