In the first quarter of 2013, the KEELEY All Cap Value Fund (KACVX, Financial) climbed 14.55 percent compared to a 12.26 percent increase for the Russell 3000 Value Index. Over the trailing six month period ending March 31, 2013, the Fund rose 18.74 percent compared to a 14.11 percent increase for the Russell 3000 Value Index.
We have been pleased with the Fund’s performance over the past six months and believe we are carrying a great deal of positive momentum into the latter half of 2013. Strong stock selection was the primary driver of the Fund’s outperformance, although our sector allocation also had a positive impact. All ten sectors of the Russell 3000 Value Index generated positive returns during this period, with seven of ten producing double digit returns. Our stock selection was led by strong holdings in the industrials, energy, and consumer discretionary sectors.
From a sector perspective, we do not anticipate significant changes in the near-term. The portfolio is maintaining a cyclical bias, with overweight positions in the industrials and consumer discretionary sectors. Additionally, the Fund’s holdings in financials have increased in recent years (over 26%), and is now almost in-line with the Russell 3000 Value Index. The portfolio also has exposure to more defensive sectors, such as healthcare, which is overweight the benchmark at almost 13 percent.
Sincerely,
Edwin C. Ciskowski
Assistant Portfolio Manager
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Average annual total return measures annualized change, while total return measures aggregate change.
We have been pleased with the Fund’s performance over the past six months and believe we are carrying a great deal of positive momentum into the latter half of 2013. Strong stock selection was the primary driver of the Fund’s outperformance, although our sector allocation also had a positive impact. All ten sectors of the Russell 3000 Value Index generated positive returns during this period, with seven of ten producing double digit returns. Our stock selection was led by strong holdings in the industrials, energy, and consumer discretionary sectors.
From a sector perspective, we do not anticipate significant changes in the near-term. The portfolio is maintaining a cyclical bias, with overweight positions in the industrials and consumer discretionary sectors. Additionally, the Fund’s holdings in financials have increased in recent years (over 26%), and is now almost in-line with the Russell 3000 Value Index. The portfolio also has exposure to more defensive sectors, such as healthcare, which is overweight the benchmark at almost 13 percent.
Sincerely,
 |  | |
| John L. Keeley, Jr. | Brian R. Keeley | |
| President and CIO | Assistant Portfolio Manager |
Edwin C. Ciskowski
Assistant Portfolio Manager
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Average annual total return measures annualized change, while total return measures aggregate change.
