- Kempen
- Kempen Lux Global Small cap Fund Class A
Kempen (Lux) Global Small-cap Fund - Class A
Profile
The portfolio construction process involves a disciplined end to end framework initially utilizing proprietary in-house stock filters screening for high quality and attractively valued stocks. Thereafter, fundamental in-house research is carried out to identify high conviction investment ideas. The end result is a portfolio of approximately 60 - 90 stocks, well diversified across all regions and sectors
Management team
Performance per 2019-10-31 (rebased)
Performance per 2019-10-31
Fund | Benchmark | |
---|---|---|
1 month | 1.5 % | 0.4 % |
3 months | 1.3 % | 1.1 % |
This year | 16.2 % | 21.1 % |
2018 | -1.2 % | -5.8 % |
1 year (on annual basis) | 8.5 % | 9.6 % |
Since inception (on annual basis) i | 9.0 % | 8.6 % |
Key figures
Total fund size | EUR 630.26 M 2019-10-31 |
Share class size | EUR 7.76 M 2019-10-31 |
Number of shares | 270,911 2019-10-31 |
Net Asset Value i | EUR 30.59 2019-12-10 |
Fund characteristics per 2019-10-31
Fund | Benchmark | |
---|---|---|
Number of holdings | 67 | 4324 |
Dividend yield i | 2.65 % | 2.09 % |
Weighted average market capitalization i | EUR 2,787 M | EUR 3,090 M |
P/E ratio i | 13.01 | 16.97 |
Active share i | 97.61 % |
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.
The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Market developments per 2019-10-31
Three top contributing stocks during the month of October were Bed Bath & Beyond (+26%), West Fraser (+13%) and Fujitec (+12%). Bed Bath & Beyond's stock price rose 26% in the month of October which made it the highest contributing stock. The main news item was the announcement of the appointment of Mark Tritton as CEO. The stock has recovered nicely from the summer lows, but we still believe the current valuation is significantly below intrinsic value. West Fraser (+13%) reported weak quarterly results, but this was also anticipated by the financial market. The lumber market has been tough this year, but weak lumber market conditions are more than priced in at current share price levels, we believe. WFT is the largest and lowest-cost lumber producer in North America, has a solid balance sheet and is trading well below intrinsic valuation. Fujitec (+12%) the Japanese elevator and escalator company, pre-announced quarterly results that substantially exceeded expectations. Fujitec indicated that the business in China is the main reason for this higher profit level. Growth in new installations in China, in combination with the company’s reorganization efforts over the last 1.5 year, is driving better profitability.
Negative contributors in October were Argo Group (-14%), First Solar (-13%), and American Eagle Outfitters (-6%). Argo Group, a US insurance company, declined 14% in October as it pre-announced cat losses for recent hurricanes and typhoons. The company also reported losses in businesses that it previously exited but are still part of the insurance book. While the update was somewhat disappointing, we believe Argo should be able to create a double digit return on equity with the current book of business. First Solar reported Q3 results that came in below analyst expectations as some revenues have shifted from Q3 to Q4. The company, therefore, reiterated its FY 2019 guidance. First Solar is sold out for the coming two years at attractive margins providing strong visibility on earnings for FY 2020 and FY 2021. American Eagle Outfitters’ (AEO) stock declined 6% in October partly due to a broker downgrade that cited increased promotional activity. We share the view that there could be near term earnings risk, also in the fourth quarter, due to a very short holiday shopping season in the US. However, we believe the valuation of AEO is too attractive to ignore.
The latest Quarterly you will find here.
Portfolio developments per 2019-10-31
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.
The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Performance per 2019-10-31 (rebased)
Performance per 2019-10-31
Fund | Benchmark | |
---|---|---|
1 month | 1.5 % | 0.4 % |
3 months | 1.3 % | 1.1 % |
This year | 16.2 % | 21.1 % |
2018 | -1.2 % | -5.8 % |
1 year (on annual basis) | 8.5 % | 9.6 % |
Since inception (on annual basis) i | 9.0 % | 8.6 % |
Dividends
Distributing | No |
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.
The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Top 5 contribution (2019-10-31)
Contribution i | Performance i | |
---|---|---|
Bed Bath & Beyond | 0.65 % | 26.26 % |
Fujitec | 0.33 % | 11.48 % |
West Fraser Timber | 0.31 % | 12.77 % |
Brunswick | 0.28 % | 9.18 % |
Toshiba Plant Systems & Services | 0.23 % | 15.04 % |
Bottom 5 contribution (2019-10-31)
Contribution i | Performance i | |
---|---|---|
First Solar | -0.31 % | -12.65 % |
Argo Group | -0.17 % | -13.48 % |
American Eagle Outfitters | -0.12 % | -6.25 % |
MRC Global | -0.11 % | -8.49 % |
Hikma Pharmaceuticals | -0.11 % | -6.28 % |
Geographic allocation (2019-10-31)
Top 10 holdings (2019-10-31)
Sector allocation (2019-10-31)
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.
The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Ongoing charges
Management fee i | 1.50 % |
Service fee i | 0.20 % |
Taxe d'abonnement i | 0.05 % |
Expected ongoing charges i | 1,75% |
Other costs
Upward swing factor i | 0.30 % |
Downward swing factor i | 0.25 % |
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.
The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Share class details
Share class | A i |
Investor type | Private |
Distributing | No |
Benchmark i | MSCI World Small Cap Index |
Investment category | Small-caps |
Universum | Global Small- & Mid-caps |
Inception date | 2018-03-26 |
Domicile | Luxembourg |
May be offered to all investors in | Belgium, Finland, France, Germany, Italy, Luxembourg, Norway, Spain, Sweden, Switzerland, The Netherlands |
UCITS status i | Yes |
Status | Open-end i |
Base currency | EUR |
Share class currency | EUR |
Management company | Kempen Capital Management N.V. |
Depositary and custodian | J.P. Morgan Bank Luxembourg S.A. |
Tradability
Minimum subscription | Initial subscription €1 |
Listed | no |
Subscription/Redemption Frequency | Daily |
ISIN i | LU1078120166 |
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.
The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Factsheets
Annual Reports
Semi- Annual Reports
Key Investor Information
ESG Publications
Voting records
Formal documents other
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.
The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Kempen's vision & mission
Kempen Capital Management is an asset manager that believes in stewardship and investment focusing on the long-term for the benefit of all stakeholders. Value creation is at the heart of the services we provide to our clients. We believe that being an engaged shareholder on environmental, social and governance (ESG) issues and retaining a long-term focus, is critical to helping our clients to preserve and create sustainable wealth that has positive real world impact and economic returns.
Kempen wide approach to responsible investment
We are committed to create sustainable alpha. The four pillars of our ESG-policy are:
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ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.
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Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.
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Active ownership: Being responsible stewards of our clients’ capital and using our influence through engagement and voting to improve corporate behaviour on specific ESG issues and achieve positive change
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Positive impact: Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals.
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To put our mission and vision into practice we engage with our investee companies on a wide array of strategic, financial, and ESG topics. As an active owner we use our influence to improve our investee companies’ ESG performance. This helps us address some of the most pressing and important sustainability issues facing business and the world. Our focus themes for engagement are: human rights, labour rights, climate change and governance.
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Through collaboration with other investors and industry think tanks we contribute to the development of principles and standards of corporate responsibility both at sector levels, as well as investee company level.
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Our full voting records are available here.Â
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OUR FUND APPROACH TO RESPONSIBLE INVESTMENT
The investment objective of Kempen (Lux) Global Small-cap Fund is to offer investors the opportunity to invest in an actively and professionally managed portfolio of smaller listed companies worldwide, while at the same time complying with strict exclusion and sustainability criteria.
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We strive to invest in a portfolio of companies that has a carbon intensity well below the benchmark. Furthermore, we engage with the most carbon intense companies in our portfolio in order to improve disclosure and policies that should contribute to a reduction in carbon intensity.
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Kempen’s ESG policy is implemented in our fund’s investment process by the following pillars: Exclusion, Integration and Active ownership.
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Exclusion & Avoidance
In line with the general Kempen policy, the Global Small-cap Fund excludes all companies on the KCM Exclusion- or Avoidance list.
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Companies that ‘Fail’ or are on ‘Watchlist’ marked against the criteria of the United Nations Global Compact are excluded.
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We determine a company’s ESG score (1-5) and exclude companies with a score of 1. Companies with a score of 2 are excluded on a comply or explain basis.
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More information on our exclusion criteria and thresholds can be found here.
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The Global Small-cap Fund also excludes companies based on additional sustainability criteria as listed in the table below.
EXCLUSION CRITERIA KEMPEN (LUX) GLOBAL SMALL-CAP FUND | ||
 | KEMPEN CRITERIA | ADDITIONAL SUSTAINABILITY CRITERIA |
Business Conduct | Â | Â |
x    Human Rights | V |  |
x    Labour | V |  |
x    Environment | V |  |
x    Anti-corruption | V |  |
Product Involvement | Â | Â |
x    Controversial Weapons | V |  |
x    Tobacco | V |  |
x    Adult Entertainment |  | V |
x    Alcohol |  |  |
x    Animal Welfare & GMO |  | V |
x    Gambling |  | V |
x    Power Generation Nuclear |  | V |
x    Power Generation Carbon Intensive |  | V |
x    Thermal Coal |  | V |
x    (Un)conventional Oil & Gas Extraction |  | V |
x    Weaponry |  | V |
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ESG integrationÂ
In the investment process we assess the ESG profile of a company. We assess each company on a case-by-case basis, taking into account material risks in a given industry in combination with the company’s respective risk exposure, practices and disclosure.
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A lower score (1-5) requires a higher return as used in our Discounted Cash Flow (DCF) models. If ESG risks are deemed too severe, an investment in the company will be avoided and/or existing holdings will be sold.
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On a quarterly basis, the Kempen Responsible Investment team screens the holdings of the Kempen Global Small-cap Fund and discusses the findings with the portfolio managers.
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Active ownership: Engagement
As active investors we perform comprehensive engagements with our portfolio companies with the objective to unlock value and reduce risk.Â
Our engagement process defines clear objectives of which the progress and result is tracked and well documented. If at any stage the company refuses to cooperate, divestment has to be considered.
In the first half of 2019, we engaged with 20 companies on strategic, environmental, social and governance issues.
You can find the engagement factsheet of A&F here
You can find the factsheet of Kaiser Aluminium here
You can find the engagement factsheet of Western Forest here
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Active ownership: Voting
Exercising our voting rights is also an essential part of our responsible investment philosophy. ISS provides us with voting recommendations based on our own voting and governance policy. Items are further analyzed on a case by case basis.
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Often, we inform the company about our voting intention ahead of the meeting and, where there is a recommendation to vote against management, we ask the company to clarify their viewpoints. After careful analysis, we form our own opinion and vote accordingly.
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*
Although Kempen Capital Management N.V.’s information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the “ESG Partiesâ€), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
ESG Report






Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.
The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.