Dean Large Cap Value Fund (DALCX)
Download Large Cap Value Fund Factsheet
Investment Objective
The Dean Large Cap Value Fund seeks long-term capital appreciation and, secondarily, dividend income.
Principal Strategies
The Fund primarily invests in large cap companies with market capitalizations equal to,or greater than, the median capitalization of companies included in the Russell 1000 Value Index* at the time of investment. As of June 30, 2009, the median market capitalization of companies listed on the Russell 1000 Value Index was $3.1 billion. The Fund’s portfolio managers utilize a multi-factored valuation method to identify companies that are trading below intrinsic value or that may have been overlooked by the marketplace. The portfolio managers consider such factors as a company’s normal earnings power, its discounted cash flows, as well as various ratios, including the price-to-earning or price-to-book value ratios. The Fund’s portfolio managers evaluate companies using fundamental, bottom-up research. The Fund seeks to preserve capital in down markets and to diversify its portfolio in traditional, as well as relative, value-oriented investments.
The portfolio managers look for stocks of companies that they believe are undervalued at the time of purchase. The managers use a value investment strategy that looks for companies that are temporarily out of favor in the market. The managers attempt to purchase the stocks of these undervalued companies and to hold each stock until it has returned to favor in the market and the price has increased to, or is higher than, a level the managers believe more accurately reflects the fair value of the company.
Companies may be undervalued due to market declines, poor economic conditions, actual or anticipated bad news regarding the issuer or its industry, or because they have been overlooked by the market. To identify these companies, the portfolio managers look for companies with earnings, cash flows and/or assets that are not accurately reflected in the companies market values. The managers may also consider whether the companies securities have a favorable dividend and/or interest-paying history and whether such payments are expected to continue.
The portfolio managers may sell stocks from the Fund's portfolio if they believe:
- a stock no longer meets their valuation criteria;
- a stock's risk parameters outweigh its return opportunity;
- more attractive alternatives are identified; or
- specific events alter a stock's prospects.
Under normal circumstances, the Fund will invest at least 80% of its net assets in equity securities of U.S. and foreign small cap companies directly, or indirectly, through other investment companies (including exchange-traded funds) that invest primarily in U.S. and foreign small cap companies. Equity securities in which the Fund and underlying funds may invest include common stocks, securities convertible into common stocks (such as convertible bonds, convertible preferred stocks and warrants), and equity real estate investment trusts (REITs). Equity REITs trade like common stocks and invest directly in real estate, or other readily marketable securities that are issued by companies investing in, or that are secured by, real estate or real estate interests. The Fund may invest in foreign small cap companies directly or through depository receipts such as American Depository Receipts (ADRs) and Global Depository Receipts (GDRs). Generally, ADRs, in registered form, are denominated in U.S. dollars and are designed for use in the U.S. securities markets, while GDRs, in bearer form, may be denominated in other currencies and are designed for use in multiple foreign securities markets. ADRs are receipts typically issued by a U.S. bank or trust company evidencing ownership of the underlying foreign securities, while GDRs are foreign receipts evidencing a similar arrangement.
The Fund may invest its remaining assets in equity securities of small-cap or mid-cap companies, preferred stocks, or derivative instruments such as put and call options and futures contracts, and in fixed income securities, including corporate bonds.
* The Russell 1000 Index is an unmanaged index comprised of the 1,000 largest U.S. domiciled publicly-traded common stocks in the Russell 3000 Index (an unmanaged index of the 3,000 largest U.S. domiciled publicly-traded common stocks by total market capitalization representing approximately 98% of the U.S. publicly-traded equity market.) The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The returns of these Indexes do not reflect deductions for fees, expenses or taxes.
Principal Risks
An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency.
Equity and fixed-income securities are subject to inherent market risks and fluctuations in value due to changes in earnings, economic conditions, quality ratings and other factors beyond the control of the portfolio managers. Fixed-income securities and equities to a lesser extent are also subject to price fluctuations based upon changes in the level of interest rates, which will generally result in all those securities changing in price in the same way, i.e., all fixed-income securities experiencing appreciation when interest rates decline and depreciation when interest rates rise. As a result, there is a risk that you may lose money by investing in the Fund.
Preferred stocks, bonds, and fixed-income securities rated Baa or BBB have speculative characteristics and changes in economic conditions or other circumstances are more likely to lead to a weakened capacity to pay principal and interest or to pay the preferred stock obligations than is the case with higher grade securities.
Investment in securities of foreign issuers involves somewhat different investment risks from those affecting securities of domestic issuers. In addition to credit and market risk, investments in foreign securities involve sovereign risk, which includes local political and economic developments, potential nationalization, withholding taxes on dividend or interest payments and currency blockage. Foreign companies may have less public or less reliable information available about them and may be subject to less governmental regulation than U.S. companies. Securities of foreign companies may be less liquid or more volatile than securities of U.S. companies.
You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund's prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a current copy of the Funds' prospectus by calling 1-888-899-8343, or send your request to Shareholder Services at Unified Fund Services, Inc., P.O. Box 6110, Indianapolis, IN 46206-6110. Past performance is no guarantee of future results. Your Fund shares, when redeemed, may be worth more or less than their original cost.
Distributed by: Unified Financial Securities, Inc., 2960 North Meridian Street, Suite 300 , Indianapolis, IN 46208 (member FINRA).