Keeley Asset Management has launched the KEELEY Mid Cap Value Fund (KMCVX). John L. Keeley, Jr., CFA, the firm’s founder and Chief Investment Officer, will serve as portfolio manager to the fund.”Keeley Asset Management is best known for the KEELEY Small Cap Value Fund, a highly rated mutual fund which we launched in 1993, but we also have a track record of composite Mid Cap performance that dates back to 1990, so we are no strangers to managing Mid Cap portfolios,” says Keeley. “Mid Cap stocks have been among the best performers over the past quarter century and we think this investment category shows promise in the years to come.”
Like the small cap portfolio, the KEELEY Mid Cap Value Fund will focus on particular kinds of undervalued stocks: those that are going through major changes (corporate restructurings), including corporate spin-offs (a tax free distribution of a parent company’s division to shareholders, companies emerging from bankruptcy or selling at or below actual or perceived book value, savings and loan and insurance conversions, and distressed utilities.
The KEELEY Mid Cap Value Fund will focus on companies with market capitalizations between $1.5 billion and $10 billion. Investors are not likely to find many household name stocks in the fund. Says Keeley, “We tend to invest in companies to which Wall Street pays little attention and that other value managers avoid.”
The fund will not concentrate on any sector or industry. Current dividend or interest income is not a factor when choosing securities. Each stock will be judged on its potential for above-average capital appreciation.
The KEELEY Mid Cap Value Fund has a front-end sales charge of 4.5%. The fund will have a 1% management fee and a 12b-1 fee of 25 basis points. The minimum initial investment in the fund is $1000 and subsequent investments of $50 and initial IRA investment of $250 and subsequent investments of $50. The fund is administered by UMB Investment Services, Inc. and is distributed by Keeley Investment Corp., a member of NASD.SIPC. Please read the prospectus before investing or sending money.