The fund is a newly created series of Keeley Funds, Inc. and offers two share classes, Class A (KALVX) and Class I (KALIX). It will be managed using an alternative strategy, combining the research of Keeley Asset Management with the active risk management techniques of the fund’s sub-adviser, Broadmark Asset Management LLC, according to the announcement.
The fund will seek to provide incremental downside market protection through Broadmark’s tactical hedging process. Its investment objective is to achieve long-term capital appreciation, as well as to protect capital during adverse market conditions.
For the equity investments, the fund intends to pursue its investment objective by investing in companies with small and mid-size market capitalizations, currently defined as $7.5 billion or less. The adviser will focus the equity investments primarily on individual stocks undergoing corporate restructuring including corporate spin-offs, companies emerging from bankruptcy, companies selling at or below actual or perceived book value, savings and loan and insurance conversions, and distressed utilities, the announcement said.
John L. Keeley Jr. will serve as portfolio manager for the long-only equity exposure of the fund, which will be constructed similar to the KEELEY Small-Mid Cap Value Fund (KSMVX). Christopher J. Guptil of Broadmark will serve as portfolio manager of the tactical risk management segment of the strategy.
The annual operating expense ratio of the KEELEY Alternative Value Fund Class A share is capped at 1.89% until April 1, 2011 and includes a 0.25% annual 12b-1 fee and a 1.6% investment advisory fee on the balance of average daily net assets. The minimum initial investment is $2,500 for both non-retirement and IRA accounts. The minimum subsequent investment is $50 for all account types.
The annual operating expense ratio of the KEELEY Alternative Value Fund’s Class I share is capped at 1.64% until April 1, 2011 and includes a 1.6% investment adviser fee on the balance of average daily net assets. The minimum initial investment is $1,000,000 with a subsequent investment minimum of $10,000.
Registered investment advisers may purchase Class I (institutional) shares on behalf of their clients with less than $1 million per account, if the total investment of all investing client accounts is $1 million or more. Other institutional investors, such as defined contribution plans, may also qualify for purchasing institutional shares with less than $1 million per account, subject to certain specified conditions.
To learn more about KEELEY Alternative Value Fund, contact Jim Stamper, Vice President, at 312.786.5059 or firstname.lastname@example.org.
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