Kempen (Lux) Global Small-cap Fund - Class I GBP

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 2019-02-28 (rebased)

No chart data available

Performance per 2019-02-28

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  Fund Benchmark
1 month 1.6 % 2.6 %
3 months -0.6 % -0.4 %
This year 9.1 % 9.6 %
2016 46.2 % 34.4 %
2017 17.1 % 12.0 %
2018 -4.8 % -8.5 %
1 year (on annual basis) 7.8 % 2.7 %
3 years (on annual basis) i 19.5 % 15.4 %
Since inception (on annual basis) i 14.8 % 12.0 %
Performance is shown after deduction of ongoing charges. 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. This share class (I-GBP) of the Kempen (Lux) Global Smallcap Fund (the Fund) was launched on the 22st of June 2018. Performances shown in periods before the launch date of the (I-GBP) share class are those of Kempen (Lux) Global Smallcap Fund share class (I-EUR). The track record is adjusted by converting the return series from the EUR share class into GBP return series by compounding the original returns and the returns of the currency spot prices from the 8th of July 2014 until the launch date of the GBP Class.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 438.87 M 2019-02-28
Share class size
GBP 2.66 M 2019-02-28
Number of shares
2,705 2019-02-28
Net Asset Value i
GBP 1,008.22 2019-03-22

Fund characteristics per 2019-02-28

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  Fund Benchmark
Number of holdings 76 4343
Dividend yield i 2.36 % 2.01 %
Weighted average market capitalization i EUR 2,379 M EUR 2,966 M
P/E ratio i 14.74
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. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

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 2019-02-28

During the month of February the recovery continued with the Fund (I-class) up 3.7% and the MSCI World Small-cap index up 4.5%. Year-to-date the Fund is up 14.5%. After four consecutive months of outperformance, the Fund (I-class) underperformed its benchmark by 0.8% over the month. Substantially all the underperformance was driven by stock selection in the sectors IT and industrials. February was another month where value underperformed growth as a style. Following market volatility in 4Q18, both the equity market and the Kempen global small-cap strategy sharply corrected in January and February of 2019. Year-to-date, the strategy is up 14.5%, just underperforming the benchmark. Taking a longer-term view, over the last three years the strategy is well ahead of the benchmark (more than 400bps after-cost). In 2019 we aim to further expand our strong track record based on bottom-up stock selection. Given today's valuation levels, we will continue to carefully monitor market and portfolio developments. In addition, we intend to where possible make use of volatility during the earnings season.

Three top contributing stocks during the month of February were Dairy Crest Group (+33%), Sleep Number Corporation (+22%) and Strategic Education (+21%). Dairy Crest Group's stock was up 33% in February as the Canadian company Saputo made a cash bid for the company which is supported by the board of Dairy Crest. The board did not follow an official process and did not contact potential other bidders. Additionally, none of the key shareholders have yet agreed on the deal, nor is there a breakup fee. The bid was slightly below our target price and we see potential for a higher take out price (another company could launch a competing bid or Saputo could sweeten the deal). For now we stick to our position. Sleep Number Corporation's stock was up 22% in February after reporting strong Q4 results. We took some profits after the run-up in the stock price, but still like the positioning of the company. Strategic Education's stock was up 21% in February, largely due to competing firms reporting strong results. The company itself reported strong results on March 1st.

Negative contributors in February were Western Forest Products (-8%), EnerSys (-12%), and DeNA (-12%). The share price of Western Forest Products declined by 8% in February. Western Forest Products is a specialized lumber producer, selling predominantly into the North American market. Poor weather conditions in North America resulted in weak industry statistics on newbuilt and renovations for the start of the year. This in combination with more structural concerns about the US housing market, did not help share price performance. We believe the current inventory levels throughout the value chain are low, which should result in a recovery of the average selling prices of lumber going into the spring season. Moreover, Western Forest is well positioned with its niche lumber business and furthermore benefits from upgrade programs to improve production efficiency going forward. EnerSys (-12%), a global leader in battery solutions for electric forklift trucks and reserve power for telecom operators, reported disappointing quarterly results. This disappointment was, in our view, mainly explained by telecom operators delaying their 5G investments. While we anticipate increased demand for data and speed in telecom and broadband applications, we believe these investments are needed and hence the current depressed spending level is merely a temporary effect. We added to our position in response to the share price weakness. DeNA’s shares declined 12% in February as the company came out with a profit warning. The prospects for next fiscal year are bright however and the stock trades significantly below intrinsic value in our view.

 

The latest Quarterly you will find here.

Portfolio developments per 2019-02-28

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. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

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 2019-02-28 (rebased)

No chart data available

Performance per 2019-02-28

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  Fund Benchmark
1 month 1.6 % 2.6 %
3 months -0.6 % -0.4 %
This year 9.1 % 9.6 %
2016 46.2 % 34.4 %
2017 17.1 % 12.0 %
2018 -4.8 % -8.5 %
1 year (on annual basis) 7.8 % 2.7 %
3 years (on annual basis) i 19.5 % 15.4 %
Since inception (on annual basis) i 14.8 % 12.0 %
Performance is shown after deduction of ongoing charges. 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. This share class (I-GBP) of the Kempen (Lux) Global Smallcap Fund (the Fund) was launched on the 22st of June 2018. Performances shown in periodsbefore the launch date of the (I-GBP) share class are those of Kempen (Lux) Global Smallcap Fund share class (I-EUR). The track record is adjusted by converting the return series from the EUR share class into GBP return series by compounding the original returns and the returns of the currency spot prices from the 8th of July 2014 until the launch date of the GBP Class.

Dividends

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Distributing
No

Risk analysis (ex post) per 2019-02-28

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  3 years Since inception
Maximum drawdown i -13.91 % -13.91 %
Tracking error i 4.31 % 4.92 %
Information ratio i 0.95 0.56
Beta i 0.95
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. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

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 (2019-02-28)

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  Contribution i Performance i
Dairy Crest Group 0.49 % 32.74 %
Sleep Number 0.28 % 22.10 %
Strayer Education 0.25 % 20.42 %
Teradyne 0.21 % 14.57 %
Thermon Group 0.21 % 8.66 %

Bottom 5 contribution (2019-02-28)

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  Contribution i Performance i
Dena -0.34 % -11.87 %
Enersys -0.25 % -11.78 %
Western Forest Products -0.18 % -7.83 %
Luxfer (US) -0.09 % -4.83 %
West Fraser Timber -0.09 % -16.70 %

Geographic allocation (2019-02-28)

51.7 %
North America
30.2 %
Europe Middle East and Africa (EMEA)
12.1 %
Japan
3.3 %
Other
2.7 %
Asia Pacific ex Japan
Totaal
100 %
The cash position is included in ‘Other’.

Top 10 holdings (2019-02-28)

3.0 %
Brunswick
3.0 %
Dena
2.8 %
First Solar
2.6 %
Thermon Group
2.4 %
Fujitec
2.2 %
LHC Group
2.1 %
Western Forest Products
2.0 %
RenaissanceRe
2.0 %
Vesuvius
2.0 %
Otello Corp
Totaal
24.2 %

Sector allocation (2019-02-28)

24.5 %
Industrials
23.3 %
Financials
12.3 %
Technology
11.4 %
Consumer goods
9.1 %
Consumer services
7.0 %
Basic Materials
5.0 %
Health Care
3.3 %
Other
2.9 %
Oil & gas
1.2 %
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. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

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
0.70 %
Service fee i
0.20 %
Taxe d'abonnement i
0.01 %
Expected ongoing charges i
0,91 %

Other costs

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Upward swing factor i
0.30 %
Downward swing factor i
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. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

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
I - GBP i
Investor type
Institutional
Distributing
No
Benchmark i
MSCI World Small Cap Index
Investment category
Small-caps
Universum
Global Small- & Mid-caps
Inception date
2018-06-22
Domicile
Luxembourg
May be offered to professional investors only in
Luxembourg, The Netherlands, United Kingdom
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
GBP
Management company
Kempen Capital Management N.V.
Custodian
J.P. Morgan Bank Luxembourg S.A.

Tradability

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Minimum subscription
Initial subscription £50,000, additional subscriptions £10,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU1833119990
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. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

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. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

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. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

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.