Heartland Value Plus Fund

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

HRVIX, HNVIX

Overview

Investment Focus

Invests in undervalued small companies and seeks to reduce volatility through strong balance sheets and dividends

Distinguishing Characteristics

  • Invests in stocks with market capitalization between $250 million and $4 billion
  • Designed for investors who seek a portfolio of small company stocks that may produce modest dividend income
  • Benchmarked to the Russell 2000® Value Index
  • Typically holds 40-70 stocks
  • Inception date: 1993

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

12/31/2018

Benchmark: Russell 2000® Value Index

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Investor Class Institutional Class
Ticker HRVIXHNVIX
CUSIP 422352500422352849
Inception Date 10/26/199305/01/2008
Assets $259 million$54 million
  Investor
Class ($)
Institutional
Class ($)
Initial Investment 1,000 500,000
IRA Initial Investment 500 500,000
Subsequent Investments 100 100

New investor restrictions may apply.

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 0.70 0.70
12b-1 Distribution Fee 0.25 0.00
Other Expenses 0.24 0.27
Total Annual Fund Operating Expenses 1.19 0.97


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

Overall Morningstar Rating™ in Small Value Category

  • Investor Class
  • Institutional Class
2Overall Morningstar Rating™ as of 2/28/2019, out of 389 Small Value funds, based on risk-adjusted performance for investor class shares
2Overall Morningstar Rating™ as of 2/28/2019, out of 389 Small Value funds, based on risk-adjusted performance for institutional class shares

Portfolio Management Team

Heartland Value Plus Fund Portfolio Management Team

31 years of industry experience
25 years of experience at Heartland

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Bradford A. Evans

Evans, CFA, is Senior Vice President and Portfolio Manager of the Value Plus Fund and its corresponding separately managed account strategy. He has 22 years of industry experience, 19 at Heartland.

Andrew J. Fleming

Fleming, CFA, is Vice President and Portfolio Manager of the Value Plus Fund and its corresponding separately managed account strategy. He has 9 years of industry experience, 6 at Heartland.

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News & Investing Perspectives

Water & Wells
11/12/2018
Heartland Advisors Value Investing Portfolio Manager Bradford A. Evans

Challenges of a Post-Peak World

A look at how inflecting profit margins may ratchet up risk for borrowers.

Heartland in the News
10/19/18
Heartland Advisors Value Investing Portfolio Manager Andrew Fleming

Why Fundamentals are Key to Navigating Today’s Cross Currents

Portfolio Manager Andrew J. Fleming, CFA, shares how a conflicted macro backdrop has spurred investors to once again chase momentum.

Heartland in the News
10/5/2018
Heartland Advisors Value Investing Small Cap Value Plus Management Team

Value Plus Fund Recognized by The Wall Street Journal

Fund’s performance earns “Category King” recognition.

Heartland in the News
8/16/18
Heartland Advisors Value Investing Portfolio Manager Bradford A. Evans

Sticking to Fundamentals in a Market Priced for Perfection

Portfolio Manager Bradford A. Evans, CFA, discusses today’s lofty valuations and how he continues to find compelling opportunities.

Heartland in the News
7/24/18
Heartland Advisors Value Investing Portfolio Manager Andrew Fleming

Heartland PM: We’re ‘Staying Small & Sticking Close to Home’

Andrew J. Fleming, CFA, analyzes the current market environment and shares his outlook for the quarters ahead.

Water & Wells
7/19/2018
Heartland Advisors Value Investing Portfolio Manager Bradford A. Evans

Climbing a Wall of Perfection

Why piling into companies with margins at historic peaks could set the stage for disappointment.

Heartland in the News
7/6/2018
Heartland Advisors Value Investing Small Cap Value Plus Management Team

Value Plus Fund a 'Category King'

The Wall Street Journal recognized the Fund’s performance.

Water & Wells
5/7/18
Heartland Advisors Value Investing Portfolio Manager Bradford A. Evans

Addition Through Subtraction: Do Fewer Analysts Create Opportunity?

The shrinking number of sell-side analysts could be a boon for active small-cap investors.

Performance

Average Annual Total Returns
  • Month-End
  • Quarter-End
  • Annual
2/28/2019

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Since Inception (%)20-Year (%)15-Year (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD* (%)QTD* (%)
Value Plus
Investor Class
9.879.427.1312.012.7315.375.7117.2917.29
Value Plus
Institutional Class
9.989.577.3212.282.9515.585.9617.3517.35
Russell 2000® Value9.759.517.5515.436.4814.954.4215.2515.25
*Not annualized
12/31/2018

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Since Inception (%)20-Year (%)15-Year (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD* (%)QTD* (%)
Value Plus
Investor Class
9.248.136.548.36-0.576.54-13.13-13.13-20.49
Value Plus
Institutional Class
9.358.276.728.62-0.366.73-12.95-12.95-20.45
Russell 2000® Value9.218.236.9110.403.617.37-12.86-12.86-18.67
*Not annualized
  2018 (%) 2017 (%) 2016 (%) 2015 (%) 2014 (%) 2013 (%) 2012 (%) 2011 (%) 2010 (%) 2009 (%) 2008 (%)
Value Plus Investor Class -13.13 9.81 26.77 -17.41 -2.70 34.15 11.38 -5.37 28.50 26.37 -17.88
Value Plus Institutional Class -12.95 10.07 26.89 -17.20 -2.45 34.53 11.67 -5.07 28.85 26.70 -17.71
Russell 2000® Value -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

12/31/2018

Since inception of the investor class, 10/26/1993 to 12/31/2018
Chart represents a hypothetical example of an investment in the Value Plus Fund representing historical returns

Heartland Value Plus Fund Growth of 10000 Chart

Morningstar Ratings™ in Small Value Category
  • Investor Class
  • Institutional Class
Morningstar Ratings TM
2/28/2019
RatingTotal Funds
Overall2389
10-Year1233
5-Year2342
3-Year4389
Morningstar Ratings TM
2/28/2019
RatingTotal Funds
Overall2389
10-Year1233
5-Year2342
3-Year4389

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 5/1/2018, the Gross Fund Operating Expenses for the investor and institutional class of the Value Plus Fund are 1.19% and 0.97%, 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 Plus Fund is 10/26/1993 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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12/31/18
Heartland Value Plus Fund Portfolio Manager Commentary

Heartland Value Plus Fund 4Q18 Portfolio Manager Commentary

We remain confident that while the pace of earnings growth may slow in 2019, underlying economic fundamentals remain relatively solid.

Portfolio Composition

Characteristics

12/31/2018

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CharacteristicValue PlusRussell 2000® Value
Holdings 41-
Assets $313 million-
Assets in Dividend-Paying Companies 67.9% -
Median Market Cap $1.6 billion$607 million
Weighted Average Market Cap $2.4 billion$1.8 billion
Trailing 1-Year Turnover 70.6% -

Capitalization Breakdown
12/31/2018
Cap Range% of Equities in Portfolio
>$15 billion0.0
$2.5-15 billion36.8
$300 million-2.5 billion58.7
<$300 million4.5

The above breakdown does not include short-term investments.

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

12/31/2018

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

Heartland Value Plus Fund Valuation Analysis Charts 1Heartland Value Plus Fund Valuation Analysis Charts 2

Sector Allocation

12/31/2018

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

Heartland Value Plus Fund Sector Charts 1Heartland Value Plus Fund Sector Charts 2

Top 10 Holdings
12/31/2018

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TickerHolding% of Net AssetsIndustry
THGThe Hanover Insurance Group Inc.4.26Insurance
PKEPark Electrochemical Corp.3.98Electronic Equipment Instruments & Components
POWLPowell Industries, Inc.3.33Electrical Equipment
AVDAmerican Vanguard Corp.3.25Chemicals
WIREEncore Wire Corp.3.18Electrical Equipment
ASBAssociated Banc-Corp.3.14Banks
MDCM.D.C. Holdings, Inc. 3.12Household Durables
HWCHancock Whitney Corporation3.02Banks
MEIMethode Electronics, Inc.2.96Electronic Equipment Instruments & Components
DRQDril-Quip, Inc.2.86Energy Equipment & Services
% of Total Net Assets33.10

Sector-Level Attribution

12/31/2018

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Security-Level Attribution & Contribution

12/31/2018

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5-Year Risk Analysis

  • Investor Class
  • Institutional Class
12/31/2018

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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)
Active Share
Value Plus-4.0717.331.08-0.70-0.0792.10112.4988.6795.38
Russell 2000® Value0.0015.051.000.000.20100.00100.00100.000.00

*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.

12/31/2018

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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)
Active Share
Value Plus-3.8717.321.08-0.66-0.0692.67112.0288.6095.38
Russell 2000® Value0.0015.051.000.000.20100.00100.00100.000.00

*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)
12/27/2018 12/28/2018   0.32280 - -
12/27/2017 12/28/2017   0.04556 - -
12/28/2016 12/29/2016   0.19593 - -
12/28/2015 12/29/2015   0.20797 - 1.90702
12/29/2014 12/30/2014   0.06825 0.30014 2.84734
12/26/2013 12/27/2013   0.16431 0.54157 3.30825
12/26/2012 12/27/2012   0.35668 0.20864 0.60760
12/28/2011 12/29/2011   0.183006 - 0.319936
12/30/2010 12/31/2010   0.078769 - -
12/28/2010 12/29/2010   - - 0.160541
  3/30/2010   3/31/2010   0.019995 - -
  3/30/2010   3/31/2010   0.001223 - -
12/30/2009 12/31/2009   0.081006 - -
  9/29/2009   9/30/2009   0.016893 - -
  6/29/2009   6/30/2009   0.013335 - -
  3/30/2009   3/31/2009   0.074305 - -
  9/29/2008   9/30/2008   0.023100 - -
  6/27/2008   6/230/2008   0.031991 - -
  3/28/2008   3/31/2008   0.048473 - -
12/26/2007 12/27/2007   - 0.366103 3.707176
  9/27/2007   9/28/2007   0.218534 0.213593 0.602828
  6/28/2007   6/29/2007   0.047600 - -
  3/29/2007   3/30/2007   0.154655 - -

 

Record
Date
Payable
Date
   Ordinary Dividend
($/share)
Short-Term Capital
Gain ($/share)
Long-Term Capital
Gain ($/share)
12/27/2018 12/28/2018   0.40925 - -
12/27/2017 12/28/2017   0.12164 - -
12/28/2016 12/29/2016   0.22625 - -
12/28/2015 12/29/2015   0.31363 - 1.90702
12/29/2014 12/30/2014   0.18133 0.30014 2.84734
12/26/2013 12/27/2013   0.28097 0.54157 3.30825
12/26/2012 12/27/2012   0.45243 0.20864 0.60760
12/28/2011 12/29/2011   0.284872 - 0.319936
12/30/2010 12/31/2010   0.138722 - -
12/28/2010 12/29/2010   - - 0.160541
  3/30/2010   3/31/2010   0.032692 - -
  3/30/2010   3/31/2010   0.013036 - -
12/30/2009 12/31/2009   0.093645 - -
  9/29/2009   9/30/2009   0.026711 - -
  6/29/2009   6/30/2009   0.022818 - -
  3/30/2009   3/31/2009   0.118031 - -
  9/29/2008   9/30/2008   0.038800 - -
  6/27/2008   6/30/2008   0.039712 - -

 

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

The Value Plus Fund invests in small 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 70) 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.

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

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.

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.

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 2/28/2019 Morningstar Ratings™: The Heartland Value Plus Fund investor class was rated against 233, 342, and 389 U.S.-domiciled Small Value funds over the 10-, 5-, and 3-year periods and received 1, 2, and 4 stars, respectively.
As of 2/28/2019 Morningstar Ratings™: The Heartland Value Plus Fund institutional class was rated against 233, 342, and 389 U.S.-domiciled Small Value funds over the 10-, 5-, and 3-year periods and received 1, 2, and 4 stars, respectively.

Heartland Advisors defines market cap ranges by the following indices: micro-cap by the Russell Microcap®, small-cap by the Russell 2000®, mid-cap by the Russell Midcap®, large-cap by the Russell Top 200®.

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.

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

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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