HEARTLAND VALUE FUND An investor should consider the Fund s investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information can be found in the Fund s prospectus. To obtain a prospectus, please call 800-432-7856 or visit heartlandadvisors.com. Please read the prospectus carefully before investing. The Heartland Funds are distributed by ALPS Distributors, Inc.
Risk Disclosure: The Value Fund seeks to capture long-term capital appreciation by investing in micro- and small-cap companies. The micro- and small-cap segment of the stock market is robust with thousands of publicly traded issues, many of which lack traditional Wall Street research coverage. Thus, we believe this market is often inefficient, mispricing businesses and offering opportunities for fundamental research-minded investors such as Heartland. The Fund utilizes Heartland s disciplined and time-tested 10 Principles of Value Investing TM, designed to capture upside potential while minimizing downside risk. The above guidelines are applied under normal market conditions, and may change over time. The returns and charts presented show historical patterns and are not intended to be indicative of any Heartland product, except as indicated. Past performance does not guarantee future results and there can be no assurance that historical patterns will continue, and if they did, how long they will continue. Current performance may differ due to market volatility. Because of ongoing market volatility, performance may be subject to substantial short-term changes. The value of the Fund s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions, which may cause loss of principal. The Value 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. Value investments are subject to the risk that their intrinsic value may not be recognized by the broad market. The statements and opinions expressed in this document are those of the presenter(s). Any discussion of investments and investment strategies represents the presenter s views as of the date created and are subject to change without notice. The opinions expressed are for general information only and are not intended to provide specific advice or recommendations for any individual. Any forecasts may not prove to be true. 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 as determined by Heartland Advisors may reference data from sources such as FactSet Research Systems, Inc. or the Global Industry Classification Codes (GICS) developed by Standard & Poor s and Morgan Stanley Capital International. Diversification does not eliminate the risk of experiencing investment losses. Indices: Dow Jones U.S. Total Stock Market Index which comprises all U.S. equity securities with readily available prices and includes sub indexes categorized by size segments which are based on full market capitalization rankings with Large-Cap including stocks ranked 1-750, Mid-Cap including stocks ranked 501-1000, Small- Cap including stocks ranked 751-2500, and Micro-Cap including stocks ranked 2501 and up. ishares Russell 2000 ETF: is an exchange-traded fund that seeks to generate investment results that correspond to the general price and yield of an index. Russell 2000 Index: includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. Russell 2000 Growth Index ( Growth ) measures the performance of those Russell 2000 companies with higher price-tobook ratios and higher forecasted growth characteristics. Russell 2000 Value Index: measures the performance of those Russell 2000 companies with lower price-tobook ratios and lower forecasted growth characteristics. 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 Investment Group: is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell is a trademark of the Russell Investment Group. Data Sourced from FactSet: Copyright 2017 FactSet Research Systems Inc., FactSet Fundamentals. All rights reserved. Definitions available on last page of presentation. All information is as of the most recent quarter-end unless otherwise noted. *Inception date: 12/28/1984 Source: FactSet Research Systems, Inc. and Russell In the prospectus dated 5/1/2017, the gross expense ratio for the investor class shares of the Value Fund is 1.09%. Past performance does not guarantee future results. Performance represents past performance; current returns may be lower or higher. 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. To obtain performance through the most recent month end, call 888-505-5180 or visit heartlandadvisors.com. 2
Heartland Advisors 3
*As of 6/30/2017. Amount team members have collectively invested in Heartland mutual fund products. Past performance does not guarantee future results. 4
5
As of 9/30/2017 Source: FactSet Research Systems Inc., Russell and Heartland Advisors, Inc. Price-based statistics shown are calculated as weighted median unless otherwise noted. 1 Weighted average. 2 Excludes cash and cash equivalents. 3 Based on 1-year returns and comparative statistics versus the Russell 2000 Value Index. EV: Enterprise Value; EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization Certain security valuations and forward estimates are based on Heartland Advisors' calculations. Any forecasts may not prove to be true. Economic predictions are based on estimates and are subject to change. Portfolio holdings are subject to change. Current and future holdings are subject to risk. 6
There is no guarantee that a particular investment strategy will be successful. Diversification does not eliminate the risk of experiencing investment losses. Past performance does not guarantee future results. 7
I. Source: Kenneth R. French and CRSP, 12/31/1990 to 6/30/2017 Derived from the US Stock Database 2016 Center for Research in Security Prices (CRSP), the University of Chicago Booth School of Business. Large-Cap, Mid-Cap, Small-Cap and Micro-Cap are defined as all equity securities listed on NYSE, Amex, NASDAQ and NYSE Arca that existed during the time period and were in the market capitalization deciles 1 through 2, 3 through 5, 6 through 8, and 9 through 10 respectively with 1 being the largest and 10 being the smallest. Small-cap and Large-cap investing each have their own unique risks and potential for rewards and may not be suitable for all investors. A small-cap investing strategy typically carries a higher liquidity risk than a large-cap investing strategy. The hypothetical example is for illustrative purposes only and does not represent the returns of any particular investment. All indices are unmanaged. It is not possible to invest directly in an index. Past performance does not guarantee future results. 8
II Source: FactSet Research Systems Inc., 9/30/1997 to 9/30/2017 Correlation table derived using Dow Jones U.S. Large-Cap Total Stock Market Index, Dow Jones U.S. Mid-Cap Total Stock Market Index, Dow Jones U.S. Small-Cap Total Stock Market Index, and Dow Jones U.S. Micro-Cap Total Stock Market Index to represent their respective market capitalization ranges. All indices mentioned are unmanaged. It is not possible to invest directly in an index Past performance does not guarantee future results. 9
III *Prior to October 2009, index domestic equity ETF data included fewer than 7 actively managed domestic equity ETFs. Exchange Traded Fund (ETF) Source: Investment Company Institute, 2017 Investment Company Fact Book, Washington, DC. Data shows cumulative flows to and net share issuance of domestic equity mutual funds and index ETFs. Equity mutual fund flows include net new cash flow and reinvested dividends. Data excludes mutual funds that invest primarily in other mutual funds. 10
Source: 2017 The Leuthold Group and Standard & Poor s, December 1966 to September 2017 Study includes all actively managed domestic large cap equity mutual funds in the Morningstar database, including discontinued funds. Chart shows the percent of funds and percent of fund assets outperforming the S&P 500 Index total return on a trailing 5-year basis after expenses, calculated quarterly. The percent of assets is calculated as the total assets of outperforming funds divided by total assets of all funds. For funds with multiple share classes, only one class is counted for performance measurement. Economic predictions are based on estimates and are subject to change. Past performance does not guarantee future results. 11
Source: Furey Research Partners, LLC and FactSet Research Systems Inc., as of 9/30/2017 Furey calculates figures for IWM by allocating a portion of each company s data point to the total based upon how much equity of each company the ETF held as a percentage of each stock s market capitalization based upon the most recently available filing as of 9/30/2017. By this methodology, loss-making companies effects are captured more accurately. Furey defines loss-making companies as the percentage of stocks that possess negative trailing 12 month net income. Furey defines loss-making companies as the percentage of stocks that possess negative trailing 12 month net income. As of 9/30/2017, ishares Russell 2000 ETF was not held in the Heartland Value Fund. Statements regarding securities are not recommendations to buy or sell. Portfolio holdings are subject to change. Current and future holdings are subject to risk. ishares Russell 2000 ETF is not distributed by ALPS Distributors, Inc. Past performance does not guarantee future results. 12
IV Source: Furey Research Partners, LLC and Russell, 12/31/1978 to 9/30/2017, annualized return over rolling 10-year periods Growth and value investing each have unique risks and potential for rewards and may not be suitable for all investors. A growth investing strategy emphasizes capital appreciation and typically carries a higher risk of loss and potential reward than a value investing strategy; a value investing strategy emphasizes investments in companies believed to be undervalued. Economic predictions are based on estimates and are subject to change. See last page for additional information. Past performance does not guarantee future results. 13
V As of 9/30/2017 *Inception date: 12/28/1984. Index source: FactSet Research Systems Inc. and Russell, and Standard & Poor s The above chart represents a hypothetical example of an investment in the Value Fund representing historical returns. In the prospectus dated 5/1/2017, the gross expense ratio for the investor class shares of the Value Fund is 1.09%. Past performance does not guarantee future results. Performance represents past performance; current returns may be lower or higher. 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. To obtain performance through the most recent month end, call 800-432-7856 or visit heartlandadvisors.com. 14
As of 9/30/2017, Radian Group Inc. represented 1.94% of the Value Fund's net assets. Source: FactSet Research Systems Inc. and Heartland Advisors, Inc. Certain security valuations and forward estimates are based on Heartland Advisors calculations. Statements regarding securities are not recommendations to buy or sell the securities discussed, but rather illustrations of our value investment strategy. Such statements represent the portfolio manager s view when made and are subject to change at any time based on market and other considerations. Portfolio holdings are subject to change. Current and future holdings are subject to risk. Past performance does not guarantee future results. 15
As of 9/30/2017, LGI Homes, Inc. represented 2.38% of the Value Fund's net assets. Source: FactSet Research Systems Inc. and Heartland Advisors, Inc. EPS: earnings per share Certain security valuations and forward estimates are based on Heartland Advisors calculations. Statements regarding securities are not recommendations to buy or sell the securities discussed, but rather illustrations of our value investment strategy. Such statements represent the portfolio manager s view when made and are subject to change at any time based on market and other considerations. Portfolio holdings are subject to change. Current and future holdings are subject to risk. Past performance does not guarantee future results. 16
17
18
The above individuals are registered representatives of ALPS Distributors, Inc. 19
CFA is a registered trademark owned by the CFA Institute. The above individuals are registered representatives of ALPS Distributors, Inc., except those indicated with *. 20
1 Of the Fund s assets 2 May hold cash equivalents during atypical markets 21
Index Source: FactSet Research Systems Inc. and Russell Shown as a percent of equity investments. Index sector weightings do not include unassigned holdings. Portfolio holdings are subject to change. Current and future holdings are subject to risk. Real Estate Sector classification was created under the Global Industry Classification Standard (GICS) structure after market close on 8/31/2016. Categorization of holdings under this new sector in the previous time period shown for comparison purposes only. 22
As of 9/30/2017 *Excludes cash equivalents Portfolio holdings are subject to change. Current and future holdings are subject to risk. For a complete list of the Fund s portfolio securities visit heartlandadvisors.com. 23
Source: Heartland Advisors, Inc., FactSet Research Systems, Inc. and Russell, 9/30/1985 to 9/30/2017 for rolling returns, 12/28/1984 to 9/30/2017 for cumulative returns Rolling returns computed monthly using 60- and 120-month moving windows. In the prospectus dated 5/1/2017, the gross expense ratio for the investor class shares of the Value Fund is 1.09%. Past performance does not guarantee future results. Performance represents past performance; current returns may be lower or higher. 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. To obtain performance through the most recent month end, call 888-505-5180 or visit heartlandadvisors.com. 24
As of 9/30/2017 *The Multi-Cap Value products generally invest in securities with market capitalization greater than $500M. Separately Managed Account (SMA). There is no assurance that dividend paying stocks will mitigate volatility. The Heartland Funds are distributed by ALPS Distributors, Inc. Separately managed accounts and related advisory services are provided by Heartland Advisors, Inc., a federally registered investment adviser. ALPS Distributors, Inc. is not affiliated with Heartland Advisors, Inc. 25
Active Share: is the percentage of a portfolio that differs from a benchmark index. Beta: is a measure of the sensitivity of a portfolio's rates of return against those of the market. A beta less than 1 indicates volatility less than that of the market. Book Value: is the sum of all of a company s assets, minus its liabilities. Correlation: is a statistical measure of how two securities move in relation to one another. A measure of 1 means the securities are highly correlated and move in conjunction. A measure of 0 means the securities are not at all correlated and do not move in conjunction. Debt/Equity Ratio: A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. Dividend Yield: is a ratio that shows how much a company pays out in dividends each year relative to its share price. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): measures a company s financial performance. It is used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions. Earnings Per Share: is the portion of a company s profit allocated to each outstanding share of common stock. Enterprise Value (EV): is the entire economic value of a company. Exchange Traded Fund (ETF): is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold. Free Cash Flow: is the amount of cash a company has after expenses, debt service, capital expenditures, and dividends. The higher the free cash flow, the stronger the company s balance sheet. Price/Book Ratio: of a company is calculated by dividing the market price of its stock by the company's per-share book value. Price/Cash Flow: represents the amount an investor is willing to pay for a dollar generated from a particular company's operations. It shows the ability of a business to generate cash and acts as a gauge of liquidity and solvency. Price/Earnings Ratio (P/E): of a stock is calculated by dividing the current price of the stock by its trailing or its forward 12 months earnings per share. Real Estate Investment Trust (REIT): is a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. Return on Equity: is a measure of the net income after taxes that a firm is able to earn as a percent of stockholders equity. Standard Deviation: is a measure of volatility of returns and is computed as the square root of the average squared deviation of the returns from the mean value of the return. Total Debt/Total Capital Ratio: of a stock is calculated by dividing the short- and long-term debt obligations of the company by its total capital, which is represented by the company's debt and shareholders' equity, which includes common stock, preferred stock, minority interest and net debt. US New Privately Owned Housing Units Started by Structure Index: The US Department of Commerce, Bureau of the Census, tracks private residential real estate activity for housing units started (seasonally adjusted annual rates) and includes total 1 unit, 2 unit, 3 & 4 units, 5 or more units. Additional Information for Page 13 Calendar Year Annual Returns (%) 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Russell 2000 Growth Index 20.37 20.17-17.41 51.19 7.77 13.37-2.43 31.04 11.26 12.95 1.23 43.09-22.43-9.23-30.26 Russell 2000 Value Index 29.47 12.43-21.77 41.70 29.14 23.77-1.54 25.75 21.37 31.78-6.45-1.49 22.83 14.02-11.43 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2017* Russell 2000 Growth Index 48.54 14.31 4.15 13.35 7.05-38.54 34.47 29.09-2.91 14.59 43.29 5.62-1.38 11.32 16.81 Russell 2000 Value Index 46.03 22.25 4.71 23.48-9.78-28.92 20.58 24.50-5.50 18.05 34.50 4.22-7.47 31.74 5.68 *As of 9/30/2017 Source: FactSet Research Systems Inc. and Russell Past performance does not guarantee future results. 26