The Fund seeks long-term capital appreciation through international small cap companies, with an emphasis on dividends.
For more than 25 years, Heartland Advisors' fundamental research has discovered attractive investments in the U.S. and around the globe. With the inception of this Fund, our investment process, driven by the 10 Principles of Value Investing™, is applied to smaller dividend-paying companies outside the U.S.
In this video and transcript, International Research Analyst Michal Poustovoi explains why we believe the current global debt crisis provides investors with an opportunity to take advantage of depressed valuations in emerging markets.
Many international businesses that fit Heartland's investment criteria are located in countries where living standards and economies appear to be vibrant and resilient. In fact, over the next few years, about 90% of the growth in world GDP is projected to come from non-U.S. countries.*
Historically, international dividend payers have offered attractive yields and captured less volatility, potentially minimizing downside risk.**
As the chart shows, over the past 10 years, the small cap value international index has outperformed both its U.S. small cap counterpart and the broader U.S. market. The Heartland International Value Fund seeks to capture this long-term appreciation potential and offer diversification.
Source: FactSet Research Systems, Inc. and Standard & Poor's. The MSCI AC World Index ex USA Small Cap Value is intended to be representative of international small value stocks, the focus of the Fund. The Index is a total return index, reported in U.S. dollars based on share prices and reinvested net dividends from 44 countries and is not available for purchase.
Past performance does not guarantee future results.
Index returns are for illustrative purposes only, do not represent actual Fund performance, and do not reflect any management fees, transaction costs or expenses. For actual Fund performance, please see our most recent Fund Factsheet or call 877-484-6838. All indices mentioned are unmanaged. It is not possible to invest directly in an index.
*International Monetary Fund, World Economic Outlook Database, 4/10 and Heartland Advisors; Bloomberg Finance, L.P., 1/6/11.
**Bloomberg Finance, L.P. and Heartland Advisors, 9/5/10 and 9/20/10.
*Census.gov, 12/2/11. **Bloomberg Finance, L.P., 1/6/11. ***"Global population to pass 10 billion by 2100, UN projections indicate," UN News Centre, 5/3/11. ****"International Trade Statistics 2011," World Trade Organization. *****"Within a Generation, China Middle Class Four Times Larger than America's," Forbes, 9/5/11.
Foreign securities have additional risk, including but not limited to, exchange rate changes, political and economic upheaval, and relatively low market liquidity. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund's performance, may decline in response to such risks.
The Fund invests primarily in small companies selected on a value basis. Such securities generally are more volatile and less liquid than those of larger companies and there is risk that their intrinsic values may not be recognized by the broad market.
There is no assurance that dividend-paying stocks will mitigate volatility.
Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indicies or financial products. This report is not approved or produced by MSCI.
Investment Objective: The Fund seeks long-term capital appreciation with modest current income.
There can be no assurance that the Fund will grow to or maintain an economically viable size, in which case the Board of Trustees may determine to liquidate the Fund.
The Morgan Stanley Capital International (MSCI) All Country World Index ex USA Small Cap Value Index is a market capitalization weighted index that is designed to measure the equity market performance of the small cap value segments of developed and emerging markets, excluding the U.S. The index consists of 44 country indices comprising 23 developed and 21 emerging market country indices. All indices are unmanaged. It is not possible to invest directly in an index.
S&P 500 Index is an index of 500 U.S. stocks chosen for market size, liquidity and industry group representation and is a widely used U.S. equity benchmark. All indices are unmanaged. It is not possible to invest directly in an index.
Russell 2000 Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. All indices are unmanaged. It is not possible to invest directly in an index.
Gross Domestic Product (GDP) is the market value of the goods and services produced by labor and property.
The above individuals are Registered Representatives of ALPS Distributors, Inc.
The Fund is a series of the Trust for Professional Managers.
For additional information, refer to the prospectus or call Heartland at 877-484-6838.
Versus its benchmark, the Heartland International Value Fund is overweighted to Japan. Our "When Stocks Yield More than Bonds" report about the Japanese market explains our rationale, including:
Important Notice to Investors Residing Outside the United States: The Fund is offered for sale only in the United States and certain U.S. territories. Although you may obtain prospectuses and other information about the Fund at this web site, we will mail prospectuses and other information only to addresses in the United States and will accept only new account applications that contain an address in the United States and certain U.S. territories.