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 regardless of market capitalization

Distinguishing Characteristics

  • Multi-cap portfolio that typically invests in stocks with market capitalization of $500 million or greater
  • Designed for investors who seek diversification through an all-cap approach
  • 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

3/31/2018

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 $185 million$32 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 0.23 0.26
Total Annual Fund Operating Expenses 1.23 1.01


*As stated in the prospectus (pdf) dated 5/1/2018

Overall Morningstar Rating™ in Mid-Cap Value Category

  • Investor Class
  • Institutional Class
3Overall Morningstar Rating™ as of 5/31/2018, out of 365 Mid-Cap Value funds, based on risk-adjusted performance for investor class shares
3Overall Morningstar Rating™ as of 5/31/2018, out of 365 Mid-Cap Value funds, based on risk-adjusted performance for institutional class shares

Portfolio Management Team

Heartland Select Value Fund Portfolio Management Team

32 years of industry experience
22 years of experience at Heartland

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Will Nasgovitz

Nasgovitz is CEO and Portfolio Manager of the Select Value and Mid Cap Value Funds and their corresponding separately managed account strategies. He also is CEO of Heartland Funds. He has 17 years of industry experience, 14 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 15 years of industry experience, 8 at Heartland.

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Investing Perspectives

Heartland in the News
6/13/18
Heartland Advisors Value Investing Portfolio Manager Colin McWey

No Longer Vertically Challenged

Portfolio Manager Colin McWey, CFA, shares how the recent approval of a “vertical merger” between two industry giants could impact players in Health Care.

PM Perspective
5/18
Heartland Advisors value investing portfolio manager Colin McWey

Cash Flow: An Equalizing Force in Analysis

Cash flow helps us evaluate opportunities on an apples to apples basis regardless of industry or debt.

Heartland in the News
5/22/18
Heartland Advisors Value Investing Portfolio Manager Colin McWey, CFA

Will a Surge in Oil Prices Fuel Opportunities in Energy?

A potential upswing in the Energy sector as oil prices continue to rise. Portfolio Manager Colin McWey, CFA, weighs in.

Video
5/18 - 2:40
Heartland Advisors Value Investing Portfolio Manager Will Nasgovitz

Banking Forecast: Holding, with a Chance of Headwinds

After a multi-year run, banks may be facing a rougher road ahead.

Heartland in the News
5/10/18
Heartland Advisors Value Investing Portfolio Managers Will Nasgovitz and Colin McWey

Opportunities Arriving by Sea and Sky?

Portfolio Managers Will Nasgovitz and Colin McWey, CFA share their stock picks for the long days of summer.

PM Perspective
4/18
Heartland Advisors Value Investing Portfolio Manager Colin McWey

Why Catalysts and Context Matter

The difference between an unloved laggard and an attractive investment opportunity often begins with perception. Here is a look at internal catalysts and their importance in changing investors’ views and company results.

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Heartland in the News
2/12/18

Signs to Follow During the Market Detour

Portfolio Manager Colin McWey, CFA, was interviewed about whether the worst is over given recent volatility.

Water & Wells
2/6/18

Normal is Dead, Long Live Normal!

The return of volatility could provide opportunities for active investors going forward.

Heartland in the News
1/25/18

Heartland CEO: Record Market Highs Haven’t Dried the River of Value

Will Nasgovitz was interviewed about the current environment for value investors.

Water & Wells
1/23/18

Value—it’s the Real Thing

Why the value versus growth debate is about more than the investment flavor of the day.

Video
12/17 - 3:05

Follow at Your Own Risk

How ETF investors may be leaving money on the table in unloved sectors.

Heartland in the News
11/3/17

Sticking to Fundamentals in a Teflon Market

Portfolio Manager Colin McWey, CFA, reiterates our commitment to attractive valuations and financial soundness—cornerstones of a long-term philosophy.

Water & Wells
8/29/17

Oops! Did They Do it Again?

The meteoric rise of a handful of stocks may have investors forgetting lessons learned from the tech bubble of the late 1990s.

Video
7/17 - 4:03

Here's What's Missing in the Energy Debate

Why the current slump in Energy requires a fresh perspective.

Performance

Average Annual Total Returns
  • Month-End
  • Quarter-End
  • Annual
5/31/2018

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Since Inception (%)20-Year (%)15-Year (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD* (%)QTD* (%)
Select Value
Investor Class
10.329.3710.317.569.528.4515.472.144.14
Select Value
Institutional Class
10.489.5310.537.889.828.7215.762.254.22
Russell 3000® Value8.766.868.807.4810.157.718.85-1.431.43
*Not annualized
3/31/2018

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Since Inception (%)20-Year (%)15-Year (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD* (%)QTD* (%)
Select Value
Investor Class
10.208.9311.388.449.627.598.65-1.92-1.92
Select Value
Institutional Class
10.359.0911.598.759.917.848.91-1.89-1.89
Russell 3000® Value8.756.739.797.8410.717.876.81-2.82-2.82
*Not annualized
  2017 (%) 2016 (%) 2015 (%) 2014 (%) 2013 (%) 2012 (%) 2011 (%) 2010 (%) 2009 (%) 2008 (%)
Select Value Investor Class 12.42 19.25 -4.16 4.07 35.03 13.06 -6.68 17.77 38.63 -31.23
Select Value Institutional Class 12.69 19.54 -3.92 4.40 35.45 13.43 -6.42 18.15 39.02 -31.02
Russell 3000® Value 13.19 18.40 -4.13 12.70 32.69 17.55 -0.10 16.23 19.76 -36.25

 

5-Year Rolling Returns Demonstrate Strong Results

3/31/2018

Source: FactSet Research Systems Inc, 3/31/1997 to 3/31/2018 for the investor class
Rolling returns computed monthly, using 60-month moving windows

Heartland Select Value Fund Rolling Returns Chart 1

Growth of a Hypothetical $10,000 Investment

3/31/2018

Since inception of the investor class, 10/11/1996 to 3/31/2018
Chart represents a hypothetical example of an investment in the Select Value Fund representing historical returns

Heartland Select Value Fund Growth of 10000 Chart

Morningstar Ratings™ in Mid-Cap Value Category
  • Investor Class
  • Institutional Class
Morningstar Ratings TM
5/31/2018
RatingTotal Funds
Overall3365
10-Year3225
5-Year3311
3-Year3365
Morningstar Ratings TM
5/31/2018
RatingTotal Funds
Overall3365
10-Year3225
5-Year3311
3-Year4365

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 (90 days for the International Value Fund) 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 5/1/2018, the Gross Fund Operating Expenses for the investor and institutional classes of the Select Value Fund are 1.23% and 1.01%, 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. Also, through 11/30/01, the Advisor voluntarily waived a portion of the Fund’s expenses. Without such waivers and/or reimbursements, total returns may have been lower.

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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3/31/18
Heartland Select Value Fund Portfolio Manager Commentary

Heartland Select Value Fund 1Q18 Portfolio Manager Commentary

Investors rang in the New Year celebrating the passage of tax cuts but then quickly turned their attention to potential market headwinds.

Portfolio Composition

Characteristics

3/31/2018

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CharacteristicSelect ValueRussell 3000® Value
Holdings 53-
Assets $217 million-
Assets in Dividend-Paying Companies 78.5% -
Median Market Cap $13.5 billion$1.5 billion
Weighted Average Market Cap $91.5 billion$112.0 billion
Trailing 1-Year Turnover 45.3% -

Capitalization Breakdown
3/31/2018
Cap Range% of Equities in Portfolio
>$15 billion55.5
$2-15 billion34.6
$500 million-2 billion8.5
<$500 million1.4

The above breakdown does not include short-term investments.

Valuation Analysis
Equity securities only, weighted median unless otherwise noted

3/31/2018

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

Sector Allocation

3/31/2018

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

Heartland Select Value Fund Sector Charts 1Heartland Select Value Fund Sector Charts 2

Top 10 Holdings
3/31/2018

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TickerHolding% of Net AssetsIndustry
BRK/BBerkshire Hathaway Inc Class B5.04Diversified Financial Services
SLBSchlumberger N.V. 4.46Energy Equipment & Services
WFCWells Fargo & Company3.85Banks
EXCExelon Corporation3.58Electric Utilities
XOMExxon Mobil Corporation3.43Oil Gas & Consumable Fuels
CACA, Inc.3.11Software
PFEPfizer Inc.3.10Pharmaceuticals
ETREntergy Corporation2.89Electric Utilities
PNCThe PNC Financial Services Group, Inc.2.78Banks
CSCOCisco Systems, Inc.2.76Communications Equipment
% of Total Net Assets35.00

Sector-Level Attribution

3/31/2018

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Security-Level Attribution & Contribution

3/31/2018

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5-Year Risk Analysis

  • Investor Class
  • Institutional Class
3/31/2018

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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)
Active Share
Select Value-1.5511.551.07-0.250.81101.93113.1486.6688.11
Russell 3000® Value0.0010.071.000.001.03100.00100.00100.000.00

*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.

3/31/2018

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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)
Active Share
Select Value-1.3011.561.07-0.190.83102.97112.3686.6988.11
Russell 3000® Value0.0010.071.000.001.03100.00100.00100.000.00

*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)
12/27/2017 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)
12/27/2017 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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©2018 Heartland Advisors | 789 N. Water Street, Suite 500, 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. Any forecasts may not prove to be true.

Information about Morningstar Ratings™ are ©2018 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 5/31/2018 Morningstar Ratings™: The Heartland Select Value Fund investor class was rated against 225, 311, and 365 U.S.-domiciled Mid-Cap Value funds over the 10-, 5-, and 3-year periods and received 3, 3, and 3 stars, respectively.
As of 5/31/2018 Morningstar Ratings™: The Heartland Select Value Fund institutional class was rated against 225, 311, and 365 U.S.-domiciled Mid-Cap Value funds over the 10-, 5-, and 3-year periods and received 3, 3, and 4 stars, respectively.

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

Sector and industry classifications as determined by Heartland Advisors may reference data from sources such as FactSet Research Systems Inc.

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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