Before you invest, you may want to review the Funds Prospectus and
Statement of Additional Information, which
contain more information about the Fund and its risks. You can find the Funds Prospectus, Statement of Additional
Information and other information about the Fund online at
http://www.ridgeworth.com/resources/regulatory-tax-info.
You can also get this information at no cost by calling the Funds at 1-888-784-3863 or by sending an email request to
info@ridgeworth.com. The current Prospectus and Statement of
Additional Information, dated August 1, 2012, are
incorporated by reference into this summary prospectus.
(2)
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Acquired Fund Fees and Expenses reflect the Funds 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 Funds 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 Funds prospectus.
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Example
This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your investment has a 5% return each year and that the
Funds operating expenses remain the same and you reinvest all dividends and distributions. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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1 Year
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3 Years
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5 Years
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10 Years
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A Shares
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$
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552
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$
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716
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$
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894
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$
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1,410
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R Shares
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$
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121
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$
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378
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$
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656
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$
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1,449
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I Shares
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$
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58
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$
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183
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$
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319
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$
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717
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Portfolio Turnover
The Fund
pays transaction costs when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account.
These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the Funds portfolio turnover rate was 83% 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 Funds investment in non-U.S. issuers may at times be significant. Under normal circumstances, the Fund invests at least 80% of its net assets
(plus any borrowings for investment purposes) in 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 Moodys
Investors Service or Standard & Poors Ratings Services or unrated securities that the Funds Subadviser, Seix Investment Advisors LLC (Seix or the Subadviser), believes are of comparable quality. Such
securities are commonly known as junk bonds and offer 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 Funds 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 Funds sensitivity to interest rate changes and is expressed as a number of years. The higher the number, the greater the risk. Under normal circumstances, for example, if a portfolio has a duration
of 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 which generally seek to 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, 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 80% of its net assets in high yield securities.
Principal
Investment Risks
You may lose money if you invest in the Fund.
A Fund share is not a bank deposit and it is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Below Investment Grade Securities Risk:
Securities that are rated
below investment grade (sometimes referred to as junk bonds, including those bonds rated lower than BBB- by Standard and Poors and Fitch, Inc. or Baa3 by Moodys Investors Services, Inc.), or that are
unrated but judged by the Subadviser to be of comparable quality, at the time of purchase, involve greater risk of default and are more volatile than investment grade securities. Below investment grade securities may also be less liquid than higher
quality securities, and may cause income and principal losses for the Fund.
Debt Securities Risk:
Debt securities, such as bonds, involve credit
risk. Credit risk is the risk that the borrower will not make timely payments of principal and interest. Changes in an issuers credit rating or the markets perception of an issuers creditworthiness may also affect the value of the
Funds investment in that issuer. The degree of credit risk depends on the issuers financial condition and on the terms of the securities. Debt securities are also subject to interest rate risk, which is the risk that the value of a debt
security may fall when interest rates rise. In general, the market price of debt securities with longer maturities will go up or down more in response to changes in interest rates than the market price of shorter term securities.
Certain debt securities may be restricted securities, which are not registered with the SEC and thus may not be not be sold publicly until registration has been
made. Therefore, there is the absence of a public market and there is limited investor information.
Derivatives Risk:
In the course of pursuing
its investment strategies, the Fund may invest in certain types of derivatives including swaps, foreign currency forward contracts and futures. The Fund is exposed to additional volatility and potential loss with these investments. Losses in
these investments may exceed the Funds initial investment. Derivatives may be difficult to value, may become illiquid and may not correlate perfectly with the overall securities market.
Floating Rate Loan Risk:
The value of the collateral securing a floating rate loan can decline, be insufficient to meet the obligations of the borrower, or
be difficult to liquidate. As a result, a floating rate loan may not be fully collateralized and can decline significantly in value. Floating rate loans generally are subject to contractual restrictions on resale. The liquidity of floating rate
loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual floating rate loans. During periods of infrequent trading, valuing a floating rate loan can be
2
more difficult; and buying and selling a floating rate loan at an acceptable price can also be more difficult and delayed. Difficulty in selling a floating rate loan can result in a loss.
Foreign Currency Forward Contracts Risk:
The technique of purchasing foreign currency forward contracts to obtain exposure to currencies or
manage currency risk may not be effective. In addition, currency markets generally are not as regulated as securities markets.
Foreign Securities
Risk:
Foreign securities involve special risks such as currency fluctuations, economic or financial instability, lack of timely or reliable financial information and unfavorable political or legal developments and delays in enforcement of
rights. These risks are increased for investments in emerging markets.
Futures Contract Risk:
The risks associated with futures include: the
Subadvisers ability to manage these instruments, the potential inability to terminate or sell a position, the lack of a liquid secondary market for the Funds position, the risk that the counterparty to the transaction will not meet its
obligations, 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.
Prepayment and Call Risk:
During periods of falling interest rates, an issuer of a callable bond held
by the Fund may call or prepay the bond before its stated maturity date. When mortgages and other obligations are prepaid and when securities are called, the Fund may have to reinvest the proceeds in securities with a lower yield or fail
to recover additional amounts paid for securities with higher interest rates, resulting in an unexpected capital loss and/or a decline in the Funds income.
Swap Risk:
The Fund may enter into swap agreements, including credit default and interest rate swaps, for purposes of attempting to gain exposure to a particular asset without actually purchasing that asset
or to hedge a position. Credit default swaps may increase or decrease the Funds exposure to credit risk and could result in losses if the Subadviser does not correctly evaluate the creditworthiness of the entity on which the credit default
swap is based. Swap agreements may also subject the Fund to the risk that the counterparty to the transaction may not meet its obligations.
U.S.
Government Issuers Risk:
U.S. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Similar to other issuers, changes to the financial condition or credit rating of the U.S. government
may cause the value of U.S. Treasury obligations to decline. Obligations of U.S. government agencies and authorities are supported by
varying degrees of credit, but generally are not backed by the full faith and credit of the U.S. government. U.S. government debt securities may underperform other segments of the fixed
income market or the fixed income market as a whole.
Performance
The bar chart and the performance table that follow illustrate the risks and volatility of an investment in the Fund. The Funds past performance (before and after taxes) does not indicate how the Fund will
perform in the future. The Fund began operating on October 11, 2004. Performance between December 29, 2000 to October 11, 2004 is that of the I Shares of the Seix High Yield Fund, the Funds 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 funds I Shares has not been adjusted to reflect the Funds A Share or R Share expenses. If it had been, the performance would have been lower. Updated performance information is available by contacting
the RidgeWorth Funds at 1-888-784-3863 or by visiting www.ridgeworth.com.
The annual returns in the bar chart which follows are for the I Shares without
reflecting payment of any sales charge; if they did reflect such payment of sales charges, annual returns would be lower.
This bar chart shows the
changes in performance of the Funds I Shares from year to year.*
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Best Quarter
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Worst Quarter
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11.39%
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-14.52%
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(6/30/09)
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(12/31/08)
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*
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The performance information shown above is based on a calendar year. The Funds total return for the six months ended June 30, 2012 was 6.26%.
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3
The following table compares the Funds average annual total returns for the periods indicated with those of a
broad measure of market performance.
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AVERAGE ANNUAL TOTAL RETURNS
(for periods ended December 31, 2011)
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1 Year
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5 Years
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10 Years
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A Shares Returns Before Taxes
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2.91%
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5.47%
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6.57%
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R Shares Returns Before Taxes
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2.43%
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4.77%
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6.11%
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I Shares Returns Before Taxes
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3.05%
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5.61%
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6.75%
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I Shares Returns After Taxes on Distributions
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0.43%
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2.65%
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3.99%
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I Shares Returns After Taxes on Distributions and Sale of Fund Shares
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1.99%
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3.00%
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4.13%
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Bank of America Merrill Lynch BB-B U.S. High Yield Constrained Index (reflects no deduction for fees, expenses or taxes)
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5.39%
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6.83%
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7.94%
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After-tax returns are calculated using the historical highest individual U.S. federal marginal income tax rates and do not reflect
the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax deferred arrangements,
such as 401(k) plans or individual retirement accounts (IRAs). After-tax returns are shown for only the I Shares. After-tax returns for other share classes will vary.
Investment Adviser and Subadviser
RidgeWorth Investments is the Funds investment adviser (the Adviser). Seix Investment Advisors LLC is the Funds Subadviser.
Portfolio Management
Mr. Michael Kirkpatrick, Managing Director and Senior Portfolio Manager of Seix, has been
a member of the Funds management team since 2007. Mr. James FitzPatrick, CFA, Managing Director, Portfolio Manager and Head of High Yield and Bank Loan Trading of Seix, has been a member of the Funds management team 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, and I Shares of the Fund through financial institutions or intermediaries that are authorized to place transactions
in Fund shares for their customers or for their own accounts.
The minimum initial investment amounts for each share class are shown below, although
these minimums may be reduced or waived in some cases.
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Class
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Dollar Amount
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A Shares
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$2,000
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I Shares
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None
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R Shares
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None
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Subsequent investments in A Shares must be made in amounts of at least $1,000. The Fund may accept investments of smaller amounts at
its discretion. There are no minimums for subsequent investments in R or I Shares.
Tax Information
The Funds distributions are generally taxable and will be taxed as ordinary income or capital gains unless you are investing through a tax-deferred
arrangement, such as a 401(k) plan or an IRA.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a financial intermediary, such as a broker-dealer or investment adviser, the Fund, the Adviser or the Distributor may pay
the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment.
Ask your financial intermediary or visit your financial intermediarys website for more information.
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RFSUM-SHY-0613
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