Heartland’s Mid Cap Value Earns 5-Star Rating from Morningstar

Heartland Mid Cap Value Fund Portfolio Manager Colin McWeyMilwaukeeJanuary 15, 2021—The Heartland Mid Cap Value Fund’s strong track record in both up and down markets has caught the notice of Morningstar, which has awarded the Fund a 5-star Overall Morningstar Rating. The Mid Cap Value Fund Ranks in the top quintile on a 1-, 3- and 5-year basis in Morningstar’s Mid-Cap Value category.

The Fund’s track record reflects the team’s dedication to Heartland’s time-tested process of seeking attractively valued companies that we believe should succeed over the course of a full economic cycle. This approach helped the Mid Cap Value Fund outperform the Russell Midcap® Value Index by more than 200 basis points annualized for the five-year period through the end of 2020. 

Lead Portfolio Manager of the Mid Cap Value Fund Colin McWey, CFA, believes the track record reflects the team’s disciplined approach and following a clear-eyed assessment of risk and reward to drive purchase and sell decisions. “We’re not trying to express our views of the market. Instead, we’re focused on taking what the market gives us—that starts with valuations, which Is the market’s way of compensating us for risk,” McWey said.

Will Nasgovitz, co-manager of the Mid Cap Value Fund said a thorough understanding of different sources of risk is essential to the team’s process. “What could happen at the company, and specifically what could go wrong? To dampen that or alleviate that component of risk, we buy businesses that we think are trading at historically low levels of valuation.”

Nasgovitz added that leverage is another source of risk that needs to be scrutinized. “We just think that debt can be toxic. We try to keep the overall portfolio financial risk low relative to the value universe.”

Colin McWey, CFA, and Will Nasgovitz have served as Portfolio Managers on the Fund since 2015. Troy McGlone, CFA, was promoted to co-portfolio Manager in January 2021. Learn more about the Fund at heartlandadvisors.com

About Heartland

Established in 1983, Heartland Advisors, Inc. is an independently owned equity value investment manager based in Milwaukee, Wisconsin. As of December 31, 2020, the Firm managed approximately $1.5 billion. The Heartland family of value-driven, actively managed portfolios includes distinct domestic strategies, offered through three mutual funds and four separately managed accounts. Learn more at heartlandadvisors.com.

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Past performance does not guarantee future results.

An investor should consider the Funds’ investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information may be found in the prospectus. To obtain a print prospectus, call 800-432-7856. Please read the prospectus carefully before investing.

The Mid Cap Value Fund invests in a smaller number of stocks (generally 30 to 60) than the average mutual fund. The performance of these holdings generally will increase the volatility of the Fund’s returns. The Fund also invests in mid–sized companies on a value basis. Mid-sized securities generally are more volatile and less liquid than those of larger companies. 

Information about Morningstar Ratings™ are ©2020 Morningstar, Inc. All rights reserved. The information contained herein is (1) proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed, and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. 

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

As of 4/30/2021 Morningstar Ratings™: The Heartland Mid Cap Value Fund investor class was rated against -, 344, and 389 U.S.-domiciled Mid-Cap Value funds over the 10-, 5-, and 3-year periods and received -, 5, and 4 stars, respectively.
As of 4/30/2021 Morningstar Ratings™: The Heartland Mid Cap Value Fund institutional class was rated against -, 344, and 389 U.S.-domiciled Mid-Cap Value funds over the 10-, 5-, and 3-year periods and received -, 5, and 4 stars, respectively.

There is no assurance that dividend-paying stocks will mitigate volatility.

Value investments are subject to the risk that their intrinsic value may not be recognized by the broad market.

There is no guarantee that a particular investment strategy will be successful.

The above individuals are registered representatives of ALPS Distributors, Inc.

The Heartland Funds are distributed by ALPS Distributors, Inc.

Separately managed accounts and related investment advisory services are provided by Heartland Advisors, Inc., a federally registered investment advisor. ALPS Distributors, Inc., is not affiliated with Heartland Advisors, Inc.

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