Heartland Select Value Fund

  • Overview
  • Materials
  • Portfolio Management Team
  • Performance
  • Commentary
  • Portfolio Composition
  • Risk Analysis
  • Distributions

HRSVX, HNSVX

Overview

Investment Focus

Dynamically pursues the best opportunities across the full equity universe

Distinguishing Characteristics

  • Portfolio that typically invests in stocks with market capitalization of $500 million or greater
  • Designed for investors who seek additional latitude in the pursuit of attractive valuations
  • Benchmarked to the Russell 3000® Value Index
  • Typically holds 40-60 stocks
  • Inception date: 1996

Investment Process

All stocks are evaluated based on our proprietary, consistent, and time-tested 10 Principles of Value Investing™. These criteria are central to Heartland’s value investing philosophy and provide a framework for evaluating securities.

The Investment Team applies a bottom-up research approach, combining traditional fundamental analysis and meetings with more than 1,000 company management teams in a typical year. The 10 Principles™ are designed to help the Team assess a company's valuation, but also focus on metrics associated with financial soundness, management team strength, and future outlook.

Learn more about our process

  • Basics
  • Minimums
  • Fees
  • Expenses

6/30/2020

Benchmark: Russell 3000® Value Index

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Investor Class Institutional Class
Ticker HRSVXHNSVX
CUSIP 422352807422352856
Inception Date 10/11/199605/01/2008
Assets $140 million$140 million

Investor
Class ($)
Institutional
Class ($)
Initial Investment1,000500,000
IRA Initial Investment500500,000
Subsequent Investments100100

Shareholder Fees

Paid directly from total investment

  Investor
Class (%)
Institutional
Class (%)
Load 0 0
Sales Charge 0 0
Exchange Fee 0 0
Redemption Fee* 2 2


*If shares are redeemed or exchanged within 10 days of purchase

Annual Fund Operating Expenses

Paid annually as a percentage of total investment value*

  Investor
Class (%)
Institutional
Class (%)
Management Fee 0.75 0.75
12b-1 Distribution Fee 0.25 0.00
Other Expenses 0.25 0.27
Total Annual Fund Operating Expenses 1.25 1.02


*As stated in the prospectus (pdf) dated 5/1/2020

Overall Morningstar Rating™ in Large Value Category

  • Investor Class
  • Institutional Class
2Overall Morningstar Rating™ as of 8/31/2020, out of 1113 Large Value funds, based on risk-adjusted performance for investor class shares
2Overall Morningstar Rating™ as of 8/31/2020, out of 1113 Large Value funds, based on risk-adjusted performance for institutional class shares

Select Value Fund Quick Links

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Portfolio Management Team

Heartland Select Value Fund Portfolio Management Team

50 years of industry experience
33 years of experience at Heartland

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Troy McGlone

McGlone, CFA, is Vice President and Portfolio Manager of the Select Value Fund and its corresponding separately managed account strategy. He has 12 years of industry experience, 6 at Heartland.

Will Nasgovitz

Nasgovitz is CEO and Portfolio Manager of the Select Value, Mid Cap Value, and Value Funds and their corresponding separately managed account strategies. He also is President and Director of Heartland Funds. He has 20 years of industry experience, 16 at Heartland.

Colin McWey

McWey, CFA, is Vice President and Portfolio Manager of the Select Value and Mid Cap Value Funds and their corresponding separately managed account strategies. He has 18 years of industry experience, 11 at Heartland.

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News & Investing Perspectives

Water & Wells
6/9/20

The Vanna White Recovery

Why investors may want to look beyond the alphabet soup of recovery trajectories while looking for opportunities.

Water & Wells
1/28/20

Back to the Days of Pets.com?

A look at why unprofitable companies are partying like its 1999.

Performance

Average Annual Total Returns
  • Month-End
  • Quarter-End
  • Annual
8/31/2020

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Since Inception (%)20-Year (%)15-Year (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD* (%)QTD* (%)
Select Value
Investor Class
9.078.626.628.655.481.98-4.75-14.126.26
Select Value
Institutional Class
9.238.816.878.955.742.24-4.48-13.946.33
Russell 3000® Value8.146.486.5310.897.334.110.39-9.918.21
*Not annualized
6/30/2020

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Since Inception (%)20-Year (%)15-Year (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD* (%)QTD* (%)
Select Value
Investor Class
8.868.746.518.062.850.18-16.07-19.1813.80
Select Value
Institutional Class
9.028.936.768.363.100.43-15.84-19.0613.91
Russell 3000® Value7.846.426.1510.234.411.41-9.42-16.7414.55
*Not annualized
  2019 (%) 2018 (%) 2017 (%) 2016 (%) 2015 (%) 2014 (%) 2013 (%) 2012 (%) 2011 (%) 2010 (%) 2009 (%) 2008 (%)
Select Value Investor Class 18.59 -4.76 12.42 19.25 -4.16 4.07 35.03 13.06 -6.68 17.77 38.63 -31.23
Select Value Institutional Class 18.91 -4.55 12.69 19.54 -3.92 4.40 35.45 13.43 -6.42 18.15 39.02 -31.02
Russell 3000® Value 26.26 -8.58 13.19 18.40 -4.13 12.70 32.69 17.55 -0.10 16.23 19.76 -36.25

 

Growth of a Hypothetical $10,000 Investment

6/30/2020

Heartland Select Value Fund Growth of 10000 Chart

Since inception of the investor class, 10/11/1996 to 6/30/2020
Chart represents a hypothetical example of an investment in the Select Value Fund representing historical returns

Morningstar Ratings™ in Large Value Category
  • Investor Class
  • Institutional Class
Morningstar Ratings TM
8/31/2020
RatingTotal Funds
Overall21113
10-Year2706
5-Year2981
3-Year21113
Morningstar Ratings TM
8/31/2020
RatingTotal Funds
Overall21113
10-Year2706
5-Year2981
3-Year21113

Based on risk-adjusted performance

Past performance does not guarantee future results. Performance represents past performance; current returns may be lower or higher. Performance information for institutional class shares of Funds that existed prior to their initial public offering is based on the performance of investor class shares. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. All returns reflect reinvested dividends and capital gains distributions, but do not reflect the deduction of taxes that an investor would pay on distributions or redemptions. Subject to certain exceptions, shares of a Fund redeemed or exchanged within 10 days of purchase are subject to a 2% redemption fee. Performance does not reflect this fee, which if deducted would reduce an individual's return. 

In the prospectus (pdf) dated 5/1/2020, the Gross Fund Operating Expenses for the investor and institutional classes of the Select Value Fund are 1.25% and 1.02%, respectively. The Advisor has voluntarily agreed to waive fees and/or reimburse expenses with respect to the institutional class, to the extent necessary to maintain the institutional class’ “Net Annual Operating Expenses” at a ratio not to exceed 0.99% of average daily net assets. This voluntary waiver/reimbursement may be discontinued at any time. 

The inception date for the Select Value Fund is 10/11/1996 for the investor class and 5/1/2008 for the institutional class.

Heartland Advisors Value Investing Team IconHistorical NAVs

Contact a Relationship Manager for historical NAVs.

Historical NAVs also are available from third party websites, such as Bloomberg, Yahoo! Finance, or Google Finance.

Commentary

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06/30/20

Heartland Select Value Fund 2Q20 Portfolio Manager Commentary

In the face of this ever-changing backdrop, we have sought to maintain a balanced approach.

Portfolio Composition

Characteristics

6/30/2020

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CharacteristicSelect ValueRussell 3000® Value
Holdings 50-
Assets $114 million-
Assets in Dividend-Paying Companies 80.8% -
Median Market Cap $8.2 billion$1.4 billion
Weighted Average Market Cap $104.8 billion$107.2 billion
Trailing 1-Year Turnover 57.3% -

Capitalization Breakdown
6/30/2020
Cap Range% of Equities in Portfolio
>$15 billion57.6
$2.5-15 billion27.1
$500 million-2.5 billion11.2
<$500 million4.1

The above breakdown does not include short-term investments.

Valuation Analysis
Equity securities only, weighted harmonic average unless otherwise noted

6/30/2020

Source: FactSet Research Systems Inc., Russell Investment Group, and Heartland Advisors, Inc.
*Weighted average

Sector Allocation

6/30/2020

Source: FactSet Research Systems Inc., and Russell Investment Group

Heartland Select Value Fund Sector Allocation

Top 10 Holdings
6/30/2020

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TickerHolding% of Net AssetsIndustry
BRK/BBerkshire Hathaway, Inc. (Class B)4.46Diversified Financial Services
JNJJohnson & Johnson3.94Pharmaceuticals
CSCOCisco Systems, Inc.3.66Communications Equipment
VZVerizon Communications3.51Diversified Telecommunication Services
EXCExelon Corp.3.42Electric Utilities
UNUnilever NV3.27Personal Products
SCHWThe Charles Schwab Corp.3.25Capital Markets
CALMCal-Maine Foods Inc.3.11Food Products
GOOGLAlphabet Inc. (Class A)3.10Interactive Media & Services
SWKSSkyworks Solutions Inc2.92Semiconductors & Semiconductor Equipment
% of Total Net Assets34.64

5-Year Risk Analysis

  • Investor Class
  • Institutional Class
6/30/2020

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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)
Active Share
Select Value-1.4216.211.00-0.390.1099.96107.9293.9685.44
Russell 3000® Value0.0015.771.000.000.21100.00100.00100.000.00

*Annualized
Source: FactSet Research Systems Inc., Russell Investment Group, and Standard & Poor's
Alpha, beta, and information ratio are versus the Russell 3000® Value. Depiction is for investor class shares.

6/30/2020

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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)
Active Share
Select Value-1.1816.221.00-0.330.12100.87107.5593.9885.44
Russell 3000® Value0.0015.771.000.000.21100.00100.00100.000.00

*Annualized
Source: FactSet Research Systems Inc., Russell Investment Group, and Standard & Poor's
Alpha, beta, and information ratio are versus the Russell 3000® Value. Depiction is for institutional class shares.

Distributions

  • Investor Class
  • Institutional Class
Record
Date
Payable
Date
                    Ordinary Dividend
($/share)
Short-Term Capital
Gain ($/share)
Long-Term Capital
Gain ($/share)
12/26/2019 12/27/2019   0.22031 0.33279 0.84157
12/27/2018 12/28/2018   0.32448 0.14020 3.57557
12/27/2017 12/28/2017   0.42327 - 3.47325
12/28/2016 12/29/2016   0.32901 - 3.55079
12/28/2015 12/29/2015   0.29471 - 2.69596
12/29/2014 12/30/2014   0.13505 - 3.73090
12/26/2013 12/27/2013   0.12467 0.40227 5.04691
12/26/2012 12/27/2012   0.13263 - 1.00166
12/28/2011 12/29/2011   0.128132 - 0.293044
12/28/2010 12/29/2010   0.157125 - -
12/28/2009 12/29/2009   0.141912 - -
12/26/2008 12/29/2008   0.131279 - -
  3/28/2008   3/31/2008   0.000424 - -
12/26/2007 12/27/2007   0.172824 0.187278 2.233630

 

Record
Date
Payable
Date
                 Ordinary Dividend
($/share)
Short-Term Capital
Gain ($/share)
Long-Term Capital
Gain ($/share)
12/26/2019 12/27/2019   0.28328 0.33279 0.84157
12/27/2018 12/28/2018   0.39589 0.14020 3.57557
12/27/2017 12/28/2017   0.50149 - 3.47325
12/28/2016 12/29/2016   0.40396 - 3.55079
12/28/2015 12/29/2015   0.37470 - 2.69596
12/29/2014 12/30/2014   0.25584 - 3.73090
12/26/2013 12/27/2013   0.25238 0.40227 5.04691
12/26/2012 12/27/2012   0.24740 - 1.00166
12/28/2011 12/29/2011   0.226517 - 0.293044
12/28/2010 12/29/2010   0.227143 - -
12/28/2009 12/29/2009   0.205304 - -
12/26/2008 12/29/2008   0.204619 - -

 

 

Heartland Advisors Value Investing Team Icon

Additional Historical Distributions

Contact a Relationship Manager for historical NAVs.

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©2020 Heartland Advisors | 790 N. Water Street, Suite 1200, Milwaukee, WI 53202 | Business Office: 414-347-7777 | Financial Professionals: 888-505-5180 | Individual Investors: 800-432-7856

In addition to stocks of large companies, the Select Value Fund invests in small- and mid-sized companies that are generally less liquid and more volatile than large companies. The Fund also invests in a smaller number of stocks (generally 40 to 60) than the average mutual fund. The performance of these holdings generally will increase the volatility of the Fund’s returns.

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

Portfolio holdings are subject to change without notice. Current and future portfolio holdings are subject to risk.

Portfolio holdings exclude cash, cash equivalents, options, and futures.

Certain security valuations and forward estimates are based on Heartland Advisors' calculations. Certain outliers may be excluded. Any forecasts may not prove to be true.

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 8/31/2020 Morningstar Ratings™: The Heartland Select Value Fund investor class was rated against 706, 981, and 1113 U.S.-domiciled Large Value funds over the 10-, 5-, and 3-year periods and received 2, 2, and 2 stars, respectively.
As of 8/31/2020 Morningstar Ratings™: The Heartland Select Value Fund institutional class was rated against 706, 981, and 1113 U.S.-domiciled Large Value funds over the 10-, 5-, and 3-year periods and received 2, 2, and 2 stars, respectively.

Heartland’s investing glossary provides definitions for several terms used on this page.

Sector and Industry classifications are sourced from GICS®.The Global Industry Classification Standard (GICS®) is the exclusive intellectual property of MSCI Inc. (MSCI) and S&P Global Market Intelligence (“S&P”).  Neither MSCI, S&P, their affiliates, nor any of their third party providers (“GICS Parties”) makes any representations or warranties, express or implied, with respect to GICS or the results to be obtained by the use thereof, and expressly disclaim all warranties, including warranties of accuracy, completeness, merchantability and fitness for a particular purpose.  The GICS Parties shall not have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of such damages.

Economic predictions are based on estimates and are subject to change.

Unless noted with an asterisk (*), the above individuals are registered representatives of ALPS Distributors, Inc.

CFA® is a registered trademark owned by the CFA Institute.

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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