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 2018-09-30 (rebased)

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Performance per 2018-09-30

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  Fund Benchmark
1 month -2.2 % -1.8 %
3 months 2.9 % 3.2 %
This year 8.2 % 8.6 %
2015 6.0 % 5.5 %
2016 46.2 % 34.4 %
2017 17.1 % 12.0 %
1 year (on annual basis) 17.0 % 13.4 %
3 years (on annual basis) i 25.6 % 20.6 %
Since inception (on annual basis) i 17.5 % 15.4 %
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 343.63 M 2018-09-30
Share class size
GBP 2.44 M 2018-09-30
Number of shares
2,346 2018-09-30
Net Asset Value i
GBP 950.01 2018-11-14

Fund characteristics per 2018-09-30

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  Fund Benchmark
Number of holdings 73 4346
Dividend yield i 2.18 % 1.83 %
Weighted average market capitalization i EUR 2,436 M EUR 3,070 M
P/E ratio i 10.20 17.32
Active share i 97.77 %
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 2018-09-30

In September the Fund (I-class) was down 1.7%, versus a 1.3% decline in the MSCI World small-cap index. Year-to-date, the Fund (I-class) is up 8.2% vs the benchmark return of 8.3%. Despite some value style headwinds year-to-date we managed to perform in line with the benchmark year-to-date. The MSCI World small-cap value index is up 4.2% year-to-date. On 26 September we hosted a round table on small-cap investing in London. In its presentation MSCI Research described that clients increasingly allocate to a broader opportunity set, increasing the exposure to more international markets and to small-caps. We were also pleased that the Mr Alok Maskara shared his perspective on being CEO of listed small-cap company Luxfer. He confirmed that small-caps are underresearched and smaller companies can benefit from having engaged long-term shareholders like ourselves.

Three top contributing stocks during the month of September were Smartone (+31%), Pendragon (+14%) and Sleepnumber (+9%). SmarTone, a Hong Kong mobile telecom operator, saw its share price increasing by 31% in September. Over the last year, the company has been adversely affected by increased competition on price by a few others telecom players in Hong Kong. As of September, the competitive behaviour turned more rational, with one of the companies leading recent price cuts now started to raise prices again. This more benign pricing environment will positively help earnings momentum at SmarTone. Pendragon’s stock price increased 14% in September. There was no significant stock specific news last month. The stock is still materially undervalued if Pendragon can maintain its historic margin profile. Sleep Number Corporation stock moved up 9% in September. Labor day weekend is the most important weekend in the US for mattress retailers. According to channel checks sales were strong during that weekend. Also, the market started discounting the upcoming bankruptcy filing of competitor Mattress Firm.

Negative contributors in September were First Solar (-7%), AA (-13%), and Delek (-22%). First Solar's shares were down 7% last month. First Solar's shares are under pressure this year due to a slowdown in Chinese demand. First Solar's orderbook gives visibility until 2020, while the balance sheet comprising of net cash and solar projects representing US$34 per share provides further downside protection. Shares of the AA, the leading UK based roadside assistance operator, declined by 13% in September, after the company announced interim results. While the financial results in itself were not really posing a surprise (the company already published a trading statement and reiterated its full-year guidance), short term earnings momentum was adversely impacted by conscious investments in the business as well as affected by the worst weather conditions in the last 15 years in the UK. As long-term shareholders we are willing to look beyond this short-term earnings pressure. New CEO Simon Breakwell embarked on an extensive investment plan to remain future-proof in road assistance and to grow the insurance offering. We had a meeting with the CEO and CFO in London immediately after the earnings announcement. While we believe management is making the right investments to strengthen the company´s position for the mid to long-term, it is too soon to expect to see the first effects from these investments already. We continue to monitor the situation carefully. Delek's shares were down 22% over the month, after a surge in the share price in the first half of 2018. As the biggest customer of Midland crude, Delek benefits from the wide crude differentials resulting from a shortage in crude oil takeaway capacity in the Permian. Specifically, limited pipeline capacity allowed Delek to purchase discounted crude at the source in Midland and sell product priced off dearer WTI and Brent benchmarks. Recently, rumours about a new pipeline out of the Permian pressured sentiment, and the market stated pricing a convergence in crude prices. We expect differentials to remain wide, though to a lesser extent than in the summer, resulting from strong crude oil production out of the Permian and still tight pipeline capacity until late 2019. Delek is exceptionally well positioned to benefit from this.

 

The latest Quarterly you will find here.

Portfolio developments per 2018-09-30

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 2018-09-30 (rebased)

No chart data available

Performance per 2018-09-30

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  Fund Benchmark
1 month -2.2 % -1.8 %
3 months 2.9 % 3.2 %
This year 8.2 % 8.6 %
2015 6.0 % 5.5 %
2016 46.2 % 34.4 %
2017 17.1 % 12.0 %
1 year (on annual basis) 17.0 % 13.4 %
3 years (on annual basis) i 25.6 % 20.6 %
Since inception (on annual basis) i 17.5 % 15.4 %
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.

Dividends

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Distributing
No

Risk analysis (ex post) per 2018-09-30

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  3 years Since inception
Maximum drawdown i -4.79 % -10.75 %
Tracking error i 4.64 % 4.90 %
Information ratio i 1.07 1.29
Beta i 0.91
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 (2018-09-30)

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  Contribution i Performance i
SmarTone Telecommunications 0.32 % 31.79 %
Pendagron 0.19 % 12.78 %
Sleep Number 0.17 % 9.34 %
SpareBank 1 SR-Bank ASA 0.14 % 7.66 %
Enersys 0.14 % 5.39 %

Bottom 5 contribution (2018-09-30)

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  Contribution i Performance i
Delek US Energy -0.21 % -22.18 %
Automobile Association -0.20 % -12.41 %
First Solar -0.17 % -6.84 %
Teradyne -0.16 % -9.87 %
MCR Global -0.16 % -8.77 %

Geographic allocation (2018-09-30)

56.0 %
North America
27.3 %
Europe Middle East and Africa (EMEA)
11.5 %
Japan
2.8 %
Asia Pacific ex Japan
2.3 %
Other
Totaal
100 %
The cash position is included in ‘Other’.

Top 10 holdings (2018-09-30)

3.1 %
Thermon Group
3.0 %
Luxfer (US)
3.0 %
Trinity Industries
2.8 %
LHC Group
2.6 %
Enersys
2.6 %
Brunswick
2.4 %
First Solar
2.4 %
Dena
2.3 %
Spirit Airlines
2.1 %
Vesuvius
Totaal
26.2 %

Sector allocation (2018-09-30)

25.0 %
Industrials
22.6 %
Financials
12.7 %
Technology
11.6 %
Consumer services
11.4 %
Consumer goods
5.4 %
Health Care
5.3 %
Basic Materials
2.4 %
Oil & gas
2.3 %
Other
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. 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.