Kempen (Lux) Global Small-cap Fund - Class BN

Profile

Kempen (Lux) Global Small-cap Fund (the Fund) invests primarily in global smaller listed companies, with maximum market value at the time of the initial purchase of €4bn, or the highest value of any company included in the benchmark, whichever is greater. The benchmark is the MSCI World Small Cap Index. The Fund primarily aims to generate a better long-term return than the benchmark.

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

Jan Willem Berghuis, Maarten Vankan, Chris Kaashoek, Luuk Jagtenberg

Performance per 2019-01-31 (rebased)

No chart data available

Performance per 2019-01-31

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  Fund Benchmark
1 month 10.4 % 9.9 %
3 months 3.2 % -0.5 %
This year 10.4 % 9.9 %
2016 26.1 % 16.1 %
2017 12.5 % 7.7 %
2018 -5.6 % -9.5 %
1 year (on annual basis) 4.3 % -0.4 %
3 years (on annual basis) i 15.9 % 10.3 %
Since inception (on annual basis) i 12.3 % 9.4 %
Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The value of your investments may fluctuate. Past performance provides no guarantee for the future. As of 30 June 2018 a deviating Net Asset Value (NAV) is used for the calculation of the performance figures. This NAV is calculated based on closing prices of the Fund investments thereby deviating from the NAV which was originally issued and partly calculated based on snapshots (Asia & Pacific investments). The deviating NAV is used to make a better comparison with the benchmark, which is also solely based on closing prices of the investments.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 400.22 M 2019-01-31
Share class size
EUR 102.73 M 2019-01-31
Number of shares
2,560,562 2019-01-31
Net Asset Value i
EUR 41.68 2019-02-18
Morningstar rating â„¢
Morningstar Analyst rating
Bronze

Fund characteristics per 2019-01-31

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  Fund Benchmark
Number of holdings 76 4362
Dividend yield i 2.38 % 2.08 %
Weighted average market capitalization i EUR 2,345 M EUR 2,794 M
P/E ratio i 9.14 15.08
Active share i 97.74 %
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

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.

Market developments per 2019-01-31

During the month of January we have seen a strong recovery with the Fund (I-class) up 10.4% and the MSCI World Small-cap index up 9.9%. The Fund (I-class) outperformed its benchmark by 0.5% over the month. Substantially all the outperformance was driven by stock selection. During the volatility in 4Q18, the strategy corrected on an absolute basis but outperformed versus our benchmark. We are pleased that in the strong recovery in January the Fund also outperformed its benchmark. In 2019 we aim to further expand our strong track record based on bottom-up stock selection.

Three top contributing stocks during the month of January were First Solar (+19%), MRC Global (+27%) and Tenneco (+26%). First Solar rose 19% in January, helped by a strong performance of technology stocks and some positive broker comments partly based on the announcement of some large new solar farms in North America. MRC Global was up 27% in January as the stock rebounded from December lows. MRC, as a leading distributor of pipes, valves and fittings used in the oil & gas industry, sold off in December as the market worried the elevated oil price volatility would lead to depressed upstream capex spending in 2019. With the oil price recovery in January the market started to price in an, in our view, more realistic set of expectations, which caused the stock to recover. Tenneco’s share price was up 26% in January after a very weak end of the previous year. Tenneco is a leading supplier of automobile emission control and suspension systems. Automotive suppliers, including Tenneco, sold off during December on fears of a global recession and increased raw material costs due to trade tariffs. Market sentiment regarding both moderated in January, which caused the stock price of Tenneco to rebound.

Negative contributors in November were Sydbank (-3%), Strategic Education (-4%), and Hikma (-4%). We bought a position in Sydbank in November 2018 after the Q3 profit warning. In December the company lowered guidance again, mainly related to negative investment portfolio earnings, which we believe is less relevant for the structural earnings potential of the company. We believe Sydbank is attractively valued at 9x P/E, particularly now that earnings estimates have come down substantially. Strategic Education's stock was down 4% in January. There was no company specific newsflow. This is a defensive stock that did well in 2018 (+33% in USD terms), but the stock underperformed in the reversal of the market in January. Hikma’s shares declined 4% in January after a stellar performance in 2018. We do not see any company specific reason for the relative weak performance in January other than a broker downgrade.

 

The latest Quarterly you will find here.

Portfolio developments per 2019-01-31

The Fund invests world-wide in smaller companies (small-caps). One attractive feature of small-caps is that they are generally monitored by a small number of analysts, which leaves plenty of opportunity to add value as active investors. When looking for new investment opportunities, screening is applied to reduce the investment universe to a manageable size of 500 companies. We screen for companies that are of above-average quality and that are attractively valued. Extensive fundamental analysis is done on both existing portfolio companies and new portfolio candidates. This includes analysis of the company’s public filings (like annual reports) and comprehensive dialogues with the management teams of companies that we invest in. For each stock we base our investment decision on an extensive investment case, which is supported by a proprietary financial model. ESG topics (Environmental, Social and Governance) are fully integrated in our investment process. The result is a well-diversified portfolio of 60-90 companies spread across sectors and regions. Many portfolio companies have leading positions in the niche markets in which they operate. The companies in the portfolio typically have robust balance sheets and high returns on capital employed, which indicates that these companies are structurally capable of increasing shareholder value via their operations. The portfolio has a more attractive price earnings ratio versus the benchmark.
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

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.

Performance per 2019-01-31 (rebased)

No chart data available

Performance per 2019-01-31

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  Fund Benchmark
1 month 10.4 % 9.9 %
3 months 3.2 % -0.5 %
This year 10.4 % 9.9 %
2016 26.1 % 16.1 %
2017 12.5 % 7.7 %
2018 -5.6 % -9.5 %
1 year (on annual basis) 4.3 % -0.4 %
3 years (on annual basis) i 15.9 % 10.3 %
Since inception (on annual basis) i 12.3 % 9.4 %
Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The value of your investments may fluctuate. Past performance provides no guarantee for the future. As of 30 June 2018 a deviating Net Asset Value (NAV) is used for the calculation of the performance figures. This NAV is calculated based on closing prices of the Fund investments thereby deviating from the NAV which was originally issued and partly calculated based on snapshots (Asia & Pacific investments). The deviating NAV is used to make a better comparison with the benchmark, which is also solely based on closing prices of the investments.

Dividends

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Distributing
Yes
Last dividend
EUR 0.30
Ex-datelast dividend
2019-01-21
Number of distributions per year
2
Dividend calendar

Risk analysis (ex post) per 2019-01-31

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  3 years Since inception
Maximum drawdown i -14.17 % -14.17 %
Tracking error i 4.53 % 4.90 %
Information ratio i 1.22 0.60
Beta i 1.02 0.96
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

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.

Top 5 contribution (2019-01-31)

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  Contribution i Performance i
First Solar 0.51 % 18.68 %
MCR Global 0.38 % 27.00 %
Tenneco 0.34 % 25.82 %
Thermon Group 0.32 % 13.10 %
LHC Group 0.30 % 12.21 %

Bottom 5 contribution (2019-01-31)

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  Contribution i Performance i
Strayer Education -0.05 % -3.99 %
Sydbank A/S -0.04 % -3.59 %
Hikma Pharmaceuticals -0.04 % -3.86 %
Argo Group -0.01 % -1.20 %
Boiron -0.00 % -1.40 %

Geographic allocation (2019-01-31)

52.7 %
North America
30.0 %
Europe Middle East and Africa (EMEA)
11.3 %
Japan
3.2 %
Other
2.8 %
Asia Pacific ex Japan
Totaal
100 %
The cash position is included in ‘Other’.

Top 10 holdings (2019-01-31)

3.0 %
Brunswick
2.9 %
Dena
2.7 %
First Solar
2.5 %
Thermon Group
2.3 %
LHC Group
2.3 %
Western Forest Products
2.0 %
Otello Corp
2.0 %
RenaissanceRe
2.0 %
Luxfer (US)
2.0 %
Vesuvius
Totaal
23.8 %

Sector allocation (2019-01-31)

24.0 %
Industrials
23.3 %
Financials
12.7 %
Technology
11.2 %
Consumer goods
9.5 %
Consumer services
6.8 %
Basic Materials
5.0 %
Health Care
3.2 %
Other
3.0 %
Oil & gas
1.3 %
Telecommunications
Totaal
100 %
The cash position is included in ‘Other’.
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

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.

Ongoing charges

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Management fee i
0.75 %
Service fee i
0.20 %
Taxe d'abonnement i
0.05 %
Expected ongoing charges i
1 %

Other costs

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Upward swing factor i
0.30 %
Downward swing factor i
0.25 %
As of 1 January 2018 the swing factor has been adjusted from 0.30%/0.30% to 0.30%/0.25%.
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

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.

Share class details

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Share class
BN i
Investor type
Private
Distributing
Yes
Benchmark i
MSCI World Small Cap Index
Investment category
Small-caps
Universum
Global Small- & Mid-caps
Inception date
2014-07-08
Domicile
Luxembourg
May be offered to all investors in
Belgium, Germany, Italy, Luxembourg, Spain, Switzerland, The Netherlands, United Kingdom
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Management company
Kempen Capital Management N.V.
Custodian
J.P. Morgan Bank Luxembourg S.A.
Morningstar rating â„¢
Morningstar Analyst rating
Bronze

Tradability

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Minimum subscription
Initial subscription €1
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU1078127419
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

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.
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

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.

KCM Vision

Kempen Capital Management is an asset manager with a long-term investment approach. We strongly believe in engaged shareholdership that benefits all stakeholders. As a long-term responsible investor, we firmly believe that active ownership and shareholder engagement contribute to positive change across the board.

Our KCM wide approach to responsible investment

To put our vision into action we engage with our investment targets on a wide array of strategic, financial, environmental, social and governance (ESG) topics. Our long-term investment worldview paired with thorough analysis and an experienced and diverse ESG team allow us to use both voting and engagement as means to consistently encourage positive change. Through this process of constructive engagement, we are able to contribute to the development of principles and standards of corporate responsibility within companies that we invest in. Our full voting records are available here.

Our fund approach to Responsible Investment

Exclude

Screen on controversies using MSCI ESG research

Exclude companies based on UNGC criteria

Exclude tobacco, weapons producers, pornography and gambling companies.

Avoid companies with high ESG risk in Quick Scan

Integrate

Form own ESG opinion and score in investment case (1-5)

Look for sustainable business models and practices

Require higher return for lower ESG score

Engage

Review ESG profile of portfolio on quarterly basis

Take responsibility by engaging with companies

Document all engagement and controversial voting items

Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

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.