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 70 - 100 stocks, well diversified across all regions and sectors.

Management team

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

Performance per 2017-07-31 (rebased)

No chart data available

Performance per 2017-07-31

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  Fund Benchmark
1 month -1.6 % -1.1 %
3 months -3.9 % -3.5 %
This year 2.6 % 0.4 %
2015 11.5 % 11.0 %
2016 26.1 % 16.1 %
3 years (on annual basis) i 14.9 % 12.7 %
Since inception (on annual basis) i 13.8 % 11.9 %
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.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 150.70 M 2017-07-31
Number of shares
1,819,246 2017-07-31
Net Asset Value i
EUR 35.33 2017-08-18
Morningstar rating â„¢

Fund characteristics per 2017-07-31

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  Fund Benchmark
Number of holdings 72 4314
Dividend yield i 1.93 % 1.87 %
Weighted average market capitalization i EUR 2,285 M EUR 2,689 M
P/E ratio i 15.47 18.00
Active share i 97.84 %
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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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 2017-07-31

In July 2017, the Fund was down 1.6% versus a 1.1% decrease in the benchmark. During July the relative performance was weak in North America and particularly in the sectors consumer discretionary and industrials. Year-to-date the Fund showed a total return of 2.7% outperforming the benchmark by 2.3%, which is almost fully the result of stock selection effects rather than allocation to sectors or regions.

Three top contributing stocks during the month of July were First Solar (+20%), Sparebank 1 SR (+13%), and Western Forest (+6%). First Solar's share price was up 20% in July supported by strong Q2 results and higher FY2017 guidance. The company was able to realise higher profit on the sale of existing projects and sees an improving demand for solar panels. First Solar reported bookings of 1.5 GW (GigaWatt) in the second quarter which is 50% of the annual production capacity of the company. The mid-to-late-stage pipeline of order opportunities increased from 3GW in Q1 to 8GW in Q2. First Solar remains one of our core positions. The shares of Sparebank 1 SR increased 13% in July in line with its Norwegian peers. There was hardly any company specific news. Despite the strong recent share price performance Sparebank SR1 trades at only 10x next year's earnings while achieving a healthy 10% return on equity. The share price of Western Forest Products (WFP) increased by 6% in July. Last month we already described the US imposed trade actions against Canadian softwood producers, including WFP. These actions were not worse than expected. This month there were some rumors about a potential trade agreement between the US and Canada. In any case, helped by strong end market demand, all lumber producers were able to successfully pass on these duties to customers through sales price increases. We continue to believe that WFP is well positioned to benefit from continued strong end market demand, while recent operational improvements help to further drive profitability.

Negative contributors in July were Spirit Airlines (-27%), LHC Group (-18%), and Del Frisco Restaurant Group (-15%). The stock price of Spirit was down 27% over the month as pilot-related disruption during peak time for summer bookings negatively impacted Q3 guidance. Spirit is in negotiations with its pilots over a new contract and in May a number of pilots unlawfully put down work. We are optimistic Spirit will reach an agreement without much further disruption. In addition, legacy carriers started matching Spirit ticket pricing. In our view, this is unsustainable, as legacy carriers’ unit costs are significantly higher and thus they lose money on each ticket they sell at Spirit’s prices. We added to our position after the drop in the share price. The share price of LHC Group declined by 18% in July. LHCG is a US based home health and hospice provider. The main reason for the decline in the stock price was the proposed payment change for Medicare home health agencies for 2018 and 2019 as announced by the Centers for Medicare & Medicaid Services (CMS). Our investment case does not change materially due to these proposed changes. The company has a leadership position in its industry and in our view it will be able to absorb these changes. Del Frisco's stock was weak in July as the company reported Q2 results below expectations. The company also lowered its full year outlook somewhat. Our long term investment case did not change. In our view Del Frisco has a very strong franchise and we have high conviction in the new management team. We think the stock price does not reflect the quality of this asset. We recently saw several insiders at Del Frisco buying shares which we view as a sign of confidence. This remains one of our core holdings.

We reached our 3-year track record on 8 July 2017. The annualised return (after costs) since inception is 14.4% compared to 12.2% for the MSCI Small Cap Index (8 July 2014 to 31 July 2017). We are pleased that we have been able to add value to the portfolios of our clients in the first 3 years of the fund. The assets under management have grown from EUR6m at the start to EUR151m by the end of July 2017. We expect to see continued interest from new investors in our fund particularly now we have reached a 3-year track record, which is a minimum requirement for many institutional investors. We would like to thank the investors in our fund for the trust and support we received in the last 3 years.

The latest Quarterly you will find here.

Portfolio developments per 2017-07-31

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 70-100 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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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 2017-07-31 (rebased)

No chart data available

Performance per 2017-07-31

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  Fund Benchmark
1 month -1.6 % -1.1 %
3 months -3.9 % -3.5 %
This year 2.6 % 0.4 %
2015 11.5 % 11.0 %
2016 26.1 % 16.1 %
3 years (on annual basis) i 14.9 % 12.7 %
Since inception (on annual basis) i 13.8 % 11.9 %
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.

Dividends

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Distributing
Yes
Last dividend
EUR 0.30
Ex-date last dividend
2017-07-24
Number of distributions per year
2
Dividend calendar

Risk analysis (ex post) per 2017-07-31

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  3 years Since inception
Maximum drawdown i -13.00 % -13.00 %
Tracking error i 5.24 % 5.18 %
Information ratio i 0.42 0.38
Beta i 0.93 0.94
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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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 (2017-07-31)

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  Contribution i Performance i
First Solar 0.45 % 19.61 %
SpareBank 1 SR-Bank ASA 0.22 % 12.60 %
Teradyne 0.19 % 11.43 %
Western Forest Products 0.19 % 6.04 %
Teradata 0.14 % 4.43 %

Bottom 5 contribution (2017-07-31)

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  Contribution i Performance i
Spirit Airlines -0.51 % -27.23 %
LHC Group -0.47 % -17.40 %
Del Frisco's Restaurant -0.45 % -14.67 %
Brunswick -0.22 % -12.59 %
Abercrombie & Fitch Co. -0.20 % -23.01 %

Geographic allocation (2017-07-31)

57.2 %
North America
23.6 %
Europe Middle East and Africa (EMEA)
14.6 %
Japan
2.7 %
Asia Pacific ex Japan
1.9 %
Other
Totaal
100 %
The cash position is included in ‘Other’.

Top 10 holdings (2017-07-31)

3.3 %
Teradata
3.2 %
Western Forest Products
3.1 %
Fujitec
2.8 %
Del Frisco's Restaurant
2.8 %
First Solar
2.3 %
LHC Group
2.1 %
Ubiquiti Networks
2.1 %
Opera Software
2.0 %
Trinity Industries
2.0 %
Delek US Energy
Totaal
25.6 %

Sector allocation (2017-07-31)

24.7 %
Industrials
21.6 %
Financials
14.8 %
Technology
12.6 %
Consumer services
9.8 %
Consumer goods
5.5 %
Basic Materials
4.7 %
Health Care
3.0 %
Oil & gas
1.9 %
Other
1.5 %
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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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
0.30 %
More about our swing pricing policy
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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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
Registered in
Belgium, Luxembourg, 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„¢

Tradability

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Minimum subscription
Initial subscription €1,000
Listed
no
Pricing 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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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.

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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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.