Institutional Funds

McKinley Capital Dividend Growth Fund

Performance | Fact Sheet | Prospectus | Literature

The investment objective of the McKinley Capital Dividend Growth Fund (the "DG Fund") is to seek to achieve long-term capital growth. The DG Fund will principally invest in exchange traded or over the counter derivative instruments, such as futures, options and swaps, the value of which will be based upon the anticipated and subsequently realised cash dividends of the issuers of equity securities which are listed, traded or dealt on regulated markets. Accordingly, when the DG Fund enters into such a derivative transaction, the profit or loss that may be realised by the DG Fund under that transaction will depend on whether the anticipated or actual cash dividends in respect of a particular underlying security are greater or less than previously anticipated by the market. As the DG Fund will invest in derivative instruments, the DG Fund may have a leveraged portfolio, which leverage will not exceed 100% of the net asset value of the Fund. The issuers of the underlying equity securities may be located anywhere in the world (including the U.S. and Emerging Market countries); across all industries, sectors and product lines; and across a selection of small, medium and large capitalisation issuers. The DG Fund may also invest directly in the equities of such issuers that are expected to pay dividends and which are listed, traded or dealt on regulated markets. The DG Fund may also invest up to 10% of its net asset value in open-ended collective investment schemes and exchange traded funds (ETFs) within the meaning of Section 68(1)(e) of the European Communities (UCITS) Regulations 2011. The DG Fund may invest in the following: equity and equity-related securities, ordinary shares or common stock, ADRs, EDRs, GDRs, convertible preferred stocks, money market instruments, government securities, cash equivalent securities, Rule 144A and/or foreign equivalents, equity linked warrants, options, futures, swaps, currency transactions and repurchase agreements (repurchase agreements will be used only for efficient portfolio management purposes only and subject to the requirements of the Central Bank of Ireland). The DG Fund may also hold greater than 10% of its net asset value in cash and cash equivalents.

The DG Fund will principally invest in exchange traded or over the counter derivative instruments. Such investment in derivative instruments will be subject to the conditions and within the limits from time to time laid down by the Central Bank of Ireland. The DG Fund will not engage in directly selling securities short, but may enter into short derivatives contracts to gain indirect exposure to exchange traded securities, including in circumstances where the DG Fund's investment adviser believes that the market's anticipated dividends in respect of a particular securities are too high. The use of any leverage may negatively affect the total return to DG Fund investors if the value of the underlying collateral deteriorates.

The DG Fund will be actively managed with the objective of achieving excess market returns over a full market cycle of approximately three to five years. Due to the specialised nature of the transactions and availability of investments, brokerage fees and commissions and counterparty fees may be higher than if the DG Fund traded solely in listed equity transactions.

An investment in the DG Fund should be considered a long-term investment. The DG Fund is not intended to meet investors' short-term financial needs or to provide a complete or balanced investment programme. Shareholders should consider a minimum of a five year investment horizon when purchasing shares in the DG Fund.

An investment in the DG Fund should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors.

The DG Fund could be a suitable investment for investors who are looking for a fund that seeks capital growth over the long term (at least five years) and who are willing to accept fluctuations (possibly significant) in the net asset value per Share of the DG Fund during the short term.