Recent Research
2011 Research
Municipal Bond Investing: Have The Headlines Painted An Accurate Picture?
July 2011
While the headlines for municipal bonds have been negative, the fundamental outlook for municipal bonds remains a qualified positive. This paper outlines why tax-exempt securities should remain a core holding for your higher tax-bracket clients.
View our interactive tool to compare the tax equivalent yields of muni bonds at select income levels.
White Paper (791 KB, PDF)
Educational One-Pager (261 KB, PDF)
Why Mid-Caps?
March 2011
The updated white paper, entitled “Why Mid-Cap?”, reviews historical performance, evaluates current conditions that favor mid-caps, analyzes the performance of mid-caps during market and economic cycles and details why mid-cap stocks should be an important part of investor allocations.
View our interactive tool at addmidcap.com to compare mid-caps to large and small.
Dividend Dynamics: Assessing the Benefits of Dividend-Paying Stocks
February 2011
In this White Paper we give a historical perspective of dividends, highlight the five key benefits and discuss how the current market environment may impact the future demand for dividend-paying stocks. We conclude with our 2011 outlook and a summary of why investors should consider an allocation to an actively-managed dividend strategy.
Consider Two of the Benefits of Dividend-Paying Stocks:
- A Clear Signal of Corporate Financial Health. Dividends enhance earnings transparency of a company and exert a level of financial discipline on management. They also increase corporate accountability and can be a signal of management’s confidence for future growth prospects.
- Significant Source of Total Return. Dividend-paying securities offer the potential for both capital growth and income. Reinvested dividends have accounted for nearly 50% of equity total return since the 1930s.
View and download the full White Paper below and compare the performance of S&P 500 stocks by dividend policy with our interactive tool.
2010 Research
The Case for Bank Loans in a Rising Rate Environment
August 2010
At RidgeWorth, we believe investors should have exposure to Bank Loans in their portfolio, especially in rising rate environments. Our White Paper explains that Bank Loans have offered:
- A hedge against rate increases – Unlike traditional fixed rate bonds, the coupons of Bank Loans reset with increases in interest rates. Consequently, the sensitivity of a Bank Loan portfolio’s market value to changes in interest rates is small.
- Low correlation to other asset classes – Bank Loans held their value and generated added income in rising interest rate environments when the prices of fixed rate bonds declined.
- Downside protection – Bank Loan’s senior position in the capital structure may help manage downside risk if the economy takes a turn for the worse. Recovery rates for Bank Loans during the most recent downturn in 2008 was 62% vs. 34% for High Yield Bonds.
- Lower risk High Yield exposure – The risks typically associated with traditional High Yield products are mitigated since Bank Loans are high in the capital structure and usually have had higher recovery rates.
What are Bank Loans?
Bank Loans, commonly referred to as “floating rate loans,” are privately structured debt obligations issued by corporations, often rated below Investment Grade, that seek to raise capital. The most important feature of Bank Loans is their seniority in the capital structure (see Exhibit 1). Loans are primarily composed of first lien and senior-secured debt that takes precedence over other debt claims in the case of default or bankruptcy. Bank Loan coupons in general reset in line with the 1-, 3- or 6-month London Interbank Offered Rate (LIBOR). This floating rate feature lowers the interest rate risk of Bank Loans compared to other fixed income products. Also, many Bank Loan documents contain highly restrictive covenants that prevent companies from issuing additional debt if financial ratios would be pushed over certain predetermined levels.
White Paper (288 KB, PDF)
Time to Invest in Short-Term Bonds?
March 2010
This paper outlines why now may be an opportune time to invest in short-term bonds. We believe short-term bonds offer:
- Less downside risk relative to longer term bonds – since 1976 short-term bonds worst one-year performance was -0.2%, while long-term bonds worst one-year performance was -8.6%
- Solid long-term performance* – captured more than 75% of the return of their long-term counterparts
- Attractive risk/reward trade-off – the Sharpe Ratio far exceeds that of long-term bonds over all time periods
- Compelling investment opportunity created by current market environment – current low rates and uncertainty about future rates should shift short-term bonds to investors’ consideration set
- Incremental yield for investors with excess cash – for investors with excess cash reserves and greater than a one-year investment horizon, short-term bonds offer increased yield with a minimal degree of volatility
Why Mid-Caps?
March 2010
RidgeWorth has published a whitepaper highlighting that mid-caps have outpaced other cap sizes over the majority of time periods and shows that a portfolio with an allocation to mid-caps had a better risk/reward relationship than a portfolio without. To make learning about mid-caps more dynamic, a microsite that includes an interactive tool helps advisors easily demonstrate to their clients how mid-caps have consistently outperformed other cap sizes over the past 30 years.
White Paper (869 KB, PDF)
2009 Research
The Return of Spread Products
May 2009
Highlights the value opportunity RidgeWorth currently sees in fixed income products as a result of the 2008 credit crisis. Shows the dislocations in historical credit spreads and offers three compelling reasons to invest in higher-yielding fixed-income sectors.
Uncommon Opportunity in the Municipal Bond Market
May 2009
Discusses why the municipal bond market presents both average and affluent investors with an unprecedented investment opportunity. Includes a comparison of the 10-year Municipal and Treasury Bond Yields and discusses the confluence of events that created this investment opportunity.
The Case For Growth Investing
June 2009
Discusses why RidgeWorth believes growth stocks are poised for a rebound and explains the importance of active management. Includes a historical perspective and illustration on the rotation between growth and value stocks and highlights growth’s attractive valuations relative to value.
The Value of Dividend Investing
March 2009
Discusses why many investors are now rethinking their investment strategies and are returning to a “back to basics” strategy that gives dividends a more prominent role in their investment portfolios. Shows that dividend paying companies have outperformed non-dividend paying companies in four of the last five decades.
Understanding the Fixed Income Fund You Own
February 2009
Provides RidgeWorth’s perspective on fixed income mutual funds amid the worldwide popping of the greatest credit and debt bubble in modern times. Includes a historical perspective on the fixed income market, discusses how managers may have managed fixed income funds in 2008 and explains the implications for investors.
All investments involve risk. Information provided is general and educational in nature. This information may coincide or conflict with activities of the portfolio managers. It is not intended to be, and should not be construed as investment, legal, estate planning, or tax advice. RidgeWorth does not provide legal, estate planning, or tax advice.
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Shareholder Access
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- Daily Fund Performance
Daily Fund Performance
The most recent closing prices, yields and total returns of each RidgeWorth Fund.
- Fact Sheets
Fact Sheets
View quarterly information for each fund, including performance, Top 10 holdings, portfolio characteristics, modern portfolio theory statistics (equity only) and more.
- Performance Comparison
Performance Comparison
View a fund's performance relative to benchmarks and Morningstar and Lipper peer groups.
- 2011 Capital Gains Distributions (PDF 112 KB)
- RidgeWorth Funds Capital Gains Frequently Asked Questions (FAQs) (PDF 130 KB)
- Seix Floating Rate High Income Fund Fact Sheet (PDF 112 KB)
- High Income Fund Fact Sheet (PDF 97 KB)
- Total Return Bond Fund Fact Sheet (PDF 96 KB)
