| Investment Process |
| Portfolio Highlights |
| Fund Returns |
| Daily Prices (NAVs) |
| Money Market Yields |
| Top Holdings & Industries |
| Prospectuses |
(800) 421-4184
(727) 567-8143
High Yield Bond Fund Profile (as of 6/30/08)
Key Facts (as of 6/30/08)
| Class | Inception | Symbol | Fund Cusip |
| A Shares | 3/1/90 | HRIDX | 42724E-205 |
| C Shares | 4/3/95 | HHYCX | 42724E-502 |
| Total net assets | $32.71 million | ||
| Total number of holdings | 193 | ||
| Initial minimum investment | $1,000 + | ||
| Retirement account minimum | $500 + | ||
| Subsequent investment | No minimum | ||
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+ Shareholders may establish an automatic investment plan with an initial investment of $50 and subsequent investments of $50 per month. |
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Top Holdings, Industries and Asset Allocation (as of 6/30/08)
| Top Holdings | Top Industries | ||
| Energy PIK 11.25% 144AL | 3.78% | Financial Services | 13.53% |
| Belden & Blake 8.75% 7/15/12 | 2.53% | Electric | 7.31% |
| SemGroup 8.75% 11/15/15 144AL | 1.99% | Commercial Services | 7.02% |
| Norcraft Holdings 0-9.75% 9/1/12 | 1.85% | Oil and Gas | 6.73% |
| Wind Pik FRN 12/21/11 | 1.76% | Telecommunications | 6.35% |
| True Move 10.75% 12/16/13 144AL | 1.73% | ||
| AAC Group Holdings Corp 0-10.25% 10/1/12 | 1.69% | ||
| NXP BV 9.50% 10/15/2015 | 1.65% | Asset Allocation | |
| CCH I LLC 11.00% 10/1/15 | 1.64% | Invested Portfolio | 95.08% |
| Ford Motor Credit CO 12.00% 5/15/15 | 1.64% | Cash/Other | 4.92% |
The information provided above should not be construed as a recommendation to buy, sell or hold any particular security. The data is shown for informational purposes only and is not indicative of future portfolio characteristics or returns. Portfolio holdings are not stagnant and may change over time without prior notice. |
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Performance Highlights
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Average annual total returns for periods through June 30, 2008. |
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| (excluding sales charge) |
(including sales charge) |
Expense ratio |
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| Class A shares | ||||
| Life of class (3/1/90) | 6.66% | 6.44% | 1.65% | |
| 15-year | 5.26% | 4.99% | ||
| 10-year | 3.92% | 3.52% | ||
| 5-year | 5.59% | 4.79% | ||
| 3-year | 3.01% | 1.71% | ||
| 1-year | -6.01% | -9.54% | ||
| Year-to-date (not annualized) |
-2.09% | -5.76% | ||
Class C shares |
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| Life of class (4/3/95) | 5.17% | 5.17% | 2.18% | |
| 10-year | 3.35% | 3.35% | ||
| 5-year | 5.02% | 5.02% | ||
| 3-year | 2.41% | 2.41% | ||
| 1-year | -6.49% | -6.49% | ||
| Year-to-date (not annualized) | -2.34% | -3.28% | ||
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*Performance data quoted represents past performance which does not guarantee future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Net performance reflects a front-end sales charge of 3.75% for A shares. A 1% CDSC for C shares is charged on redemptions made within 12 months of purchase, but not at one year. The Fund's investment advisor, Heritage Asset Management, Inc. has contractually agreed to waive or reimburse certain fees and expenses through February 28, 2009. Performance data quoted reflects reinvested dividends and capital gains. Current performance may be higher or lower than the performance data quoted. To obtain more current performance, please visit the Returns and Prices section of the website. Past performance does not guarantee future results. Please consider the investment objectives, risks, charges, and expenses of any fund carefully before investing. Contact Heritage at (800) 421-4184 or your financial advisor for a prospectus, which contains this and other important information about the funds. Read the prospectus carefully before you invest or send money. Not FDIC insured. No bank guarantee. May lose value. Heritage Fund Distributors, Inc., Member FINRA. 880 Carillon Parkway, St. Petersburg, FL 33716 |
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Investment Process
The team's investment approach is top-down, integrating macro-economic views with fundamental and relative-value analysis regarding industry and issuer opportunities.
The portfolio management team believes in-depth knowledge of the inherent credit risk in individual issues is the most important factor in managing risk in the portfolio. The management team includes sector-specialist teams dedicated to research and analysis of high-yield issuers. The portfolio managers and covering security-analyst must endorse an individual issue before it can be added to the portfolio.
Portfolio Highlights
Fund management strives to achieve a stronger total return over yield as a defensive measure for the portfolio in volatile markets.
Investing in the fund may offer investors additional spendable income or income payments may be reinvested for added growth potential.
The fund consists primarily of domestic fixed-income securities. Fund management focuses on diversifying the fund by market sector, company and by asset class, seeking to invest in high yield issues with risk and return characteristics that can endure in various markets.
A Word about Risk
High yield bonds are not suitable for all investors. Investing in high yield securities involves greater risks of loss than an investment in investment grade bonds. These risks include increased volatility and default risk.
| Fund Objective |
Seeks high current income, by investing in a portfolio of lower- and medium-rated high yield, fixed-income securities.
Meet the Managers
A team of investment professionals from Western Asset Management led by chief investment officer S. Kenneth Leech, deputy chief investment officer Stephen A. Walsh and portfolio manager Michael C. Buchanan are responsible for the day-to-day management of the fund. The team assumed management of the fund effective April 1, 2006. Leech has 30 years of investment experience and earned an MBA, BS and BA from The Wharton School, University of Pennsylvania. Walsh has 26 years of investing experience and earned a BS degree from University of Colorado at Boulder. Buchanan is a chartered financial analyst with 18 years of investment experience. He earned a BA from Brown University.
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