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

9/30/2019

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 $165 million$33 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 5/1/2019

Overall Morningstar Rating™ in Large Value Category

  • Investor Class
  • Institutional Class
3Overall Morningstar Rating™ as of 10/31/2019, out of 1094 Large Value funds, based on risk-adjusted performance for investor class shares
3Overall Morningstar Rating™ as of 10/31/2019, out of 1094 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

36 years of industry experience
25 years of experience at Heartland

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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 CEO of Heartland Funds. He has 19 years of industry experience, 15 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 17 years of industry experience, 10 at Heartland.

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News & Investing Perspectives

Heartland in the News
10/7/19
Heartland Advisors Value Investing CEO Will Nasgovitz

Finding Opportunity in Volatility

Heartland CEO makes the case for an active, value-focused investment approach in response to elevated volatility.

Water & Wells
9/3/19
Heartland Advisors Value Investing Portfolio Manager Will Nasgovitz

Debt: Harshing Market's Mellow?

Investors may be missing some key warning signs in their pursuit of low volatility.

Heartland in the News
8/27/19
Heartland Advisors CEO and Portfolio Manager Will Nasgovitz

Heartland’s Views Highlighted in Wealth Management Midyear Outlook

Heartland CEO Will Nasgovitz offers his take on why corporate borrowing may leave some investors out in the cold.

Water & Wells
7/23/19
Heartland Advisors Value Investing Portfolio Manager Colin McWey

A Tale of Two Tapes

Will the economy sputter or thrive? Yes.

PM Perspective
5/19
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.

PM Perspective
5/19
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.

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Heartland in the News
4/3/19

Time to Focus on What Matters

CEO Will Nasgovitz on the importance of balance sheets and fundamentals in today’s late-stage economic cycle.

Heartland in the News
2/21/19

Where Quality is On Sale: PM Offers Views to U.S. News

Colin McWey, CFA, offers insights on some high-quality businesses trading at discounts.

Heartland in the News
2/20/19

MarketWatch Highlights Heartland CEO’s $3 Trillion Warning

Will Nasgovitz looks at how the surge in corporate debt coming due could impact the market.

Water & Wells
2/19/19

A $3 Trillion Time Bomb?

A look at the tsunami of corporate debt that could swamp companies over the next five years.

Performance

Average Annual Total Returns
  • Month-End
  • Quarter-End
  • Annual
9/30/2019

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Since Inception (%)20-Year (%)15-Year (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD* (%)QTD* (%)
Select Value
Investor Class
9.9010.108.649.797.499.70-1.1611.90-2.01
Select Value
Institutional Class
10.0610.288.8810.107.769.96-0.9312.13-1.94
Russell 3000® Value8.637.097.7811.367.769.243.1017.471.23
*Not annualized
9/30/2019

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Since Inception (%)20-Year (%)15-Year (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD* (%)QTD* (%)
Select Value
Investor Class
9.9010.108.649.797.499.70-1.1611.90-2.01
Select Value
Institutional Class
10.0610.288.8810.107.769.96-0.9312.13-1.94
Russell 3000® Value8.637.097.7811.367.769.243.1017.471.23
*Not annualized
  2018 (%) 2017 (%) 2016 (%) 2015 (%) 2014 (%) 2013 (%) 2012 (%) 2011 (%) 2010 (%) 2009 (%) 2008 (%)
Select Value Investor Class -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 -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 -8.58 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

9/30/2019

Source: FactSet Research Systems Inc, 9/30/1998 to 9/30/2019 for the investor class
Rolling returns computed monthly, using 60-month moving windows

Growth of a Hypothetical $10,000 Investment

9/30/2019

Since inception of the investor class, 10/11/1996 to 9/30/2019
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 Large Value Category
  • Investor Class
  • Institutional Class
Morningstar Ratings TM
10/31/2019
RatingTotal Funds
Overall31094
10-Year2693
5-Year3947
3-Year31094
Morningstar Ratings TM
10/31/2019
RatingTotal Funds
Overall31094
10-Year2693
5-Year3947
3-Year31094

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 5/1/2019, the Gross Fund Operating Expenses for the investor and institutional classes of the Select Value Fund are 1.20% and 0.98%, 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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9/30/19
Heartland Select Value Fund Portfolio Manager Commentary

Heartland Select Value Fund 3Q19 Portfolio Manager Commentary

With no clear narrative in place for what the economy holds in the near term, investors sought to hedge their bets.

Portfolio Composition

Characteristics

9/30/2019

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CharacteristicSelect ValueRussell 3000® Value
Holdings 50-
Assets $198 million-
Assets in Dividend-Paying Companies 80.2% -
Median Market Cap $8.5 billion$1.5 billion
Weighted Average Market Cap $75.6 billion$113.3 billion
Trailing 1-Year Turnover 48.8% -

Capitalization Breakdown
9/30/2019
Cap Range% of Equities in Portfolio
>$15 billion45.0
$2.5-15 billion37.2
$500 million-2.5 billion13.2
<$500 million4.6

The above breakdown does not include short-term investments.

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

9/30/2019

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

Sector Allocation

9/30/2019

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

Heartland Select Value Fund Sector Charts 1

Top 10 Holdings
9/30/2019

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TickerHolding% of Net AssetsIndustry
BRK/BBerkshire Hathaway, Inc. (Class B)4.72Diversified Financial Services
WFCWells Fargo & Co.4.45Banks
EXCExelon Corp.3.65Electric Utilities
DGXQuest Diagnostics, Inc.3.50Health Care Providers & Services
PFEPfizer, Inc.3.44Pharmaceuticals
MHKMohawk Industries, Inc.3.12Household Durables
MANManpowerGroup, Inc.2.97Professional Services
FLSFlowserve Corp.2.94Machinery
PNCPNC Financial Services Group, Inc.2.82Banks
ORCLOracle Corp.2.77Software
% of Total Net Assets34.38

Sector-Level Attribution

9/30/2019

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Security-Level Attribution & Contribution

9/30/2019

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5-Year Risk Analysis

  • Investor Class
  • Institutional Class
9/30/2019

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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)
Active Share
Select Value-0.2212.701.01-0.070.51100.79103.0090.2786.03
Russell 3000® Value0.0011.981.000.000.57100.00100.00100.000.00

*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.

9/30/2019

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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)
Active Share
Select Value0.0212.721.010.000.54101.79102.4690.3286.03
Russell 3000® Value0.0011.981.000.000.57100.00100.00100.000.00

*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)
12/27/2018 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)
12/27/2018 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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©2019 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. Certain outliers may be excluded. Any forecasts may not prove to be true.

Information about Morningstar Ratings™ are ©2019 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 10/31/2019 Morningstar Ratings™: The Heartland Select Value Fund investor class was rated against 693, 947, and 1094 U.S.-domiciled Large Value funds over the 10-, 5-, and 3-year periods and received 2, 3, and 3 stars, respectively.
As of 10/31/2019 Morningstar Ratings™: The Heartland Select Value Fund institutional class was rated against 693, 947, and 1094 U.S.-domiciled Large Value funds over the 10-, 5-, and 3-year periods and received 2, 3, and 3 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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