Heartland Value Fund

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

HRTVX, HNTVX

Overview

Investment Focus

Pursues long-term capital appreciation by investing in micro- and small-cap companies

Distinguishing Characteristics

Invests in stocks with a market capitalization of less than $2.5 billion and can have a significant allocation to micro-cap names
Designed for investors who seek a portfolio with micro-cap exposure and additional liquidity provided by small cap stocks
Benchmarked to the Russell 2000® Value Index
Typically holds 100-150 stocks
Inception date: 1984

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

9/30/2020

Benchmark: Russell 2000® Value Index

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	Investor Class	Institutional Class
Ticker	HRTVX	HNTVX
CUSIP	422359109	422352831
Inception Date	12/28/1984	05/01/2008
Assets	$493 million	$50 million

	Investor Class ($)	Institutional Class ($)
Initial Investment	1,000	500,000
IRA Initial Investment	500	500,000
Subsequent Investments	100	100

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	0.10	0.17
Total Annual Fund Operating Expenses	1.10	0.92

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

Overall Morningstar Rating™ in Small Value Category

Investor Class
Institutional Class

3Overall Morningstar Rating™ as of 10/31/2020, out of 385 Small Value funds, based on risk-adjusted performance for investor class shares

3Overall Morningstar Rating™ as of 10/31/2020, out of 385 Small Value funds, based on risk-adjusted performance for institutional class shares

Value Fund Quick Links

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Factsheet

Commentary

Attribution & Contribution Reports

Holdings

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Factsheet

Commentary

Attribution & Contribution Reports

Holdings

Portfolio Management Team

Heartland Value Fund Portfolio Management Team

72 years of industry experience
53 years of experience at Heartland

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Will Nasgovitz

Nasgovitz is CEO and Portfolio Manager of the Opportunistic Value Equity Strategy, as well as the Mid Cap Value Fund, the Value Fund, and their corresponding Mid Cap Value and Small Cap Value Strategies. He also is President and Director of Heartland Funds. He has 20 years of industry experience, 16 at Heartland.

Bill Nasgovitz

Nasgovitz is Chairman and Portfolio Manager of the Value Fund and its corresponding separately managed account strategy. He has 52 years of industry experience, 37 at Heartland.

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News & Investing Perspectives

Heartland in the News

A Blue Moon Opportunity

Chairman and Portfolio Manager Bill Nasgovitz highlights a once-in-a-Blue-Moon opportunity in small caps.

Water & Wells

The Vanna White Recovery

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

View More Insights

View More Media Mentions

View More Press Releases

Performance

Average Annual Total Returns

Month-End
Quarter-End
Annual

10/31/2020

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	Since Inception (%)	20-Year (%)	15-Year (%)	10-Year (%)	5-Year (%)	3-Year (%)	1-Year (%)	YTD* (%)	QTD* (%)
Value Investor Class	10.67	7.59	4.75	5.29	3.62	-2.02	-3.81	-9.19	1.10
Value Institutional Class	10.75	7.72	4.91	5.46	3.80	-1.85	-3.64	-9.04	1.13
Russell 2000® Value	10.00	7.61	5.36	7.06	3.71	-4.05	-13.92	-18.74	3.58

*Not annualized

9/30/2020

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	Since Inception (%)	20-Year (%)	15-Year (%)	10-Year (%)	5-Year (%)	3-Year (%)	1-Year (%)	YTD* (%)	QTD* (%)
Value Investor Class	10.67	7.44	4.46	5.69	4.51	-2.06	-3.75	-10.17	6.62
Value Institutional Class	10.74	7.56	4.63	5.86	4.68	-1.90	-3.61	-10.06	6.69
Russell 2000® Value	9.92	7.40	4.93	7.09	4.11	-5.13	-14.88	-21.54	2.56

*Not annualized

	2019 (%)	2018 (%)	2017 (%)	2016 (%)	2015 (%)	2014 (%)	2013 (%)	2012 (%)	2011 (%)	2010 (%)	2009 (%)	2008 (%)
Value Investor Class	17.96	-12.15	8.42	16.31	-11.04	2.22	32.11	13.83	-6.92	21.28	44.49	-39.53
Value Institutional Class	18.14	-11.98	8.59	16.52	-10.90	2.38	32.37	13.98	-6.73	21.50	44.86	-39.38
Russell 2000® Value	22.39	-12.86	7.84	31.74	-7.47	4.22	34.52	18.05	-5.50	24.50	20.58	-28.92

Growth of a Hypothetical $10,000 Investment

9/30/2020

Heartland Value Fund Growth of 10000 Chart

Since inception of the investor class, 12/28/1984 to 9/30/2020
Chart represents a hypothetical example of an investment in the Value Fund representing historical returns

Morningstar Ratings™ in Small Value Category

Investor Class
Institutional Class

Morningstar Ratings TM

10/31/2020

	Rating	Total Funds
Overall	3	385
10-Year	2	253
5-Year	4	355
3-Year	4	385

Morningstar Ratings TM

10/31/2020

	Rating	Total Funds
Overall	3	385
10-Year	2	253
5-Year	4	355
3-Year	4	385

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 Value Fund are 1.10% and 0.92%, 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. Without such waivers and/or reimbursements, total returns may have been lower.

The inception date for the Value Fund is 12/28/1984 for the investor class and 5/1/2008 for the institutional class.

Historical 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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Heartland Value Fund 3Q20 Portfolio Manager Commentary

Investor emotion and groupthink are resulting in a blind rush into a narrow slice of the market.

View Archived Fund Commentaries

Portfolio Composition

Characteristics

9/30/2020

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Characteristic	Value	Russell 2000® Value
Holdings	118	-
Assets	$543 million	-
Median Market Cap	$425 million	$552 million
Weighted Average Market Cap	$1.7 billion	$1.9 billion
Trailing 1-Year Turnover	42.4%	-

Capitalization Breakdown

9/30/2020

Cap Range	% of Equities in Portfolio
>$15 billion	0.0
$2.5-15 billion	22.7
$300 million-2.5 billion	46.0
<$300 million	31.3

The above breakdown does not include short-term investments.

Valuation Analysis

Equity securities only, weighted harmonic average unless otherwise noted

9/30/2020

Heartland Value Fund Valuation Analysis Charts 2

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

Sector Allocation

9/30/2020

Heartland Value Fund Sector Allocations Chart

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

Top 10 Holdings

9/30/2020

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Ticker	Holding	% of Net Assets	Industry
CG CN	Centerra Gold, Inc.	3.64	Metals & Mining
CCS	Century Communities, Inc.	3.12	Household Durables
VST	Vistra Energy Corp.	2.78	Independent Power and Renewable Electricity Producers
MTG	MGIC Investment Corp.	2.45	Thrifts & Mortgage Finance
PVG	Pretium Resources, Inc.	2.36	Metals & Mining
LINC	Lincoln Educational Services Corp.	2.34	Diversified Consumer Services
JAZZ	Jazz Pharmaceuticals PLC	2.10	Pharmaceuticals
VG	Vonage Holdings Corp.	2.07	Diversified Telecommunication Services
RDN	Radian Group Inc.	2.02	Thrifts & Mortgage Finance
KW	Kennedy-Wilson Holdings, Inc.	2.00	Real Estate Management & Development
% of Total Net Assets		24.88

View holdings

5-Year Risk Analysis

Investor Class
Institutional Class

9/30/2020

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	Alpha*	Standard Deviation (%)*	Beta	Info Ratio	Sharpe Ratio	Upside Capture (%)*	Downside Capture (%)*	R- Squared (%)	Active Share
Value	0.72	20.34	0.94	0.06	0.17	90.43	89.69	90.58	96.66
Russell 2000® Value	0.00	20.57	1.00	0.00	0.14	100.00	100.00	100.00	0.00

*Annualized
Source: FactSet Research Systems Inc., Russell Investment Group
Alpha, beta, and information ratio are versus the Russell 2000® Value. Depiction is for investor class shares.

9/30/2020

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	Alpha*	Standard Deviation (%)*	Beta	Info Ratio	Sharpe Ratio	Upside Capture (%)*	Downside Capture (%)*	R- Squared (%)	Active Share
Value	0.88	20.33	0.94	0.09	0.17	90.86	89.49	90.53	96.66
Russell 2000® Value	0.00	20.57	1.00	0.00	0.14	100.00	100.00	100.00	0.00

*Annualized
Source: FactSet Research Systems Inc., Russell Investment Group
Alpha, beta, and information ratio are versus the Russell 2000® 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	0.11058	-	1.09276
12/27/2018	12/28/2018	0.06214	0.28550	2.09926
12/27/2017	12/28/2017	0.04117	-	2.60800
12/28/2016	12/29/2016	-	-	1.43802
12/28/2015	12/29/2015	0.13994	-	2.82914
12/29/2014	12/30/2014	0.22288	1.11429	4.12240
12/26/2013	12/27/2013	0.42958	1.17103	3.98433
12/26/2012	12/27/2012	-	0.17740	2.74405
12/28/2011	12/29/2011	-	0.675954	1.798273
12/28/2010	12/29/2010	-	0.058470	-
3/28/2008	3/31/2008	-	-	0.084234
12/26/2007	12/27/2007	0.239182	0.710262	5.923943

No distributions were paid in 2009.

Record Date	Payable Date	Ordinary Dividend ($/share)	Short-Term Capital Gain ($/share)	Long-Term Capital Gain ($/share)
12/26/2019	12/27/2019	0.17769	-	1.09276
12/27/2018	12/28/2018	0.13454	0.28550	2.09926
12/27/2017	12/28/2017	0.12267	-	2.60800
12/28/2016	12/29/2016	-	-	1.43802
12/28/2015	12/29/2015	0.20977	-	2.82914
12/29/2014	12/30/2014	0.30599	1.11429	4.12240
12/26/2013	12/27/2013	0.50608	1.17103	3.98433
12/26/2012	12/27/2012	-	0.17740	2.74405
12/28/2011	12/29/2011	-	0.675954	1.798273
12/28/2010	12/29/2010	-	0.058470	-

No distributions were paid in 2008 and 2009.

Additional Historical Distributions

Contact a Relationship Manager for historical NAVs.

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The Value Fund primarily invests in small companies selected on a value basis. Such securities generally are more volatile and less liquid than those of larger companies.

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

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.

The portfolio may lose value in various market conditions and an investor could have a loss of principal.

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 10/31/2020 Morningstar Ratings™: The Heartland Value Fund investor class was rated against 253, 355, and 385 U.S.-domiciled Small Value funds over the 10-, 5-, and 3-year periods and received 2, 4, and 4 stars, respectively.

As of 10/31/2020 Morningstar Ratings™: The Heartland Value Fund institutional class was rated against 253, 355, and 385 U.S.-domiciled Small Value funds over the 10-, 5-, and 3-year periods and received 2, 4, and 4 stars, respectively.

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

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

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.