Mid Cap Dividend Value

Objective

Long-term capital appreciation and current income through investments in small and medium capitalization companies that we believe are undervalued and typically pay a dividend; companies generally have a market capitalization within the upper and lower boundaries of the Russell Mid Cap Value Index at time of purchase.

Approach

We seek to capitalize on the opportunities for long-term value creation that investing in smaller and mid-sized companies can offer, while mitigating the volatility typically associated with companies of this size through a focus on dividend-paying stocks. In challenging investment environments, we believe the quality of our dividend-focused portfolio—coupled with our attention to valuation—should provide some degree of downside market protection.

Process

We employ a fundamental bottom-up approach to stock selection. Our objective is to find companies with strong franchises and management teams, sound finances and ample cash flow that are trading below our assessment of intrinsic value.

Performance

Source: Keeley Teton Advisors, LLC / US Bank NA. Past performance does not guarantee future results. Quarterly and YTD returns are not annualized. Inception date of the strategy is October 31, 2010. Net-of-fees composite returns were calculated based upon the investment advisory fees for the client portfolios contained within the composite. Advisory fees are negotiable and a table of standard fees is contained in the firm’s Form ADV Part 2A which is available at no cost at Keeley Teton Advisors, LLC. All performance results are net of commissions and transaction costs, and have been presented gross and net of investment advisory fees for illustrative purposes. Dividend income is recorded on ex-dividend date or as soon after the ex-dividend date as the information becomes available to Keeley Teton Advisors, LLC. Interest income is recorded on the accrual basis. Performance results for the index includes reinvested dividends but, unlike the strategy’s returns, do not reflect the payment of sales commissions or other expenses incurred in the purchase or sale of the securities included in the index. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal will fluctuate so that an investor’s portfolio, when liquidated, may be worth less than the original cost/balance. As with any investment, there is a potential risk of loss. Smaller and medium-sized company stocks are more volatile and less liquid than larger, more established company securities.

The Russell Midcap® Value Index is an unmanaged index that measures the performance of the mid-cap value segment of the U.S. equity universe and includes those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The Russell Midcap® Index is an unmanaged index that measures the performance of the 800 smallest companies by market capitalization of the Russell 1000® Index. Index performance is presented for informational purposes.

The growth chart presented above represents cumulative performance with a beginning value of 100 at the inception date (10/31/2010) and is based on compounded monthly performance data (gross and net) versus the index shown. Direct investments into an index are not possible.